Chapter-6 Agriculture PDF

AGRICULTURE
 Provisions in Budget
 Various Schemes
 Procedural Guidelines
AGRICULTURE - SCHEMES & GUIDELINES

AGRICULTURE in India underwent a vital transformation which changed the face of India from
being a country dependent on imports to the one that exports a good volume of food and food
products. Banks have also done remarkably well in Agriculture advances and policies of Govt.
also boosted the same.PNB has always been pioneer in Agriculture field. The present govt. had
raised agriculture credit target to 8.50lakhs crore for 2015-16 which further enhanced to 9.00
lakh crore in recent budget.
Budget 2016-17 Agriculture provisions/highlights

 Focus on the farm sector in a bid to revive agriculture growth and improve farm income.
 Rs 35,984 crore allocated for agriculture in 2016-17.
 Overall budget for the agriculture sector was raised by over 44%, from Rs.24, 909 crore
in 2015-16 to Rs.35, 984 crore in 2016-17.
 A unified agriculture platform will be dedicated to the nation on the birth anniversary of
BR Ambedkar.
 Soil health card scheme will be implemented with, all 14,000 crore farms to be included
under it by 2017.
 A dedicated irrigation fund worth Rs 20,000 crore will be set up under NABARD.
 5 lakh acres will be brought under organic farming over a three year period.
 Pradhan Mantri Fasal Bima Yojana (PMFBY) has been more than doubled
from Rs.2,589 crore in 2015-16 (budget estimate) to Rs.5,500 crore for 2016-17.
 2.85 million hectares will be brought under irrigation through the flagship Pradhan Mantri
Krishi Sinchayi Yojana (PMKSY) scheme in 2016-17.
 89 projects under the Accelerated Irrigation Benefits Programme (AIBP) that are
languishing will be fast-tracked. Centre will spend Rs.17,000 crore on these projects
next year, and Rs.86,500 crore in the next five years.
 Rural credit got a boost, too, from a target of Rs.8.5 trillion in 2015-16 to Rs.9 trillion next
year.
 To ease the burden of loan repayment on drought-hit farmers, the budget allocated is
Rs.15,000 crore towards interest subvention
 To increase crop yields in rain-fed areas the budget allocated Rs.412 crore towards
organic farming.
 For enhancement in pulses production, the budget allocated Rs.500 crore under the
National Food Security Mission. The programme will cover 622 districts in the country.
 To help farmers get remunerative prices, a national agriculture market will be launched
in April to connect 585 regulated wholesale markets across the country.
TYPE OF FARMERS:
Agriculture Page 1 of 45
• Landless Farmer / Agriculture Labourer: who has no land holding, has a homestead, derive
more than 50% income from Agriculture wages.
• Marginal Farmer: Farmers with land holdings upto 1 hectare.

• Small Farmer: Farmers with a landholding of more than 1 hectare but less than 2 hectares.
• Other Farmer: who‟s main source of income from agriculture and does not fall under the
category of Landless Farmer, Marginal farmer & Small Farmer. Owns more than 2 hectare of
land.
• For the purpose of priority sector loans „small and marginal farmers‟ include landless
agricultural labourers, tenant farmers, oral lessees and share-croppers, whose share of
landholding is within above limits prescribed for “Small and Marginal Farmer.
INDIAN CROPS ARE BROADLY DIVIDED INTO THREE GROUPS:
• Kharif Crop: Normally sown in the month of July and harvested in the month of Oct every
year. It includes Rice, Jowar, Bajra, Maize, cotton, Sugarcane, soya bean, groundnut.
• Rabi Crop: Normally sown in the month of Oct and harvested in the month of March / April
every year. It includes Wheat, Jowar, Gram, Tur, Rapeseed and Mustard.
• Zaid Crop: In some part of the country, an additional crop is grown during March to June
every year, which is called Zaid crop. It includes Watermelon, vegetables, Cucumber, Melon.
THE MEANING OF SCIENTIFIC TERMS USED IN AGRICULTURE:
Sr No. Term Meaning/Relates to

1 Apiculture Bee- keeping
2 Floriculture Cultivation of Flowers
3 Horticulture Cultivation of Flowers, Fruits & Vegetables
4 Sericulture Cultivation of Silk.
5 Sylviculture Cultivation of Trees
6 Plasticulture Use of plastic in farming
7 Dairy Farming Cattle rearing for milk and its various products
8 Aquaculture Shrimp farming, Prawn farming etc.
9 Olericulture Vegetable cultivation
10 Pisciculture Fish Farming
11 Apriculture Mushroom Cultivation
12 Vermiculture Rearing of earth worms
13 Blue Revolution Increase in Fishery production & development
14 Green Revolution Green Revolution
15 Operation Flood Increase in Milk Production
16 White Revolution Increase in Milk Production
17 Red Revolution Increase in Meat Production
18 Brown Revolution Cocoa Development
19 Yellow Revolution Increase in Oil Seeds production
20 Rainbow Revolution Flowers production
21 Black Revolution Increase in Natural Rubber production
22 Evergreen Revolution Food Processing
Gist of Procedural Guidelines for Agriculture Credit (Refer :- PSLB Codified Farm Credit
No. 12/15 dt. 06.04.2015)
1. PROCEDURAL GUIDELINES FOR AGRICULTURAL CREDIT.
A. Processing the Applications of Agricultural Credit.
(i) Technical feasibility and economic viability should be assessed by Agriculture

Officer/Officer having agriculture background to the extent possible.
(ii) However, the services of agriculture officers should not be used for processing of
routine type of agriculture loan proposals upto Rs. 3 lakh.
(iii) In case where Loan in Charge of branch offices are satisfied about their capability to
appraise loan proposal appropriately to their own satisfaction as also to the
satisfaction of the loan sanctioning authority, they may make such appraisals
independent of any Agriculture Officer; keeping in view the soil type, cropping
pattern, available irrigation potential, scope of custom hire service and his report
should be kept on bank‟s record. In addition, he should also examine the generation
of income to pay the interest and installments as and when they become due and
ensure due recovery promptly.
(iv) However, Branch Managers are advised to record the facts in the loan proposal itself
while sanctioning the loan so that unnecessary objections are not raised by the
Inspectors subsequently. Further they should ensure that income stream of the
farmer should be calculated on the basis of income/expenditure of the farmer and
limit be fixed accordingly.
(v) Investment Credit availed by the farmers can be put to maximum use only if it is
supplemented with Crop Production Credit for maximizing crop production which will,
ultimately, increase the repaying capacity of the farmers. So, endeavour should be
made to provide Crop Production Credit along with the Investment Credit to the
farmers. While considering the Investment Credit proposals of the farmers, the
requirement for growing crops in particular and carrying out other allied agricultural
activities in general be also taken into account and sanctioned on merits. In case the
Production Credit facility is not being sanctioned, the Incumbent Incharge should
mention specific reasons on the file thereof.
(ABFID/ AGRI. BUSINESS/ CIRCULAR NO. 22/2017 Dt 24.04.2017)

(i) On receipt of application on the prescribed form (PNB 1235), the Branch shall issue the
acknowledgement receipt to the applicant clearly indicating the expected disposal period
based on disposal norms of the Bank .
(ii) The Branches should make sincere efforts to capture the mobile number and email ID of the
applicant in the application form and ensure entering such applications received (where
mobile number and email ID has been captured) in the Online Proposal Tracking System
(CPTS) portal. The CPTS portal can be accessed under head MSME/ Credit/ RAD in Non-
CBS applications page of CBS.
(iii) In case of rejection/ non consideration of application, the applicant should be intimated along
with the reasons thereof.
B. Broad parameters for calculation of Expenditure/Income: -
(a) Expenditure:
(i) Expenditure on productive activities like crop production, purchase of seeds, fertilizers,
pesticides, expenditure on irrigation charges, etc.
(ii) Expenditure on allied activities like dairy/poultry, etc.
(iii) Consumption needs.
(b) Income:
(i) Land availability and cropping pattern.
(ii) Expected income from allied agriculture/non-farm activities.
(iii) Any other income.
Circle Heads may identify model schemes for financing agricultural activities which are area-
specific. And suitable recommendations can be made to PSLB Division.
Incumbent In charge of branches should not keep the proposals pending for want of appraisal by
Agriculture Officer only, rather they should dispose of such proposals expeditiously provided
they are confident and satisfied to appraise such proposals by themselves or by an Officer, who
is competent to do. In case of need, they may seek guidance from CO for expeditious disposal.
If immovable property is not to be charged in the Bank’s favor as security, Non-

encumbrance Certificate would not be required.
2. TIME SCHEDULE FOR DISPOSAL OF LOAN APPLICATIONS:-
Credit Limit Time Schedule (Max)
Upto Rs. 2 lakh : 2 Weeks

Above Rs. 2 lakh & upto Rs. 50 lakh : 4 Weeks
Above Rs. 50 lakh & upto Rs. 100 lakh : 5-6 Weeks
Above Rs. 100 lakh & upto Rs. 100 crores : 6-7 Weeks
Above Rs. 100 crores : 8-9 Weeks
3. PRE-SANCTION APPRAISAL:-
During the pre-sanction visit, the following aspects should be looked into:
(i) That the applicant resides at the place given in the application;
(ii) Integrity/Experience of the applicant should be judged;
(iii) Local enquiries about the assets and liabilities/ previous business credibility and
related aspects;
(iv) Spot verification should be conducted to know the correctness and suitability of the
project;
(v) Other important facts and figures given in the application should also be verified;
(vi) Confidential Report should reflect the creditworthiness of the applicant and the
guarantor;
(vii) As far as possible, cluster approach should be adopted.
(viii) Technical assistance may also be sought (if required) from Depts of Agriculture,
Horticulture, Soil Conservation, Forestry, Fisheries, Animal Husbandry, Sericulture,
concerned Departments of Agricultural Universities and NABARD.
(ix) While undertaking pre-sanction appraisal of the proposals, branches shall focus on
income stream of applicant(s) besides the credibility, capability for taking up the
activity proposed and techno-economic viability of the proposal.
(x) Defaulter farmers/ members of Primary Agricultural Co-operative Societies will not be
eligible for loan.
(xi) Farmers who have already availed short term loans from other banks or financial
institutions will not be eligible for short term loan. However, they may be provided
loan for investment purpose on merits.
(xii) The existing practice of verification of land records by paying visit to the field should
be followed meticulously.
(xiii) Endeavor should be made to increase awareness about terms and conditions of the
financial assistance among the borrowers in this regard.
4.MARGIN NORMS:-
(a)For production and/or Investment Credit:

Amount of loan Margin
(i) Upto Rs.1,00,000/- (both for short term and medium term) NIL
(ii) Above Rs.1,00,000/- to Rs.2 lakh 5%
(iii) Above Rs.2 lakh to Rs.5 lakh 10%
(iv) Above Rs.5 lakh 25%
(b)Under PNB Krishi Card Scheme: (For production credit) NIL
(c)Under the Scheme of Agri-Clinics/Agri-Business Centres

Amount of loan Margin
(i)Upto Rs.5 lakh Nil
(ii) Above Rs.5 lakh 25%
(i) Where subsidy is available, the same should be treated as margin and no further
margin money should be stipulated unless subsidy falls short of requisite margin.
(ii) Labour and materials, etc. contributed by farmer should be treated towards building
up of margin.
(iii) Where the scheme has been approved by NABARD or any other Govt. agency the
terms and conditions stipulated by NABARD or Govt. agency in respect of margin
shall be followed.
(iv) In respect of Govt. sponsored schemes, the margin/security norms shall be as per
the respective schemes for agricultural advances or the above mentioned margin,
whichever is lower.
7. SECURITY NORMS:-
(A) Production Credit/Investment Credit:
(i)Upto Rs.1, 00,000/- : Hypothecation of crops/assets created out of bank loan;
(ii)Above Rs.1, 00,000/- :
(a)Hypothecation of crops/assets created out of bank loan;
AND
(b)Charge on land as per Agricultural Credit Operations and Miscellaneous (Provisions) Act of
the State concerned/Mortgage of agricultural land valued at 100% of amount of loan for other
farmers and 75% of the loan amount for small farmers/marginal farmers;
OR
Alternate security, viz., charge/lien over liquid securities such as term deposits/NSCs/KVPs,
etc., which may be considered adequate.
OR
Suitable third party guarantee.
(B)Under the Scheme of Agri-Clinics and Agri-Business Centres:
(i)Upto Rs.5 lakh: Hypothecation of assets created out of bank loan;
(ii)Above Rs.5 lakh:
(a)Hypothecation of assets created out of bank loan;
AND
b) Charge on land as per Agricultural Credit Operations and Miscellaneous (Provisions) Act of
the State concerned/ Mortgage/Equitable Mortgage of agricultural land/any other suitable
property valued at 150% of loan amount.
OR
Alternate security, viz., charge/lien over liquid securities such as term deposits/NSCs/KVPs,
etc., which may be considered adequate.
OR
Suitable third party guarantee.
NOTE:
(i) In States where legislation on the lines suggested by the Talwar Committee has been
passed, a simple declaration creating a charge on the land offered as security will be sufficient.
In such cases, mortgage of land may not be necessary.
(ii) While valuing land for the purpose of security, post development realizable value of land
shall be taken into consideration.
(iii) The RBI has advised banks to ensure that value of security taken is commensurate with size
of loan and desist from asking additional collateral security by way of guarantee where the land
mortgaged is considered adequate. Branches are therefore, advised that third party guarantee
should not be taken in cases where mortgage of agricultural land has been accepted a security.
RBI has further advised that branches should desist from the practice of taking collateral
security/third party guarantee/mortgage of land for P.S. Advances, where it has been indicated
that such security is not to be taken.
(iv) Branches may not ask for mortgage of land in cases where the amount of loan net of subsidy
is upto Rs. 1,00,000/- or subsidy is not received in advance or simultaneously at the time of
disbursement of loan. However, in such cases, suitable third party guarantee may be obtained.
(v) In case the land/shed is on lease/rent basis or otherwise where borrower‟s title to land does
not permit him to create a mortgage thereof, suitable guarantee may be accepted as an
alternative security. If, however, loan is allowed for construction of sheds, these must be
mortgaged with the Bank as principal security except where these are constructed on land on
which the borrowers do not have alienable title.
(vi) In case of loans for purchase of power tillers, hypothecation of assets alone will be sufficient
even for loans above the aforesaid ceiling up to which no collateral security is required to be
taken.
8. RATE OF INTEREST:
The rate of interest should be charged as per Loans & Advances Circulars issued by Head Office
from time to time.
9. LOANING POWERS: As per Loans & Advances Circulars issued from time to time. (Latest
IRMD Loans & Advances Circular No. 114 dated 27.09.2014)
Loaning powers For Tractor Financing:

