Indian Overseas Bank’s Kisan credit card is a boon to our farmers. It covers credit and investment needed for agriculture and its allied activities. This card with five-year validity takes an efficient and aggressive approach by offering revolving cash credits for all these agriculture-related activities. Apart from cash credits, term credits are also offered to allied activities like pump sets.
Basic Eligibility for IOB Kisan Credit Cards
Issuing of IOB Kisan Credit Cards entirely depends upon the usage of a farmer’s land and their earnings from it. Age of the applicant also plays a key role in the card issuing process. The applicant should be above 18 years while applying and less than 75 years of age at the end of the loan tenure. Most importantly, if an applicant’s age is more than 60, then they must have a co-applicant who is less than 60 years and should also be a legal heir or an immediate family member of the first applicant.
Benefits of being an IOB Kisan Credit Cardholder
A Kisan Credit Cardholder enjoys a lot of benefits. An applicant’s credit limit is determined by the earning that they receive from their land. This method of determining the credit limit prevents a farmer from overstepping beyond their repaying limits. Repayment period commences at the end of a harvest season. The most relieving part is the hassle-free minimal documentation process.
Interest Rate on IOB Kisan Credit Card
Though the interest rates for Kisan Credit Cards vary from bank to bank, IOB offers at a base rate of 9.90% per annum. It is to be noted that these interest rates are dynamic and may vary from time to time.
Security needed for New and Existing Borrowers
For new borrowers who are taking loans up to ₹ 1 Lakh, security can be in the form of crop hypothecation or assets created out of the loan. If the loan amount crosses the ₹ 1 Lakh mark, then suitable collateral might be required.
For existing borrowers who have been satisfactory servicing the credit for two years, the norms are different. For people taking loan up to ₹ 3 Lakh, hypothecation or assets created out of the loan is enough for security. If the loan required exceeds ₹ 3 Lakh, then suitable collateral will be demanded by the bank.
Of all these being discussed about Kisan Credit Card offered by Indian Overseas Bank, the most important aspect will be enriching farmers with loans that are required for the betterment of our economy. Such are a boon in disguise for our farmers.
Please Note: Indian Overseas Bank is not a Paisabazaar partner. Offers would be from partner Banks/NBFCs only.