In an innovative move, Hyderabad based, Central Bank of India has came up with a special credit card scheme in an effort to support people engaged in farming and allied activities.
The so called, ‘Cent Kisan Gold Card' will provide one-shop stop financial solution to the cultivators and those engaged in agri-related activities.
Under the scheme, the bank will provide credit limit of up to Rs 10 lakh, for a period of five years, based on the `land valuation' used for farming and/or non-farming activities.
The non-agri activities bracket includes the investments credits for creation of assets like farm equipments, tools, pumps and tractors. Agri-credits include production credits for the main crops.
The rate of lending on housing loans, under the scheme is up to 8 percent, on crop loans (up to Rs 3 lakh) is stated to be up to 7 percent, while on other agricultural loans is up to 8.5 percent.
The bank will also avail consumption loans of up to Rs 50,000 or mortgage up to Rs 2.5 lakh for people engaged in farming-allied activities.
The mechanism for advances via credit cards has been evolving in India. Recently, Bharti Wal-Mart Pvt Ltd in alliance with Kotak Mahindra Bank launched ‘Kotak Best Price Business Card'to avail easy credit to retailer and wholesale suppliers in the supply chain.
Another player, Metro Cash and Carry India Pvt. Ltd plans to offer similar B2B business card.
With launch of Cent Kisan Gold Card, the credit cards are reaching the producer end of the supply chain.
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