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06:00 AM Fri, 06 December 2019

06:00 AM Fri, 06 December 2019

Kisan Credit Card (KCC)

Objective
The objective of the scheme is to finance the farmers for their cultivation needs including purchase of inputs in a flexible and cost effective manner.

Eligibility
All farmers having minimum irrigated land holding of 1 Acre are eligible under the scheme subject to the ceiling that valuation of the land proposed to be mortgaged should be double the value of loan/limit.

Purpose
To need the short term credit requirements of the farmers.

Fixation of Credit Limit

  1. ​The credit extended under the KCC Scheme would be in the nature of a revolving cash ​Credit and provides for any number of drawals and repayments within the limit. Such an ​approach would provide the much needed flexibility to the farmer in choosing the ​appropriate time to repay his loan and reduce the interest burden besides being in a position to draw on the card to meet his urgent credit requirements.
  2. ​While fixing the limit,the bank may take into account the entire producaiton credit ​requirement of the farmer of the full year,including the credit requirements of the farmer for ​the ancillary activities related to crop producation such as maintenance of agricultural ​machinery/implements,electricity charges etc. in due course,the credit limit could provide ​for allied activities and non farm credit needs of the borrowers.
  3. ​The credit limit under the card may be fixed on the basis of the operational land holding ​cropping pattern and scales of finance (as recommended by the District Level Technical ​Committee (DLTC) State Level Technical Committee/SLTC) and circulated by our Bank. ​For fixation of credit card limits,operational land holding will include the leased in land and ​exclude leased out land. For this purpose latest revenue records including Fard ​Zamabandi,Fard Khsra,Girdwari and Fard Hakikat be procured and verified. 50 %of the Gross income or 75% of the expenses or as per scales of finance subject to ​maximum amount of ceiling as stated above.
  4. ​Bank may at its discretion fix appropriate sub-limit within the overall credit limits ​sanctioned,taking into account the seasonality in credit requirements.

Validity/Renewal

  1. ​The Credit card should normally be valid for 3 Years subject to an annual review.
  2. ​The review may result in continuation of the facility enhancement of the limit or cancellation of the limit/withdrawal of the facility,depending upon the performance of the borrower.
  3. ​As a measure of incentive for card holders with good performance,the bank may,at the time ​of review,enhance the credit limit suitably to take care of increase in cost of ​inputs/labour,change in cropping pattern etc.

Margin
​Upto Rs. 2.00 Lacs ​- ​Nil
​Above Rs. 2.00 Lacs ​​- 25%

However NIL margin in respect of scale of finance.

Security

  1. ​Hypothecation of crops/movable assets.
  2. ​Registered mortgage of Agriculture Land,which should not be less than 200% of the amount ​of limit and other condtions with regard to KCC Scheme shall remain the same as contained ​in the credit policy.
  3. ​Copy of Fresh Fard/mutation certificate be obtained and mutation in favour of Bank be ​confirmed by Branch Officials personally from the Revenue Authorities before the ​disbursement of loan/limit.
  4. ​Valuation of Agriculture land shall be assessed on the basis of Fard Haqiqat and/or rates ​prescribed by the Govt.However in deserving cases,the valuation can also be assessed ​through approved valuer.

Documentation
​The Loan proposal/documents will consist of​​​

  1. ​Loan application
  2. ​Appraisal/Assessment of the loan
  3. ​Personal information
  4. ​Confidential reports on the borrowers/guarantors.
  5. ​Latest revenue records including Fard Zamabandi,Khasra Girdawari and Fard Hakikat.
  6. ​Non Encumbrance certificate from the sub registrar and/or the Advocate approved by the bank for the last 13 years records.
  7. ​Lease Agreement of Patta Nama of agriculture land or an affidavit from the lessee duly ​witnessed (Preferably by the Numberdar/Sarpach of the Village and attested by first class ​Magistrate/Notary Public)
  8. ​Demand Promissory Note
  9. ​Agreement of Hypothecation of Crops and moveable assests.
  10. ​Registered Mortgage of Land
  11. ​Mutation of the mortgaged land in favour of the bank from the patwari.
  12. ​Guarantee Deed, if applicable.
  13. ​Other undertaking as prescribed from time to time.

Rate of Interest Processing Fee

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