PM Kisan Beneficiaries Can Now Get Loans at Low Interest Rate

25 Jul, 2021 13:17 IST|Sakshi Post

The PM Kisan, a Central Sector scheme is providing income support of Rs 6,000 per year to farmers for crop investment.PM Kisan beneficiaries can now avail of low-interest loans through Kisan Credit Cards(KCC).  

The PM Kisan Samman Fund is a scheme that benefits farmers by the Central government. It is known that Rs. 6,000 is being provided to the farmers for agricultural investment in three installments per year. However, PM Kisan Credit Cards are also easily available to PM Kisan beneficiaries.

Through the PM Kisan scheme, farmers can avail of loans at very low interest rates. This eliminates the need for farmers to borrow money at high interest rates in the market. Besides this, the farmers will be given a loan up to Rs 3 lakh without any security and complimentary insurance coverage is also available.

Though the interest rate is 9 percent, it will be reduced in the form of a subsidy. The Central government offers a 2 percent subsidy and brings down the rate to 7 percent. The bank also gives a 3 percent discount drawing the interest rate to 4 percent.

How to apply for Kisan Credit Card and take a loan:

  • Those farmers who did not apply for the loan, can go to the local bank and contact the staff at the Kisan Credit Card Section
  • Take the application form, attach the required documents and submit.
  • The loan authorities will examine the application and issue a Kisan credit card.
  • Bank staff can assist in this whole process.
  • KCC card will be issued only if you possess a proper identity card like is PAN card, Aadhaar card, driving license, passport, voter ID, ID card for Mahatma Gandhi Rural Employment Guarantee Scheme and letters issued by UIDAI.

After getting the KCC, one can get a loan from the bank. Besides this, the Government will identify the farmer families which are eligible for support of Rs 6,000 financial assistance as per scheme guidelines and will directly transfer the amount to the bank accounts of the beneficiaries.

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