8/12/2019 Gist of Agricultural Credit Schemes http://slidepdf.com/reader/full/gist-of-agricultural-credit-schemes 1/50 SYNOPSIS OF AGRICULTURE CREDIT SHCEMES PROCEDURAL GUIDELINES FOR AGRICULTURAL CREDIT. The Government of India has advised banks to accelerate flow of credit to agriculture sector. This calls for disposal of proposals without delay. Following guidelines should be kept in mind while processing the applications for agricultural credit. A. Processing the applications for agricultural credit. 1)Technical feasibility and economic viability in each case should be assessed by Agriculture Officer/Officer having agriculture background to the extent possible. 2)Where Incumbents Incharge of branch offices are confident about their capability to appraise loan proposal appropriately, they may make such appraisals independent of any Agriculture Officer; keeping in view the soil type, cropping pattern, available irrigation potential, scope of custom hire service and his report should be kept on bank’s record. In addition, he should also examine the generation of income to pay the interest and instalments as and when they become due and ensure due recovery promptly. 3)However, Branch Managers are advised to record the facts in the loan proposal itself while sanctioning the loan so that unnecessary objections are not raised by the Inspectors subsequently. Further they should ensure that income stream of the farmer should be calculated on the basis of income/expenditure of the farmer and limit be fixed accordingly. 4)Investment Credit availed by the farmers can be put to maximum use only if it is supplemented with Crop Production Credit for maximizing crop production which will, ultimately, increase the repaying capacity of the farmers. So, endeavour should be made to provide Crop Production Credit along with the Investment Credit to the farmers. While considering the Investment Credit proposals of the farmers, the requirement for growing crops in particular and carrying out other allied agricultural activities in general be also taken into account and sanctioned on merits. In case the Production Credit facility is not being sanctioned, the Incumbents Incharge should mention specific reasons on the file therefor. (B). Broad parameters for Expenditure/Income calculation are as under: - (a) Expenditure to be determined on following factors: (i)Expenditure on productive activities like crop production, purchase of seeds, fertilizers, pesticides, expenditure on irrigation charges, etc. (ii)Expenditure on allied activities like dairy/poultry, etc. (iii)Consumption needs.
The Government of India has advised banks to accelerate flow of credit to agriculturesector. This calls for disposal of proposals without delay. Following guidelines should bekept in mind while processing the applications for agricultural credit.
A. Processing the applications for agricultural credit.
1) Technical feasibility and economic viability in each case should be assessed by Agriculture Officer/Officer having agriculture background to the extent possible.
2) Where Incumbents Incharge of branch offices are confident about their capabilityto appraise loan proposal appropriately, they may make such appraisalsindependent of any Agriculture Officer; keeping in view the soil type, croppingpattern, available irrigation potential, scope of custom hire service and his reportshould be kept on bank’s record. In addition, he should also examine thegeneration of income to pay the interest and instalments as and when theybecome due and ensure due recovery promptly.
3) However, Branch Managers are advised to record the facts in the loan proposalitself while sanctioning the loan so that unnecessary objections are not raised bythe Inspectors subsequently. Further they should ensure that income stream ofthe farmer should be calculated on the basis of income/expenditure of the
farmer and limit be fixed accordingly.4) Investment Credit availed by the farmers can be put to maximum use only if it is
supplemented with Crop Production Credit for maximizing crop production whichwill, ultimately, increase the repaying capacity of the farmers. So, endeavourshould be made to provide Crop Production Credit along with the InvestmentCredit to the farmers. While considering the Investment Credit proposals of thefarmers, the requirement for growing crops in particular and carrying out otherallied agricultural activities in general be also taken into account and sanctionedon merits. In case the Production Credit facility is not being sanctioned, theIncumbents Incharge should mention specific reasons on the file therefor.
(B). Broad parameters for Expenditure/Income calculation are as under: -
(a) Expenditure to be determined on following factors:
(i) Expenditure on productive activities like crop production, purchase of seeds,fertilizers, pesticides, expenditure on irrigation charges, etc.
(ii) Expenditure on allied activities like dairy/poultry, etc.(iii) Consumption needs.
(b) Income of farmers shall be determined based on:
(i) Land availability and cropping pattern.(ii) Expected income from allied agriculture/non-farm activities.
(iii) Any other income.
Circle Heads may identify model schemes for financing agricultural activitieswhich suit their respective areas. The model schemes so prepared should bearea specific covering aspects of economic viability, technical feasibility. Suchschemes may be implemented and if any area specific relaxation or modificationis needed then it may be recommended to PS & LB Division, Head Office forconsideration.
Incumbents Incharge of branches should not keep the proposals pending forwant of appraisal by Agriculture Officer only rather they should dispose of suchproposals expeditiously provided they are confident and satisfied to appraisesuch proposals by themselves or by an Officer, who is competent to do. In caseof need, they may seek guidance from Circle Office for expeditious disposal.
2. TIME SCHEDULE FOR DISPOSAL OF LOAN APPLICATIONS:
(vi) Confidential Report should reflect the creditworthiness of the applicantand the guarantor;
(vii) As far as possible, cluster approach should be adopted;(viii) Technical assistance may also be sought (if required) from Departments
of Agriculture, Horticulture, Soil Conservation, Forestry, Fisheries, Animal
Husbandry, Sericulture, concerned Departments of AgriculturalUniversities and NABARD.
(ix) While undertaking pre-sanction appraisal of the proposals, branches shallfocus on income stream of applicant(s) besides the credibility, capabilityfor taking up the activity proposed and techno-economic viability of theproposal.
(x) Defaulter members of Primary Agricultural Co-operative Societies andfarmers who have already availed short term loans from other banks orfinancial institutions will not be eligible for short-term loan.
4. Verification of land records:
The existing practice of verification of land records by paying visit to the fieldshould be followed meticulously.
5. There exists a scope for bringing more awareness about terms and conditions ofthe financial assistance among the rural borrowers in particular and others ingeneral. So, endeavour should be made to increase awareness among theborrowers in this regard.
6. MARGIN NORMS:
(a) For production and/or Investment Credit:
Amount of loan Margin(i) Upto Rs.50,000/- Nil
(both for short term and medium term)(ii) Above Rs.50,000/- to Rs.2 lakh 5%(iii) Above Rs.2 lakh to Rs.5 lakh 10%(iv) Above Rs.5 lakh 25%
(b) Under PNB Krishi Card Scheme :
Amount of loan Margin(i) Upto Rs.2 lakh Nil(ii) Above Rs.2 lakh to Rs.5 lakh 10%(iii) Above Rs.5 lakh to Rs.10 lakh 25%
(c) Under the Scheme of Agri-Clinics/Agri-Business Centres:
(i) Where subsidy is available, the same should be treated as margin and nofurther margin money should be stipulated unless subsidy falls short ofrequisite margin.
(ii) Labour and materials, etc., contributed by farmer should be treatedtowards building up of margin.
(iii) Where the scheme has been approved by NABARD, the terms andconditions stipulated by NABARD in respect of margin shall be followed.
