Banks want longer repayment tenure for Kisan Credit Card loans

There were also deliberations on allowing farmers to take fresh loans even if they fail to repay exsiting ones, as long as they service the interest

In view of significant stress in the agriculture sector, bankers have suggested enhancing the repayment cycle of loans under KCC (Kisan Credit Card) from 12 months to 36 or 48 months at the state level bankers’ consultancy meet in West Bengal. Further, there were also deliberations on allowing farmers to take fresh loans even if they fail to repay earlier ones, as long as they service the interest.

Based on the direction from the Department of Financial Services, public sector banks started a three-stage consultation process last week, with focus on nine issues, including digital banking, credit to MSME