(i) Branches (having tractor portfolio of Rs. 1.00 crore and above or 50 and above tractor loan
accounts) with recovery less than 75% in tractor advances (in terms of Recovery Statement
PNB 746 as at March/ September on an annualized basis), will not sanction any such
advances at their level and will send proposals to the respective Circle Offices for sanction.
(ii) Other branches can consider tractor financing provided their annual recovery is above 75%
under agriculture credit portfolio.
Financing under KCC and Kisan Gold Scheme:

(i) Circle Heads to sanction cases above Rs. 20.00 lakh and upto Rs. 50 lakh, within their
discretionary loaning powers.
(ii) KCC/ Kisan Gold loans in individual capacity, to promoters/ Directors of company or
partners of firm may be sanctioned by Circle Heads (within their discretionary loaning power)
even where the existing facilities, for business purposes, have been sanctioned by a higher
authority provided that the loan is utilized for Agriculture purposes only and Agriculture
land of individual Director/ Partner is mortgaged exclusively for the said loan and Bank‟s
charge on Agriculture land is created.
10. Loan application forms/documents: Various simplied forms/formats & appendix.
For loans upto Rs 50,000:- copies of revenue extracts may not be insisted upon and in lieu
thereof, branches may accept the following revenue documents for short term loan:
(i) Extract from the latest Revenue/Agricultural Pass Book issued by State Revenue
Department.
or
(ii) Receipt issued by the State Revenue/Irrigation Department for payment of land revenue or
irrigation charges or any other document issued by State Revenue Department containing
details of ownership/ cultivation rights, kila/plot number, area of land and other requisite details.
Such receipt/document should not be more than nine months old.
or
(iii) In case a farmer is already availing crop loan/term loan from our Bank and particulars of
his/her land holdings with nature of rights are on Bank‟s record, local enquiries may be made to
verify the present position and in case there is no adverse change, loan may be considered
without asking for fresh copies of revenue records every time upto three years.
or
(iv) A simple Application-cum-verification report containing details of land duly countersigned by
Revenue Officials, viz., Patwari/Naib Tehsildar/Tehsildar, etc.
or
(v) An affidavit containing details of land tilled/crops grown. However, farmer will give an
undertaking in the affidavit that he has not raised any loan from other banks/financial
institutions.
11. CR‟s IN AGRICULTURE (FOR BORROWERS AND GUARANTORS):-

No CR to be compiled.
-For Loans Rs 50000/- to Rs 10 lacs Brief CR PNB-539
-For Loans above Rs 10 lacs Regular CR (PNB 282A or B)
12. SERVICE AREA GUIDELINES FOR RURAL LENDING:-
Restriction of financing within the service area, other than Government Sponsored Programmes
has since been removed. However, following guidelines are stipulated:
(i) Rural lending shall be restricted within a radius of 25 Kms. from the branch but within
the State boundary to have effective supervision and follow-up.
(ii) Where the service area is already allocated beyond 25 Kms. the branches will
continue to finance within the allocated service area.
(iii) In the Circles where the inter-branch distances are far below 25 Kms. the Circle
Head may broadly demarcate the area of operation for each rural/semi-urban branch
under the control of the Circle to obviate unhealthy competition among our bank‟s
branches.
(iv) Circle Heads have been given full powers to enlarge area of operation depending
upon potential, infrastructure and capability of the branch. However, for Government
Sponsored Programmes, financing within the allocated service area shall be done
irrespective of the distance criteria.
13. OBTAINING “NO DUES CERTIFICATE”:
From individual borrowers (including SHGs and JLGs) in rural and semi urban areas: -
“No Dues Certificate” is not to be obtained for agricultural loans. However, for loans above Rs.
1.00 lakh, affidavit to this effect be obtained from such borrowers.
For borrowers in urban areas and borrowers other than above: - “No Dues
Certificate/Affidavit” is not to be obtained for agricultural loans upto Rs.1, 00,000/-. However, for
agricultural loans above Rs.1, 00,000/-, obtaining of Affidavit in lieu of "No Dues Certificate" is
allowed.
Alternative framework of due diligence (other than the „No Dues Certificate‟):- one or more
of the following:
 Credit history check through credit information companies.
 Self declaration or an affidavit from the borrower.
 CERSAI registration
 Peer monitoring
 Information sharing among lenders
 Information search (writing to other lenders with an auto deadline)
14. OBTAINING OF “NO OBJECTION CERTIFICATE” FROM THE CO-SHARERS OF

AGRICULTURAL LAND:
It has been dispensed with. In lieu thereof, a simple declaration be obtained from the intending
borrower(s) stating that there is no family dispute about title of the agricultural land to be
mortgaged/charge created in favour of the Bank for securing the loan.
15. RENEWAL OF SHORT-TERM AGRICULTURE CREDIT LIMIT:

(i) Fresh Application and Copies of Revenue Records are not required.
(ii) Fresh documents would be required every 5th year for cash credit facility.
(iii) In case of enhancement of limit also, fresh documents shall be obtained.
st
16. RULE BASED LENDING MODEL (RBLM):- is in place since 1 July, 2005. The aggregate
scores secured by the applicant will lead to a point enabling the Incumbent Incharge to take a
logistic credit decision for sanction/rejection of credit proposal. Bench Mark for sanction of credit
proposal has been kept at 60 marks for other farmers and 55 marks for small & marginal
farmers.
17. UNIT COST TO BE CONSIDERED FOR AGRICULTURAL INVESTMENT:-
 To be decided by Unit Cost Committee will be constituted at Circle Office level. Headed
by the Circle Head, Lead District Manager/ District Coordinator and Agriculture Officer
shall be member.
 Unit cost will be decided district-wise for various items for agricultural investment
financing.
 Incumbent Incharge will have discretion to finance up to ±5 percent of the approved unit
cost on merits in specific cases.
18. SCALE OF FINANCE FOR PRODUCTION CREDIT:-

Need based credit is to be provided to the farmers depending upon scale of finance for
respective crops duly approved by the concerned Technical Committee at the District Level.
However, Circle Offices have the freedom to decide the scale of finance and District Level
Technical Committee (DLTC) norms should only be used as a broad indicator.
Scale of finance is to be reviewed annually either by Technical Committee or by our Circle
Offices.
19. CASH DISBURSEMENT FOR INVESTMENT UP TO 5 LACS IN SOME ELIGIBLE CASES

ON MERITS:-
(i) Only existing farmer borrowers having a satisfactory record of dealing with us for the last two
years and having no NPA
(ii) Investment credit may be disbursed in stages.
(iii) Mortgage of agriculture land shall be 200 per cent of loan amount for all farmers.
 The related bills/receipts will be obtained duly signed by the borrower
 End-use verified by branches.
 Margin money will be routed through the Saving Account without any exception
20. ON LINE APPLICATION FOR AGRICULTURE CREDIT TO FARMERS:-

The applicant will apply through the site (www.pnbnet.org.in) and after submission of
application; applicant will receive an acknowledgement containing the serial number so as to
track the status of application later on. An acknowledgement is automatically sent to the
applicant on e-mail I.D.
21. EXERCISING OF LOANING POWERS IN THE BRANCHES WITHOUT SECOND MAN:-

(where no other officer is posted or second man is special assistant at the branch)
Incumbent In charge may process and sanction loan proposal falling within his own vested
loaning powers in following cases even though proposals have not been
prepared/recommended by second officer :
 All Priority Sector advances including Govt. sponsored schemes and “Loans under
 Retail Lending Schemes” upto Rs. 1 lac each
 For loans upto Rs. 3 lac under KCC Scheme/other direct agriculture.
 -For Tractor loans, the ceiling on individual loan will be Rs. 3 lac.
 For Housing Loans, the ceiling on individual loan will be Rs. 2 lac
 -Overall limit per month Rs 20 lacs which may be enhanced to Rs 50 lacs by CH on
merits.
Sanctioning/ recommending the loan proposals (Refer Inspection & Audit Division circular
no. 56/12 dated 30.07.2012 for detail):
a) Subordinate staff officiating in clerical cadre: - allowed to recommend any loan for sanction.
b) Any Clerk/ Special Assistant officiating as an Officer: - cannot sanction loan independently.
c) Further:
(i) If an officer is available in the branch, then he/ she only can recommend a loan for sanction.
(ii) If no officer is available in the branch, Spl. Assistant can recommend the loan proposal, for
sanction.
(iii) If neither Officer nor Spl. Assistant is available in rural/ semi urban branch, a Clerk officiating
as Spl. Assistant/ Officer can recommend for sanction of loan during officiating up to a
maximum of Rs. 2.00 lakh in an individual loan proposal.
If second person‟s name is included in List of Officials of Doubtful Integrity (LODI) and there is
no other officer posted at the branch:- Circle Heads may permit Incumbent Incharge to process
and sanction proposals in the aforesaid matters without the recommendations of second man
within his vested loaning powers.
(iii) Powers will be exercised by Incumbent Incharge according to the scale in which he is
placed.
Gist of Important Agriculture Schemes
1. SCHEME FOR FINANCING UNDER PNB KISAN CREDIT CARD (KCC) (Codi. PSLB
12/14 dt 25.3.14 & FARM CREDIT CIRCULAR NO. 76 /1476/14 dt 5.9.14, 05/15 dated
06.01.2015, 19/15 dated 12.02.2015 & 67/15 dated13.10.2015 & 6/2017 dt 27.02.2017)
Eligibility:
• (i) All Farmers including Tenant Farmers, Oral Lessees & Share Croppers , SHGs or
Joint Liability Groups of Farmers including tenant farmers, share croppers etc
• KCC to Landless labourers, share croppers, tenant farmers and oral lessees can be
issued upto limit of Rs 50,000/- on the basis of an Affidavit containing details of land
tilled/ crops grown, duly stamped as per the respective State Stamps rules.
• The land taken from the relative or friend including NRI relatives on oral tenancy basis
may be included while calculating the eligible limit, provided the collateral security
offered by the borrower farmer is 200% of the loan limit.
Extent of Limit: Maximum Rs.20 lakh (Circle Heads are empowered to sanction cases above
Rs. 20.00 lakh and upto Rs.50 lakh) (Farm Credit Cir. No. 05/2015 dated 06.01.2015).
• Cash credit limit (Both C/C Crop Loan and reducing Term Loan limit) upto Rs. 20lakh,
may be disbursed in cash for which no bills/receipts may be obtained except where it is
a statutory requirement like in case of tractor.
However, in respect of limit sanctioned above Rs. 20 lakh, amount above Rs. 20lakh will
be disbursed through borrower account and end use to be verified.
• Limit is fixed for five years (taking into account 10% post harvest household /
consumption requirements (the premium for health insurance cover may also be covered
with a maximum coverage of upto Rs. 3 lakh) + 20% of limit towards repairs and
maintenance expenses of farm assets + crop insurance, PAIS & asset insurance and
10% additional every year from 2nd & subsequent years) plus term loan/ investment
needs of farmer.
• The short term component of the KCC limit is in the nature of revolving cash credit. DP is
accordingly reduced.
For Sanctioned limit upto Rs.20 lakh and Regular Crop Loans/KCC ROI is presently 7%
upto outstanding of Rs. 3.00 lakh and MCLR (1 year) +2.10% over Rs. 3.00.lakh.For
sanctioned limit above Rs.20 lakh and Regular Crop Loans/KCC ROI is presently 7%
upto outstanding of Rs. 3.00 lakh and MCLR (1 year) + 1.85% over Rs. 3.00 lakh (As per
B1-Unrated of master table). (As per L&A Circular No. 26/16 dated 31.03.2016).
For Sanctioned limit upto Rs.20 lakh and Irregular Crop Loans/KCC ROI is presently
MCLR (1 year) +2.10%. For sanctioned limit above Rs.20 lakh and Irregular Crop
Loans/KCC ROI is presently 7 MCLR (1 year) +1.85 %( As per B1-Unrated of master
table). (As per L&A Circular No. 26/16 dated 31.03.2016).
The above guidelines are linked to the subvention scheme of GOI/RBI (the rate of
interest should be charged as per Loans & Advances Circulars issued by Head Office
from time to time.
 For loans upto Rs 50,000/-, copies of revenue extracts may not be insisted upon and in
lieu thereof, branches may accept the following revenue documents for short term loan:
Margin: As mentioned under margin Norms for agriculture loans
Security: - As mentioned under margin Norms for agriculture loans
Rate of Interest:- As per Loans & Advances Circulars issued by Head Office from time to time
.
However, interest is 7% p.a. in the regular Crop loan/KCC accounts on running balance
outstanding upto Rs. 3 lakh.
On the irregular accounts / outstanding beyond Rs. 3 lakh, normal rate of interest is to be
charged. The above guidelines are linked to the subvention scheme of GOI/RBI.
(For the purpose of interest subvention, the accounts will be treated as irregular if any debit
entry is not adjusted within a period of 12 months (for both short duration and long duration
crops)
Branches may pay interest @4% per annum (as applicable to Saving Fund Deposits) on Credit
Balance in C/C Account.
Compilation of CRs :- As per Agri. norms
Personal Accident Insurance Scheme (PAIS) and Pradhan Matri Suraksha Bima Yojana
(PMSBY): PSLB 67/15 dt 13.10.15)
All eligible KCC holders may have the option to take benefit of PAIS for which annual premium
of Rs. 15 (Rs 5 by Borrower and Rs 10 by Bank) to be paid to designated insurance agency.
However, with the launch of Pradhan Matri Suraksha Bima Yojana (PMSBY) the Bank has
decided to offer PMSBY cover in place of PAIS to eligible borrowers.
The salient features of PMSBY are as under:
(i) The premium payable for one year policy is Rs. 12/- (comprising of Rs.5/- from the
borrower and Rs.7/- from the Bank) per life insured may be paid to the Insurance
Company.
(ii) The benefit given under the scheme is Rs. 2.00 lakh in case of accidental death or
total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss
of sight of one eye and loss of use of hand or foot and Rs. 1.00 lakh in case of total
and irrecoverable loss of sight of one eye or loss of use of one hand or foot
(iii) The KCC account holders aged between 18 years (completed) and 70 years (age
nearer birthday) who give their consent to join / enable auto-debit, as per the above
modality, will be enrolled into the scheme.
Appropriation of Premium under PMSBY:
1) Insurance Premium to Insurance Company: Rs.10/- per annum per member.
2) Reimbursement of Expenses to BC/Micro/Corporate/Agent: Rs.1/- per annum per member.
3) Reimbursement of Administrative expenses to participating Bank: Rs.1/- per annum per
member.
Crop insurance under Rashtriya Krishi Bima Yojana(PSLB 77/15 dt 21.12.15):-

