Credit Facility to Farmers

                                           

                             Credit Facility to Farmers

According to credit facility given to farmers, farmers can avail crop loan through Kisan Credit Card. Loan/credit limit is fixed on the basis of crop sown and area under cultivation. Kisan credit cards are valid for 3-5 years. Farmers are also provided risk coverage in the event of accidental death/disability.

Loan facility is available through a large network of Commercial Banks, Regional Rural Banks and Cooperative Credit Institutions in the country to fulfill the crop loan and term loan needs of the farmers. Ensure timely repayment of bank loan. Proper record of loan should be maintained by farmer.

Agri Credit

Agricultural credit in India Agricultural credit is considered as one of the most basic inputs for conducting all agricultural development programmes. In India, there is an immense need for proper agricultural credit as Indian farmers are very poor. From the very beginning, the prime source of agricultural credit in India was moneylenders.

After independence, the Government adopted the institutional credit approach through various agencies like co-operatives, commercial banks, regional rural banks etc. to provide adequate credit to farmers, at a cheaper rate of interest.

Benefits of Credit Facility

It allows the borrowing business to take out money over an extended period of time rather than applying for a loan each time it neeeds money.

Uses of Credit facility for the farmers

Credit facility can be used as a multi-purpose vehicles for corporate financing, customer lending, or credit account packaging.