Agri Handbook Loans Schemes

Handbook on
AGRICULTURE
PRODUCTS
Compiled by Agri. Business and FI Discipline
August 15th, 2021
Disclaimer: This is our voluntary effort and every care has been taken to give up-to-date information based on the
RBI and Bank’s guidelines. However users are advised to go through banks circulars and guidelines for details
Handbook on Agriculture Products
TABLE OF CONTENTS
1. Union Green Card ........................................................................................................................... 3
2. KCC of above Rs 25.00 Lakhs ........................................................................................................... 9
3. Kisan Credit Card Gold Loan Scheme............................................................................................. 13
4. Debt Swap Scheme ....................................................................................................................... 15
5. Kisan All Purpose Term Loan ......................................................................................................... 16
6. Kisaan Tatkal scheme .................................................................................................................... 19
7. KCC - Allied Activities .................................................................................................................... 24
8. Joint Liability Group finance ......................................................................................................... 25
9. Bee Keeping .................................................................................................................................. 29
10. Seed Production............................................................................................................................ 31
11. Pledge Loan (WHR Finance) .......................................................................................................... 34
12. Loan against Silver Ornaments...................................................................................................... 37
13. Farm Transport Scheme ................................................................................................................ 40
14. Estate Purchase Loan .................................................................................................................... 43
15. Renewable Energy Equipment ...................................................................................................... 47
16. Financing to Food & Agro Processing Units ................................................................................... 50
17. Union agri. services ....................................................................................................................... 53
18. Financing sericulture ..................................................................................................................... 55
19. Finance for Plantation & Horticulture ........................................................................................... 57
20. Finance to Dairy Unit .................................................................................................................... 59
21. Financing to Commercial Dairy Unit .............................................................................................. 62
22. Farm Mechanisation Scheme ........................................................................................................ 64
23. Finance to Fishery Sector .............................................................................................................. 67
24. Finance to Poultry Sector .............................................................................................................. 69
25. Gold loan scheme ......................................................................................................................... 71
26. SOD against GOLD ornaments for selected branches: ................................................................... 78
27. Finance for Sheep, Goat & Pig rearing .......................................................................................... 80
28. SHG finance................................................................................................................................... 82
29. Farm Irrigation Scheme ................................................................................................................. 85
30. Farm Development Scheme .......................................................................................................... 86
31. Hi-Tech Agriculture projects.......................................................................................................... 88
32. Union Agri. Infrastructure Fund Scheme ...................................................................................... 91
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Quality Asset creation is the Purpose of Lending
Union Green Card

Objective
 Aims at providing adequate and timely credit support to the farmer for their
cultivation and other needs as indicated below :
 To meet the short term credit requirements for cultivation of crops
 Post-harvest expenses
 Produce marketing loan
 Consumption requirements of farmer household
 Working capital for maintenance of farm assets and activities allied to agriculture,
like dairy animals, inland fishery etc.
 Investment credit requirement for agriculture and allied activities like pump sets,
sprayers, dairy animals etc.
Eligibility
 All farmers- individuals/ joint borrowers who are owner cultivators
 Tenant farmers, oral lessees and share croppers with documentary proof to ensure
the period of lease
 SHGs or Joint liability groups of farmers including tenant farmers, share croppers
etc.
Quantum of loan
The credit limit under the UGC normally may be fixed for 5 years to all farmers other
than marginal farmers:
Short Term Limit:
For First Year
Scale of finance (SOF) X area cultivated +10% of limit towards post-harvest/house
hold/consumption needs+ 20% of limit towards repairs and maintenance expenses
of farm assets + crop insurance and /or accidental insurance including PAIS, health
insurance and asset insurance.
For 2nd & subsequent years:
First year limit for crop cultivation purpose arrived at as above + 10% of the limit
towards cost escalation/increase in scale of finance for every successive year +
estimated term loan for the tenure of UGC i.e. five years.
Note: for farmer raising more than one crop in a year, the limit is to be fixed as above
depending on the crops cultivated as per the proposed cropping pattern for the first
year and an additional 10 % of the limit towards cost escalation / increase in scale of
finance for every successive year. It is assumed that the farmer adopt the same
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cropping pattern for the remaining four years also. In case the cropping pattern adopted
by the farmer is changed in the subsequent years, the limit may be reworked.
Long term limit:
It includes investments towards land development, minor irrigation, purchase of
farm equipment and allied agricultural activities.
Based on proposed investment during five year period and repaying capacity of the
farmer
Maximum Permissible Limit:
The short term loan limit arrived for the fifth year plus the estimated long term
requirement will be the maximum permissible limit and treated as Union Green Card
limit.
For Marginal farmers: A flexible limit of Rs. 10,000 to Rs. 50,000 be provided
based on the land holding and crops grown including post-harvest warehouse
storage related credit needs and other farm expenses, consumption needs etc., plus
small term loan investment like purchase of farm equipment, establishing mini dairy/
backyard poultry as per assessment of Branch Manager without relating it to the
value of land.
Fixation of sub-limit:
The card limit is to be bifurcated into separate sub limits for short term cash credit
limit cum savings account and term loans separately. It is advisable to maintain two
separate accounts in Finacle, one for short term loan requirement including crop
loan component and another for term loan component
Scale of Finance:
 Branches are permitted to finance 100% over and above the SOF fixed by District
Level Technical Committee (DLTC) with the approval from Regional office. (i.e.,
200% of SOF)
 RO will decide the scale of finance for every district and for different crops, keeping
in view the following guidelines. “The lower end of the band of scale of finance will
be scale of finance recommended by DLTC and higher end of the band will not be
more than double of SOF fixed by DLTC/SLTC”
 200% of SOF is applicable only to the cost of cultivation component of the SOF fixed
by DLTC and not for the additional 10% and 20% provided for post-harvest
expenses, consumption needs etc.
Rate of Interest:
 ROI will be linked to MCLR and is left to the discretion of the banks
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 For crop loans up to Rs.3 lakhs, ROI to be charged is 7% as the farmers are
eligible for interest subvention
 For crop loans above Rs.3 lakhs, 7% ROI should be stipulated for the loan amount
up to Rs.3 lakhs and for remaining amount the ROI applicable to the entire loan
should be charged.
 If the crop loan account becomes overdue, then normal ROI as per MCLR interest
circular applicable on the date of sanction / disbursement should be charged for
the entire loan amount from the due date by modifying the ROI using INTTM
menu
 The fixing of rate of interest in the Finacle should be based on the limit
sanctioned/fixed for the particular year (as per Drawing power - DP) and not on
the composite limit sanctioned as per eligibility for the 5th year
 Rate of interest on Agricultural Advances is to be fixed on the basis of purpose of
advances only
Margin:
 For crop loans, no separate margin need to be insisted as the margin is in-built while
fixing Scale of finance.
 For term loan component, it will be in conformity with our bank’s guidelines
Up to Rs. 1.60 lakhs, nil
Above Rs.1.60 lakhs, 10 to 15%
Collateral Security:
 Up to Rs.1.60 lakh, and with tie up facility for recovery up to Rs.3 lakhs
Hypothecation of crops / assets created
 Above Rs.1.60 lakh in case of normal UGC and above Rs.3 lakhs under tie up -
Mortgage of land and / or third party guarantee be taken in addition to
hypothecation of crops / assets. Value of land should not be less than the
loan.
In states where banks have the facility of online creation of charge on the land
records, the same shall be ensured.
Special Provision for prompt repaying borrowers:-
1. For loans above Rs.1.60 Lakhs:-

a. If the farmer repays the existing KCC loan promptly every year for the last
3 years:
 No collateral security up to Rs2.00 lakhs under KCC per farmer.
 However third party guarantee from another borrower having equal net
worth and good repayment track record should be obtained.
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b. If the farmer repays existing KCC limit promptly every year for the last 5
years
 No collateral security up to Rs3.00 Lakhs under KCC per farmer.
 However third party guarantee from a borrower having equal net worth and
good repayment track record is required.
 Other Conditions:
 Only farmers having land in their name shall be eligible. Proof of
land ownership to be obtained and kept on record.
 Landless laborers/tenant farmers are not eligible
 For new farmers these guidelines are not applicable.
 Loans under tie-up are also covered for this facility.
 Loan charge creation in online land portal is mandatory.
 Existing security, if any held should not be released.
 Other terms and conditions of financing KCC/UGC remain
unchanged.
 The revised guidelines are applicable for the states wherein land
records/loan charge creation is digitized.
Note: Repayment of KCC limit on or before due date will be treated as

