State Bank of India's agri, rural credit scheme: Check who is eligible for it and what documents are needed

State Bank of India (SBI) is not only the largest lender in the country but is also market leader in Agri financing with its network of over 16,000 branches covering more than 1.01 crore farmers. The bank extends services to cover the whole range of agriculture and allied activities with some of the unique features that include low interest rates, no intermediaries, no hidden cost, and quick loan sanction and disbursement. The SBI product covers the entire gamut of agricultural activities from Farm to Fork, said the bank's website. But the government initiative to start Kisan Credit Card (KCC) was to ensure that farmers also have access to credit at an affordable rate. The scheme is to assist farmers who heavily rely on non-institutional credit sources for their farming needs. Since banks or other financial intuitions had lengthy and cumbersome processes that deterred farmers from approaching them, the Kisan Credit Card scheme was launched to guarantee availability of sufficient, timely and cost-effective funds to farmers in a hassle-free manner. 

According to sbi.co.in, all farmers – individuals/Joint cultivator owners; tenant farmers, oral lessees and share croppers etc.; SHGs or Joint liability groups including tenant farmers, are eligible to take advantage of this scheme. 

Some key features and benefits of the scheme (KCC) are: 

1. Farmers get interest at saving bank rate on credit balance in KCC account
2. All the KCC borrowers get free ATM cum debit card (State Bank Kisan Card) 
3. Farmer can avail interest subvention at 2 per cent p.a is available for loan amount upto Rs 3 Lakh
4. They can also avail additional interest subvention at 3 per cent p.a for prompt repayments
5. Notified crops / notified areas are covered under crop insurance for all KCC loans 

Under the Kisan Credit Card scheme, quantum of loan for 1st year will be assessed on the basis of cost of cultivation, post-harvest expenses and farm maintenance cost and for subsequent 5 year loan will be sanctioned on the basis of increase in scale of finance, said the website.

If you have taken loan under the KCC, you have to pay simple interest at 7 per cent p.a for a year or upto the repayment due date, whichever is earlier. In case of non-repayment within the due dates, interest is applied at card rate. However, if fail to pay beyond due date, interest will be compounded half-yearly.

Notably, the repayment period may be fixed as per the anticipated harvesting and marketing period for the crops for which a loan has been granted. 

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For taking KCC loan, you just need to visit a nearby SBI branch and fill up an application form. You need to submit your identity proof including Voter ID card/PAN card/Passport/ Aadhaar card,/Driving License etc, along with address proof through Voter ID card/Passport/Aadhaar card/Driving license etc, the website informed.