Union Bank of India has some good news for farmers: they provide easy loans without lengthy processes. A unique option offered by the bank allows you to get around Rs. 1.6 lakh.
The government has introduced Digital Kisan Credit Cards, which are explicitly designed for farmers and allow them to access loans easily.
Union Bank, in partnership with the Reserve Bank of India Innovation Hub, has made it possible for every farmer to obtain a loan of up to Rs. 1.6 lakh from the comfort of their own home.
Applying for this loan is a straightforward process. Farmers can start by visiting the official Union Bank website at www.unionbankofindia.co.in and navigating to the ‘digital-kcc’ section.
If they don’t have a credit card, they can quickly obtain a Digital Kisan Card using Bank VYOM’s exclusive app without needing any physical documents or office visits. Land verification can also be done online, making the entire process hassle-free.
The loan decision process is designed to be efficient and transparent. It involves verification through satellite imagery, mapping, and geo-tagging.
This method, which uses relevant data, is expected to expedite loan decisions and provide farmers with the financial support they need promptly.
After registering through the bank’s app, farmers can obtain the Kisan Credit Card. Upon visiting the bank’s website, they can find the digital KCC application option.
Once they click on this and proceed with the self-service option, they can apply for a loan of up to Rs. 1.6 lakh directly, without any additional processes.
KCC Limit Increase:
The Kisan Credit Card (KCC) loan limit may soon be raised to Rs 5 lakh. According to sources, the government plans to increase the credit limit from Rs 3 lakh in the upcoming budget.
The 2025-26 budget for the financial year will be presented in the Lok Sabha on February 1. The government is considering this increased limit as part of the budget proposal to support farmers and boost rural demand.
The Kisan Credit Card scheme was launched in 1998. It provides short-term crop loans to farmers engaged in agriculture and related activities at an interest rate of 9 percent.
The government offers a 2 percent discount on interest for farmers and an additional 3 percent discount as an incentive for timely repayments. As a result, farmers effectively receive loans at an interest rate of just 4 percent per annum.
This initiative also contributes to increasing farm income. Enhancing farmers’ income improves their standard of living and reduces risks to the banking system, as farmers are more likely to repay their loans on time.