(iv) In respect of Govt. sponsored schemes, the margin/security norms shallbe as per the respective schemes for agricultural advances or the abovementioned margin, whichever is lower.
7. SECURITY NORMS:
(A) Production Credit/Investment Credit:
(i) Upto Rs.1,00,000/-
Hypothecation of crops/assets created out of bank loan;
(ii) Above Rs.1,00,000/-
(a) Hypothecation of crops/assets created out of bank loan; AND
(b) Charge on land as per Agricultural Credit Operations andMiscellaneous (Provisions) Act of the State concerned/Mortgage ofagricultural land valued at 100% of amount of loan for otherfarmers and 75% of the loan amount for small farmers/marginalfarmers;
OR Alternate security, viz., charge/lien over liquid securities such as
term deposits/NSCs/KVPs, etc., which may be considered adequate.OR
Suitable third party guarantee.
(B) Under the Scheme of Agri-Clinics and Agri-Business Centres:
(a) Hypothecation of assets created out of bank loan; AND
(b) Charge on land as per Agricultural Credit Operations and Miscellaneous(Provisions) Act of the State concerned/ Mortgage/Equitable Mortgage ofagricultural land/any other suitable property valued at 150% of amount ofloan for other farmers and 100% of the loan amount for smallfarmers/marginal farmers;
OR Alternate security, viz., charge/lien over liquid securities such as termdeposits/NSCs/KVPs, etc., which may be considered adequate.
ORSuitable third party guarantee.
NOTE:
(i) In States where legislation on the lines suggested by the TalwarCommittee has been passed, a simple declaration creating a charge onthe land offered as security will be sufficient. In such cases, mortgage ofland may not be necessary.
(ii) While valuing land for the purpose of security, post development value ofland shall be taken into consideration.
(iii) The RBI has advised banks to ensure that value of security taken iscommensurate with size of loan and desist from asking additionalcollateral security by way of guarantee where the land mortgaged isconsidered adequate. Branches are, therefore, advised that third partyguarantee should not be taken in cases where mortgage of agriculturalland has been accepted as security. RBI has further advised thatbranches should desist from the practice of taking collateral security/thirdparty guarantee/mortgage of land for P.S. Advances, where it has beenindicated that such security is not to be taken.
(iv) Branches may not ask for mortgage of land in cases where the amount ofloan net of subsidy is upto Rs. 1,00,000/- or subsidy is not received inadvance or simultaneously at the time of disbursement of loan. However,in such cases, suitable third party guarantee may be obtained.
(v) In case the land/shed is on lease/rent basis or otherwise where borrower’stitle to land does not permit him to create a mortgage thereof, suitableguarantee may be accepted as an alternative security. If, however, loan
is allowed for construction of sheds, these must be mortgaged with theBank as principal security except where these are constructed on land onwhich the borrowers do not have alienable title.
(vi) In case of loans for purchase of power tillers, hypothecation of assetsalone will be sufficient even for loans above the aforesaid ceiling upto
which no collateral security is required to be taken.
8. RATE OF INTEREST:
AGRICUTURE:
a) Advances upto Rs. 50,000/- Rate of Interest
i) Agricultural production credit including KCC advances. BPLR minus 0.75ii) Agrl. Term loans BPLR
iii) PNB Kalyani Card BPLR minus 1.00b) Advances over Rs. 50,000/- but upto Rs.20 lakh BPLR
c) Advances over Rs.20 lakh As per credit risk rating
Credit Risk Rating Rate of Interest AAA BPLR AA BPLR + 0.50 A BPLR + 1.00BB BPLR + 1.50 #B BPLR + 2.00 #
C BPLR + 2.00 #D BPLR + 2.00 #
Term premia of 0.50 is to be added for arriving at interest rate in respect of loanrepayable in 3 years and above.
# Financing under Capital Investment Subsidy Scheme of National Horticulture Board forconstruction/expansion/modernization of cold storages and storages for horticultureproduce, will continue @ BPLR + 1.00.
Interest is 7% p.a. in the regular Crop loan/KCC accounts on running balanceoutstanding upto Rs. 3 lakh. On the irregular accounts / outstanding beyond Rs. 3 lakh,normal rate of interest is to be charged. The above guidelines are applicable for theyear 2009-10 and are linked to the subvention of 2% as per GOI/RBI guidelines (Pleasealso refer PS&LB Divn., HO circular in this regard).
3. Financing under Capital Investment Subsidy Scheme forconstruction/renovation/expansion of rural godowns: - BPLR
NOTE:
(i) Both working capital and term loans are to be clubbed together todetermine the size of the loan for the purpose of fixing the rate of interestfor all agriculture borrowers.
(ii) Payment of interest should be insisted upon only at the time of repaymentof loan instalments as fixed.
(iii) Interest on current dues should not be compounded.
N.B. : Special terms & conditions and relaxations in margin, security, rateof interest, disbursement of loan provided in certain agriculturalcredit schemes shall be complied with.
9. LOANING POWERS:
Loaning powers for agriculture advances have been aligned with General LoaningPowers and should be exercised as per Loans & Advances Circulars issued fromtime to time.
10. LOAN APPLICATION AND DOCUMENTATION:
(i) Application for Agricultural Credit PNB 762 (R)(ii) Prescribed Annexure/Appendix PNB763 (R) to 784(R)
for each Agricultural activity(iii) Hypothecation Agreement PNB 1041 (R)(iv) Deed of guarantee, wherever applicable PNB 1042 (R)(v) Mortgage deed, wherever applicable PNB 1043 (R)(vi) Hypothecation Agreement for loan PNB 1087
upto Rs.1 lakh(vii) Copies of documents establishing ownership/cultivation rights called Furd
Jamabandi, Khasra/Khatauni Girdawri (or by other vernacular names).Note:For loans upto Rs.50,000/-, copies of revenue extracts may not beinsisted upon and in lieu thereof, branches may accept the following
revenue documents for short term loan: -
a. Extract from the latest Revenue/Agricultural Pass Book issued by State RevenueDepartment.
b. Receipt issued by the State Revenue/Irrigation Department for payment of landrevenue or irrigation charges or any other document issued by State RevenueDepartment containing details of ownership/ cultivation rights, kila/plot number,
area of land and other requisite details. Such receipt/document should not bemore than nine months old.
c. In case a farmer is already availing crop loan/term loan from our Bank andparticulars of his/her land holdings with nature of rights are on Bank’s record, localenquiries may be made to verify the present position and in case there is no adverse
change, loan may be considered without asking for fresh copies of revenue recordsevery time upto three years.
d. Certificate provided by the Local Administration/Panchayati Raj Institutionsregarding the cultivation of crops and verifying the identity and status, for thepurpose of lending to landless labourers, share croppers and oral lessees,.
e. An affidavit containing details of land tilled/crops grown. However, farmer will givean undertaking in the affidavit that he has not raised any loan from otherbanks/financial institutions.
f. Landless labourers, share croppers, tenant farmers and oral lessees can be IssuedPNB Krishi Card (KCC) upto limit of Rs 50,000/- on the basis of an Affidavit.
g. Branches financing sugarcane growers under Tripartite Agreement may acceptdetails of land as given by borrower-farmer(s) in Application for Agricultural Credit[PNB 762(R)] duly certified by Sugar-Mills subject to condition that IncumbentsIncharge of such branches must satisfy themselves about the details given byfarmer(s) and certified by Sugar-Mills in respect of land holdings of farmer(s) suchas ownership/ cultivation rights, i.e., Furd Jamabandi and Khasra/KhatauniGirdawari, plot number, area, irrigated/ unirrigated land, as the case may be; aftermaking local enquiry. Incumbents Incharge would also record their observations tothis effect in Application for Agricultural Credit, under their signatures.
