Kisan Credit Card holders die suddenly, What will happen then, see full details – Apart from saving the farmers from crop wastage, this scheme also increases the income of the farmers and improves their crop. Have you ever thought that if a farmer dies by taking a loan, what will happen if the Kisan Credit Card holder dies?
If a farmer defaults on the loan, how does the bank get it back from him and how is it recovered? After the death of the Kisan Credit Card holder, how his loan is repaid, and how the bank recovers the loan. You will discuss this topic throughout this article.
What is Kisan Credit Card?
There is also a government scheme behind KCC which is a type of credit card provided by the bank. You will be surprised to know that the interest rates of Kisan Credit Card on loans up to Rs 3 lakh are just around 4%. Alternatively, if you want a loan from a bank, it will be available only at an interest rate of 14-16 per cent per annum.
Small farmers are getting benefits from KCC-
It is becoming increasingly beneficial for small farmers to participate in this scheme. As a result, the government provides financial assistance to the farmers. PM Kisan Yojana provides credit cards to all the farmers who take advantage of the program. There is a limit of Rs 3 lakh for them.
Anyone can buy seeds, fertilizers etc. with Kisan Credit Card Loan. Then it is necessary to return this amount to the bank.
know here all about Kisan Credit Card Scheme
What is Kisan Credit Card holder loan limit and rules:
The process of getting Kisan Credit Card has become very easy. Thousands of farmers associated with PM Kisan Yojana have already got KCC cards. Through this card, farmers can easily take a loan of up to 3 lakhs, which is very helpful for their agricultural work.
Agriculture, fisheries and animal husbandry farmers can apply for the Kisan Credit Card, under which they can borrow up to Rs 3 lakh from the bank at any time. The government also gives a discount on the annual interest rate.
What will happen in case of death of Kisan Credit Card holder?
The heirs of the farmers are responsible for repaying the loan in case of death of the farmer. If an applicant cannot repay the loan, the bank can take three actions. The functions of the bank are further explained below:
What information did the CIBIL department give
First person to know
CIBIL is all about how loan is given to any customer. CIBIL is a department that maintains the details of all types of loan and credit card records.
The bank notifies CIBIL when an applicant or descendant of the applicant does not pay the loan. After CIBIL receives the information, it transfers the loan to the bank. After this you will not be able to get loans and credit cards from banks.
Alternative settlements
Your details are first sent by the bank to CIBIL. On the death of the borrower, the bank contacts his descendants and offers them an option to settle the loan.
The bank tries that the customer gives him the loan money back on time and the bank and the customers do not suffer more than this and saves the time of both the bank and the customer. The bank tries to ensure that the amount of money it can withdraw from the customer is correct.
If a customer does not give money even after this, then in that case the bank takes the third route. This third route is a bit different and in this the bank takes legal help.
Property auction
Customers or their descendants who fail to repay the loan can be auctioned by the bank if they do not repay the money.
After the auction process starts, the bank auctions the property. She adjusts the debt to include any money she may receive from that property. As a result of the auction of the property, if the bank money is not received, other things like gold and jewelery will also be auctioned by the bank.
What type of loan is ?
Government schemes may be loans, but loans are also a type of government scheme. Bank gives you this loan. Despite being a government-run programme. Secured loans, such as Kisan Credit Cards, are available to applicants.
A secured loan is what it sounds like.
Secured loans involve pledging any belongings of the applicant, such as a guarantee or a piece of property, for repayment. Kisan Credit Card applicants will have to mortgage their land in lieu of the card. These types of loans are easily recovered by the bank, whereas these types of loans are not problematic.
What should the applicant keep in mind?
Loan applicants are advised to repay their loans on time if they avail loans. It only hurts you if you don’t. There are chances that your CIBIL will get damaged and you will not be able to get the loan in future. You are also at risk of losing your assets.