New Delhi: The Modi government has given a big relief to 70 million farmers in the country on KCC-Kisan Credit Card. The interest on agricultural loans will now be only 4 per cent till August 31. This information was given by Union Agriculture Minister Narendra Singh Tomar. Informing about the decision of the cabinet, he said, "Purchasing is going on in many places at present but it has been increased keeping in view the lockdown."
It is worth mentioning that this date has been extended for the second time. After March 31, those who repay a loan taken on a Kisan credit card will have to pay at least 7 per cent interest. The lockdown was extended to March 31 in view of May 31. On Monday this has been extended to August.
What will happen with this? This clearly means that the farmer can pay the interest of KCC card only at the old rate of 4 tak per year. The decision has been taken to provide relief to farmers in the Coronavirus Lockdown.
The interest rate on loans up to Rs 3 lakh taken on KCC for agriculture is 9 per cent. But the government subsidizes this by 2 per cent. Thus this is 7 percent. But there is a three per cent discount on repaying on time. Thus to honest farmers this leaves only 4 per cent.
Banks usually notify farmers and ask them to repay the loan by March 31. If the bank does not repay the loan by this time, they will have to pay 7% interest.
How much loan do I get if I have one hectare of land?
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According to Ankur Tyagi, branch manager of Prathama Bank in Amroha, Uttar Pradesh district, a loan of up to Rs 2 lakh can be obtained on 1 hectare of land. Loan limits vary from bank to bank. The bank will issue you a Kisan credit card for this. Which allows you to withdraw money at any time.
