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SBI Prepares New Credit Card Specifically For Farmers

SBI CREDIT CARD FOR FARMERS 

Farmers and agriculture are one of the most neglected sections in India as most of them are below poverty line and the agricultural sector has been highly unproductive as compared to the investment and subsidies directed towards it. Though there are several measures taken to strengthen this sector but still it is not producing an adequate amount of output to feed the population of 1.2 billion. In the recent budget of 2017-18, Finance Minister, Arun Jaitley announced that there will be a scheme where state and the central government will work together to reap 1.5 times price of the products farmers grow, but yet a wide gap remains between promises and actions.

Understanding the needs of this segment, the Indian public behemoth, State Bank of India (SBI) with GE Capital has come up with a new idea for smoothening the line of credit to farmers in India a little by providing them a credit card with which they can pay up to 75-80% of the prices of the products they buy for farming.

What is this SBI Credit Card for Farmers? 

The SBI credit card for farmers is a new initiative by State Bank of India and GE Capital to provide credit facilities to the farmers of India. Under the card features, farmers have 45 days credit period and the penalty begins on defaulting after this 45 days, after which a low interest rate penalty is applicable. The card has been launched in the form of a project and is already implemented in few parts of the country like Gujarat, Madhya Pradesh MP, and Rajasthan and almost hundreds of applications have been received.. If the project witnesses success in these three states, then SBI plans to launch it across the country to assist farmers in their inputs purchase or personal purchases at ease.

How is it different from KCC?

KCC or Kisan Credit card have loan accounts of the farmers against which the farmers (beneficiaries) get a debit card but in SBI Farmers’ credit card, the farmer will actually get a credit card with credit period of 45 days. Moreover, the new SBI credit card can be used for purchasing other products as well which are non-agricultural in nature. The limit for purchasing the agricultural product has been set to 75-80% and the rest of the amount has to be paid by the farmer itself.

Other credit facilities for farmers

Beside this new SBI credit card, there are various lots other loan and credit facilities available for the farmers such as  Allahabad Bank Crop and Term loan, Andhra Bank agricultural loans, and Agricultural schemes of Punjab National Bank.

With the 2017 -2018 budget, where  farmers were given top most priority, with different schemes like SBI credit cards and other loan facilities , Indian agricultural sector hopes to see a silver lining sooner than later.

Jay Kaul

About Jay Kaul

Jay is a financial and credit expert and freelance contributor to CreditSmart. He's always keeping his eyes open for the latest credit card trends in India and provides a sharp insight on new entries into the market.

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