S.T. Loan Agriculture Kisan Credit Card

Purpose:
Kisan Credit Card Scheme is need-based and timely credit support under a single> window to the farmers for their cultivation and other needs such as to meet the short term credit requirement for cultivation of crops, post-harvest expenses, produce marketing loan, consumption requirement of farmer household, working capital for maintenance of farm assets and activities allied to agriculture like dairy farming, poultry, inland fishery, etc and also investment credit requirement for agricultural and allied activities like pump sets, sprayer, dairy animals.

Eligibility:
All farmers are Individual / Joint borrowers who are owner cultivators, Tenant farmers, oral lessees, and sharecroppers. SHG and Joint liability groups, Primary Agricultural Cooperative society for lending to their members.

Under the scheme, Branches may issue Kisan Credit to farmers who are otherwise eligible for sanction of short-term credit for crop production, allied activities, and other non-farm activities.

The farmers under the scheme will be issued a credit card cum ATM card, incorporating the farmer’s identity, assets, particulars of land holding, credit profiles, etc.

Technical Feasibility:
Suitability of soil, climate, and availability of adequate irrigation facilities.

Financial Viability:
The expected incremental income should be adequate to repay the advances leaving sufficient balance for farmers’ domestic needs.

Quantum of Finance and Margin:
Short term limit to be arrived at first year for raising a single crop in a year should be worked out i.e. scale of finance for the crop (as decided by the SLTC) extent of area cultivated + 10% of limits towards post-harvest/ household/ consumption requirement + 20% of limits towards repairs and maintenance expenses of farm asset, PAIS, and assets insurance.

Limit for the second and subsequent year. The first-year limit for crop cultivation purpose arrived at as above plus 10% of the limits towards cost escalation/ increase in the scale of finance for successive years (2nd, 3rd, 4th, and 5th year ) and estimated term loan component for the tenure of Kisan credit card.

For crop loans, no separate margin be insisted as the margin is inbuilt while fixing the scale of finance.

Repayment period:
The limit disbursed is subject to annual review. The farmer should be allowed for any number of drawls and repayment within the limit, the aggregate of credit into the account during the 12 months period should at least be equal to the maximum outstanding in the account.

No drawls in the account should remain outstanding for more than 12 months in the case of normal crops and 18 months in the case of sugarcane and banana crops.

The Kissan credit card should be valid for years subject to annual review.

Security:
Up to Rs. 1,60,000/ Hypothecation of standing crops and two guarantors
Above Rs. 1,60,000/ Hypothecation of standing crops Mortgage of land or any other /
Collateral security.

Common Documents:
Demand Promissory Note.
Deed of Composite Hypothecation Agreement.
Letter of Authority.
Charge of land is created by Equitable mortgage or Legal Mortgage of land.
Letter of the pledge.
Undertaking to repay the advance within 12 months or on sale of produce

Crop Insurance:
Crop financed should be insured as required by law or as covered under various
schemes.
Insurance premium should be debited to the relative loan account and claims if any be
credited to the beneficiary’s account promptly.