(ix) Non-Encumbrance Certificate from the concerned Office of Sub-Registrar of
Assurances, i.e. Tehsildar Office relating to agricultural land or alternate immovableproperty offered as security should be obtained. If immovable property is notto be charged in the Bank’s favour as security, Non-encumbranceCertificate would not be required.
(x) Tripartite Agreement to be executed amongst sugarcane growing farmer, sugar-milland the Bank, wherever applicable.
11. CONFIDENTIAL REPORT (CR) ON BORROWER(S) AND GUARANTOR(S):
(i) For loansupto Rs.50,000/-
No CR to be collected. However, information furnished byborrower in loan application form must be verified byIncumbent Incharge/Agriculture Officers and they will recordtheir opinion to this effect.
(ii) For loan aboveRs.50,000/- &upto Rs. 10 lakh
A brief CR on PNB 539 (Simplified Confidential Report onBorrowers and Guarantors in respect of Farm Advances) maybe obtained along with the information furnished by borrower
in Loan Application Form (PNB 762R) and here again, theinformation furnished by borrower must be verified byIncumbent Incharge/ Agriculture Officer; besides their reporton brief CR.
(iii) For loans above
Rs. 10 lakh
Regular CR may be compiled on bank’s prescribed Form PNB
282 A/B depending upon constitution of borrower.
12. LETTER OF SANCTION:
As soon as loan is sanctioned, letter of sanction shall be issued to borrower.
13. DISBURSEMENT OF LOAN:
'Time Factor' is very important for disbursement of crop loans. Adequate and timelydisbursement of crop loan is beneficial to the farmers as well as the Bank. Specimen ofLetter to be taken from the borrower authorizing the bank to make payment to thedealer on his/her (the borrower's) behalf is given in Appendix- I.
14. REPAYMENT PERIOD:
I. Short term credit:
(i) Due dates fixed for recovery of crop loans towards adjustment ofloan and interest should synchronise with harvesting and marketing
of crops. A suitable marketing period after the actual harvest beallowed to borrower for marketing of produce and receiving saleproceeds so that he/she may conveniently repay Bank loan.
II. Investment credit:
Repayment period for investment activities shall be fixed as prescribed inthe respective agriculture credit scheme.
15. ISSUE OF LOAN PASS BOOK:
In order to introduce an element of transparency, banks have been advised bythe RBI to furnish borrowers with a clear statement of credit facilities availed bythem separately indicating various features of charges levied. Branches shall,therefore, issue loan passbook on PNB 589 or Statement of Account, invariably,to all borrowers.
16. SERVICE AREA APPROACH – REMOVAL OF RESTRICTIVE PROVISIONS AND DISTANCE CRITERIA FOR RURAL LENDING:
It has been decided to remove the restriction of financing within the service areain other than Government Sponsored Programmes as under:-
(i) Rural lending shall be restricted within a radius of 25 Kms. from the
branch but within the State boundary to have effective supervision andfollow-up.
(ii) Where the service area is already allocated beyond 25 Kms., the brancheswill continue to finance within the allocated service area.
(iii) In the Circles where the inter-branch distances are far below 25 Kms., theCircle Head may broadly demarcate the area of operation for eachrural/semi-urban branch under the control of the Circle to obviateunhealthy competition among our bank’s branches.
(iv) Circle Heads have been given full powers to enlarge area of operationdepending upon potential, infrastructure and capability of the branch.
However, for Government Sponsored Programmes, financing within the allocatedservice area shall be done irrespective of the distance criteria.
17. OBTAINING OF “NO DUES CERTIFICATE”:
“No Dues Certificate”/’Affidavit’ is not to be obtained for agricultural loans uptoRs.1,00,000/-. However, for loans above Rs.1,00,000/-, obtaining of Affidavit inlieu of "No Dues Certificate" is allowed.
18. OBTAINING OF “NO OBJECTION CERTIFICATE” FROM THE CO-SHARERS OF AGRICULTURAL LAND:
It has been decided to dispense with obtaining of ‘No Objection Certificate’ fromthe co-sharer(s) of agricultural land. In lieu thereof, a simple declaration as perthe enclosed APPENDIX-II be obtained from the intending borrower(s) statingthat there is no family dispute about title of the agricultural land to bemortgaged/charge created in favour of the Bank for securing the loan.
19. RENEWAL OF SHORT-TERM LIMIT:
(i) Fresh Application for Agriculture Credit and Copies of Revenue Recordsare not required.
(ii) In case of enhancement of limit, fresh documents shall be obtained.
(i) The branch officials should have good rapport with the borrowers.Inspection should be conducted periodically as per schedule to ensurethat the borrower is getting maximum benefit from the investmentfinanced by the Bank. Wherever required, technical guidance should beprovided to the beneficiary.
(ii) It should be ensured that the borrower has complied with the terms andconditions of the Bank.
(iii) It should be ensured that the Bank’s name plate has been prominentlydisplayed, wherever required.
(iv) Besides others, descriptions like Chasis/ Engine/ Oil-Engine/ Electric Motornumber, etc., mentioned in the bills/receipts should be verified as early aspossible.
(v) Branches should adhere to the other guidelines relating to Agricultural Advances issued by HO from time to time.
21. RULE BASED LENDING MODEL (RBLM):
In order to appraise the farm credit proposals, Rule Based Lending Model (RBLM)has been introduced w.e.f 1st July, 2005. The aggregate scores secured by theapplicant will lead to a point enabling the Incumbent Incharge to take a logisticcredit decision for sanction/rejection of credit proposal. Bench Mark for sanctionof credit proposal has been kept at 60 marks for other farmers and 55 marks forsmall & marginal farmers.
22. UNIT COST OF AGRICULTURE AND ALLIED ACTIVITIES:
The mechanism for fixing the unit cost of items in agriculture and allied activitiesevolved by the Bank is as under:
(i) Unit Cost Committee will be constituted at Circle Office level. TheCommittee should be headed by the Circle Head. Other members of thisCommittee will be Lead District Manager/ District Coordinator and
Agriculture Officer.(ii) In order to keep variations based on ground-level realities, cost of
particular items of investment in a District should be same for all branchesof our bank.
(iii) Circle Head will adjudge the genuineness of cost of items of investment,
based on the cost prevailing in the area for minimum economic size ofdifferent investments consistent with their economic-financial viability, onthe recommendations of this Committee and also on the basis of pricecost of equipment/machinery fixed by respective manufacturers of suchitems.
