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01. OBJECTIVES:
a) Kisan Credit Card Scheme aims at providing need based and timely credit support to the farmers for their cultivation needs as well as non-farm activities and cost effective manner.
b) To bring about flexibility and operational freedom in credit utilisation.
02. ELIGIBILITY:
a) Under the scheme, Branches may issue Kisan Credit Cards to the farmers who are otherwise eligible for sanction of short term credit for crop production, allied activities and other non-farm activities.
b) The farmers should come from the operational area of the Branch.
03. ISSUE OF CARDS:
a) The farmers under the scheme will be issued a credit card-cum-passbook incorporating the name, address, particulars of land holding, borrowing limit / sub-limits, validity period, etc. to facilitate recording of the transactions on an on-going basis. The passbook, among others, would provide for a passport size photograph of the beneficiary.
b) The beneficiary farmer should produce the passbook while operating the account.
04. TECHNICAL FEASIBILITY:
a) Suitability of soil, climate and availability of adequate irrigation facilities.
b) Suitability of the produce for storage.
c) Suitability of the storage unit.
05. FINANCIAL VIABILITY:
The expected incremental income should be adequate to repay the advance leaving sufficient balance for farmer’s domestic needs.
06. QUANTUM OF FINANCE AND MARGIN:
a) For production / short term purposes - Loan amount will depend upon the type of crop, area under cultivation and scale of finance.
b) Short term working capital - For ancillary activities and minor investment of medium term nature.
c) Short term credit for consumption / domestic needs to the extent of upto 25 percent of gross estimated income of the farmer and maximum Rs.50,000/=.
d) Finance against storage receipts / produce marketing may be considered maximum upto 50 percent of the price of the produce prevailing at the time of storage / sanction of loan. Limits / advances upto Rs.10 lakhs per farmer can be extended for a maximum period of 12 months. However, the amount of finance to the extent of net of loan may be made available to the farmer.
Note:
i) While fixing the limit, the Branch may take into account the entire production credit requirements of the farmer for the full year, including the credit requirements of the farmer for the ancillary activities related to crop production such as maintenance of agricultural machinery / implements, electricity charges, etc.
ii) The credit limit could also provide for allied activities and non-farm credit needs of the borrowers.
iii) The credit limit under the card may be fixed on the basis of the operational land holding, cropping pattern and scale of finance as recommended by the District Level Technical Committee (DLTC) / State Level Technical Committee (SLTC). Wherever the DLTC / SLTC have not recommended scale of finance for any crop or in the opinion of the Branches, has recommended lower than the required amount, the Branches may fix appropriate scale of finance for the crop after due approval by the Zonal Office.
iv) For fixation of credit card limit, operational land holdings will include the leased-in land and exclude leased out land.
v) Branches may at their discretion fix appropriate sub-limits within the overall credit limit sanctioned, taking into account the seasonality in credit requirements.
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