Not necessarily — pricing depends on the bank, collateral, and borrower risk profile. The key difference is structure: CC is revolving and tied to short-term assets, while a term loan is a fixed, amortising facility.
No. While crop cultivation is the primary use, KCC limits can also cover post-harvest expenses, working capital for allied activities like animal husbandry and fisheries, and in some cases investment credit, depending on the bank's scheme structure.
It isn't mandatory to operate a business, but it is generally required to formally access MSME-specific schemes, subsidies, and priority-sector credit benefits, so most eligible businesses register.
No. NPA classification is an accounting and provisioning treatment reflecting overdue status; a write-off is a separate, later decision the bank may take for accounting purposes, and it does not extinguish the borrower's legal repayment obligation.
It applies to secured loans above a specified threshold extended by banks and notified financial institutions; it generally does not apply to unsecured loans or, with some exceptions, to agricultural land used as security.
The Committee of Creditors (CoC), made up primarily of financial creditors, votes on resolution plans; an approved plan then needs to be sanctioned by the NCLT to take legal effect.
Yes — DRTs generally handle recovery matters above a statutory pecuniary threshold set under the Recovery of Debts and Bankruptcy Act; smaller disputes are typically pursued through regular civil courts.
Debt Service Coverage Ratio measures a borrower's cash flow available to cover debt obligations. Banks use it to judge whether a business can comfortably service the loan being sanctioned.
Many KCC schemes bundle personal accident insurance for the farmer and crop insurance linkage under schemes like Pradhan Mantri Fasal Bima Yojana — confirm the specific inclusions with your bank.
No. CGTMSE only removes the collateral requirement by providing the bank a guarantee cover — the borrower still repays the loan with interest as per the sanctioned terms.
Yes — an OTS is typically reported to credit bureaus as a settled (rather than fully closed) account, which can negatively affect the credit score and future loan eligibility.
A borrower can approach the DRT to challenge the process, or can repay the outstanding dues (or reach a settlement with the bank) before the sale is finalised to halt further action.
No — IBC applies to companies, limited liability partnerships, and, under separate provisions, individuals and partnership firms, though most publicised cases involve larger corporate defaults given the amounts involved.
The DRT hears the original recovery application or SARFAESI challenge, while the DRAT is the appellate forum that hears appeals against DRT orders.