(iv) Circle Head will fix the unit cost district-wise for various items forfinancing and advise the branches/ LBOs / Distt.Coordinators, accordingly.
(v) Incumbent Incharge of branches will have the discretion to finance up to±5 percent of the approved unit cost on merits in specific cases.
(vi) As and when further revision is sought by field functionaries, it will be
examined by Circle Head through this Committee.
Circle Head is to take necessary action for constitution and functioning of UnitCost Committee. District-wise unit cost for various items under agriculture andallied activities should be fixed and circulated among all the branches fallingunder their jurisdiction.
Circle Heads are to monitor and supervise the constitution and smoothfunctioning of the above Unit Cost Committees from time to time for the purposeof ensuring judicious financing vis-à-vis the unit cost of different items ofinvestment.
23. NABARD REFINANCE:
NABARD provides refinance to the extent of 90%-100% of Bank loan, dependingupon the agricultural activity and the geographic location of lending. Refinancefrom NABARD is to be availed by Circle Heads in conformity with Head Officedecision taken from time to time.
LIST OF APPENDICES
APPENDIX- I: Letter to be taken from the borrower authorizing the bank to makepayment to the dealer on his/her (the borrower's) behalf.
APPENDIX-II: Declaration from borrower regarding Agricultural Land.
LETTER TO BE TAKEN FROM THE BORROWER AUTHORISING THE BANK TOMAKE PAYMENT TO THE DEALER ON HIS/HER (THE BORROWER'S) BEHALF
The ManagerPunjab National BankBO:_____________________
Dear Sir,
REG: LOAN FOR Rs.__________________ GRANTED TO ME/US.
*1.With reference to the above loan sanctioned to me/us, I/We have executed Loan
Agreement for Rs.__________ (Rupees___________________________) dated_____in your favour. I/We request that a sum of Rs.__________ being the part proceeds ofthis loan together with the amount of Rs.__________ already deposited by me/us withyou should be paid, on my/our behalf, by a cash order to Shri/M/s.________________from whom I/We am/are purchasing_________________. The relevant receipt for thepurchase will be deposited by me/us with you after endorsing thereon the receipt ofthe_____________________________________ concerned from the said seller.
*2.With reference to the above loan sanctioned to me/us, I/We have executed loanagreement of Rs._______________ (Rupees_____________________________)dated_________________ I/We request that a sum of Rs._____________ being the
part proceeds of loan sanctioned be paid to the supplier/seller, i.e. Shri/M/s.________________ from whom I/we am/are purchasing _________________. Therelative receipt for the purchase will be deposited by me/us with you after endorsingthereon the receipt of the concerned from the said seller.
Yours faithfully,
Place: ___________________
Date: ___________________ (Signature with Name & Address)
APPENDIX-IIThe Branch Manager,Punjab National Bank,BO:_______________
___________________.
Reg.: Declaration regarding Agricultural Land.
For the purpose of securing loan to be raised by me/us for _________________, I/Wehereby declare that my/our title to the agricultural land described in Furd Zamabandiand Khasra Girdawari issued on ___________ is free from all sorts of family disputes.No Partition Deed and/or legal proceedings against the land described in the abovesaidRevenue Records are pending with family members/in any court of law. The Bank canmortgage/create charge on the agricultural land to the extent of my/our share forsecuring the loan to be raised by me/us.
Further, I/we affirm that no other lien/charge/encumbrances against my/our share inthis agricultural land will be created during the pendency of the Bank loan without theexpress permission of the Bank.
I/We hereby affirm and declare that the contents stated above are true to the best ofmy/our knowledge and belief and nothing has been concealed.
• Short term working capital requirement for Agricultural activities•
Domestic/consumption requirements• Term credit needs• Against debt from Non-Institutional Lenders
ELIGIBILITY:
• Owner cultivator / tenant /lessee or allottee farmers with recorded occupancyrights
• Oral tenants ( if land owners agree to become co-borrower or else liquid securityFD/NSC/KVP etc to be obtained)
• Should have stable financial position & good banking habit.
• Landless labourers, share croppers, tenant farmers and oral lessees can be issuedPNB Krishi Card upto limit of Rs.50,000/- on the basis of an affidavit.
EXTENT OF LOAN:
• Max. Rs.10 lac, to be allowed as under:-• Maximum Rs 5 lakh for cash credit limit for crop production, consumption needs &
working capital for allied activities;• Need based term loan within overall ceiling of Rs 10 lakh including cash credit limit
mentioned above & loan (maximum up to Rs 50,000) for relief against indebtednessfrom non-institutional money-lenders. Consumption loan upto 25% of the limit or Rs
50,000/- whichever is lower.
Our existing borrower farmers having satisfactory track record of minimum 2 years canbe sanctioned limit upto Rs 20 Lakh. However, the production credit limit includingconsumption loan will be restricted upto Rs.10 lakh. The condition of satisfactorydealing of 2 years can be waived in cases where the collateral security to the extent of200% of the loan amount is available.
REPAYMENT:
•
Aggregate credits in the account during 12 months period should at least be equalto the max. outstanding in the account.• No drawal in the account to remain outstanding for more than 12 months(18
months for long duration crops such as sugar cane etc. or for agrl . activities).• Term loan including loan for relief against indebtedness from non institutional
lenders may be repayable in 5 years. However, in case of term loan for tractors,etc where repayment period is more than 5 years, longer repayment period asprescribed under the Scheme shall be allowed.
• Borrower can avail limits either under PNB Krishi Card Scheme or PNB KisanIchchhapurti Yojana or PNB Kisan Sampuran Rin Yojna.
• Limit is fixed by taking in to account the requirement of the farmer on annual basis
for all farm activities.• No restriction on number of transactions in the c/c account.• Farmer can avail loan for the next crop before liquidation of existing dues.• Disbursement: Payment beyond Rs. 3 lac from card issuing branch only.• Limit is to be fixed in multiple of Rs.1000/-, minimum limit Rs.1000/-• Card is valid for a period of 5 years. Limit shall be reviewed annually to ensure that
sale proceeds are routed through limit account.• May be allowed to staff members also after prior permission of Circle Head, if owner
cultivator can conveniently undertake /supervise agricultural operations from theplace of residence to the satisfaction of sanctioning authority.
Personal Accident Insurance Scheme:
This Policy covers the KCC holders up to the age of 70 years and in respect of whom
the premium is paid by the banks to the Insurance Company.
Risk Coverage:
The benefits under the scheme are as under:
(a) Death due to accident (within 12 months of accident)
caused by outward, violent and viable means. Rs. 50,000
(b) Permanent total disability Rs. 50,000
(c) Loss of two limbs or two eyes or one limb and Rs. 50,000
one eye
(d) Loss of one limb or one eye Rs. 25,000
The premium of Rs. 15/- per KCC holder per annum payable to the insurance companyunder the said Scheme shall be shared between the KCC issuing branch and the KCCholder in the ratio of 2:1.
