Loans
Agriculture

PURPOSE:

The objective of KCC scheme is to provide hassle free production credit to farmers for meeting the cost of cultivation of both short duration field crops and to upkeep / maintain long duration horticultural and plantation crops. Revised KCC scheme has short term as well as long term component to meet the following requirements:-

  1. To meet the short term credit requirement for cultivation of crops
  2. Post harvest expenses
  3. Produce Marketing loan.
  4. Consumption requirement of farmer household
  5. Working capital for maintenance for farm assets & activities allied to agriculture, like dairy animal, inland fishery etc.
  6. Investment credit requirement for agriculture and allied activities like pumpsets, sprayers, dairy animals etc.

ELIGIBILITY:

  • All farmers – Individual/ Joint borrower who are owner cultivators.
  • Tenant farmers, Oral Lessees & Share Croppers
  • SHGs or Joint Liability Group (JLG) of Farmers including Tenant farmers, Share Croppers etc.

QUANTUM OF LOAN:

  • Short term limit for 1st year: Scale of finance for the crop (as decided by the District Level Technical Committee-DLTC) multiplied by extent of area cultivated plus 10% of the limit towards post-harvest/household/consumption requirements plus additional 20% of limit towards repairs & maintenance expenses of farm assets.
  • Short term limit for 2nd & subsequent  year:  First year limit arrived at as above plus 10% of the limit towards cost escalation/ increase in scale of finance for every successive year (2nd ,3rd ,4th & 5th year) & estimated term loan component for the tenure of the KCC i.e. 5 years (as per annexed Illustration  I)
  • Term loans for investment towards land development, minor irrigation, purchase of farm equipment and allied agricultural activities, based on the unit cost of the asset/s proposed to be acquired by the farmer, the allied activities already being undertaken on the farm, the bank’s judgement on repayment capacity vis-à-vis total loan burden devolving on the farmers, including existing loan obligations.

MARGIN:

(i)    Production credit:              Nil

(ii)    Term Loan:

S. No.

Amount of loan

Margin %

1.

Upto Rs.1 lakh

Nil

2.

Above Rs.1 lakh to Rs.2 lakh

5

3.

Above Rs.2 lakh to Rs.5 lakh

10

4.

Above Rs. 5 lakh

25

SECURITY:

I.       For Cards issued upto Rs.1,00,000/-

 Hypothecation of crops/assets created out of bank loan.

II.       For cards issued above Rs.1,00,000/-

(i) Hypothecation of crops/assets created out of bank loan.

AND

(ii) Charge on land as per Agricultural credit Operations and Miscellaneous (Provisions) Act of the State concerned/Mortgage of agricultural land valued at 150% of amount of loan for other farmers, 100% of the loan amount for small farmers /marginal farmers

OR

Alternate Security, viz., charge/lien  over  liquid  securities  such  as  term deposits/NSC/KVP, land and building situated outside village, etc., which may be considered adequate.

OR

Suitable third party guarantee with sufficient net means.

VALIDITY:

  • The Credit Card should be valid for five years, subject to annual review.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KISAN INVESTMENT CREDIT CARD (KICC) YOJANA.

PURPOSE:

  1. Productive purpose (production and investment credit) related to agriculture and allied activities. (At least 75% of the limit)

 

  1. Rural Housing related activities e.g. construction/purchase of new house, purchase of plot for construction of house, repair/ renovation/extension of existing house, providing sanitary latrine, toilet, bathroom, drinking water facility, etc.

 

  1. Consumption loan e.g. marriage, education, religious/family function, medical expenditure, consumer goods, car, two wheelers, etc.

 

ELIGIBILITY:

  1. Only existing good agricultural land owner borrowers who have been continuously availing of any loan and having satisfactory repayment history for last Two years as on the date of application will be eligible. New farmers with evidence of satisfactory dealing with other Banks for a minimum period of 2 years will also be eligible. If the land mortgaged is in the name of more than one farmer then all will be eligible jointly.
  2. The above condition of track record of 2 years may be relaxed in case of new farmers having good amount of deposit i.e. Saving/Fixed Deposit account of Rs. One lakh & above for the last 2 years provided:

 

Loan is secured by 100 % liquid collateral security like Deposit/ NSCs, etc,

or

Loan is secured by 50 % liquid collateral security and 50% by mortgage of land (valued at 50 % of Bank Loan for Small/ Marginal farmers and 75% of Bank Loan for other farmers)

 

QUANTUM OF LOAN:

  • Quantum of Loan is decided based on value of property offered as security & Annual Income of the farmers.
  • The maximum eligible amount shall be Rs.20.00 Lac.

