PURPOSE

• To meet short term credit requirement for cultivation of crops
• Post-Harvest expenses
• Consumption requirement of farmer household
• Working Capital for maintenance of Farm assets and activities allied to agriculture like dairy, piggery, poultry, fisheries etc.
• Investment credit requirement for agriculture like farm machinery and allied activities to agriculture like dairy animas etc. and repayable within a period of one year

ELIGIBILITY

• All Farmers- Individuals/ Joint borrowers who are owner cultivators
• Tenant farmers, Oral Lessee, Sharecroppers
• SHGs or Joint Liability Groups of Farmers including tenant farmers, sharecroppers
• The applicant should be in the age group of 18-70 years for being eligible for PAIS

LOAN AMOUNT

1. The amount of loan is fixed according to the prescribed Scale of Finance (SOF)
2. Resolving Cash Credit
• Scale of finance (for crops to be sown) X size of landholding

+10% of the limit for post-harvest /consumption needs

+20% of the limit for maintenance of farm equipment

+insurance premium (Crop Insurance/ Insurance of Farm Equipment & PAIS)

• Limit to be upwardly revised @10% every year

Note:Additional 20% over and above the limit fixed by the DLTC for Crop Component, separate accounts will be opened for the production credit ( crop loan) and consumption /maintenance part

1. TERM LOAN: for land Development / Minor Irrigation/ Farm Equipment/Allied Activities such as Dairy/Poultry/ Fisheries etc

Sanction limit will be arrived at the clubbing Revolving CC limit or the 5th Year + Term Loan Component (- instalments payable)

2. Flexi KCC: May be sanctioned to Marginal Farmers for ₹ 10,000/- to ₹ 50,000/- based on their requirements

MARGIN

• Up to ₹ 1,60,000 - NIL
• Above ₹ 1,60,000 - Minimum 10%
• Their is no margin for crop loan under KCC as the margin is inbuilt while fixing the Scale of finance

INTEREST RATE

As prescribed by the Bank. Additional Subvention of 3% p.a for promptly repayment of Farmers as per GOI directive.