National Agriculture Insurance Scheme:
To provide insurance coverage to the farmers in the event of failure of any of thenotified crop as a result of natural calamities, pests & diseases. The terms & conditionsof the scheme are as under:
• Premium subsidy to small and marginal farmers to the extent of 10% to beshared equally between the Central and the concerned State Government.
• Administrative and operational expenses to the extent of 20% to be sharedequally between Central and State Governments.
• Total publicity and bank service charges to be shared equally by the Central andState Governments.
• The risk of the Implementing Agency in meeting the claims would be restricted
to 100% of the premium in case of food and oilseeds crops and 150% forcommercial/ horticultural crops.
• The existing premium rates, i.e flat rates for food and oil seeds crops andactuarial premium for annual commercial and horticultural crops are to becontinued.
• As provided in the Scheme, indemnity claims will be settled only on the basis ofyield data furnished by the State Government based on requisite number of CropCutting Experiments (CCEs) conducted under General Crop Estimation Survey(GCES) and not on any other basis like Annavari / Paisawari, etc..
• Implementation of the Scheme is left to the discretion of the State /UnionTerritory Government.
• The element of sharing of risk, nature of coverage, seasonality discipline,submission of declarations by banks, etc., will remain the same, i.e, as per theprovision of the Scheme.
As per provisions of NAIS, “in case, a farmer is deprived of any benefit underthe Scheme due to error/omissions / commissions of the Nodal bank/branch, the concerned Institution only shall make good of all such losses.”
Max. age limit for rural housing at the time of application is 60 years (up to 65years , if legal heirs stand as guarantor.
EXTENT OF LOAN:
Max.10 lac (minimum 70% of the limit for Productive Purposes. 30% of the loanamount or Rs. 3 lakh whichever is lower be given for consumption purpose. 20% of thelimit or Rs.2 lakh whichever is lower may be given for rural housing related activitywithin the 30% limit for consumption.
Lower of:-• 5 times average annual (2 Years) income from agriculture & allied activities of
the borrower• 50% of value of mortgaged land.
REPAYMENT:
Production Credit:
Cash Credit Limit :
Aggregate credit (last 12 months ) should be equal to outstanding.
Working Capital for allied activities : 12 months
No drawal to outstand for more than 12 months (18 months for long duration crops)
Housing: 9 years (with gestation of 12 months)
Main Agricultural activity: upto maximum of 9 years.
To meet short term credit requirement to adjust /repay the outstanding KCC limitavailed by farmers from the branch and to procure better price by storing farm produceand selling it at favourable price within a specified period.
ELIGIBILITY :
All the farmers irrespective of whether they were given crop loans for raising theproduce or not will be eligible for advances. However where the farmers have availed
KCC facility for crop production /composite cash credit limit from our bank for raisingthe crops, the same should not be overdue for repayment and this limit should berecovered/adjusted out of the Produce (Marketing) Loan.
EXTENT OF LOAN :
Maximum loan upto Rs.10 lakh.
Twice the amount of crop loan limit or 75 per cent of value of the produce calculated atthe Government announced procurement prices, whichever is lower.
REPAYMENT:
Repayment with in a maximum period of twelve months from the date of disbursement.Insurance of stock hypothecated to bank. should be done as per bank rule includingquality deterioration clause for loan exceeding Rs.10,000/-.
PURPOSE :Purchase of New Tractors (of Approved Make & Model) & matching implements such ascultivator, harrow, disc ploughs, trolleys, etc. (minimum three, unless borrower alreadypossesses the same.)
• New Power Tiller• Second hand tractor• Small tractor (30 HP, G.O.I. Scheme)• Agricultural Machinery• Repair & renovation of tractor
ELIGIBILITY :
• Minimum 2.5 acres of perennially irrigated land for tractors or correspondingacreage as prescribed for different categories of land under the State Land
Ceiling Act.• Min.1.5 acres for power tillers (owned singly or jointly).• For repair & renovation, tractor should be more than 7 years old but not older
than 12 years.• For second hand tractor, it should not be more than 5 years old.• Borrower to give undertaking that tractor will be driven by person holding valid
Repair & renovation of Tractor : Max.25000/- (Rs.60000/- where engine is toreplaced),
For second hand tractor – Max.Rs. 2 lakh
Under the GOI scheme for promotion of Agrl. Mechanisation, Subsidy @ Rs.30000/- pertractor (up to 30 P.T.O. H.P.) is available.
For Power Tiller under Integrated Central Development/ Rice Programme, subsidy @50% of cost of Power tiller, max.30000/-
REPAYMENT :
• Tractor: 7 -9 years• 2nd hand tractor: 5 years• Power tiller: 7 year.• Other Farm machinery: 7 years ( small & marginal farmers),
5 years (other Farmers)• Half yearly / yearly instalments linked with harvesting & marketing of major crops,• Gestation period: Max. 1 year for Small & Marginal Farmer and 6 months for others.
Purchase of pumpsets, Deepening of wells /repairs to wells, borewell, shallowtubewell, sprinkler sets/drip irrigation sets/solar pumps / wind mills/ lift irrigation /generator sets for energisation of pumpsets, etc..
ELIGIBILITY:
Minimum 2.5 acre of agricultural Land
(this condition does not apply for projects sponsored by DRDA, SGSY, StateDevelopment Agency)
Relaxation in land holding may be given subject to the following:
Individual farmers owning less than one acre will not be financedCropping intensity is more than 200%Projects is being set up in white area & is technically feasible / economically viable
Minimum distance criteria of at least 200 sq. yards between tube wells.For sprinkler sets/ drip irrigation project : Land holding not less than 4 acre.
EXTENT OF LOAN : Need based
(Prices /Invoices must be according to price list issued by manufacturer or rate contractof State Govt. Concerned or unit cost approved by NABARD/Bank
REPAYMENT :
Pumpsets: 9 Years
Deepening of wells /Persian wheels/Rahat: 5 years
Linking of Water course /Field Channels : 9-15 years
Sprinkler/Drip Irrigation: 10-15 years
On farm development (OFD) Under Command Area Development (CAD) – 11-15 years
Gestation period : Pumpset: 12 months,
OFD : 24 months,Lift Irrigation :36 monthsOthers : Max.1 year
Purchase of new truck/new motorized light/medium vehicles, like tempo, matador, jeeps, pick up vans, mini trucks made by Standard Manufacturing Concerns, etc. twowheelers to farmers for transport of agricultural inputs /produce.
ELIGIBILITY :
An Individual/Hindu Undivided Family or an association of persons (not being acompany or a cooperative society), engaged in farming or allied activities, holding
land:-
3 acres or more (for purchase of truck) &
2 acres or more (for light & medium vehicles like Jeep, Pick up Vans, Mini Trucks etc.)&
7. Financing Agricultural Graduates for setting up of Agri-clinics Agri-Business centres
PURPOSE :
For setting up of :-
Agri-clinics to provide expert advice and services to farmers Agri.-business centres to provide input supply, farm equipment on hire and otherservices.
