The Narendra Modi government has given a big gift to the farmers, which is being discussed everywhere. The government has directly increased the limit of Kisan Credit Card from Rs 3 lakh to Rs 5 lakh. That is an increase of Rs 2 lakh. Now farmers will be able to easily avail the benefits of Kisan Credit Card when they need money.
This facility will be applicable from the first date of the financial year i.e. April. This question must be arising in the minds of farmers how much interest will have to be paid on a loan of up to Rs 5 lakh? What interest rates has the government fixed on Kisan Credit Card, you can know all this in our article, where all your confusions will be resolved. Do you also want to know how much you will benefit? So let’s know.
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How much interest will have to be paid on the loan
Till now the government used to give a loan of up to Rs 3 lakh on Kisan Credit Card, but now it has been increased. Through this card, you will easily get a loan of up to Rs 5 lakh. Under the revised interest subsidy scheme, banks are also given an interest discount of up to 1.5 percent for providing short-term agricultural loans up to Rs 3 lakh at a concessional interest rate of up to 7 percent under the Kisan Credit Card.
If farmers repay the loan on time, an additional quick repayment benefit of 3 percent is given. In this way, farmers get an interest rate of up to 4 percent on credit cards. A large number of farmers take advantage of this scheme.
What does the government provide Kisan Credit Card for
Do you know that Kisan Credit Card is considered a banking product? It helps farmers a lot in purchasing agricultural commodities like seeds, fertilizers, and pesticides as well as meeting cash needs related to crop production and related activities.
In the year 2019, loans were also added to this scheme for facilities like animal husbandry, dairy and fisheries. From April 1, you will start getting loans up to Rs 5 lakh at a huge discount. The number of Kisan Credit Card accounts across the country has crossed 7.72 crores.
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