Uttar Bihar Gramin Bank Kisan Credit Card Loan

If you farm for a living, cash timing is everything. Seeds don’t wait for a sanction letter, and pests don’t pause for paperwork. The Uttar Bihar Gramin Bank (UBGB) Kisan Credit Card (KCC) is built to match the rhythm of agriculture: quick access to working capital when the season demands it, simple withdrawals with a RuPay card, and repayment aligned to harvest. Here’s a clear, human-friendly guide to how it works, who it’s for, and how to use it wisely.

What the KCC is for (Purpose)

The KCC is a revolving credit line designed to cover crop production and allied needs throughout the season—think seeds, fertilizers, pesticides, fuel, irrigation, hired labor, machinery hire/repairs, harvesting, transport, and even short, seasonal gaps before produce is sold. Because it’s a reusable limit, you draw when needed and repay after sale, instead of taking multiple small loans all year.

Who can apply (Eligibility)

UBGB keeps the door wide open so more cultivators can be included:

• Owner-cultivators (farmers who cultivate their own land)
• Tenant farmers, oral lessees, and sharecroppers
• Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) of farmers

The essentials: you must be engaged in agriculture, fall within the bank’s service area, and not be a defaulter with any bank/NBFC. If you farm but don’t hold title (tenant/sharecropper), JLG/SHG formats make access easier.

How long the card lasts (Validity & Renewal)

Your KCC limit and card are valid for 1 to 5 years. The bank reviews and renews annually, adjusting the limit to changes in acreage, crop mix, and input costs. In practice, once the line is set up, subsequent seasons are smoother—you won’t repeat full application cycles unless there’s a major change.

Pricing that respects farm cash flows (Interest Rate & Subvention)

• Up to ₹3 lakh: 7% p.a.
• Above ₹3 lakh: 12% p.a.

If you repay on time, you may receive a 3% interest subvention from the Central Government (as per current policy), effectively bringing the rate on timely repayment up to ₹3 lakh down to ~4% p.a. This is a big deal—plan your sales and repayments to capture this benefit. (Policies can change; your sanction letter is the source of truth.)

Security & margin (What the bank needs)

• Primary security: Hypothecation of the crop (the season’s standing produce)
• Collateral security: Applicable for loans above ₹1 lakh (as per UBGB’s note)
• Margin: No margin is required

For many small and mid-sized farmers, this structure keeps access clean and upfront costs low.

Insurance that protects your season (Mandatory Cover)

• Crop Insurance: Mandatory under the scheme—crucial protection against weather, pest, or disease shocks.
• Personal Accidental Insurance: Also part of the protective net for the KCC borrower.
• KCC RuPay Accidental Insurance (₹1 lakh): Available without premium for KCC RuPay card holders, provided at least one card transaction occurred within 45 days prior to the accident (usage condition matters).

Insurance is what prevents a bad monsoon from becoming a bad year. Do the paperwork once; it can save your season.

How you actually use it (The KCC RuPay Card)

UBGB issues a KCC RuPay card linked to your limit. Withdraw cash at ATMs across India or transact at POS where accepted. The benefit is practical: you don’t need to visit the branch each time; you access funds as inputs are needed and pay interest only on the amount actually used for the days used.

Repayment (Keep it simple, keep it timely)

• Typical repayment window: within 12 months—usually right after harvest and sale.
• Because it’s a revolving facility, repay early when you get sale proceeds; this reduces interest and frees up limit for the next need.
• Timely repayment helps you qualify for interest subvention and smooth renewals.

How the bank sizes your limit (What to expect)

UBGB broadly considers:

• Acreage and crop plan (what you grow and how much)
• Scale of finance per crop (local committee norms)
• Irrigation status and typical input usage
• Past conduct (if renewing)

The outcome is a season-ready limit rather than one-time funding, so you can buy inputs on time without scrambling.

Step-by-step to get started

1. Visit your UBGB branch and state you want a Kisan Credit Card.
2. Share basic farm details: acreage (owned/leased), crops, irrigation, and expected input needs.
3. Complete KYC (PAN/Form 60/61, photo ID, address proof, photos). If you’re a tenant/sharecropper, ask about JLG/SHG formats.
4. Insurance enrollment: Sign up for crop insurance (mandatory) and confirm the accidental cover details.
5. Sanction & card issue: Review your limit, rate, renewal cycle, and subvention rules.
6. Use & repay smartly: Draw for inputs; repay post-sale to capture the 3% subvention and keep interest low.

Practical tips to save money (and stress)

• Match inputs to crop calendar: Draw close to the purchase date; every early day you avoid drawing saves interest.
• Repay in tranches: If you sell part of your produce mid-season, part-repay to cut accruing interest immediately.
• Stay insured: Keep crop insurance active; file claims promptly with all required documents.
• Track everything: Use a pocket diary or simple app to record date–amount–purpose; it impresses the banker and highlights waste.
• Plan for the subvention: Mark your due dates. If you miss timelines, you may lose the 3% incentive—that’s real money.
• Review limit annually: If acreage or crop mix changes, ask the branch to right-size the limit before the next season.

Documents checklist (keep it handy)

• KYC: PAN (or Form 60/61), photo ID, address proof, photographs
• Land records/lease proof (for own or tenanted land)
• Cropping pattern and acreage details
• Any existing loan statements if requested
• Passport-sized photos; SHG/JLG papers where applicable

Neat paperwork = faster sanction and smoother renewals.

FAQs (straight answers)

Is collateral always needed?
Per the shared terms, collateral is applicable for loans exceeding ₹1 lakh; below that, the crop hypothecation is primary security.

Can I withdraw multiple times?
Yes. The KCC is a revolving limit—draw as needed and repay to restore your drawing power.

What if I change crops mid-season?
Tell the branch. Limits are sized by crop plan; keeping the bank informed helps avoid mismatches.

What happens after 5 years?
KCC is renewable. With clean conduct, renewals are straightforward and can be enhanced if your needs grow.

Do I get a card for ATM use?
Yes—KCC RuPay card. Use it at ATMs nationwide; also keep one recent transaction recorded to maintain the ₹1 lakh accident cover eligibility.

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Bottom line: UBGB’s Kisan Credit Card gives you timely, flexible, and low-cost credit aligned to the farm cycle—7% up to ₹3 lakh (with potential 3% subvention on prompt repayment), 12% above ₹3 lakh, no margin, crop hypothecation, and a RuPay card so you can act fast in the field. Walk into your nearest UBGB branch with your KYC and crop plan, and walk out with a season-ready credit line that respects how farming really works.