SECURITY:

  1. Primary Security: Hypothecation of assets created with Bank loan.
  2. Collateral Security: Mortgage of land valued at 200 % of loan amount along with primary security, if any.
  3. Value of land may be done on the basis of current Circle rate/market rate whichever is lower.
  4. The prevalent procedure of verifying the fact that the bank’s charge has been noted by the Patwari in the related revenue records should be followed by the branches.

 

In case of new farmers having good amount of deposit i.e. Saving/Fixed Deposit account of Rs. One lakh & above for the last 2 years, security will be as under:

 

Loan is secured by 100 % liquid collateral security like Deposit/ NSCs, etc,

or

Loan is secured by 50% liquid collateral security and 50% by mortgage of land (valued at 50 % of Bank Loan for Small/Marginal farmers and 75% of Bank Loan for other farmers).

 

REPAYMENT:

  1. Production Credit/Consumption Credit may be provided in the form of Cash Credit limit. It must be ensured that aggregate credit into the account during 12 months period should at least be equal to the maximum outstanding in the account. No drawal in the account should remain outstanding for more than 12 months. However, this condition may be relaxed in cases where limit has been extended for growing long duration crops such as sugarcane, etc., or for agricultural activities where returns are expected after one year, but in no case any drawal in the account should remain outstanding for more than 18 months.
  2. For housing loan maximum repayment period of 9 years including gestation period of 12 months.
  3. For Main Agricultural Activities the repayment period may be allowed upto maximum of 9 years.
  4. For allied agriculture activities repayment period may be allowed upto maximum of 7 years.

 

 

 

 

 

SCHEME FOR FARM MECHANIZATIONtoparrow

PURPOSE:

  • Purchase of new tractors/tillers and second hand tractors with matching implements;
  • Purchase of agricultural machinery such as threshers, harvesters, seed drills, seed cum fertilizer drills, harrows, hoes, sprayers, plant protection equipment, etc.
  • Repair/renovation of tractors.

ELIGIBILITY:

  • Farmers should own and cultivate a minimum required perennially irrigated land as per Bank’s guidelines.

QUANTUM OF LOAN:

  • Need based loan net of margin shall be provided for purchase of farm machinery/equipments.

 

SECURITY:

Up to Rs.1 lakh

  • Hypothecation of crops/assets created out of bank loan

 Above Rs.1 lakh

  • Hypothecation of crops/assets created out of bank loan;

and

  • Mortgage of agricultural land valued at 150 per cent of amount of loan for other farmers, 100 per cent of the loan amount for small farmers/marginal farmers;

or

  • Alternate security, viz., charge/lien over liquid securities such as term deposits/NSCs/KVPs, etc., which may be considered adequate;

REPAYMENT:

  • 5 to 9 years

 

 

 

 

 

 

 

SCHEME FOR FINANCING DAIRY DEVELOPMENT

PURPOSE:

To undertake dairy farming activity either singly or combined with other activities as subsidiary activities or on commercial lines on high-tech project basis.

  1. Purchase of good quality high yielding milch animals, viz., cows/buffaloes or exotic cross bred cows for milk production with average daily milk yield of 6.5 litres.
  2. Purchase and rearing of calves upto the stage of first lactation so as to ensure production of good quality high yielding cows.
  3. Undertaking of other innovative animal husbandry activities, namely, cattle breeding, salvaging of dry pregnant cattle, salvaging and rearing of male buffalo calves, milk-processing facilities, construction of milk houses, etc.
  4. Dairy Vikas Card Scheme has a special credit card for meeting all credit needs of landless agriculture labourers, share croppers and tenant farmers, small farmers/marginal farmers and any individual having experience in maintaining milch animals.