ELIGIBILITY : Agricultural graduates /graduate in subjects allied to agriculture, horticulture, animal
husbandry, forestry, dairy, veterinary, poultry farming, pisciculture etc.To individuals or group of not more than 5 persons
EXTENT OF LOAN
Need based, Maximum Rs.10 lac. ( for Individuals) and Rs. 50 lac ( for Groups)
Subsidy *
REPAYMENT :
Repayable in monthly /quarterly, half yearly or yearly instalments depending uponincome generation from project ( as prescribed in respective credit schemes)
*Credit linked capital subsidy @ 25% of capital cost of project funded through BankLoan (33.33% for candidates belonging to SC/ST/Other disadvantaged sections/N E &Hilly states. In addition, full interest subsidy would be eligible for the first two years ofthe project.
Investment Credit for construction of sheds and purchase of equipment and productioncredit for purchase of day old chicks, feed, medicines etc.
ELIGIBILITY :
For subsidiary activity:
Small farmer, landless Agrl. Labourer or other person who is under employed andintends to supplement his income and having required land / shed to establish poultryfarms.
Well experienced in running poultry unit on commercial basis as main vocation & havingrequired land/shed to establish poultry farm
EXTENT OF LOAN: Need based
Minimum 500 birds for subsidiary activity.Size for main activity as per techno-economic appraisal of the project(Requirement for investment and production credit will be considered as a package)
REPAYMENT :
Production Credit: Maximum 18/12 months with a gestation period of 6/3 months incase of layers & broilers respectively.
Investment Credit: 6-7 years (with gestation period of 12 months for layers & up to 3months for broilers)
• Purchase & maintenance of milch animals for milk production (with average dailymild yield of 6.5 litres)
• Construction of shed(s) for keeping the animals.• Rearing of good quality female calves up to the stage of first lactation.• Finance may also be granted for other innovative animal husbandry activities like
cattle breeding through artificial insemination, salvaging of dry pregnant cattles,financing milk processing facilities (including milk chilling plants, pasteurizationplants, transport equipment, milk processing & storage facilities,etc.
• Construction of milk houses by Village Milk Cooperative Societies, development ofpastures
ELIGIBILITY :
• Individual borrower undertaking dairy as a subsidiary activity (landlessagricultural labourer or farmer) having experience & arrangement for supply ofadequate quantity of fodder and accommodation for keeping the animals.
• Individual borrowers undertaking dairying as main activity should be wellexperienced in running a dairy farm on commercial basis & should haveaccommodation for construction of sheds, arrangement for growing storage offodder concentrates.
Development of inland & brackish water fisheries for;-
• Construction of ponds /tanks/sluices• Purchase of fish, Prawn, fry & fingerlings/fish seed/ prawn seed etc.• Purchase of inputs like oil cake fertilizer, organic fertilizer & other feed material
up to first harvest.• Purchase of nets,boxes, baskets, ropes, shovels, hooks/ other accessories
Marine fisheries:
For purchase of mechanized /non-mechanised boats/deep sea fishing vessels /trawlers
Purchase of nets, deck equipment, marine engine & Working capital.
ELIGIBILITY:
• Individual farmers / groups and cooperative society/ company or association ofpersons
• having adequate knowhow, experience/ training in the activity and infrastructuralfacilities
• owner(s) of the pond or land or have lease hold rights till completion of the project.• having fishing rights in the case of lake/ reservoir.•
Report on quality of water should be submitted by borrower along with theapplication for agriculture credit
For Marine Fisheries: • Individuals/ partnership firms/ Limited companies who are technically qualified & are
having adequate experience to undertake such ventures.• In case of Deep sea fishing vessels, necessary permission from Govt. authorities is
required for operating in the maritime zone.
EXTENT OF LOAN:
Need based
If necessary, in Inland fisheries projects may be got verified from Fish farmerDevelopment Agency (FFDA), State Fishery Department /NABARD consultancy serviceslimited.
5-8 years (Including gestation period of 12 months with yearly mode of repayment)
Brackish water fish/prawn culture : 5-10 years including gestation period of 12months.
If sponsored by FFDA: 9 years ( with 2 years repayment holiday) in pondculture.
Non-Mechanised Boats/vessels:
6-7 years with 4 months’ grace period each year.
Mechanised Boats:
8-12 years, with 4 months’ grace period each year.(For details - Codified Farm Credit Circular No. 16/07 dated 11.01.2007)
15. Scheme for Sheep and Goat Breeding/Rearing
PURPOSE :
For purchase of sheep/goats of recognised breed for the purpose of breeding and/orrearing them for wool, meat and milk production, equipments / tools, feed,construction of sheds.
ELIGIBILITY :
Small & marginal farmers / agricultural labourers desirous of undertaking sheep/ goatbreeding /rearing as subsidiary activity or trained persons desirous of taking up theventure on commercial lines.
EXTENT OF LOAN :
Need based.
Unit size 1:20 (male :female in case of sheep) & 1:4 (male :female in case of goats)
REPAYMENT :
Medium term Loans:
5 to 6 years ( including gestation period of 12 months)
For breeding as well as rearing of pigs including cost of exotic breed of boars and sowsof improved breeds, weaned piglet( 1-2 months old), feed & medicine, equipments,construction of house, fencing, electricity, etc.Healthy pigs in the age group of 1.5 to 2 years to be financed.
ELIGIBILITY:
• Farmers & agricultural labourers and other entrepreneurs for setting up units assubsidiary/main activities.
• State animal husbandry deptt. may be consulted about quality of pigs and sizeof the Unit.
EXTENT OF LOAN:
• Need based & according to the unit cost approved by state unit cost committee.• Usual unit size comprises 1 boar and 3 sows.• Purchase of feed and medicine for a period not exceeding 9 months
REPAYMENT :
5 to 6 years (including gestation period of one year)(For details - Codified Farm Credit Circular No. 16/07 dated 11.01.2007)
17. Scheme for Apiculture (Bee- keeping)
PURPOSE :
For construction of honey houses, purchase of colonies, equipments such as boxes,honey extractors, smokers and bee veil, foundation sheets, gloves, sugar, etc.
ELIGIBILITY :
Small/marginal farmers/agricultural labourer individual/ association of persons/companies who possess adequate experience in bee keeping (minimum unit of 10 beehives).
• Need based. as per the unit cost approved by the KVIC, NABARD or state govt.• Extent of finance would depend on the size of the unit, number of bee colonies,
cost of equipments and comb foundation sheets etc.
REPAYMENT :
5 years ( including gestation period of 12 months)
19. Scheme for Purchase of animal drawn vehicles , i.e, draft animal/ carts
PURPOSE :
For purchase of draft animals/animal driven cart for transport of agriculture inputs andproduce.(only young and healthy animals of 2-6 years of age to be financed).
ELIGIBILITY :
Farmers owning minimum 2 acres of land or having perpetual right of cultivation ofminimum 2 acres of land. No stipulation of land holding for landless labourer or if thecase is sponsored by DRDA.
• Finance is considered for growing popular variety of mushroom (White Button,Oyster & Paddy Straw);
• To construct buildings, packing and broiler room, AC room, water tank, platformand set up broiler/ insulation blowers, steel racks, water supply line etc.