Prompt repayment for that particular year.
2. With tie up facility for recovery- Hypothecation of crop up to Rs.3 lakhs

3. In states where banks have the facility of online creation of charge on the land
records, the same shall be ensured
Documentation:
 One time documentation while availing the loan for the first time and thereafter
simple declaration (about crops raised/proposed) with composite Debit Balance
Confirmation (DBC) by farmer from the second year onwards are to be taken.
 The documentation will be done by the Bank only for maximum limit so that there
is no need of re-documentation during the validity of account.
 Documents should not be filled with 7% ROI even for crop loans up to Rs.3.00 lakhs
 The security documents should be filled in and obtained on the basis of rate of
interest applicable to the entire limit based on our interest rate circular (linked to
MCLR)
Security documents:
1. Appropriate DPN
2. Hypothecation agreement - SD 07
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3. Letter of continuity - AD 09(M)

4. Letter of general lien and set off – AD – 02A
5. SM / EM of land (if applicable)
6. Declaration / Undertaking (AD-01)
7. SD 08 (if stipulated)
8. CIBIL consent undertaking (Borrower/Guarantor)
Documentation at the time of annual review:
 A request letter from borrower for renewal of limit with details of crops grown
 Debit Balance Confirmation (Simple or Composite as the case may be )
Disbursement:
 The short term component of the UGC limit is in the nature of revolving cash credit
facility without any restriction in number of debits/credits.
 The limit can be drawn using any of the following delivery channels.
 Operations through branch
 Operations using cheque facility
 Withdrawal through ATM/ Debit cards
 Operations through Business correspondents and ultra-small branches
 Operation through POS available in sugar mills/contract farming companies,
etc., especially for tie up advances
 Operations through POS available with input dealers
 Mobile based transfer transactions at agricultural input dealers and mandies.
 The long term loan for investment purposes may be disbursed in one installment if
the loan is for purchase of tractor, pump set and animals etc.,
 If the loan is for any developmental activity, the same may be disbursed in
installments depending on progress of work (e.g. Land development, digging of an
open well etc.)
Validity / Renewal / Repayment Period:
 The repayment period may be fixed by banks as per the anticipated harvesting and
marketing period for the crops for which the loan has been granted
 Card should be normally valid for 5 years subject to annual review.
 However in case the period of lease of land is less than 05 years, validity of card
may be valid for the period of lease only and eligible loan amount has to be worked
out accordingly for shorter duration.
 The review may result in continuation of the facility, enhancement of the limit or
cancellation of the limit/withdrawal of the facility depending on performance of the
borrower.
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 Extension/ Reschedulement as per norms can be granted in case of natural

calamities
 The term loan component will be normally repayable with in a period of 5 years
depending on the type of activity/ investment as per the existing guidelines
applicable for investment credit.
 It is the discretion of the bank in fixing repayment period of more than 5 years based
on the economic life of the asset and type of investment.
Interest subvention:
Crop loan component, any short term production oriented purposes under UGC is
eligible for subvention benefit (Interest @ 7%) GOI is providing 2% interest subvention
This subvention will be available to farmers during the year
 from the date of disbursement/ drawal of the crop loan up to the actual date of
repayment by farmers Or up to the date fixed by the bank for repayment of crop
loan whichever is earlier
 subject to a maximum of 12 months from the date of disbursement
Those farmers, who repay the loan promptly, are eligible for 3% additional interest
subvention. For crop loans with limits above Rs.3 lakhs interest subvention to be
claimed for outstanding up to Rs.3 lakhs only,
Other information:
 Besides the mandatory crop insurance, the UGC holder should have the option to
take benefit of Asset Insurance, Personal Accident Insurance scheme (PAIS), and
Health Insurance (wherever the product is available) and have premium paid
through his UGC account. Farmer consent should be obtained for Insurance coverage
(Except Crop Insurance, it being mandatory)
 No processing fee should be charged up to a card limit up to Rs.3 lakhs.
 Waiver of annual fee for ATM enabled UGC for crop loans up to Rs.3 lakhs
 Disbursement of crop loan portion of UGC in cash without insisting for bills/cash
memos
 UGC short term sub-limit cum SB accounts to be allowed to enable credit balance in
UGC/SB account to fetch interest at SB rate.
 End use of crop loans to be monitored by branches and Regional Offices
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KCC of above Rs 25.00 Lakhs
Nature of Facility: KCC / Union Green Card
Fixation of Limit: For KCC limits above Rs25.00 lakhs. '
For fresh exposure and enhancements:
The existing powers given to ROs to permit branches to finance up to 100% over and
above the Scale of Finance fixed by DLTC is discontinued with immediate effect.
While considering the limit /or KCC and any further requirement for allied activities /
investment credit should be allowed under separate term loan.
Maximum limit under KCC is restricted up to Rs100.00 Lakhs only. Loans with limit
above Rs.100 lakhs assessment of limit should be done as a project finance on case to
case basis as per loan policy.
Disbursement:
 Limits to be disbursed in a phased manner ensuring the end use of funds by

conducting post sanction follow up by the Branch officials.
 The limit sanctioned for investment purpose (Term Loan) should not be used for
Short term purpose.
 If the limit is fixed by taking more than one crop per year, the disbursement should
be made season wise only and accordingly drawing power should be maintained.
Coverage under crop insurance also to be ensured based on seasonal
disbursement only.
 Since the limit is sanctioned to meet the cost of inputs like seeds, fertilizers,
pesticides and field operations, payment can be made directly to input suppliers
to ensure the end use of funds. Similarly, farmers may be encouraged to credit
the sale proceeds of farm produce directly to KCC account.
Review of the limit:
 The review of limit may result in continuation of the facility, enhancement of the
limit or cancellation of the limit/withdrawal of the facility depending on
performance of the borrower. The performance may be defined as routing of sale
proceeds of farm produce in KCC account.
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 Since these are high value accounts, while renewing the limits, branch should
verify the routing of sale proceeds of previous crop, whether they were paid in
cash or through bank account and same should be discussed in appraisal note.
In case of Inland Fishery & Aquaculture activity:
 In respect of loans on lease hold lands,

