A new scheme designed & launched by the Bank on 24.04.2004 (Bank’s 140th Establishment Day), envisages to provide farm investment credits as well as personal/domestic loans including repayment of debt to money lenders. The details are as under:

1. Eligibility : Existing Kisan Credit Card holders who have good transaction records in their KCC Loan Accounts for at least one year.

2. Loan Limit : The permissible loan limit will be 50% of the value of land OR 5 times of net Farm Income whichever is lower, LESS outstanding amount, if any, in Agril. Term Loan account(s) subject to maximum Rs.3.00 lacs. Maximum 15% of the loan limit may be utilised for personal/domestic purposes.

3. Issuance of Card : After fixation of the loan limit, a “Kisan Credit – cum – Kisan Shakti Card” along with a loan pass book is issued to the borrowers.

4. Margin : No margin is required.

5. Rate of Interest :

6. Security :

a. For aggregate limit under Kisan Credit Card, Kisan Shakti Yojana & existing Agril. Term Loan upto Rs.50,000/-:
Hypothecation of farm as well as household assets to be purchased out of the loan amount.

b. For aggregate limit under Kisan Credit Card, Kisan Shakti Yojana & existing Agril. Term Loan above Rs.50,000/-:

i. Hypothecation of farm as well as household assets to be purchased out of the loan amount.

7. Repayment Period : 7 years.

Mode of Disbursement :Loan amount is disbursed in 2 phases as under :

• First Phase : The amount of loan meant for agriculture purposes is disbursed.

• Second Phase : On being satisfied regarding utilization of the funds released in first phase for agriculture purpose, the loan amount specified for domestic/personal purposes is released.

Loan amount is credited to Savings Bank account of the borrower maintained with the financing branch. A maximum period of one year will be allowed to the borrowers to avail the sanctioned loan under the scheme.

8. Restoration of Term Loan limit : The borrowers under the scheme are allowed to deposit surplus fund in the loan accounts and to draw funds within the sanctioned limit to meet their urgent requirements after adjustment of loan installment(s) & interest due, if any, upto the date of drawing.

9. Special features of the scheme :

• Farmers are free to utilize the loan under the scheme at their own choice/ options/discretion.

• No margin is required.

• Granting of loan under the scheme is simple and hassle free.

• 15% of the loan amount may be utilized for personal/domestic purposes including repayment of debt to money lenders.

• Facility of restoration of Term Loan limit is available on advance repayment of loans.

For further details, please visit our nearest Branch