Rashtriya Krishi Bima Yojana is in operation for certain identified crops. Insurance cover,
wherever available, should be obtained and insurance premium in this regard, provided as a
part of crop loan, should regularly be remitted to Nodal Office for forwarding the same to the
respective insurance company, in time. As regards implementation of crop insurance, the
Hon‟ble Allahabad High Court has pronounced its direction to get COVERAGE OF ALL
LOANEE FARMERS UNDER CROP INSURANCE SCHEMES.
CROP INSURANCE – COVERAGE UNDER PMFBY: PSLB/ FARM CREDIT/

CIRCULAR NO. 88/2016 dated 31.12.2016
Detailed guidelines on crop insurance have been circulated to all offices vide PSLB/ Codified
Farm Credit Circular No 2/16 dated 22.03.2016 followed by other circulars and letters from time
to time.
Now, Deptt. of Agriculture, Cooperation & Farmers Welfare, Ministry of Agriculture & Farmers
Welfare vide letter no. 13017/01/2016 – Credit II dated 30.12.2016 has informed that in the
wake of demonetization it has been decided to extend the cut-off date upto 10th January, 2017
for debit of premium from eligible crop loan accounts/ KCC accounts/ enrollment of non
loanee farmers under PMFBY in respect of those crops/ areas where the prescribed/
notified cut –off date was/ is between 15th December, 2016 to 31st December, 2016.
The cut- off date for submission of consolidated proposals/ premium by the branches to
concerned Insurance Companies may also be extended accordingly i.e. upto 17th January, 2017
for non-loanee farmers and 25th January, 2017 for loanee farmers.
As such Branch Heads are advised to ensure that crop insurance premium under PMFBY in all
eligible accounts be deducted and remitted to insurance company on or before the cut-off
date.
Business opportunity for the Bank in terms of commission available @ 4% of the
premium collected of non-loanee farmers. (ABFID/ AGRI. BUSINESS/ CIRCULAR NO.
23/2017dt 24.04.2017)
Only PNB RuPay Kisan Cards (Personalized/ Non-Personalized) are to be issued in

KCC accounts.
PNB RuPay Kisan Cards are to be issued in all the KCC accounts except NPA
accounts.
2. KISAN GOLD SCHEME (PSLB Cod. 9/15 dated 07.03.15)
Purpose:
 Production & investment credit for agriculture & allied activities
 Rural housing related activities
 Consumption needs (i.e. for marriage, education, religious/family functions)
Eligibility:
I. Only existing good agricultural land owner borrowers who have been continuously availing
of any loan and having no NPA record for last Two years as on the date of application will
be eligible. New farmers with evidence of satisfactory dealing with other banks for a
minimum period of 2 years will also be eligible. If the land mortgaged is in the name of more
than one farmer then all will be eligible jointly/ individually (subject to obtaining of
declaration stating that there is no family dispute about title of the agricultural land to be
mortgaged/ charge created in favour of the Bank for securing the loan.
II. The above condition of track record of 2 years may be relaxed in case of new farmers
having good amount of deposit for the last 2 years provided:
Loan is secured by 100 % liquid collateral security like Deposit/ NSCs, etc,
or
Loan is secured by 50 % liquid collateral security and 50% by mortgage of land (valued at
50 % of Bank Loan for Small/ Marginal farmers and 75% of Bank Loan for other farmers)
For housing, required approval from competent authority for plan, etc., will have to be obtained.
Other requirements of Bank‟s Housing Loan Scheme are to be fulfilled.
Max. Age limit for rural housing at the time of application is 60 years (up to 65 years, if legal
heirs stand as guarantor).
Extent of Loan:
Maximum: Rs 50 lakh minimum 75% of the limit for Productive Purposes,25% of the loan
amount or Rs. 5 lakh whichever is lower be given for Non-productive purpose which may
comprise of Rs 3 lakh for Rural Housing and maximum of Rs 2 Lakh for consumption. Lower of:-
 5 times average annual (2 Years) total income of the borrower.
 50% of value of mortgaged land.
Repayment:
Production Credit:
Cash Credit Limit: Aggregate credit (last 12/ 18 months ) should be equal to outstanding.
Working Capital for allied activities: 12 months
No drawal to outstand for more than 12 months (18 months for long duration crops)
Housing: 9 years (with gestation of 12 months)
Main Agricultural activity: upto maximum of 9 years.
Allied Agrl. Activity: upto maximum of 7 years.
(For details Codified Farm Credit Circular No. 09/15 dated 07.03.2015)
3. PNB KALYANI CARD SCHEME(PSLB 3/15 dt 3.2.15 & 44/15 dt 17.6.15)
Eligibility: - The women dwelling in rural / semi-urban areas which include individuals, farmers,
landless laborers‟, agricultural laborers, tenant farmers, share croppers, lessee farmers, etc.
The women desirous of undertaking non-farm sector activities should have aptitude/experience
and capability for undertaking the activity chosen for self employment.
- The scheme was formulated in order to cater to the credit needs of the women residing in
rural/ semi urban areas.
- For meeting working capital credit requirement of allied agricultural activities/miscellaneous
farm/non- farm activities either singly or in combination with other activities.
- The Crop Loan/ short term production credit requirement for raising crops should be covered
only through KCC.
Nature of Limit: - Revolving cash credit limit.
Extent of Limit: Need based upto Rs. 1,00,000
Margin: - Nil.Annual income stream of the household and repaying capacity of eligible women
shall be taken into account for fixing limit.
Validity of the PNB Kalyani Card: Three years.
Security of loan: Hypothecation of assets created with bank loan.
The rate of interest: shall be charged as per Loans & Advances Circulars issued by Head
Office from time to time.
 No processing fees/service charges/folio charges/card issuing charges .
 Repayment period under the Scheme shall be the same as applicable for agriculture
production credit i.e. Aggregate credits into the account during 12 months period should
at least be equal to the maximum outstanding in the account.
 Renewal of PNB Kalyani Card limit shall be at the end of the third year.
Scheme Code – CCKLY, Intt. Table Code – WCKLB.
4. PNB KRISHAK SAATHI SCHEME (PNBKSS)(PSB 02/15 dt 3.2.15 )
Purpose:-
 To provide finance to the farmers to redeem their outstanding dues to moneylenders.
 To redeem an indebted farmer from the clutches of private moneylenders,
 To effect synergy between bank and the farmers.
 To ensure „Financial Inclusion‟.
Eligibility:-
All farmers including small & marginal farmers, tenant farmers, oral lessees, sharecroppers,
agriculture laborers‟, etc., who are indebted to non-institutional money sources.
Nature of facility: Term Loan.
Extent of loan: Need based credit against their indebtedness from money lender with
a maximum of Rs.1,00,000/- per farmer.
Margin: NIL
Rate of interest: Presently as per, IRMD L&A Circular No. 26/2016 dated 31.03.2016.
Security:No security will be insisted upon from the borrowers.
NABARD refinance: available.
 Sector Code : PRIOR
 Sub Sector Code : 10010
 Mode of advance code : DIRCT
 Purpose of advance code : KRISA
5) PNB Krishi Bhu-Swami Yojana (PNB Agri-Land Purchase Scheme (PSLB 05/15 dt
4.2.15 & 66/15 dt 12.10.15)
Objectives:-
The scheme aims at providing term loan to small/marginal farmers including share
croppers/tenant cultivators to purchase agricultural land as well as fallow and wasteland to
develop and cultivate it with a view to increasing production/ productivity.
Eligibility:-
Small and marginal farmers i.e. those who would own maximum of 5 acres of unirrigated land or
2.5 acres of irrigated land including the land to be purchased (one hectare or two hectares).
Farmers allowed purchasing agriculture land within a radius of 15 km (earlier 3-5km) from the
existing land owned by him/ her from the residence or within the service area villages whichever
is higher.
Nature of Loan: Term loan.
Extent of Loan:
The Extent of loan will depend upon
(i)Valuation as assessed by the Branch
(ii)Guidance value/Circle rate fixed by the State
or
(iii) Registration Value whichever is lower, plus value of stamp duty, registration charges for sale
/ mortgage deed.
(iv) Maximum amount Rs. 20 lakh.
Security Norms:
Following will form the security for the loan:
(i) The land presently owned, if any and also the land to be purchased out of the bank finance to
be mortgaged in favor of the Bank.
(ii) Hypothecation of Crops grown from time to time on the land.
Margin: as per agri norms.
Gestation Period: Maximum 24 months.
NABARD refinance: available.
 Scheme Code – TLAOT
 Borrower Category – AGRMF or AGRSF
 Purpose of Advance – LANDP
6. Farm Mechanisation Scheme (PSLB 05/14 dt 27.1.14 & Cod 4/15 dt 3.2.15)
Purpose of Loan:-
• Purchase of new tractors and matching implements
• Purchase of new power tillers;
• Purchase of tractors/ power tillers for the second time with matching implements;
• Purchase of second hand tractors with matching implements;
• Purchase of tractors, implements, power tillers, rice transplanters and other farm
machinery under the Sub- Mission on Agricultural Mechanization (SMAM) of Govt. of
India.
• Purchase of agricultural machinery such as threshers, harvesters, seed drills, seed cum
fertilizer drills, harrows, hoes, sprayers, plant protection equipment, etc. Agricultural
machinery may be power/manual/tractor driven.
• Repair/renovation of tractors.
Eligibility:-
• Minimum 2.5 acres of perennially irrigated land for tractors or corresponding acreage as
prescribed for different categories of land under the State Land Ceiling Act,
• Min.1.5 acres for power tillers/other farm machinery (owned singly or jointly,
• For repair & renovation, tractor should be more than 5 years old but not older than 12
years.
• For second hand tractor, it should not be more than 5 years old.
• For other farm machinery/equipments: No condition of minimum land holding.
Amount of Loan:-
For purchase of New Tractor / Power Triller:- Need based Term Loan.
For Second hand Tractor plus implements:- Max. Rs 2.00 Lacs
For Repairing & Renovation:- Max. Rs 1.00 Lac
Repayment Period:-
• New Tractor: 7 -9 years Half yearly / yearly installments (Gestation max 1 year)
• 2nd hand tractor: 5 years
• Power tiller: 7 year.
• Other Farm machinery: 7 years for small & marginal farmers and 5 years for other
Farmers.
GOI Sub- Mission on Agricultural Mechanization (SMAM):-
Objective:- increasing the reach of farm mechanization to small and marginal farmers and to
the regions where availability of farm power is low.
Under the submission, tractors upto 70 PTO HP (earlier it was 40 PTO HP), matching
implements, power tillers and farm machinery like rice transplanter, reaper and binder etc. are
eligible for subsidy.
Subscription @ Rs.800/- per tractor per annum was to be recovered up to 31st January
2017 in all the existing eligible accounts outstanding as on 31.12.2016. The subscription
for the year 2017 shall not be deducted by the branches as the same will be deducted
centrally by the ITDCBS, HO.( PSLB 04/17 DATED 16.01.2017.
6. FARM MECHANIZATION SCHEME FOR FINANCING OF FARM MACHINERY AND

REPAIR/ RENOVATION OF TRACTORS AND POWER TILLERS - ADDITIONAL
GUIDELINES FOR FINANCING WITHOUT MORTGAGE OF LAND (PSLB 11/16 dt 10.2.16)
Objective: - Purchase of new tractors with or without matching implements/equipments such as

cultivators, harrows, and disc ploughs, trolleys, etc.
Eligibility: - Individual farmers who own at least 2.5 acres of perennially irrigated land or
corresponding acreage as prescribed for different categories of land under the State Land
Ceiling Act.
And
The farmer having no NPA record for last three years as on the date of application will be
eligible.
Extent of Laon: Need Based
Margin: Minimum 40% cash margin.
Security:
o PRIMARY: Hypothecation of assets created out of bank loan.-
o COLLATERAL: Third Party Guarantee(s) having adequate means
o Further, 4 PDCs (CTS-2010) as remedy under Section-138 of Negotiable
Instruments Act.
Repayment: Maximum 5 years in form of monthly/ quarterly/ half yearly installments.( CH may
extend up to 72 months )
Moratorium Period: No moratorium period is prescribed.
7. SCHEME FOR FINANCING SELF-PROPELLED COMBINE HARVESTERS. (PSLB 07/14

dt 27.1.14)
Eligibility: - Farmers, Non-Farmers & State Agri. Farms/Corporations

Nature of Loan: Term loan Need based.
Gestation Period:- Max 6 months
Repayment of Loan:- 5-7 years in half-yearly/ yearly installments.
Other Information:-
• Financing is to be done in respect of new combine harvester models which are approved
by Head Office.
• Proposal should be from areas which offer good potential for custom hiring i.e. a
minimum of 1600 acres per year.
• Proposal should be techno-economically viable.
• NABARD provides refinance to the extent of 90%-100%.
• Scheme Code – TLACH
• Purpose of Advance – COMVH
• Free code 10 – 1206 or 1208
8. SCHEME FOR FINANCING APICULTURE (BEE KEEPING)(PSLB 13/13 dt 9.9.13 &

16/2017 DT 15.04.2017)
Eligibility: Small/marginal farmer(s)/agricultural labourer(s) who are trained in bee-keeping.