 Branch to ensure the loan is repaid every year coinciding with the catch
and sale of fish.
 Confirmation from the lessor should be obtained stating that the lease is
continuing and the lessee is doing the pisciculture activity.
 Branch should obtain lease agreement containing the clause that the
owner of land / tank has not availed finance with any financial institution
and not approaching the FIs till the validity of the lease period.
Delegated Authority:
 For fresh / enhancement of limits above Rs25.00 lakhs under KCC it is to be

sanctioned at next higher delegate / committee.
 In case of renewal of limits at existing level, respective sanctioning authority as
per the existing delegation can
CIBIL 6 Credit history report:
In order to ensure hassle free credit to all borrowers, obtaining of no due certificate
has been dispensed in all areas and Banks are advised to encourage to use an
alternative framework of due diligence as part of the credit appraisal exercise other
than the ’No Due Certificate’ which could, among others, consist of one or more of
the following:
Credit history check through Credit Information Companies (ClCs)
• Self-declaration or an affidavit from the borrower
• CERSAI registration in website
• Peer monitoring.
• Information search (writing to other lenders with an auto Deadline) even at
the time of renewal.
• After verification of CIBIL report, sanctioning authority should take prudent
decision regarding fresh exposure and same should be discussed in the process
note with due justification for any delinquency found.
• Branch should generate CIBIL report on renewal and verify for any
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delinquencies.
• Verification of RBI defaulters list at the time of fresh sanction / renewal /
enhancement:
KYC & Due diligence:
 KYC guidelines have to be followed for identifying the borrower and to get the
details about the borrower like profession, address etc. Market information about
the borrower have to be made with at least 2 borrowers and incorporated in
appraisal memorandum in case of high value accounts i. e. Above Rs25.00 lakhs.
Enquiry has to be made against the genuineness of Pro-forma Invoice submitted
by the borrower.
 Branch should verify the land records through online Bhoomi portal where ever
available for avoiding multiple finance. Online verification of land records before
sanction of credit limits as a pre sanction measure wherever applicable and also
post sanction of utilization of loan by the Branch. The corrections/
overwriting/alterations made, if any in the passbook should be cross checked
with revenue authorities. Verify the land records with the Bhoomi / respective
state portals and keep print out of the same on record for future reference.
 Instead of relying 100% on the pattadhar pass books or Digitized land records
submitted by the farmer, necessary enquiries have to be made in villages about
the actual land holding, crops grown, marketability of produce and land etc.
 Applicant should have skill / experience in the proposed line of activity. Thorough
due diligence on Pro-forma invoice and its evaluation (wherever applicable) be
carried out.
Monitoring:
 The Limits above Rs25.00 lakhs, branch should thoroughly verify the credit & debit
summations in the KCC account on half yearly basis and based on the cash flows
assessed in the appraisal i.e. type of crops grown and duration of crops.
 Verification of crops and farm produce on quarterly basis by the appraising officer
through field visit and record the observations like stage of crop, market prices
of produce if harvest is going on etc.
 Branch should pursue with the farmer in person at least from one month before
due date of repayment as it will help the bank to catch hold of the sale proceeds.
 Branch should follow-up and maintain the "Connect" with farmers from overdue
day 1 itself instead of following up the farmer after account shows stress.
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 Pre sanction, Post sanction, post disbursement and thereafter on quarterly basis,
branch should invariably conduct the field visits and document the observations.
If any diversion of funds is observed / end use is not ensured, necessary
corrective measures should be initiated immediately. Field visit report should be
recorded in loan document for future reference.
 EC to be obtained for the mortgaged properties at the time of annual review and
ensure that there are no encumbrances after creation of mortgage to our bank.
 At the time of annual review of the limit, branch should assess the government
value / market value of properties mortgaged to bank and ascertain appreciation
/ depreciation in value, if any. Revaluation of property should be done at every
3 years as per loan policy.
 In case of dilution in the value of securities, if any, branch should endeavor to
insist for additional security.
Digitization of land records:
 The branch should verify the records through online Bhoomi portal where ever
available for avoiding multiple finance and lien marking should be done
immediately after sanction / renewal.
 Branch should enter all the fields in LAS / FINACLE like particulars of land records,
boundaries of land, property document particulars correctly.
Credit Process Audit:
The limits above Rs25.00 lakhs CPA should be carried out invariably and for projects
like Fisheries the CPA officer should be given additional assignment to verify the
genuineness of land records, seasonality for pisciculture and cash flows etc.
Crop Insurance:
Crop Insurance should be done as per respective state govt notifications / PMFBY
Guidelines.
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Kisan Credit Card Gold Loan Scheme

Purpose:
Kisan Credit Card – Gold Loan scheme aims to provide adequate and timely credit
support from the banking system under a single window with flexible and simplified
procedure to the farmer for cultivation and other needs as indicated below:
 To meet short term requirement for cultivation of crops

 Post-harvest expenses
 Produce Marketing loans
 Consumption requirement of farmer households
Working capital for maintenance of farm assets and activities allied to agriculture
Working Capital requirement for Animal Husbandry and Fisheries
Eligibility:
 Farmers – Individual/Joint borrowers who are owner cultivators, Tenant

Farmers, Oral lessees & Sharecroppers.
 All the above categories who are interested to avail more than Rs. 1.60 lakhs
limit under KCC and not able to offer Mortgage of land /or third party Guarantee
as Collateral security for any genuine reasons in addition to hypothecation of
crops as Primary Security
Quantum of Loan:
 Minimum: More than Rs. 1.60 lakhs (Loans below Rs. 1.6 lakhs to be considered
under the existing KCC scheme)
Security:
 Primary Security- Hypothecation of crops/assets created out of our finance.

 Collateral Security - pledge of Gold Ornaments / Jewellery having value of
100% of the total limit under KCC
Assessment:
 As per KCC Scheme (UGC) for Crop Production and KCC-AHF for working capital
Animal Husbandry and Fishery.
Rate of Interest: As per the latest circular en interest rate under KCC scheme
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Interest Subvention:
 Loans up to Rs. 3.00 lakhs for Crop Production and Rs. 2 lakhs for Animal
Husbandry and Fisheries will be eligible for interest subvention & prompt
repayment incentive benefits provided all other guidelines for claiming interest
subvention are adhered to (subject to overall limit of Rs.3.00 Lakhs / 2.00
Lakhs).
 In case of farmers possessing KCC for raising crops and also involved in
activities related to Animal Husbandry and/or fisheries shall be within the
overall limit of Rs.3 lakhs.
Scheme Code & Labelling For KCC:
 Crop production purpose accounts shall be opened under scheme code -CCAGR
 For KCC- Animal Husbandry and Fisheries, accounts shall be opened under
scheme code – CCAHF
 Accounts opened under the scheme shall be labelled as KCC-GOLD
Documentation:
 As per the scheme guidelines of CCAGR & CCAHF. In addition to that Annexure
II, III of circular no 02155-2020 dated 05.08.2020 shall be taken along with
Gold Loan Pledge Form.
Other Terms and conditions:
 Whenever Gold Jewellery is accepted as Collateral Security, limit to be fixed

based on 5th year limit as per Scale of Finance (As assessed in Normal KCC
Scheme).
 The appraised value of Gold Jewellery obtained as security should be at least
equal to the total limit fixed under KCC. Gold ornaments and Jewellery accepted
as security / collateral will have to be valued at average of the closing price of
22 carat gold for the preceding 30 days as per the rate quoted in Union bank
net under Gold loan.
 The KCC limit will be valid for 5 years subject to annual review.
 All other scheme guidelines as applicable to KCC scheme have to be adhered to
while sanct1oning Loans by accepting Gold Jewellery as Collateral Security.
 Pre-sanction and post-sanction inspection to be conducted as per existing KCC
Scheme and to be recorded for future reference.
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 In case of enhancements / renewal of the KCC loan account, the existing gold
accepted as security along with additional gold should be subjected to appraisal
and applicable appraisal charges to be collected
 Gold Appraisal charges to be collected as applicable to existing gold loan
scheme and all other applicable charges to be collected as per the existing KCC
Scheme.
 Annual Review Report for KCCS Loans with Gold as Collateral Security is
attached as per Annexure IV of circular no 02155-2020 dated 05.08.2020.
 All the Gold loan packets should be subjected to surprise reappraisal and
physical verification, as per guidelines.
Debt Swap Scheme

