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 KISAN SAMADHAN CARD
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10. DOCUMENTATION:
a) D. P. Note for entire credit facility.
b) Deed of Composite Hypothecation Agreement (CHA-1 / CHA-2) for entire credit facilities.
c) Letter of Authority (AG-15).
d) Charge on land as per Agricultural Credit Act or Equitable mortgage or Legal Mortgage of land (CHA-4) for entire credit facilities.
e) Documents for pledge of TDRs/NSCs/KVPs/Gold ornaments.
f) L-515.
g) L-516 (if required).
11. DISBURSEMENT:
A. Production Line of Credit:
a) Branches should adhere to norms prescribed under Kisan Credit Card for disbursal of loans. The farmer should be allowed for any number of drawals and repayment within the limit.
b) Production credit is made available as working capital/cash credit and borrower is free to utilise the same by using cheque book provided to him.
c) Upon receipt of request letter from the farmer citing purpose/requirement etc., Branch can issue Pay Order/DD to supplier or may pay the cash.
d) Farmer can withdraw amount upto 25% of the sanctioned production line of credit limit from one or two identified Branches by presenting cheque alongwith his card and passbook.
e) The farmer can buy quality inputs at most competitive price from reputed input suppliers in main market centre or from local suppliers by directly issuing cheques.
f) The consumption loan forms the part of production credit (crop loan) and it should be considered only if the crop loan component is disbursed.
B. Investment Line of Credit:
Disbursements for investment line of credit should be allowed upon receipt of request letter citing purpose involved/mode of disbursement from the farmer. Payment for purchase of vehicle/equipments may be made directly to the supplier. With prior intimation to the Bank, the borrower can issue cheque in favour of supplier and on receipt of cheque, the Branch can release the amount from investment line of credit limit account and credit the C/C account so as to honour the cheque.
C. Other Off-farm Loans:
Disbursements should be allowed upon receipt of request letter citing purpose involved/mode of disbursement from the farmer. Payment for purchase of vehicle/consumer durables may be made directly to the supplier.
D. General Emergency Loan:
a) Disbursement may be allowed in cash/against submission of bills/receipts or directly to the suppliers/distributors depending upon the reason cited by the borrower/farmer.
b) The loan for emergency purpose is a part of overall package being made available to the farmers to overcome a difficult situation. Under no circumstances Branches should consider credit facilities exclusively for emergency purpose.
12. RATE OF INTEREST:
a) On Debit Balance : As advised by Head Office from time to time.
b) On Credit Balance in CC A/C : Interest will be payable as per Savings Bank rules.
(Production Line of Credit)
Note:
i) For production and investment credit, where repayment is linked to crop harvest and marketing of produce, interest should be charged on half-yearly basis in September and March but should not be compounded till due date. Interest should be recovered alongwith instalments linked to the harvesting season/marketing of produce. Hence, the due date should be carefully stipulated.
ii) For allied activities like dairy/poultry, etc. undertaken on commercial basis (self liquidating) where repayment is not dependent/linked to harvesting/marketing of crop, the interest should be charged on monthly compounding basis and should be recovered as and when applied.
iii) Interest on Personal Loan as well as Emergency Loan should be charged on monthly basis but should not be compounded till due date.
13. REPAYMENT:
A. Production Line of Credit:
a) The sale proceeds should be routed through the cash credit account. Market linkages, wherever possible, should be ensured.
b) The aggregate of credits into the account during the 12 months period should atleast be equal to the maximum outstanding in the account.
c) No drawal in the account should remain outstanding for more than 12 months in case of normal crops and 18 months in case of sugarcane and banana crops.
B. Investment Line of Credit:
a) Total repayment period would be 5 to 7 years including moratorium period, if any.
b) The amount repaid can be reinstated to the original limit at the time of annual review for fresh/new investment, at the request of the farmer.
C. Emergency Loan:
To be repaid in two yearly instalments. This repayment is over and above the repayment for the investment line of credit and to be synchronised with marketing of produce.
Note:
i) Repayment of all loans should be linked to crop harvesting / marketing of produce, including income from allied activities like dairy/poultry etc. in accordance with fluidity with the borrower. Yearly / half-yearly / quarterly / monthly instalments should be so fixed, to match with marketing of produce.
ii) While filling up security document, repayment schedule should be incorporated for each of the term activity indicating moratorium period and yearly / half-yearly / quarterly / monthly instalments as the case may be. Separate annexures could be used for each activity/scheme and made part of the document.
iii) In case of natural calamity, appropriate relief measures be allowed as per extant guidelines.
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