And also Individuals/Association of persons/Companies.
Type of Loan:- Term loan (Need based). Financial assistance will be made available for fixed
costs as well recurring costs. Minimum unit for financing should be of 10 bee hives
Gestation period: 12 months
Repayment period: Maximum 5 years
Insurance: Equipment purchased should be new and any equipment costing more than
Rs.10,000/- should be insured.
NABARD refinance:- 90-100% available.
NABARD subsidy for the activity under component “Pollination support through
Beekeeping” of Mission for Integrated Development of Horticulture (MIDH) are as under:-
S.No. Item Cost Norms Pattern of Assistance*

1. Honey bee colony Rs. 2000/colony of 8 frames 40% of cost limited to 50
colonies / beneficiary
2. Bee hives Rs. 2000/ hive 40% of cost limited to 50
colonies / beneficiary
3. Equipment including honey
extractor (4 frame), food
grade container (30 kg), net,
including complete set of Bee
keeping equipment. Rs. 20000/ set 40% of cost limited to one
set per beneficiary
*The subsidy is to be sourced from State Designated Agency (SDA)
9. MINOR IRRIGATION (PSLB Cod 9/11 dt 1.4.11 & 11/15 dt 30.3.15)
Irrigation projects can broadly be classified into following 3 categories depending on Culturable
Command Area (CCA)-
• Major Irrigation Projects – Projects having CCA more than 10,000 hectare.
• Medium Irrigation Projects - Projects having CCA more than 2,000 to 10,000 hectare.
• Minor Irrigation Projects - Projects having CCA less than 2,000 hectare.
Purpose :- Purchase of pump sets, Deepening of wells/repairs to wells, borewell, shallow
tubewell, sprinkler sets/drip irrigation sets/solar pumps / wind mills/ lift irrigation / generator sets
for energisation of pumpsets, etc.
Eligibility: - A borrower intending to implement a minor irrigation project including sprinkler /
drip irrigation projects must have a holding of at least 1 acre of land. Group financing/community
projects also permissible.
Extent of Loan: - Loan is need based.
Insurance:-
• Insurance cover against the risk of theft and mechanical breakdown should be obtained
where loan amount exceeds Rs.10000/-.
• In case loan amount is less than Rs.10000/- insurance may not be insisted upon and instead
a letter of request from borrower requesting for waiver of insurance may be obtained in view
of cost of insurance involved.
Repayment Period:-
• Pump sets: 9 Years,
• Solar pump sets : 10yrs.,
• Deepening of wells /Persian wheels/Rahat: 5 years ,
• Linking of Water course /Field Channels : 9-15 years,
• Sprinkler/Drip Irrigation:10-15 years,
• On Farm Develop. (OFD) Under Command Area Development (CAD) :11-15 years,
Gestation period:
• Pumpset / Borewel /Sprinkle etc: 12 months,
• OFD : 24 months,
• Lift Irrigation :36 months,
• Others : Max.1 year
10. Trucks & other transport vehicle to farmers((Codi. PSLB 10/11 dt 26.4.2011 & Farm
Credit Cir. 10/14 dt 30.1.2014)_
Purpose:-
• Purchase of new truck/new motorized light/medium vehicles, like tempo,matador, jeeps,
pick up vans, mini trucks made by Standard manufacturing Concerns, etc.
• New two wheelers.
Eligibility:-
An Individual/Hindu Undivided Family or an association of persons (not being a company or a
cooperative society), engaged in farming or allied activities,
Minimum Land holding:-
• 3 acres or more (for purchase of truck) acres or more for light & medium vehicles.
• 1 acre or more for purchase of two wheelers.
Extent of Loan: - need-based.
Repayment:-
4 Wheelers:- up to 60 months( With Max.2 months gestation period), CH may permit up to 72
months,
2 Wheelers: - up to 5 years in 10 half yearly installments.
11. Financial assistance to agriculture Graduates for purchase of land & undertaking
agricultural activities/Agriclinic and Agribusiness Centres (PSLB Cod 30/14 dt 24.7.14 &
PSLB Farm Credit Cir. 69/15 dt 9.11.15)
Objective :- Providing dynamic extension service network for the farmers in transferring
technology from lab to land on one hand and creating the self-employment avenues for the
Agricultural Graduates on the other hand under Scheme for financing setting up of Agri-Clinics
and Agri-business Centre‟s. National Institute of Agricultural Extension Management
(MANAGE), Hyderabad is the prime institute for imparting training to Agricultural Graduates and
providing a fillip to implement the captioned Scheme (Website of MANAGE is
www.agriclinics.net).
Concept / Definition
• Agri-Clinics: Agri-Clinics are envisaged to provide expert advice and services to
farmers on various technologies including soil health, cropping practices, plant
protection, crop insurance, post harvest technology and clinical services for animals,
feed and fodder management, prices of various crops in the market etc. which would
enhance productivity of crops/animals and ensure increased income to farmers.
• Agri-Business Centres: Agri-Business Centres are commercial units of agriventures
established by trained agriculture professionals. Such ventures may include
maintenance and custom hiring of farm equipment, sale of inputs and other services in
agriculture and allied areas, including post harvest management and market linkages for
income generation and entrepreneurship development.
Purpose: - Purchase of land, Development of Land, Crop Loan. Loan for any allied
agricultural activity, Proposals for purchase of land alone will not be considered unless there
are satisfactory reasons for considering the same, Package of loan proposal for aforesaid
investment as well as working capital purposes should be considered.
Eligibility :- Unemployed graduates in Agriculture / Veterinary Science/ Agri.engineering /

Diploma in Agri.( Min 60% Mks) Or Intermediate in Agri.( Min. 55% marks) With belonging
to farming families, which have no land holding .
Nature of Facility: Working Capital, Investment Credit or Composite loan.
Margin Norms:
 Up to Rs 5 lakh : Nil
 Above Rs 5 Lakh : 25%
Security Norms:
• Upto Rs. 5 Lakh: Hypothecation of assets created out of bank loan.
• Above Rs.5 Lakh: as applicable on normal agriculture loans
Extent of Loans – Need based.
Repayment Period: - depend on the nature of activity and will vary between 5 to 10 years
(including a maximum grace period of 2 years).
Subsidy:-
 44% of project cost for women, SC/ST & all categories of candidates from NE and Hill
states
 36% of project cost for all others.
Project Cost Ceiling for subsidy:-
 Rs. 20 lakh for an individual project (Rs. 25 lakh in case of extremely successful
individual projects)
 Rs.100 lakh for a group project (at least five trained persons, out of which one could be
from Management background).
At least 10% value of the TFO of the project should be in capital form.
Time limit for completion of the project :- as envisaged under the project, subject to
maximum of 6 months period from the date of disbursement of the first installment ( may be
extended by a further period of 6 months, if reasons are considered justified )
If project is not completed within the stipulated period, benefit of subsidy shall not be available
and advance subsidy will be refunded forthwith to NABARD.
12. PNB DAIRY VIKAS CARD SCHEME
Purpose :- For Purchase of good quality high milk yielding cows/buffaloes or exotic cross bred
cows, construction of shed, working capital items like dairy feed, veterinary medicines, fodder,
dairy machinery or other equipments.
Eligibility: - Landless agricultural labourer or farmers /individuals having experience in
maintaining milch animals.
Margin: - Nil
Extent of Loan: Composite CC Limit: 1 lac- (Production credit 25% Investment Credit 75%)
Repayment: Investment credit repayable in 5 years with reducing composite CC Limit on yearly
basis (Drawing Power to be calculated on annual basis).
13. SCHEME FOR PURCHASE OF ANIMAL DRAWN VEHICLES, i.e. DRAFT

ANIMALS/CARTS
Purpose: - For purchase of draft animals/animal driven cart for transport of agriculture inputs
and produce. (Animals which are good quality, healthy and draft worthy animals within age
group of 2-6 years of age to be financed).
Eligibility: Farmers owning minimum 2 acres of land or having perpetual right of cultivation of
minimum 2 acres of land. No stipulation of land holding for landless labourer or if the case is
sponsored by DRDA.
Extent of Loan :- Need based.
Repayment:
 Bullocks-4 years,
 He Buffaloes & drawn carts(4-5 years)
 Camel-5 years
14. SCHEME FOR FINANCING AGAINST PLEDGE OF WAREHOUSE RECEIPTS ISSUED

BY COLLATERAL MANAGERS
Nature of Facility: Demand Loan / Cash Credit.

Extent of Laon: Rs. 50 Lakh (at present) to borrowers eligible under Agriculture Credit.
Maximum Rs. 50 crore to other category of borrowers under PS Credit.
Eligible Commodities: Any non perishable agricultural commodity which is not on the
restrictive list of state/ central Govt./Selective Credit Control of RBI.
Margin: 20% to 40%, on various commodities.
Rate of Interest: Base Rate + 1% (Minimum 11.50%)
Security:
Primary – Pledge of Warehouse Receipts (issued by Collateral Management Companies) duly
endorsed in Bank‟s favour.
Collateral Security: Waived on continual basis subject to periodic review of portfolio at
corporate level.
Repayment: Maximum 12 months
LIST OF APPROVED COLLATERAL MANAGERS:

 National Bulk Handling Corporation (NBHC)
 Star Agriwarehousing & Collateral Management Limited (SACML)
 National Collateral Management Services Limited (NCMSL)
 Shree Shubham Logistics Limited (SSLL) for Rajasthan and Maharashtra State only
 Maharastra State Warehousing Corporation (MSWC) for Maharastra State only
 Central Warehousing Corporation (CWC)
 Origo Commodities India Pvt. Ltd. (Origo)
 LTC Commercial Company Pvt. Ltd. (LTC)
 Edelweiss Agri Value Chain Ltd.
(For details – MSME/ Circular No.57/14 dated 01.08.2014)
15. DAIRY ENTERPRENEURSHIP DEVELOPMENT SCHEME (DEDS) (SUBSIDY LINKED)

(PSLB Codi. Farm Credit Cir. 15/15 dt 13.6.15)
Govt of India has approved it for implementation during the financial year 2015-16.
Objectives:
• For Setting up of modern dairy farms for production of clean milk
• Encourage heifer calf rearing thereby conserve good breeding stock
• To bring structural changes in the unorganized sector so that initial processing of milk
can be taken up at the village level itself.
• Upgradation of quality and traditional technology to handle milk on a commercial scale.
• Generate self employment and provide infrastructure mainly for unorganized sector.
Eligibility:-Farmers/Individual entrepreneurs/NGOs/companies/groups of unorganised and
organized sector etc. An individual will be eligible to avail assistance for all the components
under the scheme but only once for each component.
More than one member of a family can be assisted under the scheme provided they set up
separate units with separate infrastructure at different locations. The distance between the
boundaries of two such farms should be at least 500m.
Funding Pattern:
• Entrepreneur contribution (margin) – for loan beyond Rs. 1.00 Lac: - 10 % of the outlay
(minimum).
• Back ended capital subsidy: - 25% of Project cost for General category and 33.33% for
SC/ST farmers.
• Effective Bank Loan: - Balance portion.
Lock-in-period for subsidy: 3 Yrs.
KCC can be used for availing such loans.
Repayment Period:-
Will depend on the nature of activity and cash flow and will vary between 3 to 7 years. Grace
period may range from 3 to 6 months for dairy and up to 3 years for calf rearing
16. SCHEME FOR FINANCING MICRO-FINANCING INSTITUTIONS FOR ON- LENDING TO

INDIVIDUAL MEMBERS OR SHGS/JLGS
Eligibility: Societies registered under Societies Registration Act, 1860 Public Trust registered
under the Indian Trust Act1882 Nonprofit companies registered under Companies Act, 1956
Mutual Benefit MFIs like State Cooperative Societies profit oriented MFIs like NBFCs SHGs and
their promoting institutions.
Term Loan and WC: For new sanctions, the disbursement should be made in two-three stages
after end use verification and review at each stage.
Extent: 200 crore (max) (Margin 10%)
Repayment: 3-7 years
There should also be rating from recognized agency.
17. PRODUCE (MARKETING) LOAN SCHEME ( Codi. Farm Credit Cir. 21/2014 dated
25.4.2014)
Purpose: To meet short term credit requirement to adjust /repay the outstanding KCC limit
availed by farmers from the branch and to procure better price by storing farm produce and
selling it at favourable price within a specified period.
Eligibility: All the farmers irrespective of whether they were given crop loans for raising the
produce or not will be eligible for advances. Subvention scheme of govt of India also available.
Loan against hypothecation of produce stored at farmers own premises: - ONLY to OUR crop
loan borrowers.
Loan against pledge of Ware house Receipt issued by Godowns of:
 Central Ware Housing Corporations ( CWC)
 State Ware Housing Corporations ( SWC)
 Warehouses/ cold storages duly accredited by WDRA ( Ware housing Development and
Regulatory Authority )
Extent: 75% of Min. Support Price or Current Market Price whichever is lower with a Max upto
50 lacs.
Repayment: Produce (Marketing) Loan shall be repaid within a maximum period of twelve
months from the date of its disbursement
Interest Subvention scheme of Govt of India on Produce Marketing Loans:-
 Only to Marginal/ small farmers who availed KCC loans.
 WHRs issued by Warehouses registered with WDRA.
 ROI up to Rs. 3.00 Lac will be 7% for a period of 6 months and thereafter normal ROI.
18. PNB WOMEN EMPOWERMENT CAMPAIGN
Under the scheme following relaxations can be provided to women beneficiaries:

 Interest rate to be relaxed by 0.25% in Non-Priority Sector Advances and 0.50% in
Priority Sector advances
 Margin to be reduced to 10%, wherever the margin requirement is more than 10%
 Waiver of 50% upfront fee (wherever applicable)
The above relaxations will not be permissible in case of:
- Advances to women beneficiaries under Differential Rate of Interest Scheme as these
advances are already being extended at concessional rate of 4% p.a.
- Staff loans to women, i.e. concessional loans or any other loan for the female.
- UTI & other Mutual Funds, Govt. Securities, NSCs, KVPs, IVPs, Bank‟s own deposits,
FDRs of PNB Housing Finance Ltd./PNB Caps Ltd., Computer Loan and Housing Loan
etc. will not be eligible for the above relaxations.
Further only a single concession be made available as per option of the women beneficiary as
some other concessions under PNB Festival Season Bonanza, Weaker Sectors advances and
PNB Kalayani Card Scheme are also available. Simultaneous advantage of more than one
concession cannot be made available under any circumstances.
(For details Codified Farm Credit Circular No. 39/08 dated 26.06.2008)
19. SCHEME FOR FINANCING WOMEN JOINT LIABILITY GROUPS (JLGS) –
COLLATERAL FREE UPTO Rs. 10 LAKH
Eligibility: Women JLGs who operate as one borrowing unit.