Objective
• To mitigate the distress faced by the farmers due to debt burden from non-
institutional sources.
• To make the farmers self-sustainable by freeing their cash flow in meeting high cost
borrowings from money lenders.
• To take over debt from Non-institutional lenders by providing them loan for debt
redemption so that they become free from the debt burden
Eligibility
1. Farmers who avail Union Green Card (UGC) credit facility for either crop loan or
investment purposes in Agriculture.
2. Tenant farmers, oral lessees, agricultural laborers are also eligible under this
scheme.
3. Existing farmers whose accounts are regular in all respects.
4. Accounts restructured as per RBI Guidelines for relief measures by Banks in areas
affected by natural calamities and regular after restructuring.
5. Farmers who are not our customers at present subject condition 1 above
Quantum of loan
25% of the new/renewal limit under UGC (crop loan component) (including up to 200%
Scale of Finance (SOF) sanctioned with the prior approval of RO) subject to maximum
of Rs. 100000/-, depending on repayment capacity of farmers
Eligible amount calculation
• Borrower has to furnish self-declaration of having borrowed from non-institutional
sources.
• The loan will be given separately as term loan, in addition to 10% of UGC limit
available for post-harvest / house hold expenses / consumption needs as per IC
9302 dated 06.06.2012.
Rate of Interest:
As applicable to total agriculture term loan exposure to the farmer including the present
loan as advised from CO from time to time
Margin: Nil
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• Extending Bank's charge over the assets / land owned by the borrower and created
through UGC.
• Mortgage of properties and/or third party guarantee if the quantum of loan exceeds
Rs. 1,60,000/- including the proposed loan under the scheme where borrowers have
existing UGC or other facility
Security Documents
1. Appropriate DPN
2. Hypothecation Agreement for Agricultural Advances (SD 07)
3. EM /SM of land if stipulated. Extension of mortgage already created for UGC
4. Deed of Guarantee (SD 08) if stipulated
6. CIBIL – Letter of undertaking from borrower / Guarantor
7. Letter of general lien and set off – AD (02) A
Sanctioning Authority: As per delegated authority in force applicable to Term loan
Disbursement:
 Loan is to be disbursed by crediting the amount to the SB account of the borrower.
 Bills / receipts need not to be obtained
Repayment
• Maximum repayment period is 5 years.
• Initial moratorium period may be considered up to harvest of crops subject to a
maximum period of one year or 18 months in case of Adsali sugarcane.
• Repayment period may be fixed quarterly/half yearly/yearly depending upon the
harvest of crop and subsequent cash flow of the farmer
Kisan All Purpose Term Loan

Objectives:
To create a hassle free single term loan limit to farmers for all term loan requirements
like farm mechanization, land development, minor irrigation, water conservation,
horticulture, allied activities and other agriculture related activities etc. except short
duration crop loans. Purposes:
 All financial requirements of farmer except short term crop loan.
 The purposes for which loan is sanctioned under Kisan all-purpose Term loan
(KAPTL) should not be overlapping with the purposes sanctioned under UGC.
 As consumption needs are taken care while sanctioning UGC limits, the same cannot
be a part of KAPTL project.
Eligibility:
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 Individuals, joint/group of farmers who are cultivating the land with ownership
rights.
 JLGs and SHGs engaged in agriculture and related activities.
 If loan is required for land based activities like farm mechanization, minor irrigation
etc. for JLGs / SHGs, they should have ownership rights on the land or lease hold
rights of at least 02 years beyond the repayment period stipulated for the KAPTL
Type of Loan:
Single transaction Term Loan, However disbursements can be made whenever the
farmer wishes to create the assets as per the time schedule of project
implementation
Quantum of Loan:
 Based on investment plan given by the farmer which is to be under taken in next 2
to 3 years.
 The plan can be a combination of investment/development activities relating to
agriculture including allied activities.
 Loan limit should be 5 times of the present annual Income (current pre-development
state) of the farmer including allied activities or
 50% of the value of land mortgaged whichever is lower, subject to
 Maximum Rs.20 lakhs depending on repaying capacity of the applicant.
Assessment of Limit:
 Need based limit is to be sanctioned based on the repaying capacity of the farmer
as per the proposed investment plan.
 Income generation as per the pre and post development of the farm should be
assessed.
 In all cases, technical feasibility and economic viability of the project should be kept
in mind before sanctioning the loan.
Margin:
 Small and Marginal Farmers - 5% of the project cost.
 Other farmers-15% of the projected cost.
The entire margin need not be brought in upfront for the entire limit. The required
margin may be brought at the time of creation of each asset depending on the time
schedule drawn for disbursements.
Rate of Interest:
 RoI to be charged is as applicable for the entire loan amount assessed. KAPTL is a
composite loan consisting of loan for different purposes disbursed over a period of 2
to 3 years as per the time schedule.
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 Credit Risk Premium for Agriculture term loan over one year will be applicable over
and above interest rate based on the period of advance
Security:
 Up to Rs.1.60 lakh: Hypothecation of assets created out of the loans.
 Above Rs.1.60 lakh: Mortgage of land (value of land should be at least 200% of the
limit sanctioned)
Repayment Period:
 As per the repaying capacity and economic life of the assets within a maximum
period of 9 years including moratorium period
 In suitable installment coinciding with overall income generation of farmers and
harvest of crop and its marketing without linking to any individual project.
Charges:
Processing charges, documentation charges, EM charges, inspection charges as
applicable to agriculture term loans
Delegated Authority: as applicable to Term Loans
Security documents:
1. One time documentation for the sanctioned limit
2. Appropriate DPN
3. Hypothecation agreement (for agricultural advances) – SD 07
4. Simple / Equitable mortgage of land as per legal opinion (SD12 / AD13)
5. Deed of guarantee (for agricultural advances) – SD 08 (if stipulated)
6. Letter of continuity – AD 09(M)
7. Letter of General Lien and set off - AD-02(A)
8. CIBIL – Letter of undertaking from the borrower / Guarantor
Disbursement:
 Loan should be disbursed as per the investment plan given by the farmer, and
accepted by the sanctioning authority
 The farmer may be allowed to draw the amount at his convenience with a simple
letter on undertaking linked to the loan application/ loan documents executed.
 The farmers should give undertaking to create the asset/complete the particular
project within 15/30 days of availing the loan amount.
 Bills / receipts wherever feasible may be obtained for end use verification
 Photograph of pre-post development stages to establish the creation of the assets
as per the proposal and as a proof of end use to be obtained
Classification: Priority Sector – Agriculture - Farm credit
Post-sanction monitoring:
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 Within 20 days of disbursement by the borrower for creation of the asset /

development activity, verification of asset created to be done
 Half yearly visits may be under taken and periodical inspection reports to be
compiled and held on record.
Insurance: Assets created should be comprehensively insured against all risks
Asset Classification:
 Asset classification is applicable as per the ‘crop season’ delinquency norms, even
though a portion of the project may be for allied activities.
Other guidelines:
a) Components of KAPTL should not contain request of loans for purposes like purchase
of tractors, combined harvesters, power tillers or similar purposes as specific
eligibility criteria's exists for such purposes
b) Income certificate should be obtained from Revenue Officer / Tahsildar which should
invariable contain details like area cultivated, crops grown, yield per acre, income
from other sources etc. based on which income of the farmer has to be decided.
Kisaan Tatkal scheme

