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
- 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.
- 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.
- 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.
- 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
- The Credit card should normally be valid for 3 Years subject to an annual review.
- 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.
- 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
- Hypothecation of crops/movable assets.
- 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.
- 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.
- 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
- Loan application
- Appraisal/Assessment of the loan
- Personal information
- Confidential reports on the borrowers/guarantors.
- Latest revenue records including Fard Zamabandi,Khasra Girdawari and Fard Hakikat.
- Non Encumbrance certificate from the sub registrar and/or the Advocate approved by the bank for the last 13 years records.
- 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)
- Demand Promissory Note
- Agreement of Hypothecation of Crops and moveable assests.
- Registered Mortgage of Land
- Mutation of the mortgaged land in favour of the bank from the patwari.
- Guarantee Deed, if applicable.
- Other undertaking as prescribed from time to time.
