Neighbours repay their KCC every year and take it out again the next day. I want to understand if this is correct.
What is the trick of repaying KCC before the due date and redrawing to keep cheap interest?
BBalwinder Singh5mo ago · 165 views
6 Answers
🌾Farmer.in Krishi TeamExpert ✓5mo ago
This is a common and legitimate practice to protect the prompt-repayment benefit on a KCC cash credit account. The cheap effective rate around 4 percent applies only to amounts repaid within the prompt period, usually 12 months from each drawing. So farmers deposit the full outstanding before that due date, which records the account as regularly repaid, then redraw against the same sanctioned limit for the next crop. Many do this by depositing sale proceeds and pulling the money out again within a few days. The key is that the account must actually show a credit that clears the dues on time, not just a paper entry. Account rules and the prompt-repayment window differ between banks, so ask your branch exactly what date you must deposit by and whether partial repayment is enough to keep the rebate.
NNaveen Kumar5mo ago
Main bhi yahi karta hoon par ek saal bank ne bola partial jama kaafi nahi hai, poora outstanding clear karna padta hai window ke andar. Isliye main fasal bechte hi poora paisa daal deta hoon. Apne branch se pakka pooch lo kitna jama karna hai.
GGurpreet5mo ago
Sahi hai bhai, main har saal fasal bechne ke baad poora paisa jama karta hoon aur do din baad nikaal leta hoon. Isse 4 percent wala fayda bana rehta hai aur account NPA nahi hota.
SSatish More5mo ago
A common mistake is redrawing the very same day before the deposit is properly credited; in my account the credit took two days to reflect. Wait until your passbook actually shows the loan as cleared, then redraw. The entry has to be real, not just on paper.
YYogesh Borse5mo ago
Ek aur baat, jab tum poora paisa jama karke turant nikaalte ho to bank kabhi kabhi nikasi par naya documentation ya renewal maang sakta hai agar limit ki validity khatam ho rahi ho. Mere case me KCC ki sanction har teen saal me renew hoti hai, beech me redraw chalu rehta hai. Apne branch se poocho ki tumhari sanction kab tak valid hai taaki redraw atke nahi.
AAshwin Kale4mo ago
One thing I learned the hard way: do not pull out more than your eligible limit when you redraw, even though the account shows room. I once drew the full sanctioned amount right after depositing sale money and the extra bit lost the cheap rate. Treat the redraw as for the next crop's genuine need, not as free cash, and keep within the subvented ceiling. Confirm your exact eligible limit with the branch.