What are the Benefits of the Agricultural Credit Cards in India?

The Government of India has already taken a vast initiative last June with an aim to reach out to 1 Crore farmers in 100 days with its Kisan Credit Card scheme. While credit card schemes to help farmers have been offered by financial institutions since the late 1990s, the new amendments aims at benefiting them more quickly. 

Subsequently, financial institutions and NBFCs have recently launched numerous credit cards for farmers, which do not just help them with their trade requirements but also covers all other types of expenditures which they might be facing.

Low-interest funding for farmers being the most crucial objective of this initiative, farmers are also provided with passbooks and other documents on loan limit, beneficiary, land holding, etc. Kisan Credit Card apply procedure are also fairly simple with numerous state co-operative and regional rural lenders offering these cards.

The underneath lists the major features offered by Kisan Credit Cards – 

  • Uncomplicated procedure: While applications under Kisan Credit Card schemes take some time due to verification and other necessary procedures, the disbursal is usually very prompt. 

Additionally, these procedures are not complicated so that farmers can avail them with ease only after they understand all the details.

Worth mentioning, it is additionally helpful for farmers to maintain regular repayment if they learn how to pay credit card bill through net banking.

  • Flexibility in loan repayment: Farming is one trade which is immensely dependant on the whims of nature. Consequently, loans issued under Kisan Credit Card online as well as offline have a flexible tenure of repayment so that farmers can repay after the harvesting season is over.
  • Expandable credit limit: These credit cards for farmers have options of increasing credit limit to serve sudden financial necessities in a farm. Usually, it is the income of a farmer which determines this increase in credit limit.

It is vital farmers are aware of different ways to increase their credit limit and make higher spends.

  • Convenient rates of interest: Low rates of interest are applicable on these credit card and subsequently loan schemes so that farmers do not face a heavy financial burden.
  • Multipurpose use: Kisan credit card apply and approval ensures covering of all types of expenses related to farming – from expenses on seeds to equipment, storage, etc. Additionally, discounts from select dealers are also provided.
  • Additional insurance: Additional insurance on crop and harvest is usually part of Kisan credit card schemes.

Typically catering to farming needs, often farmers can find the restrictions of these cards on other uses very cumbersome. Further, it can be difficult for farmers to maintain more than one credit card since that would require high repayment costs on credit card statement clearance every month. 

There are a few options for farmers in case such a situation arises. Many NBFCs have credit cards which cater to multiple needs, effectively even covering general needs of farmers. 

Individuals can avail credit cards like the Bajaj Finserv SuperCard instead to avail more features and benefits.

While Kisan credit card online is also available, many financial institutions and NBFCs offer credit cards which do not just have convenient application procedure but fast approval too. 

Bajaj Finserv even brings you pre-approved offers that make availing credit cards quick and less time-consuming. Pre-approved offers are available on numerous financial products like credit cards, business loans, home loans, personal loans, etc. You can check your pre-approved offer by providing your name and phone number.

With easy and convenient application method, customers should be cautious to pay attention to expenses and procedural costs along with the features offered by different credit cards before deciding on one.

Generally, it is wise to go for a single credit card since this ensures less hassle in handling accounts and clearing statements. In case a farmer goes for Kisan Credit Card apply or one which covers everything, they must keep it in mind to clear statements regularly to avoid any late fine or additional interest.

About Shailendra Kumar

Shailendra Kumar is an experienced Financial Consultant and Tech Reviewer who has 6+ years experience in the field of finance, business and technology. He is very passionate to write about Finance, Business, Technology, Gadgets, Shopping, Fashion, Lifestyle, etc.

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