Purpose:
(a) Dairy/ Poultry/ Goat & Sheep rearing/ Fishery/ Piggery
(b) Custom Hiring Units
(c) Crop Production
(d) Food and Agro Processing
Nature of Facility: Term Loan and/ or Working capital.
Rate of Interest:
Loans upto Rs. 20 lakh: BR+1%+TP
Loans above Rs. 20 lakh: 0.50% concession in the applicable rate of interest.
For KCC/ Short term crop loans interest to be charged as per Interest Subvention guidelines.
Margin & Security: As per relevant agricultural norms
20. FINANCING TO JOINT LIABILITY GROUPS (JLGs):
Objectives:-
 To augment flow of credit to farmers, especially small, marginal, tenant farmers, oral
lessess, share croppers/ individuals taking up farm activities.
 To serve as collateral substitute for loans to be provided to the target group.
 To build mutual trust and confidence between bank and the target group.
 To minimize the risks in the loan portfolio for the banks through group approach, cluster
approach, peer education and credit discipline.
 To provide food security to vulnerable section by enhanced agriculture production,
productivity and livelihood promotion through JLG mechanism.
General features of JLG:-
A Joint Liability Group (JLG) is an informal group comprising of 4-10 individuals coming together
for the purpose of availing bank loan on individual basis or through group mechanism against
mutual guarantee. Generally, the members of a JLG would engage in a similar type of
economic activity in the Agriculture and Allied Sector. The members would offer a joint
undertaking to the bank that enables them to avail loans. JLG members are expected to
provide support to each other in carrying out occupational and social activities.
Criteria for Membership:
i) Members should belong to similar socio-economic status, background and
environment carrying out farming and Allied activities and who agree to function as a
joint liability group. This way the groups would be homogeneous and organized by
likeminded farmers/ individuals and develop mutual trust and respect.
ii) The members should be residing in the same village/ area/ neighbourhood and
should know and trust each other well enough to take up joint liability for group/
individual loans.
iii) Members who have defaulted to any other formal financial Institution, in the past, are
debarred from the Group Membership.
iv) More than one person from the same family should not be included in the same JLG.
JLG Models:
Branches can finance JLGs by adopting any of two models:
Model A - Financing Individuals in the JLG
Model B – Financing the JLG as a Group.
Extent of Loan: Need based both under Model A & B.
Margin, Interest and Security Norms:
Margin, Rate of Interest and Security norms shall be as applicable to individual Agriculture
scheme under which finance is extended.
(For details – PSLB/ Farm Credit Cod. Cir. No.19/14 dated 09.04.2014, Cir. No.86/14 dated
19.11.2014 and Cir. No.89/14 dated 27.11.2014)
21. CAPITAL INVESTMENT SUBSIDY FOR CONSTRUCTION/ EXPANSION/

MODERNIZATION OF COLD STORAGES AND STORAGES FOR HORTICULTURE
PRODUCE
Purpose:
For Construction/ Expansion/ Modernisation of Cold Storages and Storages for Horticulture
Produce so as to minimise post-harvest losses being suffered by farmers particularly small and
marginal farmers.
Eligibility:
Unless otherwise specified, organizations/promoters, such as NGOs, Association of Growers,
Individuals, Partnership/Proprietary Firms, Companies, Corporations, Cooperatives, Agricultural
Produce Marketing Committees, Marketing Boards/ Committees, Municipal Corporations/
Committees, Agro-Industries Corporations, SAU‟s and other concerned R&D organizations are
eligible to get assistance under all the NHB schemes.
Extent of Loan: Need based
Margin: Min-25% and Max-54%
Subsidy:
I. The subsidy will be available @ 40% of the Capital cost of project in general areas and 55%
in case of Hilly & Scheduled Areas .
II. However, the subsidy will be available for maximum storage capacity of 5000 MT and the
rate will vary from Rs 1000/- to Rs 32000/- per MT depending upon the type of Storages.
III. Credit Components should be at-least 15% more than the admissible rate of subsidy.
IV. Only those projects shall be eligible which meet prescribed minimum technical standards
and the notified latest technical standards and protocol prescribed by the Ministry of
Agriculture for the purpose are followed by the beneficiary.
V. Release of the estimated (tentative) subsidy in the Subsidy Reserve Fund (to be maintained
by the bank) after release of at least 50% of term loan into the project bank loan account.
The provision of estimated (tentative) subsidy under this system shall be applicable to all the
projects under the scheme, irrespective of whether Letter of Intent (LOI) has been earlier
granted or not.
Repayment: Depend upon the cash flow, max. upto 9 years including a grace period of 2 years.
(For details - PS&LB Codified Farm Credit Circular 09/14 dated 27.01.14)
22. AGRICULTURE MARKETING INFRASTRUCTURE SCHEME (AMI)

The scheme has replaced the Rural Godown and Agriculture Marketing and Infrastructure
Scheme (AMIGS)
Purpose:
Development of marketing infrastructure such as common facilities in the market yards like
platforms for auction, loading unloading, drying, cleaning etc.
The ancillary/ supporting infrastructure like parking sheds, internal roads, garbage disposal,
boundary walls etc. are also permissible components. However, stand-alone ancillary/
supporting infrastructure projects will not be assisted.
(i) Functional infrastructure for collection/ assembling, drying, cleaning, grading, quality
certification, waxing, value addition facilities (without changing the product form) etc.
(ii) Infrastructure for direct marketing of agricultural commodities from producers to consumers/
processing units/ bulk buyers, etc.
(iii) Infrastructure for E-trading, market intelligence and market related extension.
(iv) Mobile infrastructure for post-harvest operations viz. grading, packing, quality testing etc.
including reefer vans, or any other refrigerated vans. However, transport vehicles such as
trucks, van etc. will not be permissible for assistance.
(v) Storage infrastructure like godowns including stand- alone silos for storage of food grains
with necessary ancillary facilities like loading, unloading, bagging facility etc., excluding
railway siding.
However, Assistance for renovation will be restricted to storage infrastructure
projects of cooperatives only.
Note: Stand alone cold storage projects are not admissible for subsidy under the
scheme. However, cold storage as a part of a permissible integrated value chain
project will be eligible.
Eligibility:
(i) Individuals, group of farmers/ growers, Registered Farmer Producer Organizations
(FPOs)
(ii) Partnership/ Proprietary firms, Companies, Corporations
(iii) NGOs, Self Help Groups (SHGs)
(iv) Cooperatives, Cooperative Marketing Federations;
(v) Autonomous Bodies of the Government, Local Bodies (excluding Municipal Corporations
for storage infrastructure projects), Panchayats;
(vi) State agencies including State Government Departments and autonomous organization /
State owned corporations such as Agricultural Produce Market Committees & marketing
Boards, State Warehousing Corporations, State Civil Supplies Corporations etc.

Margin: 20%SUBSIDY: The subsidy available under the scheme is as under:
For Storage Infrastructure Projects:
a) 33.33% of the capital cost of the project. In case of projects located in North – Eastern
States, Sikkim, UTs of Andaman & Nicobar and Lakhsdweep Islans and hilly areas,
maximum ceiling on subsidy will be Rs. 4.00 crore.
b) In case of Registered FPOs, Panchayats, Women, SC/ST beneficiaries and their self help
groups / co-operatives and SC/ST entrepreneurs & their self-help groups/ Co-operatives (in
areas other than (a) above), 33.33% of capital cost of project subject to maximum ceiling of
Rs.3 crore.
c) 25% of the capital cost of the project to all other categories of beneficiaries, subject to a
maximum ceiling on subsidy of Rs. 2.25 crore.
For Infrastructure Projects Other than Storage Infrastructure:
a) 33.33% of the capital cost of the project. In case of projects located in North – Eastern
States, Sikkim, UTs of Andaman & Nicobar and Lakhsdweep Islans and hilly areas,
maximum ceiling on subsidy will be Rs. 5.00 crore.
b) In case of Registered FPOs, Panchayats, Women, SC/ST beneficiaries and their self help
groups / co-operatives and SC/ST entrepreneurs & their self-help groups/ Co-operatives (in
areas other than (a) above), 33.33% of capital cost of project subject to maximum ceiling of
Rs.5 crore.
c) 25% of the capital cost of the project to all other categories of beneficiaries, subject to a
maximum ceiling on subsidy of Rs. 4 crore.
Repayment: Min. 5 years and Max.11 years (including gestation period of 1-2 years)
(For details – PSLB Codified Farm Credit Circular No. 27/2014 dated 11.07.2014)
23. PNB SONA KRISHI RIN YOJANA (PNB GOLD AGRI- LOAN SCHEME)
To enable farmers to quickly meet their short-term agricultural credit needs and investment
needs.
Eligibility:-
Any person engaged in agriculture or allied activities as well as persons engaged in activities
permitted by GOI / RBI to be classified under agriculture. Loan will be given based on
declaration. Additionally, proof, of pursuing the activity to be given for loans above Rs. 1 lakh.
Nature of Loan:
a. Short term Production Credit
The same may be granted as a Cash Credit / Overdraft or single transaction-Demand Loan with
one year tenor Where the KCC facility has been allowed, the guidelines applicable for KCC
Scheme are to be followed.
b. Term loan-Upto 36-60 months depending on the purpose.
Margin: CC/Short Term Loan - 5%, Term Loan - 20%
(Note: This margin will be on the rates advised by RAD from time to time. However, the account
may be reviewed annually to ensure availability of sufficient margin as stipulated above.
Repayment of Loan:
Cash Credit / Overdraft: An operative limit/ cash credit account for a period of 5 years (on the
lines of revised KCC Scheme) subject to annual review.
Demand Loan - Repayment should be fixed based on the income generation coinciding with
harvest and the marketing time, total period not exceeding 18 months.
Term Loan: The repayment period of the loan should be fixed in line with the Term loan
purpose but not exceeding 5 years, coinciding with the harvesting and marketing season /
generation of income from the activity.
(For details – PSLB / Farm Credit Circular No.59/12 dated 09.11.2012)
24. CONTRACT FARMING
The main features of contract farming are that selected agriculture produce is produced by
farmer under a buy back arrangement with buyer engaged in processing or trading. The
advantages of contract farming could accrue in several ways. It envisages that the farmer enters
into a forward contract with the Processor/Exporter/Trader to supply the produce at a pre-
determined price, quantity and quality and the buyer also provides necessary inputs and
technology to the farmers/producers so as to ensure a steady supply of quality produce for
processing/exporting/trading
- Individual farmer/producer eligible.
Security:
 Primary – Hypo. of crops/ assets
 Collateral:
• For loans upto Rs. 3 lakh – NIL
• For loans above Rs. 3 lakh – As per prevalent guidelines
Note- In case of tie-up where recovery is ensured, no collateral required upto Rs. 3 lakh (as per
RBI guidelines
 Margin: For loans Upto Rs. 1.00 lakh- Nil.
 For loans above Rs. 1.00 lakh to 5 Lakhs -10%
 For loans above Rs. 5.00 Lakhs -15%
Scale of Finance:- As recommended by Buyer and approved by the technical committee at CO
level.
-Disbursement: Directly to farmer/ input supplier.
25. SCHEME FOR FINANCING GREEN HOUSES/ POLY HOUSES
Purpose: Financial assistance can be given for:-

• Construction of Green House/ Poly House;
• Purchase of Equipments/ Machinery ;
• Purchase of inputs and other expenses ;
• Requirement of Post Harvest operations and marketing
Eligibility:
• The applicant should own required agricultural land and the site should be well
connected with market.
• Loan assistance may be extended to only those progressive farmers who are already
following modern agricultural technologies.
• Should have some experience/training in green house.
Extent of Loan: Need-based
Repayment:
Repayment of term loan may be 5-7 years depending upon the quantum of loan.
For short term production credit the repayment may be 12/18 months as per KCC scheme
whichever is applicable.
26. SCHEME FOR FINANCING AGRI-BUSINESS PROJECTS WITH VENTURE CAPITAL

ASSISTANCE FROM SMALL FARMERS' AGRI-BUSINESS CONSORTIUM (SFAC)
Purpose:
To provide Venture Capital Assistance to agri-business projects and to set up a Project
Development Facility to assist producer groups/ organizations in formulation of economically
viable agri-business projects.
Eligibility:
SFAC will provide Venture Capital Assistance for qualifying projects of individuals/ producer
groups / organizations which meet the following criteria: -
 Projects are dependent upon agricultural or allied produce,
 Projects provide direct access to producers as assured market,
 Projects encourage farmers to diversify into high value crops aimed to increase farm
incomes,
 The Bank has accepted the project for grant of term loans after satisfactory techno-
commercial feasibility.
Extent of Loan: Need based.
Margin Norms: As applicable to individual scheme under which finance is extended.
Eligible Cost of the Project:
Min Rs.15.00 lakh (Rs. 10.00 lakh for Hilly and North- Eastern states and backward districts)
and Maximum upto Rs.5 crore.
In special cases project cost may go upto Rs.10 crores.
Projects recommended by State SFACs can be considered for higher assistance under the
Project Development Facility (PDF).
Extent of Venture Capital Assistance :-
(i) 26% of promoter‟s equity or
(i) Rs 50 Lakh, whichever is lower.
In North- Eastern Region, Hilly States (Uttarakhand, Himachal Pradesh, Jammu & Kashmir) and
in all cases in any part of the country where the project is promoted by a registered Farmer
Producers Organization, the quantum of venture capital will be the lowest of the following:
(i) 40% of the promoter‟s equity
(ii) Rs. 50.00 lakh
Repayment: Repayment of loan shall synchronize with the income generation from the
qualifying projects. Normally, repayment period will be as prescribed under the respective
scheme.
(For details – PSLB Codified Farm Credit Circular No. 15/14 dated 29.03.2014 and Farm Credit
Cir. No. 36/14 dated 30.04.2014)
27. FINANCING DEVELOPMENT OF HORTICULTURE (FRUIT/FLOWER/ VEGETABLE) &

PLANTATION CROP
Purpose:Establishment & development of new orchards or grove of fruit crops, plantation

crops, spices crops, ornamental crops, medicinal plants, essential oils/ aromatic plants etc.,
 Rejuvenation of existing orchards or plantation ( to be sanctioned by Circle Heads)
 Raising vegetables, raising flower crops,
 Intercropping in horticulture crops,
 Marketing Loan (to meet picking, grading, crating forwarding or transportation costs).
 Construction of Green House & Purchase of equipments for Green House.
Eligibility:
 Individual farmer or group of farmers having aptitude/ adequate experience together with
stipulated land holding (either as owner or tenant /lessee on long term basis (at least
three years more than economic life of projects )
 Public Sector Undertakings or private firms desirous of seeking financial assistance for
plantation of fruit trees or other economic plants on project basis.
Extent of Loan : Need Based
Working capital loan would depend upon scale of finance
Marketing Loan: Not to exceed 20% of estimated value of crops.
Repayment:
(i) 4-15 years (inclusive of gestation period)
Economic life, gestation period and repayment period for various horticulture crops and
plantation crops is given in appendix I of codified Cir.02/13 dated 1.2.13).
(For details – PSLB Farm Credit Circular No. 2/13 dated 01.02.2013)
28. SCHEME FOR FINANCING MUSHROOM CULTIVATION
Purpose:
 Finance is considered for growing popular variety of mushroom (White Button, Oyster &
Paddy Straw);
 To construct buildings, packing and broiler room, AC room, water tank, platform and set
up broiler/ insulation blowers, steel racks, water supply line etc.
Working capital (initially for one crop only) may also be considered towards raw material (straw
chicken manure, chemicals, seeds etc.) labour and diesel etc.
Eligibility:
Individuals as well as for large sized units possessing adequate experience of mushroom
cultivation.
Repayment:
Maximum 7 years, including gestation period of 6 months
(For details - Codified Farm Credit Circular No. 3/13 dated 02.02.2013)
29. SCHEME FOR FINANCING MUSHROOM SPAWN PRODUCTION
Purpose:
Financial assistance for spawn production is considered for the purpose of recurring
expenditure as well as investment costs as an integral loan.
Eligibility:
Individuals as well as large sized units possessing qualification in plant pathology or having
proper background and training for spawn production.
Repayment: 7 years ( including gestation period of one year)
30.SCHEME FOR FINANCING TO FARMERS/PRODUCERS UNDER CONTRACT FARMING

ARRANGEMENT
Purpose: To meet credit requirements of the individual farmer/producer identified for production
of specified crops/ commodities by way of Working Capital and /or Term Loan as per the
requirement.
Target Group: Individual farmer/producer willing to produce specified crops/commodities as
mentioned in the forward agreement between the Buyer & the Farmer.
Eligibility: Eligibility criteria shall be as per Bank‟s guidelines (Scheme wise).
Nature of Facility: Term Loan and /or Working Capital.
Extent of Loan: Need based, subject to fulfillment of eligibility criteria of the borrower as per
extant Bank guidelines.
Margin (Other than KCC/Crop Loan): Norms for margin have been relaxed as under:
For loans upto Rs. 1.00 lakh NIL
For loans above Rs. 1.00 lakh upto Rs. 5 lakh 10%
For loans above Rs. 5 lakh 15%
Security:
Primary: Hypothecation of crop/ assets created out of bank loan.
Collateral:
For loans upto Rs. 3.00 lakh NIL
For loans above Rs. 3.00 lakh As per prevalent guidelines
Repayment: As per extant guidelines pertaining to the particular scheme.