Introduction:
An instant credit for farmers to meet their urgent need for agriculture and domestic
purposes
Objectives:
To meet the credit requirement of farmers post-harvest of the crops so that the
farmers will not go for the high cost borrowing from non-institutional lenders and
also will not resort to distress sale of the produce
Purpose:
To meet emergency requirements of farmers for their Agriculture &domestic needs
to overcome temporary difficulties. Loan to be sanctioned only as a post-harvest
facility
Eligibility:
Individual farmers / Joint individual farmers (not exceeding 4) who are existing UGC
account with our branch and having satisfactory track record for at least 2 years
Type of Loan: Single transaction Term Loan limit
Quantum of Loan:
 Minimum of Rs.1,000/- and Maximum of Rs.50,000/-
 subject to ceiling of 50% of the existing UGC limit or 25% of annual income of the
previous year whichever is lower
Security:
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 Existing securities obtained for UGC to be continued / extended

 No additional securities to be obtained even if the combined exposure (existing UGC
limit + proposed Kisan Tatkal Scheme limit) exceeds the present cut-off ceiling of
Rs.1.60 lakh.
Repayment Period:
 3 to 5 years in half yearly/annual installments coinciding with overall income
generation of the farmer
 Due date of repayment to coincide with the harvest and marketing of crop
Rate of Interest:
 Linked to MCLR as applicable to card rate for UGC (without interest
subvention).Additional Credit Risk premium for term loan over 1 year will be
applicable over and above interest rate based on the period of advances at the time
of sanction
 Interest Subvention benefit is not applicable
Charges / penal interest:
No penal interest for loans up to Rs.25,000/-In case of loans above Rs.25,000/-
penal interest to be charged as per extant guidelines
Security Documents:
1. Appropriate DPN
2. Hypothecation Agreement (for agricultural advances) – SD 07
4. Letter of General Lien and set off AD-02(A)
5. Extension of SM / EM of property if already done for UGC (no fresh collaterals
required) CIBIL – Letter of undertaking from the borrower / Guarantor
Disbursement:
After the harvest period of crops, farmers shall be eligible for the loan and the loan
sanctioned may be credited to SB account of the borrower
Classification: Priority Sector - Agriculture - Farm credit
Post-Sanction monitoring:
Half yearly visits may be under taken by the branch as applicable to UGC and
inspection reports to be held on record
Asset Classification:
Since it is essentially granted as post-harvest facility, to provide liquidity to farmers,
the 'crop season' delinquency norms will be applicable for asset classification.
PURCHASE OF LAND FOR AGRICULTURAL PURPOSE
Objective:
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 To make the small & marginal holdings economically viable

 To bring fallow lands and waste lands under cultivation
 To step up agricultural production and productivity including allied activities
 To increase the income of share croppers / tenant farmers / small and marginal
farmers
Purpose:
 To purchase agricultural land as well as,
 To purchase fallow & waste land to develop & cultivate the same with a view to
increase production / productivity.
 Aims to provide Term Loan facility to diversify the present activities and also to take-
up allied activities
Eligibility:
 Small & Marginal Farmers who own a maximum of 5 acres of non-irrigated land or
2.50 acres of irrigated land including the land proposed to be purchased.
 Share croppers / tenant Farmers cultivating up to 2.50 acres of irrigated land or 5
acres of un-irrigated land including the land proposed to be purchased.
 Proper documentary proof, showing cultivating rights, should be obtained in case of
share croppers/ tenant farmers.
 Agri. Entrepreneurs who does not own agricultural land but have agricultural
background are also eligible to avail loan for purchase of agricultural land, provided
the respective state laws permit, non-agriculturist to purchase agricultural land.
 Farmers should remain under the category of small farmer (5 acres of non-irrigated
land or 2.50 acres of irrigated land) even after purchasing the proposed land.
 If the farmer's existing land holding is a combination of both non-irrigated and
irrigated land, a conversion factor of 1:2 has to be applied.
Quantum of Loan:
 Valuation as assessed by the valuer as per IC No. 9089 dated 5.10.2011 and
confirmed by the BM or Guidance value / circle rate fixed by the state or Registration
value whichever of the above is lower subject to maximum loan amount of Rs.10
lakhs
 Plus value of stamp duty & registration charges for sale deed between seller &
purchaser
 Plus stamp duty and registration charges for the mortgage deed between the
borrower and Bank.
Margin:
 Minimum margin should be 20% irrespective of the loan amount.
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 Margin may be reduced to 10% by the sanctioning authority including BM based on

merits duly justifying the same in process note.
Charges / Penal interest:
 Processing charges, documentation charges, EM charges, inspection charges as
applicable to agriculture term loans
 No penal interest shall be charged for loans up to Rs.25000/-
 In case of loans above Rs.25000/- penal interest will be charged.
Security:
 As land being financed by the bank is a primary security, mortgage of land proposed
to be purchased has to be done irrespective of quantum of loan
 Also Mortgage of land presently owned, if any, as collateral security
 The loan amount should not exceed the value of present land + value of the proposed
land to be purchased
 Hypothecation of crops grown from time to time on the land
Documents to be submitted by the Applicant:
 Copies of land records regarding land owned and to be purchased, certified by the
concerned revenue Authorities.
 Documents of title and other relevant documents to establish the right over presently
held landed property as well as lands to be purchased is to be produced.
 Copy of sale agreement if entered into or offer letter by the vendor
Security documents:
1. Appropriate DPN.
2. Hypothecation Agreement (For Agricultural Advances) – SD 07.
3. Simple / Equitable mortgage of existing land & proposed land purchase (SD 12/
AD13).
4. Deed of guarantee (for agricultural advances) – SD 08 (if stipulated).
5. Letter of continuity – AD 09(M).
6. Letter of General lien and set off - AD-02(A).
7. CIBIL – Letter of undertaking from borrower / Guarantor.
8. Any other document stipulated by sanctioning authority.
Disbursement:
 The loans may be disbursed in 2 stages if sale formalities cannot be completed before
disbursement of loan for purchase of land:
 Initially, Demand Loan Repayable in installments (DLRI) (loan No.1) can be
sanctioned against any other security. The security may be in the form of deposits,
NSCs, or SM/EM of property (own or third party)
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 Before disbursing DLRI, legal Scrutiny Report (LSR) from the Bank's panel Advocate
on the landed properties to be mortgaged (both existing and proposed) is to be
obtained and the lands should have clear and marketable title.
 The draft sale deed shall be got approved by the panel advocate before disbursing
DLRI.
 The loan is to be disbursed by way of Demand Draft directly to the vendor after
collecting the margin money or after ascertaining advance paid supported by proof
of documents.
 Receipt from the vendor for having received the consideration / sale proceeds in full
shall be kept along with loan papers
 Later, on receipt of the original sale deed, term loan for purchase of land (loan no.
02) is to be disbursed after creating mortgage of the land purchased, directly to the
credit of DLRI loan opened earlier
 Once the DLRI is adjusted the security obtained for the same may be released except
in cases where SM / EM of the existing agricultural land of the borrower is created,
which will continue as collateral security for the land purchase loan
 If mortgage formalities can be completed both for the existing land (if any) and
proposed and before disbursing the loan for purchase of land, then creating DLRI
(loan No. 1) is not necessary.
Rate of Interest
 Applicable ROI separately for loan No. 1 & loan No. 2, depending on the loan amount
respectively, has to be charged as per MCLR circular issued by CO from time to
time.
 Credit Risk Premium for Agriculture term loan over one year will be applicable over
and above interest rate based on the period of advance
Repayment:
 7 to 10 years in half yearly / yearly installments including a maximum moratorium
period of 24 months. The due dates of installments should coincide with the harvest
and marketing of crops grown / proposed to be grown.
Delegated Authority: As applicable for Term loans.
Other Aspects:
 The branch should facilitate the borrower with credit requirements under revised
KCC scheme / land development / farm investments on the existing and proposed
land to be purchased
 It must be ensured that the purpose for which the land is purchased are also to be
financed.
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 The proposal should be subjected to credit rating to ensure that the same comes
within the investment grade CR-5 by using credit rating module UBI-1 if the loan
amount is between Rs.2 lakhs & Rs.10 lakhs (model as per IC No. 9230 dated
19.3.2012)
Classification: Priority Sector - Agriculture - Farm credit.
KCC - Allied Activities

