"SBI Cards and Payment Services has started a pilot launch of credit cards for farmers in Rajasthan, Gujarat and Madhya Pradesh. Applications are coming in. On the basis of the success of this pilot project, it would like to launch it nationally," SBI Chairman Rajnish Kumar said here.
According to him, it would be different from the existing Kisan Credit Card.
"In case of normal Kisan Credit cards, beneficiaries (farmers) maintain loan accounts with the banks and the lenders offer them debit cards against this account. This new credit card for farmers will be like usual credit cards that individuals use," he said after launching mobile shopping app "FarmCart" and delivery management app "Dealer Bandhu" developed by Mumbai-based start-up Poorti Agri Services.
"In this pilot project, about 100 applications have already been received and the cards would be issued to the farmers after the completion of processing," he said.
Asked whether farmers would be able to buy consumers goods with the new credit cards, Rajnish Kumar said: "There will be some limits within that credit card. (There could be) 75-80 per cent limit for buying agricultural inputs."
Elaborating on the difference between the normal credit cards and credit cards for farmers, he indicated when repayment is not made in time, lower penalty would be levied on the card holders compared to other credit cards.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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