(For details – PSLB/Farm Credit Circular No. 84/2014 Dated 17.11.2014)
31. SCHEME FOR FINANCING TO FARMER PRODUCER COMPANIES (FPCs)
Purpose:
To meet the Financial needs of the Farmer Producer Companies (FPCs) by way of Working
Capital and/ or Term Loan as per the requirement.
Target Group:
FPCs registered with Registrar of Companies and engaged in agriculture and allied activity.
Eligibility: FPCs fulfilling following criteria will be eligible for Credit Guarantee coverage
from SFAC for Loan up to Rs. 1 Crore without any Collateral Security / Third Party
guarantee:
1. It is a duly registered FPC as per section IXA of the Indian Companies Act.
2. It has raised equity from its Members as laid down in its Articles of Association/Bye Laws.
3. The number of its individual shareholders shall not be lower than 500.
4. Minimum 33% of its shareholders are small, marginal and landless tenant farmers.
5. Maximum shareholding by any one member other than an Institutional member is not more
than 5% of total equity of the FPC.
6. It has a duly elected/nominated Board with a minimum of five members and having
adequate representation from farmers and minimum one woman member.
7. It has a duly elected management Committee.
8. It has a business plan and budget for 18 months
Nature of Facility: Term Loan and /or Working Capital

Extent of Loan: Need Based.
Fee Payable to SFAC:
1. Guarantee Fees*: Onetime Guarantee Fee calculated @0.85% of the sanctioned Credit
Facility, subject to a maximum of Rs. 85,000/- (Rs. Eighty Five Thousand only).
2. Annual Service Fee*: In addition to one time Guarantee Fee, an Annual Service Fee of
0.25% of sanctioned limit per annum is to be paid
*To be borne by FPCs.
32. SCHEME FOR FINANCING TO REGISTERED FARMER PRODUCER ORGANISATIONS

(FPOs)
Purpose: To meet the Financial needs of the Farmers Producers Organizations by way of
Working Capital or Term Loan as per the requirement.
Target Group: FPOs registered under any Statute of Law.
Nature of Facility: Term Loan and /or Working Capital.
Extent of Loan: Need Based
33. SCHEME FOR FINANCING AGRICULTURE ACTIVITIES ON UNREGISTERED LEASED
/ RENTED LAND
Objective: To provide credit support to farmers who practice Agriculture on unregistered leased
land/ rented land.
Purpose: Loan may be given for Agriculture/ Allied Agriculture activities being carried out on
unregistered leased land/ rented land.
Eligibility: All individuals/ SHGs/ JLGs.
Nature of Facility: Loan may be given in the form of Working Capital.
Extent of Loan: Need Based. However, the loan amount should be above Rs. 1.00 lakh.
Note: For SHGs/ JLGs the loan amount should be above Rs. 1.00 lakh per member.
Security:
(A) Primary Security:
(i) Hypothecation of crops/ assets created out of bank loan
(B) Collateral Security:
(i) Immovable Property valued at 150% of amount of loan
OR
(ii) Charge/lien over liquid securities such as term deposits/NSC/KVP, etc.
valued at 100% of amount of loan.
Note: A combination of B (i) & B (ii) may be considered for collateral security.
The Safeguards to be observed:

Besides obtaining an affidavit from the borrower, the branch must ensure as under:
1. Land taken on lease/ rent is not already mortgaged in favour of any other branch/bank.
2. Local enquiry is made to ascertain the fact that the land has actually been taken on
lease/ rent for Agriculture/ Allied Agriculture activities by the borrower and a record to this effect
duly signed by the Officer and Incumbent is kept with the appraisal note.
3. A copy of the land records and sajra (map) in respect of land being utilized by the
borrower on lease/ rent basis for the purpose of agriculture/ allied agriculture activity must be
held on record.
4. Affidavit/ undertaking from the lessor/ landlord that he has not taken and will not take any
loan on the leased/ rented land in future until the expiry of lease/ rent period.
5. It should be ensured that no double financing takes place.
6. NEC of leased/ rented land to be obtained at the time of sanction.
7. The facility to be reviewed/ renewed annually and DP is also to be allowed provided the
lease deed/ rent agreement executed is in force.
8. Fresh copy of land records to be obtained at the time review/ renewal of facility.
9. Provision of State Laws to be adhered to while financing under the scheme.
10. Lease Deed/ Rent Agreement to be stamped as per State Stamp Act.
It is to be ensured that Lease Deed/ Rent Agreement is for a period of 11 months and it
contains clause related to extension of lease/ rent for a further period of at least two
terms of 11 months each at the request of the lessee/ tenant and if he/she fails to submit
request, he/ she is deemed to have exercised option of extending the same.
34. PNB DUGDH VIKAS YOJANA
Purpose:
i. Financing for purchase of good quality milch cattle, working capital, construction of
shed etc.
ii. Financing for setting up of milk collection centres.
Target Group:
i. The scheme is targeted at those small producers who are linked with milk societies/
co-operatives or private sector companies and supplying their surplus milk to them at
village level.
ii. The scheme also aims at facilitating opening of milk collection centres at village
level.
Eligibility:
(i) For purchase of cattle:
(a) Individuals, SHGs, JLGS.
(b) The milk producer should be a member of village level milk society of Co-
operative Milk Union or private dairy company.
(ii) For setting up of milk collection centre:
(a) Individuals/ SHGs/ JLGs/ / Milk Societies
Nature of Facility: Term Loan and/or Working Capital
Extent of Loan:
(i) For purchase of cattle, working capital, construction of shed etc.: Need based.
(ii) For collection centre: Need based.
Margin: As per extant bank guidelines
Security: As per extant bank guidelines.
(For details – PSLB/Farm Credit Circular No. 85/2014 Dated 17.11.2014 and 03/2015 dated
03.01.2015)
35. POULTRY FARMING
Purpose :
Investment Credit for construction of sheds and purchase of equipment and production credit for
purchase of day old chicks, feed, medicines etc.
Eligibility :
For subsidiary activity:
Small farmer, landless Agri. labourer or other person who is under employed and intends to
supplement his income and having required land / shed to establish poultry farms.
For main activity:
Well experienced in running poultry unit on commercial basis as main vocation & having
required land/shed to establish poultry farm
Minimum 500 birds for subsidiary activity. Size for main activity as per techno-economic
appraisal of the project
Requirement for investment and production credit will be considered as a package).
Repayment:
Production Credit: Maximum 18/12 months with a gestation period of 6/3 months in case of
layers & broilers respectively.
Investment Credit: 6-7 years (with gestation period of 12 months for layers & up to 3 months for
broilers).
Insurance:
Under following conditions insurance of birds can be waived:
(i) Waiver of insurance of birds to be allowed by the Circle Head on case to case basis after
satisfying himself / herself of the risk bearing ability and repaying capacity of the applicant
entrepreneurs.
(ii) Collateral Security (realisable value) of minimum of 100 per cent of the loan amount
to be obtained.
(iii) Units having regular veterinary back-up only to be allowed for waiver of insurance of birds,
whereas other fixed assets like building, feeding material and other connected assets, etc,
shall be insured as per extant Bank guidelines.
(For details - PSLB Codified Farm Credit Circular No.22/14 dated 30.04.2014)
36. FISHERY DEVELOPMENT
Purpose:
Development of Inland & Brackish Water Fisheries for:-
 Construction /renovation of ponds /tanks
 Construction of sluices.
 Purchase of fish, Prawn, fry & fingerlings/fish seed/ prawn seed etc.
 Purchase of inputs like oil cake fertilizer, organic fertilizer & other feed material up to first
harvest.
 Purchase of nets,boxes, baskets, ropes, shovels, hooks/ other accessories
 In case of reservoir or lake fisheries, purchase of country made boats may be
considered.
Marine Fisheries:
For purchase of mechanized /non-mechanised boats/deep sea fishing vessels /trawlers
Purchase of nets, deck equipment, marine engine & Working capital.
Eligibility:
Development of inland & brackish water fisheries for;-
 Individual farmers/ groups and cooperative society/ company or association of persons
having adequate knowhow, experience/ training in the activity and infrastructural facilities.
 Owner(s) of the pond or land or have lease hold rights till completion of the project.
 Having fishing rights in the case of lake/ reservoir.
 Report on quality of water should be submitted by borrower along with the application for
agriculture credit
For Marine Fisheries:

 Individuals/ partnership firms/ Limited companies who are technically qualified & are having
adequate experience to undertake such ventures.
 In case of Deep Sea fishing vessels, necessary permission from Govt. authorities is required
for operating in the maritime zone.
If necessary, in Inland fisheries projects may be got verified from Fish farmer Development
Agency (FFDA), State Fishery Department /NABARD consultancy services limited.
Repayment:
Pond fish culture:- 5-8 years (Including gestation period of 12 months with yearly mode of
repayment)
Brackish water fish/prawn culture : 5-10 years including gestation period of 12 months with
half-yearly mode of repayment.
If sponsored by FFDA: 9 years (with 2 years repayment holiday) in pond culture.
Non-Mechanised Boats/vessels: 6-7 years with 4 months‟ grace period each year.
Mechanised Boats: 8-12 years, with 4 months‟ grace period each year.
37. SCHEME FOR SHEEP AND GOAT BREEDING/REARING
Purpose:
For purchase of sheep/goats of recognised breed for the purpose of breeding and/or rearing
them for wool, meat and milk production, equipments / tools, feed, construction of sheds.
Eligibility:
Small & marginal farmers / agricultural labourers desirous of undertaking sheep/ goat breeding
/rearing as subsidiary activity or trained persons desirous of taking up the venture on
commercial lines.
Extent of Loan:
Need based.
Unit size 1:20 (male: female in case of sheep) & 1:4 (male: female in case of goats)
Repayment:
Medium term Loans:
5 to 6 years (including gestation period of 12 months)
38. SCHEME FOR PIGGERY DEVELOPMENT

Purpose:
For breeding as well as rearing of pigs including cost of exotic breed of boars and sows of
improved breeds, weaned piglet( 1-2 months old), feed & medicine, equipments, construction of
house, fencing, electricity, etc.
Healthy pigs in the age group of 1.5 to 2 years to be financed.
Eligibility:
 Farmers & agricultural labourers and other entrepreneurs for setting up units as
subsidiary/main activities.
 State animal husbandry deptt. may be consulted about quality of pigs and size of the Unit.
Extent of Loan:
 Need based & according to the unit cost approved by state unit cost committee.
 Usual unit size comprises 1 boar and 3 sows.
 Purchase of feed and medicine for a period not exceeding 9 months
Repayment:
For Production Credit:- Maximum period of one and half years.
For Investment Credit: 5 to 6 years (including gestation period of one year)
39. SCHEME FOR APICULTURE (BEE- KEEPING)
Purpose:
For construction of honey houses, purchase of colonies, equipments such as boxes, honey
extractors, smokers and bee veil, foundation sheets, gloves, sugar, etc.
Eligibility:
Small/marginal farmers/agricultural labourer individual/ association of persons/ companies who
possess adequate experience in bee keeping (minimum unit of 10 bee hives).
Extent of Loan:
 Need based as per the unit cost approved by the KVIC, NABARD or state govt.
 Extent of finance would depend on the size of the unit, number of bee colonies, cost of
equipments and comb foundation sheets etc.
Repayment:
5 years (including gestation period of 12 months)
40. SCHEME FOR FINANCING SERICULTURE ( PSLB/ FARM Credit Cir. No. 17/2014 dated
08.04.2014 )
Sericulture, i.e, silk production, is an allied agriculture activity undertaken by farmers in various
parts of the country. Sericulture is both an art and science of raising silk worms for silk
production.
Purpose :-
(i) Cultivation of mulberry.
(ii) Rearing of silkworm.
(iii) Non-farm activities related to sericulture
Eligibility: - individual farmers, SHGs, firms, companies engaged in sericulture activity.
Nature of Loan: - Term loan, Cash Credit limit and Composite loan.
Extent of Loan: - Need based loan.
Margin, Security, Documentation, Loaning Powers etc: - as applicable on agriculture loans.
Disbursement: - Cash Credit (up to Rs 20 Lac): in cash, and Term loan by making payment to
the suppliers
Repayment: - 4 to 9 years (including Gestation Period of 12 months) based on activity
financed.
In CBS:-
• Scheme code : TLAOT
• Sector code : PPRIOR
• Sub-sector code : DIRCT
• Purpose code : SRCLT
41. SCHEME FOR PROVIDING RELIEF AND REHABILITATION ASSISTANCE TO PEOPLE

IN AREAS AFFECTED BY NATURAL CALAMITIES(PSLB Farm Credit 19/15 dt 8.7.2015)
Declaration of Natural Calamity: - It is in the domain of the Sovereign (Central/State

