Kisan Credit Card Scheme:

Aims to provide famers with expeditious credit by streamlining procedures and
facilitating loans when necessary. Its objective is to cover their cultivation, contingency, and
ancillary activity-related expenses.

Purpose of credit:

• Costs associated with cultivating and producing short-term crops.
• Yearly upkeep of crops with extended growth periods, such as plantation crops, and costs incurred after harvest.
• The necessary amount of working capital for related industries such as Dairy, Poultry, Piggery, etc.
• Cost incurred for the annual maintenance and repair of farm machinery and equipment.
• Cost associated with the maintenance and repair of fences, as well as soil and water conservation structures.
• Costs incurred after the harvest.
• Agricultural growers’ consumption requirements

Eligibility criteria:

• All farmers referred to in this context are individuals or joint borrowers who own and cultivate land.
• Self-Help Groups (SHGs) or Joint Liability Groups (JLG) consisting of farmers including tenant farmers and sharecroppers, among others.
• Loans provided under the VFPCK initiative.

Documents Required

• Land Tax Paid Receipt
• Possession Certificate
• Title deeds
• Any other documents as required by the bank and may vary from bank to bank

Credit Limit and Margin

• According to the predetermined Scale of finance for the crop determined by the District Level Technical Committee (DLTC), in addition to the crop insurance premium. A potential growth of 15-20% in the financial size may be taken into account based on its merits.

Margin

• The Scale of Finance has an inherent margin, therefore there is no need for a separate margin to be specified.

Security

• Hypothecation of crops: Banks are required to waive margin/security restrictions for KCC limits up to ₹ 1.00 lakh.
• Banks may approve loans on the hypothecation of crops, up to a card limit of ₹ 3.00 lakh, without requiring collateral security, thanks to the collaboration for recovery.
• Collateral security can be acquired at the Bank’s discretion for loan amounts above ₹ 1.00 lakh in non-tie-up cases and exceeding ₹ 3.00 lakh in tie-up loans.
• Where banks have the capability to create charges on property records online, it should be guaranteed that this capability is available.

Repayment

• Banks choose the payback time based on the expected duration of harvesting and sale for the crops for which the loan has been provided.
• The term loan component is typically repayable within a 5-year timeframe, according to the specific requirements for investment credit.
• Financing banks have the option to provide a longer payback time for term loans based on the nature of the investment.

Other features

• The interest subvention/incentive for quick repayment, as directed by the Government of India and/or State Governments, is applicable. The lenders will ensure widespread dissemination of information about the facility to maximize the number of farmers who can profit from the plan.
• In addition to the required crop insurance, the holder of a KCC shall have the choice to get the advantages of any kind of asset insurance, accident insurance (including PAIS), health insurance (wherever the product is offered), and have the premium paid through their KCC account. The responsibility for paying the premium lies with either the farmer or the bank, as specified in the scheme’s conditions. Farmer beneficiaries must be informed about the insurance coverage options accessible to them, and their agreement should be requested at the application stage, save for crop insurance, which is mandatory.
• A single paperwork is required when the KCC loan is first obtained, followed by a straightforward statement from the farmer on the crops grown or planned for the second year and onwards.

Agriculture Gold Loan Scheme

Purpose: For Agriculture crop production / crop maintenance

Features/ Benefits:

• Effortless and streamlined loan procedure
• Individual farmers are eligible for gold loans. The loan will be approved once the bank’s professional jewel assessor has assessed the value of the jewels.
• Gold with a purity of 22 carats is recognised and used as collateral.

Requirements

• Pledge of Gold ornaments
• Only 22 carat Gold will be accepted as security.

Repayment

• Agriculture Gold loans are repayable in 12 months from the date of sanction along with accrued interest.

Kissan Tatkal Scheme

Purpose: An immediate loan facility is provided to the farming community to address urgent
needs for agricultural and residential uses, in order to overcome temporary challenges.

Eligibility: Individual farmers or joint individual farmers (up to a maximum of 4) must own an
active UGC account with our branch and have an acceptable track record of at least 2 years.

Type of loan: Term loan

Amount of loan: Rs.1000 to 50000 (Amount may vary according to bank)

Collateral required: The current securities acquired for UGC will be maintained.

Repayment:

• The repayment period should not exceed 5 years, with instalments being made either half-yearly or annually, in alignment with the farmer’s total revenue output.
• If a new or increased limit is requested in the following year based on the amended UGC limit, the loan must be fully repaid.

Interest Subvention Scheme

Under the Scheme, the Indian Government offered a 2% interest subsidy to Public
Sector Banks, Regional Rural Banks (RRBs), and Co-operative Banks. This subsidy applied to
short-term production credit up to Rs. 3 lakh given to farmers from their own funds. However,
the condition was that these banks must offer short-term credit at a 7% annual interest rate at
the grassroots level. The plan has been extended to include Private Sector Banks, including
their rural and semi-urban branches, since the year 2013-14. The terms and conditions for these
banks are the same as those for other banks.