Agriculture Loan

A. KISAN CREDIT CARD SCHEME

PURPOSE:

To meet the short term credit requirements for cultivation of crops including Post harvest expenses, Produce.
Marketing Loan, Consumption requirements, working capital for maintenance of farm assets. Investment credit requirement for agriculture and allied activities

ELIGIBILITY:

All Farmers – Individuals / Joint borrowers who are owner cultivators, Tenant Farmers, Oral Lessees & Share Croppers, SHG’s or JLG’s
Oral tenants can be eligible for loan only if land owners agree to become co- borrowers.
In the accounts which are secured by liquid securities like FDR, NSC/KVP, etc., the cards to oral tenants can be issued without stipulating the condition of land owners to be made co-borrowers.
Landless laborers, share croppers, tenant farmers and oral lessees can be issued HPGB Kisan Credit Card (KCC) up to limit of Rs 50,000/- on the basis of an Affidavit, duly stamped as per the respective State Stamps rules.

EXTENT OF LIMIT:

Need Based.

DISBURSEMENT:

The short term component of the KCC limit is in the nature of revolving Cash Credit Facility.
The long term loan for investment purpose may be drawn as per installment fixed.

RATE OF INTEREST:

7% up to Rs. 3.00 Lakh. if account is regular.
Above Rs. 3.00 Lakh as advised by Head Office time to time
3% Prompt subvention is available to regular borrower.

REPAYMENT:

In case of Cash Credit Crop Loan Limit including consumption needs may be repayable in 12 months.

Aggregate credits into the account during 12 months period should at least be equal to the maximum outstanding in the account.
No drawl in the account should remain outstanding for more than 12 months.

Reducing term loan limit may be repayable within a period of 5 years depending on the type of activity/ investment. However, in case of term loan fortractor, etc where repayment period is more than 5 years, the facility may be allowed separately.

All eligible KCC holders are to be invariably covered under PAIS scheme/ PMSBY

B. TERM LOAN FOR AGRICULTURE

Term loan for all kinds of investment in agriculture and activities allied to agriculture. They include

Plantation & Horticulture.
Plantation of Apple, Almond, Cherry, Orange, Peach, Pear, Plum, Mango, Litchi, Tea Plantation.
Sericulture, Pisciculture,
Minor Irrigation
Farm Mechanization, including purchase of tractor and power tiller.
Dairy farming, Poultry (broiler and layer), Bee keeping.

C. SETTING UP OF AGRI CLINIC AND AGRI-BUSINESS CENTRES

Centers By Agricultural Graduates

Objectives of the Scheme:

To supplement efforts of Government extension system.
To make available supplementary source of inputs supply and services to needy farmers.
To provide gainful employment to agricultural graduates in new emerging areas in agricultural sector.

CONCEPT/DEFINITION OF AGRI CLINICS:

Agriclinics are envisaged to provide expert services and advice to farmers on cropping practices, technology dissemination, crop protection, pests and diseases, market trends and prices of various crops in the market and also clinical services for animal health etc. which would enhance productivity of crops/animals.

AGRI BUSINESS CENTERS:

Agri business centres are envisaged to provide input supply, farm equipments on hire and other services.

ELIGIBILITY:

The scheme is open to Agricultural graduates/graduates in subject allied to agriculture like Horticulture, Animal Husbandry ,Forestry, Dairy, Veterinary, Poultry Farming, Pisciculture, and other allied activities.

D. SCHEME FOR FINANCING FARMERS FOR PURCHASE OF LAND FOR AGRICULTURAL PURPOSE

OBJECTIVES

To make the small and marginal holdings economically viable.
To bring fallow and waste land under cultivation.
To step up agricultural production and productivity.
To finance share cropper/tenant farmers to purchase land to enable them to increase income.

ELIGIBILITY

Small and marginal farmers i.e. those who would own maximum of 5 acres unirrigated or 2.5 acres of irrigated land (including the land to be purchased under the scheme).
Share cropper/tenant farmers cultivating up to 2.5 acres of irrigated land or 5 acres of unirrigated land as the case may be.
The total land of the borrower after the purchase of the land under the scheme should not exceed 2.5 acres of irrigated land or 5 acres of unirrigated land or equivalent.

EXTENT OF LOAN

The extent of loan depends upon:

Valuation as assessed by the Branch.
Guidance/circle rate fixed by the State.
Registration value whichever is lower plus the value of stamp duty, registration charges for sale/mortgage deed maximum amount 10 Lakh.

MARGIN:

As stated in the procedural guidelines for Agricultural Credit.

SECURITY:

The land presently owned, if any and also the land to be purchased out of the Bank finance to be mortgaged in favor of the Bank.
Hypothecation of crops grown from time to time on the land.

REPAYMENT PERIOD:

Loan may be repaid in a period ranging from 7 to 12 years in half yearly/ yearly installments, including a maximum moratorium period of 24 months. The moratorium period may be fixed taking into account the gestation period of the project and cash flow.

E. KISHAN VAHAN YOJNA FOR FOUR WHEELERS

OBJECTIVES : Purchase of four-wheeler for self-conveyance of farmers and providing infrastructural support to them for carrying out agriculture products to the nearby market, so that cost of carrying the product be minimized. However, in case of financing for car, existing borrowers be given priority.

PURPOSE: For the purchase of four-wheeler of approved make i.e. Car/Jeep.

ELIGIBILITY : Loan to be given to the farmers having 5 acre of agriculture/cultivable land/orchard in their name and the annual income is not less than 1.5 Lakh (Income proof be got verified from the Revenue Authorities i.e. Tehsildar/SDM etc.)

AMOUNT OF LOAN: Rs. 2.50 Lakh maximum.

MARGIN : 15% minimum.

SECURITY :
a) Hypothecation of vehicle

b) Mortgage of agriculture land valuing 150% of loan.

Pledge of 40% of liquid security in the form of FD, KVP,

NSC etc

AND

Two suitable third party guarantees having sufficient net.

Means in the shape of immovable property etc should be obtained in addition to above.

Repayment period: 7 years or 14 half yearly installments.