Governments). The inputs received from the State Governments reveal that there are no
uniform procedures being followed for declaration of natural calamity and issue of
declarations/certificates. These declarations/certificates are called by different names such as
Annewari, Paisewari, Girdawari, etc. in different States. Nevertheless, the common thread to
extend relief measures is that the crop loss assessed should be 50% or more. For assessing
this loss, while some States are conducting crop cutting experiments to determine the loss in
crop yield, some others are relying on the eye estimates/visual impressions.
DCCs/SLBC have to satisfy themselves fully that the crop loss has been 50% or more before
acting on these pronouncements.
Fresh Assistance: - Timely fresh financial assistance to resume productive activities may be
provided not only to the existing borrowers, but also to other eligible borrowers. Notwithstanding
the status of the existing account, fresh loans granted to the borrowers will be treated as current
dues.
Restructuring of existing short-term loans:-
 All short-term loans, except those which are overdue at the time of occurrence of natural
calamity, should be eligible for restructuring.
 The principal amount of the short term loan as well as interest due for repayment in the
year of occurrence of natural calamity may be converted into term loan.
 Conversion of loan by Incumbent Incharge of Branches: repayment may be 3 to 5
years.
 Conversion of loan by Circle Head: period of repayment ranging up to 7 years.
 In extreme cases of hardship, the repayment period may be prolonged up to a
maximum period of 10 years in consultation with the Task Force/ SLBC.
 Moratorium period of at least one year should be considered.
 Bank branches should not insist for additional collateral security for such restructured
loans.
Agriculture Loans - Long term (Investment) Credit:- Existing term loan installments will have
to be rescheduled keeping in view the repaying capacity of the borrowers and the nature of
natural calamity
(a) Where only crop for that year is damaged and productive assets are not damaged :-
reschedule the payment of installment during the year of natural calamity and extend the loan
period by one year
(b) Natural Calamities where the productive assets are partially or totally damaged and
borrowers are in need of a new loan:- rescheduling by way of extension of loan period may
be determined on the basis of overall repaying capacity of the borrower vis-a-vis his total liability
(old term loan, restructured crop loan, if any and the fresh crop/term loan being given) less the
subsidies received from the Government agencies, compensation available under the insurance
schemes, etc.
While the total repayment period for the restructured/fresh term loan will differ on case-
to-case basis, generally it should not exceed a period of 10 years.
Asset Classification:-
The restructured portion be treated as current dues and need not be classified as NPA.
The asset classification of the remaining amount due, which has not been restructured will
continue to be governed by the original terms and conditions.
Additional finance, if any, may be treated as “standard asset” and its future asset classification
will be governed by the terms and conditions of its sanction.
Provisions for such restructured advances are to be made as prescribed by Recovery Division
from time to time.
Guidelines to provide relief to persons affected by natural calamities will be applicable in case of
riots/ disturbance affected people also as per RBI/ Head Office advice.
42. SCHEME ON ORGANIC FARMING
What is Organic Farming:-
It is a method of farming system which avoids or largely excludes the use of synthetic inputs
(such as fertilizers, pesticides, hormones etc.) and aims at cultivating the land and raising crops
in such a way, so as to keep the soil alive and in good health by use of organic wastes (crop,
animal and farm wastes, aquatic wastes) and other biological materials along with beneficial
microbes (bio-fertilizers) to release nutrients to crops for increased sustainable production in an
eco friendly pollution free environment.
Purpose of loan:-
(i)Purchase of inputs like seeds, bio- fertilizers, bio-pesticides, vermi-compost, Farm Yard
Manure (FYM) etc.
(ii) Land Development
(iii) Small farming equipments
(iv) To help farmer for conversion from conventional farming to organic farming.
(v) Investment credit to develop a farm design and management under Organic Farming for an
initial period of 5 years.
Eligibility: - All individuals/ SHGs/ JLGs having sufficient land to produce crops/ vegetables.
Vacant land in/around residential houses with right to use such land may also be used for the
purpose.
Nature of Assistance: - Cash Credit (in form of KCC) and/or Term Loan.
Extent of Loan: Need Based Cash Credit –Max. Rs. 50 lakh as per KCC guidelines.
43. „PNB LADLI‟ SCHEME FOR POPULARISATION OF EDUCATION AMONG GIRLS OF

RURAL/SEMI URBAN INDIA (Cir. 20/17 dt 17.4.2017)
1.girl students may be selected in any village. The selection shall be done by Circle Offices/LDM
Offices. Criteria of selection shall be need based.
2. The bank officials will contact Government Schools/Colleges for adoption of needy girl students and
after selection, provide help to the students in the form of school fees, books, stationery, uniform
and any other item helpful in pursuing the studies, amongst those studying in 6th to Matric (10th
class). The new needy girl students shall be selected in addition to already selected girls.
3. Identification of the 10 needy girl students from a single village, who are willing to continue studies till at
least 12th class.
4. Selection of students will be finalised by a Committee comprising of an official from Circle Office, LDM,
and Principal of the School where school is situated.
5. The adopted girl students shall be provided study material like books, notebooks, uniform etc. relevant
to their course and payment of school fees if considered essential. The value of such study material
and fees will not exceed Rs. 2500/- per student. All the material so provided will bear a PNB STICKER.
This will be a continuous process and every year the selected girl students shall be provided this
help.
6. Saving Fund accounts of all the girl students adopted under PNB LADLI Scheme will be opened and
Rs. 600/- on Half Yearly basis (Rs. 100/- PM) will be deposited to meet their out of pocket expenses. The
amount will be credited in their SF accounts in April and October every year.
7. Circle Offices are to ensure that this CASH-INCENTIVE is credited to accounts of only those girls who
are willing to continue their studies.
8. All the girl students already selected under PNB LADLI are eligible to receive the cash incentive. The
cash incentive will continue to be paid till the selected girl students complete 12th class.
9. The field functionaries are advised to popularize the Scheme among the needy girl students and
promote education for bringing our women empowerment in the society at large.
44. Scholarship Scheme „PNB KISAN BALAK SHIKSHA PROTSAHAN YOJANA‟

(CIRCULAR NO.18/2017 dt 17.04.17)
Objectives: - To provide financial assistance to the son and daughter students of the poor farmers
encompassing those small farmers, marginal farmers, tenant farmers, oral lessees and agriculture labour
who have availed agriculture loan from our branches. The students having passed 8th class and
onwards with minimum 50% marks in the School/Board or recognized University Examination during the
relevant academic year shall be eligible under the Scheme.
Eligibility :- (I) The agriculture borrowers comprising of small farmers, marginal farmers, tenant farmers,
oral lessees and agriculture labour are eligible to claim incentive for maximum of two children if both
are girl child or if the second child is girl provided their loan account is running regular.
(ii) A child having got financial assistance once under any other scheme of the Bank shall be eligible for
subsequent assistance as well.
(iii) Students of Government and Government aided/ Private Schools/Colleges/Universities shall be
eligible.
(iv) In the eventuality of receiving more than 100 applications, the top 100 students will be selected for
scholarship on the basis of marks secured in the respective examination.
Amount of Financial Assistance (Lump sum):- Lump sum financial assistance of Rs. 2500/- per child
shall be payable once a year. However, Girl students shall get an additional annual assistance of Rs.
1,000/- under each of the above category. The amount of financial assistance shall be credited to
SF account of the beneficiary..
45.PNB SAKHI – INCENTIVE SCHEME FOR FACILITATING SHG BANK LINKAGE

(PSLB/WS/SHG/5/16 dt 6.1.16)
Objective: - to strengthen Bank SHG linkage and increase Bank‟s outreach in rural areas.
Eligibility: PNB Sakhi must be from the service area of the Bank, who has been a member of
an SHG. PNB Sakhi will be a suitable woman member of any group of SHG who can easily
communicate with Bankers as well as SHG members.
- Minimum education of 8th/ 10th pass with basic reading, writing and numeracy
skills;
- Absence of any criminal record.
- Understands basic banking procedures and familiar with opening of SHG bank
account, credit and debit transactions of SHGs and SHG credit linkage
Protocols;
- Possess good communication skills;
- Ability to undertake frequent travel to the Bank branches and other villages;
- Skills of articulation and persuasion;
Responsibilities of a PNB Sakhi:

Training:
 Encourage the rural poor to organize into self help groups and their saving linkage with
the Bank.
 Undertake awareness among SHGs on credit linkage, terms and conditions of loans,
including interest rate and repayment schedule as well as interest subvention and the
conditions of eligibility for the interest subsidy.
 Educate the group members on bank procedures, different schemes available with the
Bank etc.
 PNB sakhi should help the SHG members in conducting regular meetings and should
guide them about proper bookkeeping.
Incentive:
• For formation and credit linkage of SHGs: Rs. 1000/- per SHG formed and credit linked
with the Bank (in stages i.e 300/-, 300/- & 400/-).
• Apart from above the PNB Sakhi will also be provided honorarium of Rs. 1500 per month
which will be in addition to honorarium given under NRLM, if any.
• Honorarium for First 3 months to all PNB Sakhis thereafter linked to number of SHGs
formed and/ or linked.
46. SCHEME FOR FORESTRY DEVELOPMENT
Purpose:
 Development of nurseries, Plantation and raising of forestry trees including cost of
development of land, plantation/ digging of pits/raising bunds, creation of irrigation facilities,
purchase of farm equipments, fertilizers, pesticides, seedlings, labour charges, etc.
 Loan for inter cropping
Eligibility:Farmers/SHG/JLG/ Companies/State Undertakings having ownership or lease
hold/perpetual tenancy right over the land. The land proposed for raising forest plantation
should be marginally degraded/ waste lands.
Repayment:
Forest plantation: Loan for scheme where trees are grown should be repaid with in maximum
period of 15 years including grace period of maximum 6 years.
Nursery: Short term loan as per KCC Scheme.
47. SCHEME FOR FINANCING DEVELOPMENT OF WASTELAND
Purpose:
 Reclamation of soil, soil conservation, conditioning of land, raising of forest trees/ pastures
in existing wasteland or reclaimed land, creation of irrigation potential, schematic
afforestation of waste land
 Financing to tree patta holders under Tree patta scheme,
 Loan for development of non-forest wasteland under the investment promotion scheme,
 Setting up of nurseries, etc.
Eligibility:
 Individual farmers having land holding (either as owners or on the basis of long term
tenancy /lease hold rights), which are degraded due to soil salinity, alkalinity, water erosion
etc.
 Panchayats/other bodies having such community land.
Deptt. Of wasteland development provides subsidy ranging from 25% to 50% for on-farm
activities.
Project report for reclamation/conservation of soil to be verified by soil conservation Officer
/Agricultural University/Krishi Vigyan Kendra/ Agriculture deptt. /forest department.Margin
Money Assistance Scheme: National Wasteland development Board provides margin money up
to 25% of project cost to eligible organisations for bankable projects.
Repayment: 5- 15 years.
(Gestation period may be up to 36 months)
(For details - Codified Farm Credit Circular No. 7/07 dated 01.01.2007, PSLB/ CODIFIED
FARM CREDIT CIRCULAR NO. 01/2017 dated 03.01.2017 PSLB Farm Credit Circular No.
40/2016 dated 30.05.2016 )
48. BIO-GAS DEVELOPMENT
Purpose:
 For construction of biogas plant with sanitary latrines in rural areas.
 Biogas plants of 1 cubic meter capacity can be operated with dung collected from one or two
adult cattle heads and attachment of a latrine complex serviceable for 5 to 10 persons.
Eligibility:
Intending borrower should have adequate number of cattle commensurate with size of plant
proposed to be set up. Since there is no apparent income from the activity, except saving in
cost of fuel, eligibility should be linked with his income to repay from other sources, should be
sponsored by KVIC, state Agro. Industrial Corporation or other concerned department of state.
State Govt. have budgetary provisions under State plan sector for providing subsidy and other
facilities for construction of sanitary latrines in rural areas.
Repayment:
Bio-gas plants up to 5 cub. meter capacity : 7 years
Bio-gas plants above 5 cub. meter capacity : 5 years
49. PNB KISAN TATKAL CARD YOJANA

An instant credit for farming community to meet the emergency requirements for Agriculture and
Domestic purposes for tiding over temporary difficulties.
 Individual farmers /joint borrowers (not exceeding four farmers) who are existing Kisan
Credit Card (KCC) holders having satisfactory track record of at least two years are eligible.
 Credit facility may be provided as a reducing Cash Credit Limit.
 Limit upto Rs 25,000/- may be repayable in 3 years and the limit above Rs.25,000/-
may be repayable in 5 years.
 Quantum of loan/Ceiling: Minimum limit: Rs. 1000/Maximum limit: Rs.50000/- (Subject to
ceiling at 50% of KCC limit/ 25% of annual income)
Security: Existing security/ies obtained for KCC to be continued.
No additional securities to be obtained even if the combined exposure (KCC plus proposed
Kisan Tatkal Scheme) exceeds the present cut-off ceiling of Rs.1 lakh.
(For details - PSLB/Farm Credit Circular No.57/11 dated 09.11.2012)
50. PNB SAUR URJA YOJANA (PNB SOLAR ENERGY SCHEME)

Financing Farmers for Purchase of Solar Home Lighting/Solar Water Heaters System.
Purpose: To purchase Solar Home Lighting /Solar Water Heating System.
Quantum of Loan: Maximum Rs 50,000/-
Margin: 15%
Eligibility: Small Farmers/ Marginal Farmers/Share cropper/Tenant farmers/Other Farmers and
agri-entrepreneurs, will be eligible under the scheme.
Repayment of Loan: 5 years in yearly/half yearly instalment.
(PSLB/Farm Credit Circular No. 60 /2012 dated 01.11.2012).
51. FINANCING TO DISTRIBUTORS OF AGRICULTURE INPUTS
Purpose:
Financing of stock not older than 6 months and book debts not older than 3 months.
Eligibility:
All stockists and distributors who are involved in distribution of agriculture inputs of reputed
manufacturing companies.
Extent of Loan:
Need based, subject to maximum limit eligible to be classified under Priority Sector – Agriculture
– Indirect Advances (At present Rs. 5 crore).
In case, working capital limit is sanctioned by way of hypothecation of stocks and book debts;
limit against book debts shall not exceed 50% of the total limit sanctioned.
In case the working capital limit is sanctioned only against hypothecation of book debts then the
maximum limit shall be Rs. 2.50 crore only.
Margin:
Against stock – 20% and against Book Debts – 30%
Rate of Interest:
BR+1% for accounts having Risk Rating BB and above.
Repayment:
Cash Credit limit shall be sanctioned for a period of one year and shall be subject to renewal/
review annually.
(For details – PSLB/ABC/ Circular No.25/13 dated 19.07.2013)
52. FINANCING TO DEALERS/ SELLERS OF AGRICULTURE INPUTS
Purpose:
Financing of stock not older than 6 months and book debts not older than 4 months.
Eligibility:
The dealers/ sellers, who are involved in sale of agriculture inputs like fertilizers, pesticides,
seeds, cattle feed, poultry feed, agriculture implements and other inputs.
Extent of Loan:
Need based, subject to maximum limit eligible to be classified under Priority Sector – Agriculture
– Indirect Advances (At present Rs. 5 crore).
In case, working capital limit is sanctioned by way of hypothecation of stocks and book debts;
limit against book debts shall not exceed 50% of the total limit sanctioned.
In case the working capital limit is sanctioned only against hypothecation of book debts then the
maximum limit shall be Rs. 2.50 crore only.
Margin:
Against stock – 20% and against Book Debts – 30%
Rate of Interest:
Is to be linked with realizable value of collateral security as under:
Realizable value of collateral security of the aggregate limits:-
1. Minimum 100% - BR+2.00%
2. More than 100% but less than 150% - BR+1.50%
3. 150% and above – BR+1.00%
Repayment:
Cash Credit limit shall be sanctioned for a period of one year and shall be subject to renewal/
review annually.
(For details – PSLB/ABC/ Circular No.25/13 dated 19.07.2013)
53. PNB DEALER SUVIDHA
Scheme for financing dealers engaged in sale of agriculture implements.