Purpose:
The KCC facility will meet the short term credit requirements of rearing of animals,
birds, fish, shrimp, other aquatic organisms, capture of fish.
Eligibility:
6. Inland Fisheries and Aquaculture & Marine Fisheries:- Fishers, Fish
Farmers (individual & groups/ partners/ share croppers/ tenant farmers), Self
Help Groups, Joint Liability Groups and women groups.
7. Poultry and small ruminant :- Farmers, poultry farmers either individual or
joint borrower, Joint Liability Groups or Self Help Groups including tenant farmer
of sheep/goats/pigs/poultry /birds/ rabbit and having owned/rented/leased
sheds.
8. Dairy :- Farmers and Dairy farmers either individual or joint borrower, Joint
Liability Groups or Self Help Groups including tenant farmers having owned
/rented/leased sheds.
Scale of Finance:
The scale of finance will be fixed by the District Level Technical Committee
Drawing Power:
The drawing power will be worked on the basis of the latest valuation of stocks,
receivables and / or cash flows as per terms of sanction.
Repayment:
The loan will be in the nature of a revolving cash credit limit. Repayment will be fixed
as per the cash flow / income generation pattern of the activity undertaken by the
borrower.
Monitoring of end use:
• Branches will periodically review the facility and continue/withdraw/scale down the
facility based on the performance of the borrower
• The account / smart card for the loan issued under the scheme is to be maintained
/ issued separately from the existing KCC loan to monitor the utilization limit.
Prudential norms:
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The extant prudential norms on income recognition, asset classification and provisioning
on allied activities will be applicable.
Rate of Interest:
As applicable to agriculture and as advised from CO from time to time
Service Charges:
• Processing, Inspection & Documentation charges are Nil for limit up to Rs.3 lakhs.
• For limit above Rs.3 lakhs, Processing. Documentation & Inspection charges will be
applicable for entire limit.
Security:
• Primary: Hypothecation of Standing crop, livestock, Feed, Medicine and asset
created out of bank finance etc.
• Collateral: Mortgage of properties and / or third party guarantee if the quantum of
loan exceeds Rs.1, 60,000/- in addition to hypothecated crops / assets.
Interest Subvention:
• Interest subvention benefit will be available to those farmers who repaying loan in
stipulated time i.e. from the date of disbursement of the working capital loan up to
the actual date of repayment by farmers or up to the due date fixed by the banks
for repayment of loan, whichever is earlier, subject to a maximum period of one year
from the date of disbursement / withdrawals.
• The farmers already possessing KCCs and involved in activities related to animal
husbandry and fisheries can avail additional sub limit within an overall limit of Rs.3
lakhs with benefit of interest subvention and prompt repayment incentive.
• KCC holder farmers of animal husbandry and fisheries are concerned, the benefit of
interest subvention and prompt repayment incentive will be allowed up to the credit
limit of Rs.2 lakhs per annum.
• The limit for crop loan component will take priority for interest subvention and
prompt repayment incentive benefits and the residual amount will be considered
toward animal husbandry and / or fisheries subject to cap
Others:
• The maximum period to be considered for assessment of working capital
requirement will be based on the cash flow or completion of one production cycle.
Joint Liability Group finance

