|
 KISAN SAMADHAN CARD
|
A. Production Line of Credit:
30 to 50% of the total limit will be reserved for meeting recurring expenses on the farm which are of short term nature in the form of Revolving Cash Credit Limit/s with sub limit/s if any (Crop cultivation, working capital needs for allied activities, consumption needs, etc.). It is visualised that the production line of credit limit will be enhanced by 10% every year to take care of the escalation in cost of inputs, expansion in area, change in cropping pattern, etc.
B. Investment Line of Credit:
50 to 70% of the total limit will be earmarked for the purpose of investment credit in the form of Term Loan/s limit with reducing drawing limit every year.
C. Emergency loan for specific purpose, related to agricultural and allied activities:
To the extent of 20% of the original limit (Production line of credit and Investment line of credit for agricultural purpose) maximum Rs.50,000/= after ascertaining the genuine need of the farmer, may be extended by obtaining appropriate documents upon getting the limit sanctioned at appropriate level.
Note:
i) After arriving at overall credit requirements under Kisan Samadhan Card, Branches should ensure that the total component towards Consumption Loan + Personal Loan + Emergency Loan should not exceed 25% to 30% of total credit facilities and same are to be considered/disbursed only if the borrower utilises the production credit and investment credit facilities.
ii) The Personal Loan is to be considered on the basis of net surplus available for repayment.
iii) For arriving at limits under production line of credit and investment line of credit, Branches should follow the unit cost norms approved by the District Level Technical Committee on crop loans or unit cost approved by NABARD / SLBC for investment purpose. Branches should take note that the unit costs are not fixed and they may vary 10% to 15% depending on level of proficiency of the farmers and infrastructure available in the farm.
iv) Branches may consider additional 10% to 15% provisional costs towards inflation / cost escalation in a period of time.
06. SANCTIONING AUTHORITY:
Proposal should be submitted for consideration of appropriate authority in whose delegation the sub-limit (Production Credit and Investment Credit) / aggregate limit falls, as per extant guidelines on Delegation of Powers.
07. MARGIN:
a) For regular production line of credit limit, no specific margin is prescribed and limit is to be made available to the farmers as regular Cash Credit facility.
b) On investment credit, 15 to 25% margin of total cost/investment is to be contributed. In deserving cases, 10% margin may be allowed.
c) The RBI norms on margin should be strictly adhered to.
08. TECHNICAL FEASIBILITY / FINANCIAL VIABILITY:
a) Since the limit is decided on the basis of value of security and projected average annual farm income, Branches should assess the farm income critically.
b) Once the overall limit vis-à-vis borrower’s repaying capacity is assessed, choice in priorities of investments based on the farmer’s own felt needs be allowed.
c) The Branches should extend needbased guidance to the farmers as and when sought for.
d) In case of investment project with larger financial outlays, borrowers may be advised to take prior clearance from the Branch for the same.
09. SECURITY:
a) Hypothecation of standing crops, already owned movable assets and assets to be created out of Bank’s finance.
b) Charge on land under Agricultural Credit Act/mortgage of land/collateral security or third party guarantee of adequate worth, if necessary.
Note:
i) The total value of security (existing + proposed) should be around 150% of the loan component including hypothecation of movable assets/standing crops, etc.
ii) In case the value of land mortgaged is adequate, no other security should be insisted upon.
iii) If alternate collateral security is available in the form of pledge of TDRs of our Bank/NSCs/KVPs, etc. or gold ornaments, the Zonal Manager may consider waiver of mortgage on merit of each case above the limit of collateral free loans stipulated by RBI.
iv) The RBI norms on security should be strictly adhered to.
|
|
Back Next
|
|
|