The Kisan Samriddhi Rin Scheme is one of the schemes launched by the Government of India to fulfil the needs of farmers. This scheme will help farmers financially with their farming needs. Under this scheme, farmers can adopt advanced farming methods while ensuring financial stability. The purpose of the scheme is to provide complete credit support to Corporate farmers, companies of Farmers, and other large agricultural firms looking to fulfil various methods of farming.
Key Features of the Kisan Samriddhi Rin Scheme
- The scheme is known as Agriculture cash credit under which the government will give loans to farmers for their farming needs.
- Loan Limits are between ₹5 lakhs to ₹50 crores depending on the actual expenses like Land preparation, seed plantation, fertilizers & pesticides, Irrigation, transportation, post-harvest storage and many more from start to finish.
- Tenure of Loan Repayment will be determined by when the specific crops financed by the loan are expected to be harvested and sold.
Eligibility for Kisan Samriddhi Rin Scheme
- Farmers should be engaged in Progressive or Scientific farming in which they must be able to increase their crop yields, reduce input costs, and minimize environmental impact.
- Farmers or companies of Farmers holding a minimum of 4 acres of land would be considered eligible for this loan.
- If a farmer has a credit score of 650 or higher, then he is automatically eligible for the loan. Even if the farmer does not have any credit score, he can still apply for the loan. The bank will consider other factors like income, employment history, and financial stability of that particular farmer.
- The applicant must be at least 18 years old to be eligible for the loan as there is no maximum age limit.
- Any applicant having aged more than 60 years must have a co-borrower to get this loan.
- For corporate companies, they must be profitable over two consecutive years.
Also Read: Kisan Credit Card Scheme
My Views on the Kisan Samriddhi Rin Scheme
I found this scheme very useful for farmers looking to grow their farming business and also want to adopt modern agricultural practices. If a farmer is fulfilling all the eligibility criteria then it is a great initiative by the Government. The key points that I feel are helpful:
- Loan Amount Flexibility
- Repayment Period
- Security Options such as various collateral options, having immovable property, gold, or term deposits.
Pros and Cons of the Scheme
Pros
- This scheme covers all required farming needs, from start to finish of any harvesting or cultivated crop.
- Flexible Collateral Options will support farmers in having a good amount of loans to fulfil their farming needs.
- Farmers looking for Modern Farming can have an amount to fulfil their desire which will encourage them to use scientific and progressive farming methods.
Cons
- Farmers looking for loans above ₹50 lakhs, should have at least 125% collateral security to give their lender.
- Farmers who are not aware of Scientific and modern farming will face trouble for having this loan.
- If a Farmer does not have any credit score or has a credit score of less than 650 might also face difficulty in the loan approval process.
Tips for Using the Kisan Samriddhi Rin Scheme Effectively
- Farmers should estimate the exact cost of farming activities before applying to avoid rejection or overborrowing.
- Maintain a Good Credit score to avoid any penalties.
- If you are going with a higher amount then you can have Collateral Options like gold or bank deposits if immovable property is unavailable.
Disclaimer
This review is based on information shared by the SBI official website. Readers should consult their local bank or financial advisor to understand the scheme’s terms and conditions.
