0 Views
K*. MUNIKANTH, G.V.CHALAM, I.BHAVANI DEVI AND B.RAVINDRAREDDY
Institute of Agribusiness Management, S.V. Agricultural College, ANGRAU, Tirupati 517 502, Chittoor Dt., Andhra Pradesh
Study was carried out in Chittoor district of Andhra Pradesh. Three commercial banks were selected for the study wherein bankers and farmers were surveyed to obtain information about working of Kisan Credit Cards. The study revealed that the bankers had given least priority to safety and security provided to the customers by the product, as in some cases land was kept as security by the farmers. In KCC, credit was allocated mainly to cost of cultivation and post harvest expenses such as marketing expenses that involved moving the produce from farm to market. Processing and premium charges applied were very minimal. Farmers were keeping their land as collateral security to avail loan for more than an acre. Insurance amount claimed by the farmer does not get to the farmers in time to compensate the crop loss. In case of personal accident or sudden death of the beneficiary, the insured amount was not enough to the beneficiary. In the case of KCC, simple interest @ 7% p.a would be charged for one year or up to the repayment due date, whichever is earlier. Due to small land holdings, farmers were not holding proper land documents such as Pattadhar pass book or land title deed. A farmer with small land holdings were not able to repay the loan amount on the specific date mentioned by the banks. In some cases, the bankers expressed the difficulty to verify the documents of more number of small farmers instead they prefer few large farmers for sanctioning the loan. Farmers with small land holdings were getting the informal credit more quickly than the formal credit for their cultivation needs.
Kisan credit card, customer satisfaction