Working capital (initially for one crop only) may also be considered towards rawmaterial (straw chicken manure, chemicals, seeds etc.) labour and diesel etc.
ELIGIBILITY :
Individuals as well as for large sized units possessing adequate experience ofmushroom cultivation.
EXTENT OF LOAN :
Need based
REPAYMENT :
Maximum 7 years, including gestation period of 6 months
22. Financing Development of Horticulture (Fruit/Flower/ Vegetable)&plantation crop
PURPOSE:
• Establishment & development of new orchards or grove of fruit crops, plantationcrops, spices crops, ornamental crops, medicinal plants, essential oils/ aromaticplants etc.,
• Rejuvenation of existing orchards or plantation ( to be sanctioned by CircleHeads)
• Raising vegetables, raising flower crops,• Intercropping in horticulture crops,• Marketing Loan ( to meet picking, grading, crating forwarding or transportation
costs).• Construction of Green House & Purchase of equipments for Green House.
ELIGIBILITY :
Individual farmer or group of farmers with stipulated land holding as owner or
tenant /lessee on long term basis ( at least three years more than economic life ofprojects )
PSU OR PRIVATE FIRMS;
For plantation of fruit trees or other economic plants on project basis.
Working capital loan would depend upon scale of finance
Marketing Loan: Not to exceed 20% of estimated value of crops.
Subsidy for Green House with drip irrigation projects upto 500 Sqm : -25%
REPAYMENT:
(i) 4-15 years( inclusive of gestation period)
Economic life, gestation period and repayment period for various horticulture crops andplantation crops is given in appendix I of codified Cir.05/07 dated 1.1.07).
(ii) For Green House : 5 to 7 years including gestation period of 1 year.
23. Scheme for Forestry Development:
PURPOSE:• Development of nurseries, Plantation and raising of forestry trees including cost
of development of land, plantation/ digging of pits/raising bunds, creation ofirrigation facilities, purchase of farm equipments, fertilizers, pesticides, seedlings,labour charges, etc.
• Loan for inter cropping
ELIGIBILITY :
•
Farmers/SHG/JLG/ Companies/State Undertakings having ownership or leasehold/perpetual tenancy right over the land.• Minimum land holding should be 1 acre or 150 trees, in case of individual and in
case of companies, minimum area to be planted will have to be 5000 hectareover 3 years span of plantation.
The land proposed for raising forest plantation should be Marginallydegraded/ waste lands.
EXTENT OF LOAN:
Need based.
REPAYMENT:
Forest plantation: Loan for scheme where trees are grown should be repaid with inmaximum period of 15 years including grace period of maximum 6 years.Nursery: Short term loan as per KCC Scheme.(For details - Codified Farm Credit Circular No. 06/07 dated 01.01.2007)
PURPOSE:• Reclamation of soil, soil conservation, conditioning of land, raising of forest
trees/ pastures in existing wasteland or reclaimed land, creation of irrigationpotential, schematic afforestation of waste land
• Financing to tree patta holders under Tree patta scheme,• Loan for development of non-forest wasteland under the investment promotion
scheme,• Setting up of nurseries, etc.
ELIGIBILITY :
• Individual farmers having land holding (either as owners or on the basis of longterm tenancy /lease hold rights), which are degraded due to soil salinity,
alkalinity, water erosion etc.• Panchayats/other bodies having such community land.
Deptt. of wasteland development provides subsidy ranging from 25% to 50% for on-farm activities.
EXTENT OF LOAN:
Need based.
Project report for reclamation/conservation of soil to be verified by soil conservationOfficer /Agricultural University/Krishi Vigyan Kendra/ Agriculture deptt. /forestdepartment.
Margin Money Assistance Scheme: National Wasteland development Board providesmargin money up to 25% of project cost to eligible organisations for bankable projects.
Repayment period under the Scheme shall be as follows:
(a) Aggregate credits into the account during 12 months period should at least beequal to the maximum outstanding in the account.(b) No drawal in the account should remain outstanding for more than 12 months incase of short duration crops and other purposes / 18 months in case of long durationcrops.
To provide hassle-free credit to bank’s customers based on the assessment of cash flowwithout insistence on security, purpose or end-use of the credit. This is in the nature ofcash-credit with no end-use stipulation.
ELIGIBILITY :
Bank’s Individual customers with sources of adequate income in rural and semi-urban
areas.
EXTENT OF LOAN: Maximum Rs.25,000/-
Margin :Nil
REPAYMENT :
GCC limit shall be repayable in 12 months with the following stipulations;
•
Aggregate credits into the account during 12 months period should at least beequal to the maximum outstanding in the account.• No drawal in the account should remain outstanding for more than 12 months.
Providing finance to the farmers to redeem their outstanding dues to moneylenders.
ELIGIBILITY:
All farmers including small & marginal farmers, tenant farmers, oral lessees,sharecroppers, agriculture labourers, etc., who are indebted to non-institutional moneysources. The requirement of obtaining a certificate of moneylender discharging theborrower from total liability has been dispensed with.
EXTENT OF LOAN: Maximum Rs. 50,000/- as term loan.
REPAYMENT :
The loan shall be repaid by the farmers in 5-7 years including a maximum moratoriumperiod of 12 months with half-yearly/yearly instalments.
29. Financing Landless Labourers, Share Croppers and Oral Lessees
PURPOSE :
Simplified procedure for crop loans to landless labourers, share croppers, tenantfarmers and oral lessees on the basis of an Affidavit giving details of land tilled/cropsgrown by such persons for loans up to Rs.50,000/- without any need for independentcertification either by the Revenue Officials or Local Administration/ Panchayati RajInstitutions .
ELIGIBILITY :
Landless Labourers, Share Croppers, Tenant Farmers and Oral Lessees on the basis ofaffidavit.
EXTENT OF LOAN :
Maximum of Rs. 50,000/- (As applicable for Crop Loan/KCC Scheme.)
30. SCHEME FOR FINANCING SOLAR ENERGY LIGHTING SYSTEM (SELS)
1. Objective
To provide renewable source of energy in rural/semi-urban areas by usingsolar energy.
2. Purpose
To finance farmers engaged in agriculture & allied activities for installationof Solar Energy Lighting System with necessary accessories from reputedmanufacturers/ suppliers/authorized dealers.
3. Eligibility
a. Individual farmers in rural/semi-urban centres. Focused attention will oncovering existing good KCC borrowers under the scheme but there will beno bar for financing fresh farmers who would be financed on merits of thecase. Sanctioning Authority will ensure that farmer has assured source ofincome/cash flow adequate enough to repay the bank loan.
b. Further, if a farmer satisfies the income and land holding criteria and isotherwise eligible to draw the financial assistance under DRI Scheme willalso be eligible for financing under Solar Energy Lighting System so thatthey can get the loans at the interest rate applicable to DRI Scheme.
Providing credit for projects for creation of Infrastructure for seed production (i.e. seedcleaning /grading/ processing / treating /packaging, seed storage units, seed testinglabs etc.