Purpose: Dealers of agriculture implements can also be financed for:
(i) For sale purpose activity
(ii) For custom hiring services
Type and Extent of Loan –
For sale purpose activity - Cash Credit (max. Rs. 5 crore) as per Circular No. PSLB/ABC/
25/2013 dated 19.7.2013).
For custom hiring service activity – T/L (Margin-25%, 10% for existing dealers availing credit
facilities from the Bank and having satisfactory conduct of account/s)) and working capital (need
based) as per Circular No. PSLB/ABC/ 40/2013 dated 28.8.2013).
Advances will be classified as Agriculture - Indirect
(For details – PSLB/ Circular No. 03/14 dated 07.01.2014)
54.SCHEME FOR FINANCING TO FARMERS GROWING SUGARCANE CROP UNDER TIE

UP ARRANGEMENT WITH SUGAR MILLS
Eligible borrowers: Farmers in the command area / cane area of the Sugar Mill.
Role of Sugar Mill: Sourcing of loan applications of the farmers in its cane area to our Bank.
Extent of Loan (based on scale of finance): Need based, subject to maximum (at present Rs.
20 Lakh) as per extant guidelines under KCC scheme.
KYC norms: 100% Compliance of KYC guidelines to be ensured by the financing branch strictly
as per Bank guidelines and pre sanction appraisal to be done as per guidelines under KCC
scheme.
Bank will sign a Memorandum of Understanding (MoU) with Sugar Mills and Tripartite
Agreement with Sugar Mill and Farmers.
(For details – PSLB/Circular No.53/13 dated 24.10.2013)
55.SCHEME FOR PROVIDING PRIORITY SECTOR CREDIT AGAINST BANK DEPOSIT,
NATIONAL SAVINGS CERTIFICATES AND KISAN VIKAS PATRA
Purpose: For undertaking priority sector activity/ies viz, agriculture, MSE, etc.
Nature and Purpose of Advance:
Loan may be allowed by way of demand loan/overdraft for productive purpose and for meeting
the contingencies.
Extent of Loan: Need based depending upon the activity financed and stipulated margin.
(For details – PSLB/Codified Circular No.18/14 dated 09.04.2014)
56. MICRO CREDIT - SELF HELP GROUPs (SHGs) - Non Government Sponsored
Scheme
OBJECTIVES:-
a) Supplementary credit for meeting the credit needs of the poor by combining the flexibility,
sensitivity and responsiveness of the informal credit system with the strength of technical
and administrative capabilities and financial resources of the formal credit institutions.
b) To build mutual trust and confidence between bankers and the rural poor. To encourage
banking activity, both on the thrift as well as credit sides, in a segment of the population that
the formal financial institutions usually find difficult to cover.
IDENTIFICATION OF SHG
Branch Officials visit the potential clusters for selection of the group or seek the help of the
NGO, if any, in the area for identification of the groups.
SIZE OF GROUP:
The Group could consist of 10-20 members, in hilly tracts/regions and predominately tribal
dominated areas where communities are dispread, smaller groups of Less than 10 are also
formed into SHGs.
CRITERIA FOR SELECTION OF SHG FOR FINANCING:
The Group should have been in active existence for at least a period of 6 months,
successfully undertaken savings and credit activity from its own resources for at least 6
months. Registered or unregistered. Democratic working of the Group wherein all members
feel that they have a say should be evident. Therefore Village Panchayat leaders should not
Normally be the office bearers or leaders of SHG. There should not be any interference
from local authorities.
The Group should be maintaining proper accounts/records for savings and lending.The
banker should be convinced that the group has not come into existence only for the sake of
participation in the project and availing benefits hereunder. There should be a genuine need
to help each other and work together among the members. Members of the Group should
preferably have homogeneous background and interest, though there is no restriction of
caste, creed or sex. The members should be like-minded who can influence one another to
ensure discipline through peer group pressure. Women group should have female
members. The interest of the NGO or the Self-Help Promoting Institution (SHPI) concerned,
if any, in the group should be evident and the agency is helping the SHG by way of training
and other support for skill upgradation and proper functioning. K. If any of these criteria are
not met, steps should be taken to improve the situation by training, by arranging visits to
SHGs working well etc. if necessary, with the assistance of NGOs. It would be prudent to
select SHGs only from a smaller geographical area so as to provide effective guidance and
exercise proper supervision. No credit to SHG without training or before ensuring that it has
the necessary capability to participate in project be provided. Loan can be given to SHG
having Saving Bank account with other bank provided no loan has been raised by SHG
from any bank.
NATURE AND QUANTUM OF CREDIT: Cash Credit limit only

Financing to SHGs up to 10 times of their savings can be provided in 3 stages as follows:
FIRST STAGE After six months of formation of Group 1:4.

SECOND STAGE Completion of 1 year from the date of First financing 1:7
THIRD STAGE Completion of 1 year from the date of second financing 1:10
(For details – Codified Circular No. PSLB/WS/SHG/ 02/2017 dt 18.01.2017)
57) Credit facilities to Minority Communities SLB/Minority Communities Circular No 05/2

dated 21.01.2017 Detailed guidelines of above scheme were circulated vide our
codified circular No PSLB/Minority Community 08/2016 dated 30.7.2016
58) JOB PROFILE OF DIRECTLY RECRUITED MANAGER AGRICULTURE:-
Detailed guidelines of above were circulated vide ABFID/ AGRI. BUSINESS/ CIRCULAR NO.
08/2017 DT 21.03.2017.
59.)ABFID/AGRI. BUSNIESS/CRDT/CIRCULAR NO. 14/2017 dated 30.03.2016:Deals with

Policy for Selection of Outsource Agency for engagement of staff in Rural Self Employment
Training Institutes(RSETIs).
60.) CAPITAL SUBSIDY SCHEME FOR INSTALLATION OF SOLAR PHOTOVOLTAIC

WATER PUMPING SYSTEMS FOR IRRIGATION – STOPPAGE OF SCHEME(Cir No-13/2017
dated 30.03.2017 :Detailed guidelines regarding the scheme were circulated vide PSLB/
Codified Farm Credit Cir. No. 01/2015 dated 19.01.2015 followed by other circulars from time to
time
61) Construction of toilets for girl students in government Schools of adopted villages of PNB
VIKAS.( Cir 19/2017 dt 17.04.2017) For the FY 2017-18 also, but only for those Circle Offices who
have not been able to construct toilets as per the Scheme as this is a one time process.
Construction of Toilets - The scheme is focused on girls and coeducational government schools.
The total estimate/limit of expenditure for the toilet is Rs. 1.20 lacs.
Provision of library – Initially a sum of Rs. 15,000/- (Rs. 10,000/- for Almirah and Rs. 5,000/- for books)
will be provided to start a library in girls/co-educational government school. A sum of Rs. 700/- PM will
also be provided to meet the running expenses for newspapers and periodicals.
Provision of sports kits – To encourage sports activities in the girls/coeducational government schools,
initially a sum of Rs. 10,000/- will be provided.
62) EXTENSIONOF ‘PNB UJALA’ SCHEME FOR PROVIDING SOLAR STREET

LIGHTS AND/OR SOLAR LIGHTS IN HOUSES OF ADOPTED VILLAGES OF
RURAL INDIA THROUGH PNB VIKAS
The scheme was extended for financial year 2016-17 and shall continue during the financial year 2017-
18.
Under the scheme, it has been decided to provide 4 solar street lights in all adopted villages, as one time
measure. The extension of scheme has been done to provide solar street lights in adopted villages only
where it has not been provided till now.
The scheme has the following salient features:
1. As a onetime measure it has been decided to provide 4 solar street lights in the adopted villages only,
funds for which will be given by PNB Farmers‟ Welfare Trust (PNBFWT).
2. It has also been decided to provide a Solar Lantern costing Rs. 500/- appox. each to girl students
already adopted under PNB LADLI Scheme.
3. This scheme is to be implemented through Circle Offices. Therefore it is advised to procure the Solar
Street Lights with maximum cost of Rs. 20,000/- per light, inclusive of all taxes and installation charges,
(Rs. 80,000/- for 4 lights per village) and Solar Lanterns with maximum cost of Rs.500/- (inclusive of all
taxes), after due negotiation with the vendors.
Updated as on 28.04.2017 by: Nayaz Alam (Mob No: 9771433442)
Vetted by: S K Choudhary, ZTC, Patna (Mob No: 7544008091)

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AGRICULTURE

AGRICULTURE - SCHEMES & GUIDELINES

Budget 2016-17 Agriculture provisions/highlights

• Marginal Farmer: Farmers with land holdings upto 1 hectare.

INDIAN CROPS ARE BROADLY DIVIDED INTO THREE GROUPS:

THE MEANING OF SCIENTIFIC TERMS USED IN AGRICULTURE:

Sr No. Term Meaning/Relates to

1. PROCEDURAL GUIDELINES FOR AGRICULTURAL CREDIT.

A. Processing the Applications of Agricultural Credit.

(i) Technical feasibility and economic viability should be assessed by Agriculture

(ABFID/ AGRI. BUSINESS/ CIRCULAR NO. 22/2017 Dt 24.04.2017)

If immovable property is not to be charged in the Bank’s favor as security, Non-

2. TIME SCHEDULE FOR DISPOSAL OF LOAN APPLICATIONS:-

Credit Limit Time Schedule (Max)

Upto Rs. 2 lakh : 2 Weeks

(a)For production and/or Investment Credit:

(b)Under PNB Krishi Card Scheme: (For production credit) NIL

(c)Under the Scheme of Agri-Clinics/Agri-Business Centres

Loaning powers For Tractor Financing:

Financing under KCC and Kisan Gold Scheme:

10. Loan application forms/documents: Various simplied forms/formats & appendix.

11. CR‟s IN AGRICULTURE (FOR BORROWERS AND GUARANTORS):-

12. SERVICE AREA GUIDELINES FOR RURAL LENDING:-

13. OBTAINING “NO DUES CERTIFICATE”:

14. OBTAINING OF “NO OBJECTION CERTIFICATE” FROM THE CO-SHARERS OF

15. RENEWAL OF SHORT-TERM AGRICULTURE CREDIT LIMIT:

18. SCALE OF FINANCE FOR PRODUCTION CREDIT:-

19. CASH DISBURSEMENT FOR INVESTMENT UP TO 5 LACS IN SOME ELIGIBLE CASES

20. ON LINE APPLICATION FOR AGRICULTURE CREDIT TO FARMERS:-

21. EXERCISING OF LOANING POWERS IN THE BRANCHES WITHOUT SECOND MAN:-

Gist of Important Agriculture Schemes

Margin: As mentioned under margin Norms for agriculture loans

Security: - As mentioned under margin Norms for agriculture loans

Compilation of CRs :- As per Agri. norms

Crop insurance under Rashtriya Krishi Bima Yojana(PSLB 77/15 dt 21.12.15):-

CROP INSURANCE – COVERAGE UNDER PMFBY: PSLB/ FARM CREDIT/

Only PNB RuPay Kisan Cards (Personalized/ Non-Personalized) are to be issued in

2. KISAN GOLD SCHEME (PSLB Cod. 9/15 dated 07.03.15)

3. PNB KALYANI CARD SCHEME(PSLB 3/15 dt 3.2.15 & 44/15 dt 17.6.15)

4. PNB KRISHAK SAATHI SCHEME (PNBKSS)(PSB 02/15 dt 3.2.15 )

6. FARM MECHANIZATION SCHEME FOR FINANCING OF FARM MACHINERY AND

Objective: - Purchase of new tractors with or without matching implements/equipments such as

7. SCHEME FOR FINANCING SELF-PROPELLED COMBINE HARVESTERS. (PSLB 07/14

Eligibility: - Farmers, Non-Farmers & State Agri. Farms/Corporations

8. SCHEME FOR FINANCING APICULTURE (BEE KEEPING)(PSLB 13/13 dt 9.9.13 &

Eligibility: Small/marginal farmer(s)/agricultural labourer(s) who are trained in bee-keeping.

S.No. Item Cost Norms Pattern of Assistance*

Eligibility :- Unemployed graduates in Agriculture / Veterinary Science/ Agri.engineering /

Nature of Facility: Working Capital, Investment Credit or Composite loan.

Extent of Loans – Need based.

13. SCHEME FOR PURCHASE OF ANIMAL DRAWN VEHICLES, i.e. DRAFT

14. SCHEME FOR FINANCING AGAINST PLEDGE OF WAREHOUSE RECEIPTS ISSUED

Nature of Facility: Demand Loan / Cash Credit.

LIST OF APPROVED COLLATERAL MANAGERS:

(For details – MSME/ Circular No.57/14 dated 01.08.2014)

15. DAIRY ENTERPRENEURSHIP DEVELOPMENT SCHEME (DEDS) (SUBSIDY LINKED)

16. SCHEME FOR FINANCING MICRO-FINANCING INSTITUTIONS FOR ON- LENDING TO

18. PNB WOMEN EMPOWERMENT CAMPAIGN

Under the scheme following relaxations can be provided to women beneficiaries:

Eligibility: Women JLGs who operate as one borrowing unit.

20. FINANCING TO JOINT LIABILITY GROUPS (JLGs):

21. CAPITAL INVESTMENT SUBSIDY FOR CONSTRUCTION/ EXPANSION/

22. AGRICULTURE MARKETING INFRASTRUCTURE SCHEME (AMI)