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Canara Bank Kisan Credit Card

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Updated: 30-05-2024 09:52:47 AM

Please Note: Canara Bank is not a Paisabazaar partner. Offers would be from partner Banks/NBFCs only.

Canara Bank has a dedicated product line catering to “Agriculture and Rural Credit”. It provides a wide range of products and solutions to this community. In this article, we will give you an overview about one of the products – Kisan Credit Card Scheme.

This scheme was first started by National Bank for Agriculture and Rural Development to provide a platform for short and medium term credit facility to farmers. The model was later implemented by many other financial institutions.

Objective of Canara Bank Kisan Credit Card
Eligibility Criteria for Canara Bank Kisan Credit Card
Security and Margin Requirements for Canara Bank Kisan Credit Card
Repayment Tenure

Objective of Canara Bank Kisan Credit Card

The Kisan Credit Card Scheme is one of the many ways through which Canara Bank supports the agricultural community in the country. Through this card, it ensures that farmers have easy access to credit for their cultivation or household requirements.

The key aspects which the Canara Bank Kisan Credit Card covers are:

  • Short-term fund or working capital requirements for farming
  • Expenses incurred towards the maintenance of assets such as sprayers, pump sets, etc.
  • Expenses incurred in allied activities such as dairy animals, etc.
  • Expenses incurred in the post-harvesting period for sale, marketing, transportation, etc.
  • Household and consumption requirements of the farmers

RuPay Card

Applicants under the Kisan Credit Card Scheme are provided with a RuPay enabled debit card. This card helps them to get quick and easy access to funds through a wide network of ATMs. It is also accepted at numerous POS terminals across the country.

Eligibility Criteria for Canara Bank Kisan Credit Card

People who meet the below mentioned criteria are eligible for the Canara Bank Kisan Credit Card:

  • Applicants should be at least 18 years old.
  • Farmers (including joint borrowers) who own a plot of agricultural land.
  • Farmers who are lessees, tenants or sharecroppers.
  • Groups such as Self-Help Groups and Joint Liability Groups.
  • Should not be tagged as a defaulter by any financial institution or body.

Security and Margin Requirements for Canara Bank Kisan Credit Card

Security Requirements

Canara Bank Kisan Credit card holders need to comply with the following security requirements:

  • Loan value up to Rs.1.5 Lakh: Hypothecation of assets or crops created out of the credit provided by Canara Bank.
  • Loan value exceeds Rs.1.5 Lakh: In addition to the hypothecation of assets or crops, there is a mortgage on properties.

Margin Requirements

Cardholders under the Kisan Credit Card Scheme need to follow the below margin requirements:

Loan value exceeds Rs.1 Lakh:

  • Purpose of loan is Crop cultivation or maintenance: Margin as per scale of finance (SOF)
  • Purpose of loan is to meet working capital expenses for allied activities, asset or machinery maintenance or household consumption: Margin ranges between 15%- 25% of the expected expenditure.

Loan value up to Rs.1 Lakh:

  • Zero margin (irrespective of the purpose of the loan).

Repayment Tenure

  • Funds taken for Short term or working capital need to be liquidated within a period of 12 months (in case of short-term crops) or 18 months (for long-term crops).
  • The term loan usually becomes repayable within five years. It can be repaid in half-yearly or annual installments.

In order to apply for the card or to get more information, one can walk into their nearest Canara Bank branch. The process is simple, quick and hassle-free.

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