Rupay Kisan card
Purpose / Objective
- To meet the short term credit requirements for cultivation of crops
- Post harvest expenses
- Produce Marketing loan
- Consumption requirements of farmer households
- Working capital for maintenance of farm assets and activities allied to agriculture, like dairy animals, inland fisheries etc
- Investment credit requirements for agriculture and allied activity like pumpsets, sprayers, dairy animals etc
- All Farmers – Individuals / Joint borrowers who are owner cultivators
- Tenant Farmers, Oral Lessees & Share Croppers
- Self Help Groups or Joint Liability Groups of Farmers including tenant farmers, share croppers etc
Amount of Loan
- Assessment of crop loan component based on the scale of finance for the crop plus insurance premium x extent of area cultivated + 10% of the limit towards post-harvest / household/consumption requirements + 20% of limit towards maintenance expenses of farm assets.
- Flexi KCC with simple assessment prescribed for Marginal Farmers.
- Validity of KCC for 5 years.
- For crop loans, no separate margin need to be insisted as the margin is in-built in scale of finance.
- No withdrawal in the account to remain outstanding for more than 12 months; no need to bring the debit balance in the account to zero at any point of time.
- Interest subvention /incentive for prompt repayment to be available as per the Government of India and / or State Government norms.
- No processing fee up to a limit of Rs. 3.00 lakh
- One time documentation at the time of first availment and thereafter simple declaration (about crops raised/ proposed) by farmer.
- KCC cum SB account to be provided to farmers instead of having two separate accounts. The credit balance in KCC cum SB accounts is to be allowed to fetch interest at savings bank rate.
- Disbursement to be effected through various delivery channels, including ICT driven channels like ATM/ PoS/ Mobile handsets.
- ROI linked to Base Rate. However, if Government supported interest subvention is provided for any component of the limit, the rate of interest is to be fixed accordingly. (Presently interest rate for short term crop loans/KCC sanctioned to farmers up to Rs 3.00 lakh is 7% as per extant interest subvention scheme of Government of India).
- Long term loan limit under KCC is linked to base rate.
Amount Slab(Rs. in Lakhs) Interest Rate Upto 3.00 Lakhs 7% >3.00 Lakhs Please refer the Lending Rates link on home page in our Bank`s Website.
- Each withdrawal under the short term sub-limit be allowed to be liquidated in 12 months without the need to bring the debit balance in the account to zero at any point of time. No withdrawal in the account should remain outstanding for more than 12 months.
- The term loan component will be repayable depending on the type of activity/ investment as per the existing guidelines applicable for investment credit
- Security will be applicable as per RBI guidelines prescribed from time to time.
- Security requirements are as under:
- Hypothecation of crops up to card limits of Rs 1.00 lakh as per RBI extant guidelines.
- With tie-up for recovery: Hypothecation of Crops up to card limit of Rs.3.00 lakh without insisting on collateral security.
- Collateral security by way of mortgage of immovable property is to be obtained for loan limits above Rs.1.00 lakh in case of non tie-up and above Rs.3.00 lakh in case of tie-up advances.
- In States where banks have the facility of online creation of charge on the land records, the same shall be ensured.