KISAN CREDIT CARDS. GET MONEY FOR AGRICULTURE.

KISAN CREDIT CARDS. GET MONEY FOR AGRICULTURE OR PRODUCTION OF CROPS.

The most important problem in cultivation of crop production and cultivation of crop is the money. Now a days the cost of input (seed, pesticides, fertilizer and farm machinery) in agriculture is increasing day by day. So the cost of cultivation is increasing as per proportion of these. Cultivation can not be done without the high quality inputs. If a farmer goes to money Lender to debt or to take money, he will have to pay higher rate of interest. Everyday we listen or read that the farmer are doing suicide due to heavy loan. They are not able to pay their loan, because the most of the time the climate does not support and some time the rate of their  production is very low. sometime they are not able to get the money which they expend on the cultivation of crop. 

So what is the solution, how they can reduce the cost of cultivation or they may get the money for their cultivation at low rate of interest so that they can earn something respectable amount and live a better life. So that the marginal or small farmer can come in common stream live and can live a respected life in the society.

The solution is "KISAN CREDIT CARD".

Now a day the bank are providing loan as kisan credit card for every crop season of six month. Because the most of crop grown by farmer is six month duration. in the Kisan Credit Card the bank provide loan to the farmer for growing their crops.The Bank provide money for the farmer before the commencement of crop growing season. By this money the Farmer can purchase the agriculture inputs and grow their crops.

in this the bank lend money to farmer at low rate of interest.

The nationalizes Bank provide loan to the Farmer at the rate of interest @ 4% and the district cooperative bank lend money to farmer at @ 0% rate of interest. means the farmer who have transition with the cooperative society can get money at 0% of rate of interest.

Actually the rate of interest is 7% but the nationalized bank get 3% money from the government so they provide the credit to farmer at the rate of 4%. 

and in society the rate of interest at the loan is 0% because the cooperative society are governed by state government so their loan is interest free. But the society provide 70% cash and 30% of loan amount as agriculture inputs. For example if a cooperative bank sanction credit card limit one Lac , in this the the 70000 Rs are given to farmer as cash and  remaining amount of 30000 Rs. the input are given to the farmer. now the farmer grow their crop and after six month the farmers have to pay their loan without interest.

in case of Nationalized Bank they provide full amount of loan as cash. so after six month the farmer will have to pay their loan with seven percent of rate of interest.

In some state like Madhyapradesh, The government in giving rebate  10% of the loan .means a farmer is taking loan 1 lac , he will have to return 90000 Rs. only.

to take the KISAN CREDIT CARD the farmer have to apply to bank or cooperative bank. Farmer will have to give document of his land, identity card, bank account number etc.

After the  sanction of  kisan credit card the bank check the repaying action of farmer that the farmer taking money from the bank and  paying it at given date. Then after 2-3 years the farmer increase  the limit of kisan credit card and lend more amount of money.

The limit of kisan credit card depends on the irrigated or non irrigated land, acreage of land, type of the crops, etc,

if the land is irrigated and farmer is growing commercial crops then the farmer will be provided more money in comparison to normal Farmer.

Thanks.