 

ELIGIBILITY:

  1. Individuals, farmers, agricultural laborers, tenant farmers, group of farmers, Self Help Groups, Joint Liability Groups, firms, Co-operative Societies, Companies having aptitude/adequate experience/training/ exposure in the activity/ies to be undertaken to gather with the requisite land holding (either as owner or on the basis of long term tenancy/lease hold rights exceeding the repayment period of the project activity) will be eligible.
  2. Persons undertaking allied activities on commercial lines must have adequate technical know how/training/exposure of the activity to be financed.
  3. The eligible persons should have own land/shed where the Dairy Farming is to be undertaken.

 

QUANTUM OF LOAN:

Need Based.

 

SECURITY:

Production Credit/Investment Credit:

  1. Upto Rs. 1,00,000/-

Hypothecation of animals/crops/assets created out of bank loan;

 

  1. Above Rs. 1,00,000/-

 

(a) Hypothecation of animals/ crops/assets created out of bank loan;

AND

(b) Charge on land as per Agricultural Credit Operations and

 

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 with sufficient net means.

 

REPAYMENT:

5 to 8 years.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCHEME FOR CONSTRUCTION/ RENOVATION OF RURAL GODOWN 
(GRAMIN BHANDRAN YOJANA)toparrow

PURPOSE:

  • Creation of scientific storage capacity with allied facilities in rural areas to meet the requirements of farmers for storing farm produce, processed farm produce, consumer articles and agricultural inputs;
  • Promotion of grading, standardization and quality control of agricultural produce to improve their marketability;
  • Prevention of distress sale immediately after harvest,
  • Promotion of pledge financing and marketing infrastructure in the country for the introduction of a national system of warehouse receipts in respect of agricultural commodities stored in such godowns

ELIGIBILITY:

  • Individuals, farmers, group of farmers/Growers,
  • Partnership/Proprietary firms,
  • Non-Government Organisations ( NGOs), Self Help Groups ( SHGs),
  • Companies, Corporations, Co-operatives, Agro-Processing Cooperative Societies, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations in the entire country.
  • Assistance for renovation/expansion of rural godowns will however, be restricted to the godowns constructed by cooperatives only.

QUANTUM OF LOAN:-

  • Minimum 50% of the project Cost

SUBSIDY:

  1. 33.33% of the capital cost of the project in case of projects located in North-Eastern States, hilly areas and those belonging to women farmers/ their Self Help Groups/ Cooperatives and  SC/ST entrepreneurs and their cooperatives subject to a maximum ceiling on subsidy of Rs.3 Crore
  2. 25% of the capital cost of the project to all categories of farmers (other than women farmers), agriculture graduates, cooperatives and State/Central Warehousing Corporations subject to a maximum ceiling on subsidy of Rs.2.25 Crore
  3. 15% of the capital of the project to all other categories of individuals, companies & corporations etc., subject to a maximum ceiling on subsidy of Rs.1.35 Crore; and
  4. 25% of the capital cost of the project for renovation of godowns of cooperatives with assistance from NCDC.
  5. For godowns exceeding 30000 MT capacity the subsidy would be restricted to that admissible for capacity of 30000 MT only.

Capital cost of the project for the purpose of release of subsidy under the scheme shall be calculated as follows:

a).

for godowns up to 1000 tones capacity – actual cost or Rs.3500/- per tone of storage capacity, whichever is lower;

b).

for godowns exceeding 1000 tonnes capacity – actual cost or Rs.3000/- per tone of storage capacity, whichever is lower.

c).

for renovation/expansion of godowns constructed by cooperative with the assistance from NCDC – actual cost or Rs.750 per tone of storage capacity whichever is lower.

  1. No beneficiary shall draw the subsidy for the godown project or any of its components from more than one source.
  2. The capacity of godown shall be calculated @ of 0.43 tone per cu.mtr.

SECURITY:

The security in the shape of mortgage of immovable property valued atleast 200% of loan amount and Hypothecation of unit will be taken as security.

SURETY:-

suitable guarantee having good means acceptable to the bank

REPAYMENT:

Depending upon the cash flow, the term loan would carry an adequate long term repayment period.

 



Copyright@2013. All rights Reserved.