Objective
 To augment flow of credit to tenant farmers cultivating land either as oral lessees or
share croppers and small farmers who do not have proper title of their land holding
through formation and financing of JLGs.
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 To extend collateral free loans to tenant farmers through JLG in the form of cash
credit, short term / term loans
 Loans to JLGs can be for farm or for non-farm sector
 To build mutual trust and confidence between Banks and Tenant farmers.
 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.
Features of JLG
1. Joint Liability Group (JLG) is an informal group comprising preferably of 4 to 10
individuals coming together for the purposes of availing Bank loan either singly or
through the group mechanism against mutual guarantee.
2. JLG members would offer a joint undertaking to the Bank that enables them to avail
loans
3. JLGs can engage in similar type of economic activities may be farm sector or non-
farm Sector.
Financing for JLGs: Branches can finance JLG by adopting any of the two models
 Model A – Financing Individuals in the Group:
a) JLG consisting of 4 to 10 individuals would be eligible for accessing separate
individual loans from the financing Branch.
a) All members would jointly execute one joint liability agreement (making each one
jointly and severally liable for repayment of all loans taken by all individuals in
the group).
b) The financing branch could assess the credit requirement, depending on the crops
to be cultivated, cultivable land and credit absorption capacity of the individual.
c) For loans other than crop loan, it should be based on unit cost and repaying
capacity of the member of JLG
d) There has to be mutual agreement and consensus among all members about the
amount of individual debt liability that will be created including liability created
out of the individual KCC/ any other loan. Any member opting out of group or
joining the group will necessitate a new loan agreement, to be kept on record in
the branch.
Model B – Financing the Group:
a) The JLG would consist preferably of 4 to 10 individuals and function as one
borrowing unit.
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b) The group would be eligible for accessing one loan, which could be combined
credit requirement of all its members.
c) The credit assessment of the group should be based on the available cultivable
area of each member of the JLG / activity to be undertaken.
d) All members would jointly execute the document and own the debt liability jointly
and severally.
e) JLG is mainly a credit product. But, if the members want to save through the
group, branches can open saving account in the name of the JLG to be operated
by two members of the group as decided through a resolution by the JLG
f) The mutual agreement needs to ensure consensus among all members about the
amount of individual debt liability that will be created. Any change in composition
of the group, will lead to a new document being registered by the bank branch.
g) JLGs that undertake savings apart from credit are required to maintain books of
accounts.
h) They are graded by Branch on the basis of performance parameters. (Inf. Cir.
No. 11887 dated 28.9.2013. Minimum score should be 06 out of 10)
i) Quantum of credit need not be linked to group savings as in the case of SHGs.
j) The credit requirements for the group may be worked out based on combined
credit plan and needs of individual members.
Quantum of loan
 As loan to be granted is against the mutual guarantee offered by the group,
maximum amount of loan is restricted to Rs.1 lakh per individual without margin /
collateral security for agricultural crop loans and
 Up to Rs.50000/- per borrower for all other purposes other than agriculture crop
loan.(Inf. Cir. No. 11385 dated 12.10.2010)
Margin for other than crop loans
Loan limit Margins (in %)
Up to Rs.1.00 Nil
lakh
Above Rs.1.00 10-15%
lakh
Rate of Interest:
a) Rate of interest (ROI) for loans granted to JLGs should be as per the latest interest
circular meant for SHG s and JLGs.
b) However, for crop loans given to JLGs up to Rs.3 lakhs, 7% interest is to be charged.
27
c) Short term crop loans sanctioned to a JLG as a group, the per member cap of Rs.3
lakhs be considered while determining ROI under the interest subvention scheme
and not the aggregate amount sanctioned to a JLG
d) JLG is also eligible for additional subvention of 3% for prompt repayment of crop
loan as applicable to UGC
e) Additional Credit Risk premium for term loan over 1 year will be applicable over and
above interest rate based on the period of advances at the time of sanction for the
advances under agriculture category
Security
a) Hypothecation of assets financed
b) Mutual guarantee of the JLG members
No collaterals may be insisted upon by Branches for the loans to JLGs.
Security Documents
Model A:
1. Introduction form
2. Application cum appraisal form
3. Joint liability agreement. Formats for a, b, and c –IF 11277 dated 9.3.2010
4. Letter of guarantee
5. DP Note.
6. Hypothecation of asset financed
7. CIBIL – Letter of undertaking from the borrower/Guarantor
Model B: Documents as applicable to SHGs are to be obtained like,
1. DPN
2. Hypothecation of assets
3. Inter-se agreement
4. Articles of agreement
6. CIBIL – Letter of undertaking from the borrower/Guarantor
Sanctioning Authority: As per latest delegated authority circular issued from CO
Repayment of loan:
a) Loan sanctioned for crop production should be repaid as per seasonality, duration
and harvest of the crop
b) All other loans should be repaid within a maximum period of 3 years
Insurance
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 Branches should cover individual members of JLG under Personal Accident Insurance
scheme (PAIS), applicable for Union Green Card
 Comprehensive insurance of asset financed.
Crop Insurance
For crop loans, crop insurance to be done as per Pradhan Mantri Fasal Bima Yojana
Assessment of JLGs
JLGs scoring 6 out of 10 marks will be eligible for credit linkage (Inf.Cir. No.11887
dated 28.9.2013)
Bee Keeping
Advantages of Beekeeping
 Bee-keeping is an ideal subsidiary occupation and does not require much time and
capital. As India is predominantly an agricultural country, bee-keeping is a suitable
activity to augment the income of the farmers.
 Beekeeping has positive ecological consequences. Bees play an important role in the
pollination of many flowering plants, thus increasing the yield of crops.
 The Honey bee does not compete for resources with any other agricultural
enterprise.
 The market potential for honey and wax is high
Bee Management and Technical parameters:
a) Bee-keeping requires a thorough knowledge of the behaviour of bees and their
reactions to changing seasons. A bee keeper's success depends on as to how best
he manipulates his apiary during different seasons.
b) The hives should be protected from bee enemies like ants, moths, lizards, wasps,
birds etc
c) Bee colonies, by natural instinct, divide for multiplication of the species and this is
known as swarming. For higher yield of honey, the colonies should be strong and
therefore swarming should be controlled.
d) In spring the bees work vigorously. Extra supers may have to be provided and the
sealed combs are taken away in time. Supply of comb foundation sheets and drawn
combs will add to the efficiency.
e) It is desirable to re-queen the colony at least one in two years for prolific laying to
keep the strength of the colony.
f) Depending upon the flowering season, bees can be moved from a place of dearth to
another place. To tide over dearth, bees also migrate to fields with a view to pollinate
the flowers of a given crop thereby benefitting both the farmer and bee-keeper.
g) The beekeeper needs to have knowledge on diseases that may affect the bees.
29
Purpose:
Bank can extend finance for purchase of bee-hives along with accessories like bee
boxes, honey extractor, smoker, bee veil, bee knife, swarm catching net, hive
stands, honey drum, bee capturing expenses for bee colonies etc., and also to meet
maintenance cost / recurring cost.
Eligibility
 Small farmers, Marginal farmers, Agricultural labourers who are trained in bee-
keeping & individuals / Association of persons / Companies who possess adequate
experience in bee-keeping and are desirous of taking up bee-keeping activity on
commercial basis.
 Existence of space for installation of bee hives should be ensured.
Extent and Nature of facility
 Need based term loan as per unit cost approved by NABARD for that area. Provision
for initial recurring costs also forms an integral part of term loan only.
Margin
 UP to Rs. 1.60 lakhs- : Nil
 Above Rs. 1.60 lakhs: 10% to 15% , Subsidy, if any, can be treated as margin.
Rate of Interest
 As per latest interest rate circular and changes from time to time as applicable to
term loans
 Additional Credit Risk premium for term loan over 1 year will be applicable over and
above interest rate based on the period of advances at the time of sanction
Security:
 Up to Rs.1.60 lakh – Hypothecation of assets
 Above Rs.1.60 lakh – Mortgage of land and / or third party guarantee be taken in
addition to hypothecation of assets
Security Documents
1. Appropriate DP Note
2. Hypothecation agreement - SD-07
3. Letter of Continuity – AD 09(M)
4. Letter of general lien and set off – AD 02(A)
5. Deed of guarantee - SD –08, wherever applicable
6. Mortgage deed– SD–12 (for SM) OR AD-13(for EM), wherever applicable
7. CIBIL – Undertaking from the borrower/Guarantor
Processing Charges / Inspection Charges / Documentation Charges:
As applicable to agricultural advances
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Government Initiatives in promoting Bee Keeping Activity

 Department of Agriculture, Cooperation and farmers welfare, Govt. of India has been
giving thrust on promotion of scientific bee keeping in the country in view of the
crucial / vital role of bee keeping in increasing crop productivity and enhancing
farmers’ income.
 In this context Government of India has initiated various measures to promote bee
keeping viz. capacity building programmes of farmers/bee keepers for adoption of
scientific bee keeping, development of bee breeders, development of integrated bee
keeping Development centres / Centres of excellence, etc. Further a component of
“Pollination support through bee keeping” has been incorporated in the Mission for
Integrated Development of Horticulture (MIDH) by the ministry of agriculture for
promoting scientific bee keeping.
 National bee board has been designated as nodal agency for overall development of
scientific bee keeping.
 For adoption of scientific beekeeping, an economically viable unit would include 50
bee colonies, each of 8 frames bees, beehives, supers & other accessories, bee
keeping equipment etc., for which approximate investment of Rs. 2.20 to Rs.2.50
lakhs is required.
 For trained poor farmers/landless labourers / villagers/deprived categories in rural
areas, a subsidy at the rate of 40% limited to Rs.88,000/- per unit of 50 bee colonies
with bee hives, supers and other beekeeping equipment sets is being made available
under Mission for Integrated Development of Horticulture (MIDH) under the
component of "Pollination support through Beekeeping". The balance amount is to
be managed by the beneficiary through bank loan/ own sources.
Seed Production
Objective
To extend adequate and timely financial facilities to eligible entities to improve
provision of quality seeds/planting materials to the farming community at affordable
cost and encourage seed replacement at regular interval for better productivity.
Purpose:
 Assistance for production and multiplication seeds to be extended as crop loan if the
borrower is directly engaged in cultivation activities.
 Assistance for processing, certification and distribution can be extended for all types
of eligible entities even if the borrower is not engaged in cultivation activities.
Eligibility
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 Individual farmer including groups of individual farmers, farmers, producer

