CHENNAI: Federal Bank on Monday launched a pilot programme of all-digital Instant Kissan Credit Card (KCC) scheme, by which loans are disbursed to farmers within five minutes. The programme has been conceptualised by RBI to digitalise rural financing is supported by RBI Innovation Hub and takes eKYC data from Aadhar and land records from Tamil Nadu e-governance Agency among others. It will be rolled out in selected districts including Chennai, Madurai, Coimbatore, and Hosur and expanded into other parts of the country.
The scheme targets to lend to 50 lakh farmers in the State and sanction loans up to `1.60 lakh without security. Shyam Srinivasan MD and CEO of the bank said, “Usually the turnaround time for a farm loan is around four weeks and the farmers have to pay multiple visits to the branch, but in this process applications are processed in minutes. Easy availability of credit makes the lives of farmers easy and with technology, we’re connecting money with deserving people.”
Business correspondents and field officers will help farmers availing this loan and tie-ups with agri-related companies will take up this scheme, Harsh Dugar, Country Head, Wholesale Banking, Federal Bank told TNIE. The bank plans to extend the loan program to agriculture and allied activities like poultry and dairy, he further said.
The loan will be allocated to new customers and customers from other banks. The interest rates will range from 4% to 9%. Rajesh Bansal, CEO, Reserve Bank Innovation Hub, and Vijayendra Pandian, Commissioner of Treasuries and Accounts, Tamil Nadu Govt were present at the event.