Around 145 million farmers in India rely on external credit to grow crops every year. Still, most financial institutions are reluctant to extend such advances to this segment, fearing delinquencies and late repayments. It forces farmers to borrow funds from the unorganised lending market at substantial interest rates, which further burdens their finances. 

To reduce such strain on the agricultural sector, the Government of India has introduced customised schemes like the kisan card or KCC for suitable financing to farmers. 

Eligible applicants can use this card to avail credit at reasonable rates. It works like a standard credit card, offering a pre-approved pool of funds to the cardholder. Farmers also need to repay any credit that they use to the concerned lender. Along with using credit, such cardholders must also know how to check credit card statement for efficient management of funds and maximum utility.

Understanding the various characteristics of a credit card statement

To ensure responsible use of such a card, users need to interpret and read their credit card statement correctly. Listed below are some of the important factors in any credit card bill.

  1. Minimum amount due

Perhaps the most important part of how to read a credit card statement is to know what the minimum amount due signifies. It is the amount that a cardholder would need to pay to avoid attracting any late payment charges on his/her credit card. However, it does not represent the complete bill outstanding. 

Moreover, when you bear just the minimum amount due, the remaining due is transferred to the next month’s credit card statement. You continue to bear additional interest on this sum as long as you leave it unpaid.

  1. Total amount due

It is the sum of money that a card user would need to pay to settle all debts related to a particular credit card for a given billing cycle. 

  1. Payment due date

If you want to repay your credit card debt effectively to avoid any unnecessary charges, the due date on your statement is a vital factor to consider. It represents the date by which a kisan credit card user needs to clear his/her outstanding liabilities on such a card. If you fail to service the bill by this date, additional interest will be incurred on the dues.

  1. Credit limit of the card

Credit limits refer to the maximum amount that a user can spend using a credit card. However, limits are generally divided into three headings, namely, total credit limit, cash limit and available credit limit. 

Total credit limit is the amount pre-approved by your credit card provider, while the available credit limit is the credit availability after you have utilised a portion of the total credit limit. Cash limit, on the other hand, is the maximum amount which you can withdraw as cash using your card.

  1. Transaction details

When wondering how to read a credit card statement, one should pay close attention to the transaction details section. It lists all of the expenses incurred through a credit card within a given billing cycle, along with other details, such as the date, time, and amount spent. This ability to monitor expenditure continually is one of the reasons why individuals are smarter with a credit card in their pockets.

  1. Account summary

The account summary reveals your credit limit at the start of a new billing cycle, along with information on the expenses incurred through this card during the cycle. This section of the statement affords a quick look at how one has managed credit card payments, offering an insight into future expenditure control by tracking spending habits.

A typical credit card statement also includes a section about reward point balance. However, kisan credit cards do not offer such redeemable reward points to users. In that case, eligible individuals can look forward to cards such as the SuperCard to earn accelerated reward points, discounts, and cashbacks, which can help them save more on day-to-day spending.

The issuer of the said card also provides pre-approved offers to help speed up the application process, ensuring increased convenience as well. These offers are available on a range of financial products, including personal loans, credit cards, and business loans. You can check your pre-approved offer by providing your phone number and name.

Now that you know how to read credit card statement, you can apply for the financing option with a funding amount as per your spending needs. You can avail as much as Rs.1.5 lakh as an unsecured loan under this scheme, resolving financial shortfalls effectively.


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