No interest-free loans on KCC, viral message is false

A newspaper clipping stating that the Centre will offer loans at zero percent under the Kisan Credit Card (KCC) scheme, is viral on social media.

By Misha Rajani  Published on  19 March 2022 10:00 AM GMT
No interest-free loans on KCC, viral message is false

HYDERABAD: A newspaper clipping stating that the Centre will offer loans at zero percent under the Kisan Credit Card (KCC) scheme, is viral on social media.

The headline of the clipping reads, "Nil interest on KCC from 1st April 2022. Farmers will get free money on KCC up to 3 lakhs.


FACT CHECK:

The newspaper clipping has been edited.

Newsmeter searched online for reports or statements issued by the government on offering loans at zero percent under KCC but found none. No press release has been issued stating that the government will offer an interest-free loan under the KCC scheme.

According to the government-run State bank of India, the current interest structure allows farmers to avail loans up to Rs. 3.00 lakh at an interest of seven percent provided the government gave an interest subvention of two percent per annum on it. This meant that the actual interest rate was nine percent per annum.

https://sbi.co.in/web/agri-rural/agriculture-banking/crop-loan/kisan-credit-card


Based on news reports, farmers can avail short-term loans up to 3 lakhs in five years. Though the loan is available at the rate of 9 percent, the government gives a subsidy of 2 percent on it, making it 7 percent. Further, if the farmer returns the loan on time, he can get a further rebate of 3 percent, making the interest rate 4 (7-3 = 4) percent.

https://www.zeebiz.com/personal-finance/news-kisan-credit-card-get-up-to-rs-5-lakh-kcc-loan-at-4-per-cent-interest-only-pm-kisan-account-holders-can-apply-online-127686

https://www.financialexpress.com/money/kisan-credit-card-farmers-can-get-up-to-rs-3-lakh-loan-at-4-percent-interest/1884839/

To confirm the claim, NewsMeter spoke to SBI spokesperson who clarified that they have not received any notice on providing interest-free loans under KCC.

Thus, it can be said that the post is false. The union government has not made any announcement on providing interest-free loans under the KCC scheme.

Claim Review:Government will provide interest-free loans under the KCC scheme.
Claimed By:Social Media Users
Claim Reviewed By:Newsmeter
Claim Source:Social Media
Claim Fact Check:False
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