ELIGIBILITY :
Individuals, private companies, corporate, Self Help Groups (SHGs) and seedcooperatives
EXTENT OF LOAN :
Need based
Owner’s contribution: 10% ( cost of land can form part of owner’s contribution)Back ended subsidy: 25% of capital investment of Project with a minimum ofRs.25 lac per unit.
REPAYMENT :
Up to 11 years , depending upon cash flow, including a grace period of one year.
32. Capital Investment Subsidy for Cold Storages and Storages for
Horticulture ProducePURPOSE :
For Construction/ Expansion/ Modernisation of Cold Storages and Storages forHorticulture Produce so as to minimise post-harvest losses being suffered by farmersparticularly small and marginal farmers.
ELIGIBILITY :
Co-operatives, Companies, Corporations, partnership and Proprietary firms, AgriculturalProduce Marketing Committees /Boards, Agro-Industries Corporations and Growers’
33. Scheme for construction/renovation/expansion of rural Godowns
PURPOSE:
Creation of scientific storage facilities in rural areas, to check wastage of crops afterharvest, to provide relief to farmers from the distress sale of their produce.
ELIGIBILITY :
Individual farmers, group of farmers/growers, partnership/proprietary firms, non govt.Organisations (NGOs), Self Help Groups (SHGs), Companies, Corporates, Cooperatives,local bodies other than municipal corporations, federations, agriculture producermarketing committees, marketing Boards and agro-processing Corporation
EXTENT OF LOAN: Need based
Margin : 25%
(20% for NE States /hilly areas/SC/ST entrepreneurs and their cooperatives).
Subsidy to the extent of 33.33% of the capital cost of the project in case of projectslocated in North-Eastern States, hilly areas and those belonging to women farmers/their Self Help Groups / Cooperatives and SC/ST entrepreneurs and their SHGsGroups/Cooperatives subject to maximum of Rs.62.50 lakh. @25% of the capital costMax. Rs.46.87 lakh for other category of borrowers. Non farmers : 15% of capital.
REPAYMENT:
Not less than 5 years. (including gestation period of one year)
Provide additional agricultural marketing infrastructure to cope up with the largeexpected marketable surpluses of agricultural and allied commodities including dairy,poultry, fishery, livestock and minor forest produce, infrastructure facilities for grading,standardization and quality certification of agricultural produce for promotion of pledge
financing and marketing , credit, introduction of negotiable warehousing receipt systemand promotion of forward and future, create general awareness and provide educationand training to farmers, entrepreneurs and market functionaries on agriculturalmarketing including grading, standardization and quality certification.
ELIGIBILITY :
The assistance will be available to individuals, Group of farmers/ growers/consumers,Partnership/Proprietary firms, Non- Government Organizations (NGOs), Self HelpGroups (SHGs), Companies, Corporations, Autonomous Bodies of the Government,Cooperatives, Cooperative Marketing Federations, Local Bodies, Agricultural ProduceMarket Committees & Marketing Boards in the entire country.
EXTENT OF LOAN :
Need based.Owner’s contribution 20% to 25%.Term loan : 46.67% to 50% of the project.
Subsidy shall be available at the rate of 25% of the capital cost of the project with anupper ceiling of Rs.50 lakh. However, in case of North Eastern States, Hilly and Tribal
areas, in the States of Uttarkhand, Himachal Pradesh, J&K and to entrepreneursbelonging to Schedule Caste (SC)/Scheduled Tribe (ST) and their Cooperatives, thesame shall be available at 33.33% subject to an upper ceiling at Rs.60 lakh for eachproject. However, in respect of Infrastructure Projects of State Agencies, there will beno upper ceiling on subsidy to be provided under the scheme.
REPAYMENT :
Repayment period will depend upon the cash flow and will be up to 11 years including agrace period of two years. The first annual installment will fall due after 24 monthsfrom the date of first disbursement.
35. Loan to Arhtiyas (commission agents in rural/semi urban areasfunctioning in markets/mandis) for extending credit to farmers, for supply ofinputs as also for buying the output from the individual farmers/SHGs/ JLGs
39. Scheme for financing Micro-Financing Institutions for On-Lending to individual
members or SHGs/JLGs
(PSLB/ABC/05/2008 DATED 03.04.2008)
Amendments to th is scheme has been issued through CIRCULAR LETTER NO.PSLB/ABC/14/2009 dated 06.11.2009.
Eligibility: Societies registered under Societies Registration Act, 1860Public Trust registered under the Indian Trust Act1882Non profit companies registered under Companies Act, 1956Mutual Benefit MFIs like State Cooperative SocietiesProfit oriented MFIs like NBFCsSHGs and their promoting institutions.
Type of loan: Term Loan and WC
Extent of Loan: Rs 200 crore (max)
Mode of Disbursement: For new sanctions, the disbursement should be made in two-
three stages after end use verification and review at each stage. The disbursements
should be in line with the projections made by the applicant (MFI) in the proposal.
Repayment: 3 Years to 7 Years
Rate of Interest:
Risk Rating Rate of interest (%) AAA BPLR
AA BPLR+0.50 A BPLR+1.0BB BPLR+1.50
[
Rating: Till a simplified risk rating model for MFis is developed by RMD, HO, the riskrating model applicble for NBFCs as stipulated by RMD, HO shall be used for internalrisk rating of NBFC-MFIs for financing under the scheme. For Sec. 25 companies /trusts / not for profit MFIs, instead of applying internal risk rating model (of NBFC),grading of external rating agencies like ICRA, CRISIL, SMERA, etc, may be used for thepurpose. Grading of such company should be minimum mfR 4 of CRISIL or equivalent.
Margin: 10% of the project outlayLoaning Power: Circle Head and Above.
“ Potential centres – Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra,
Gujarat, West Bengal, North Eastern States, Rajasthan etc
“ Exposure limit set under this segment for the financial year 2009-10 is Rs. 1000
41. Scheme for Portfolio Buy Out of Microfinance Receivables /Other Receivables of
MFIs/NBFCs under Direct Agriculture.
(PSLB FARM CREDIT CIRCULAR LETTER NO.13/2009 DATED 06.11.2009)
Mode of Disbursement: Term Loan in 1-4 tranches within 6 months.
Extent of Loan: Need Based with Party- wise cap of Rs.300cr; 500cr for SME
Guarantee: Corporate Guarantee / personal Guarantee of promoters (sanctioning
authorities may waive this in respect of MFI/NBFC depending upon their
rating/standing).
Security: Assignment of future receivables along with all rights, titles and interest of theassignor (NBFC/MFI) arising out of the" documents executed between the assignor andthe beneficiary borrowers of the loans portfolio purchased. “by the assignor to theassignee in one or more tranche(s). Hence, all the underlying assets shall remainhypothecated to the assignee.
Rate of Interest:
Risk Rating Rate of Interest (%) AAA BPLR-1% AA BPLR-1% A BPLRBB BPLR+1%
Loaning powers: vest with CMD/ED and above
Repayment: In Installments based on tenor of loan along with agreed rate of interest.
Validi ty period of Sanction: 6 months from date of sanction