companies of individual farmers, partnership firms and co-operatives of farmers or
other entities engaged in production, multiplication, processing, certification or
distribution of Seeds.
 Seeds in the present context also include seedlings, spawns, tubers, bulbs,
rhizomes, roots, cuttings, all types of grafts and other propagation materials.
Quantum of loan
 Need / project base (depending on economic viability and technical feasibility)
Aggregate amount of exposure shall be up to Rs.10 crores.
 Seed production is different from crop production due to additional requirements on
compliance standards.
 Hence, usual scale of finance for crop production shall not be applied for seed
production.
Nature of facility
 Union Green Card.
 Short term loan or cash credit facility for day to day running of business /
operational expenses.
 Medium to long Term Loan for acquiring/maintenance of assets including
biological assets and / or for furnishing / construction of shop / showroom /
storage area and / or for repair / furnishing / renovating existing business
premises and / or purchase of furniture & fixtures and / or for purchase of delivery
vehicle / computer system / brand New equipment / business tools / other assets
necessary to smoothly running the business.
Rate of Interest
As per latest Interest Rate circular
Margin
 No margin in case of crop loans sanctioned as per scale of finance, wherever
available.
 In other cases, minimum 15% margin is to be stipulated.
Security
Prime: Charge over Fixed Asset / Book Debts / Stocks / Crops etc. (existing as well
as future) created out of the credit facility extended to the borrower and/or which
are directly associated with the business / project of the borrower for which the
credit facility has been extended including project land and superstructure thereon.
Collateral: Collateral security to the extent of at least 75% of the aggregate facility
shall be stipulated.
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Insurance
Comprehensive insurance of key assets created out of Bank loans with Bank’s clause
to be obtained.
Insurance of properties mortgaged to the Bank as per the extant guidelines is also
applicable.
Security Documents
1. Appropriate DPN
2. SD 07 Hypothecation agreement for Agri. Advances / SD – 06 (trade type of
advances)
3. Mortgage of the agri. property - SD 12 for SM, OR AD 13/14 for EM
4. Mortgage of property other than agriculture - SD 14/15 for SM, OR AD 13/14 for
EM as the case may be
5. Mortgage of lease hold rights of the property (if any) by way of EM
6. Letter of guarantee - SD 08 / SD-01 (if stipulated)
7. Letter of continuity – AD 09 (M)
8. Letter of general lien and set off – AD 02(A)
9. CIBIL Undertaking
10.Any other document stipulated in sanction advice
Sanctioning Authority: As per delegated authority circular as amended from time to
time
Disbursement
 Loan is to be disbursed by crediting the amount to the SB account of the borrower
 Bills / receipts need not to be obtained
Repayment
 Short term loans are repayable on due date.
 Term loans are repayable within 7 years including maximum 2 years of moratorium.
 Flexible / un-even repayment schedule is permitted if the same is supported by
DSCR / projected cash flow.
Other terms and conditions
 The scheme does not put any restriction on finance to bank able projects / customers
not fulfilling norms of the scheme. However in such cases, concession will not be
routinely made applicable.
 Benefits of concessions may also be granted to exiting eligible units at the time of
renewal / resetting. Thereafter, benefits may be continued till adjustment.
 Branches to assess the technical, economic and financial feasibility of the proposal
and the repaying capacity of the borrower.
33
Following key benchmark ratios can be accepted for granting credit facilities to the
units:
Current ratio 1.17 or above
Total Term Liability /TNW 3.00 or below
Average DSCR for Term 1.50 or above with a condition that in any year
Loan it should not be below 1.20
(The above ratios are indicative and deviations can be considered by the sanctioning
authority on case-to-case basis, incorporating justification for the same in the sanction
note)
Pledge Loan (WHR Finance)

Objective
• To provide liquidity (post-harvest finance) to the farmers and prevent them from
resorting to distress sale of their produce at the time of harvest.
• Better price realization for farmers, especially small and marginal farmers thereby
reduce poverty.
Eligibility
9. Non-defaulting farmers who have availed crop loans from our Bank.
10.Other farmers in Service Area/ Command Area having no dues / no objection
with / from other banks.
11.Advance can be granted to a farmer against produce stored in Central
Warehouses, State Warehouses, NBHC warehouses {IC 7480 dt 11.09.2006} or
Approved Warehouses / Cold Storages.
12.Advance can also be granted to a farmer against produce stored separately in his
rural godown / house itself.
Quantum of loan
• Up to 50- 75% of the market value or value as per minimum support price of
agricultural commodity as declared by the Government or fortnightly price of a
commodity announced by respective regional office whichever is lower, subject
to a maximum of Rs.50.00 lakhs.
• On sanction, crop loan outstanding if any to adjusted and remaining amount
should be credited to farmer’s SB account.
Assessment of loan amount:
a) Price of the commodity prevailing in the local market/nearest market; or
b) Price mentioned in the warehouse receipt (if mentioned); or
34
c) Price communicated by Regional office;

d) Whichever is lowest
e) Permissible finance can be fixed after deducting stipulated margin on valuation
as arrived above.
Rate of Interest:
Rate of Interest circular issued by Central Office from time to time
Margin:
 As stipulated for approved commodities from CO from time to time.
 It varies from 25% to 50%.(vary from commodity to commodity)
 Value of commodity pledged with respect to amount outstanding should be
closely monitored by the branch in all cases;
 Wherever margin declines by 05% from the stipulated level, the borrower should
be intimated to provide top up margin either by calling for reduction of the
outstanding balance or increase in the commodity cover within a week failing
which suitable
 Action should be initiated by the branch for maintaining margin at stipulated level
(Margin Call)
Prime Security:
Pledge / Lien of warehouse receipts covering stocks of agricultural commodities
in warehouses of Central / State Warehousing Corporations, and / or accredited
collateral Manager’s storage area, and / or approved private warehouses / cold
storages and / or Hypothecation / pledge of agricultural produce stored
separately with the cultivator.
Not mandatory. However, branch can explore the possibility of getting collateral
security in case of loan sanctioned against the pledge of receipts issued from
private warehouses/godowns/cold storage. Appropriate collateral security to the
extent of 100% of amount of loan like Equitable/Simple mortgage of immovable
property or charge on marketable security may be stipulated or charge over land
mortgaged to bank may also extended wherever produces are stored in own
godowns/ house
Security Documents:
8. Application form
9. Appropriate DPN
10.Pledge agreement - SD 02 / Term Loan Agreement
35
11.Negotiable warehouse / cold storage receipt OR non-negotiable WHR standing in

the name of the borrower duly endorsed in Bank’s favour.
12.Our lien over Agricultural commodities / stocks stored in warehouse / cold storage
should be registered with the central / state warehousing corporation / approved
private warehouse / cold storage or accredited collateral manager’s storage area
13.Hypothecation agreement and an undertaking from the borrower that the
produce shall not be disposed of before adjustment of loan in lieu of duly
endorsed receipt / pledge
14.Agreement (cases where the produce stored at own rural godowns or stored
without engaging collateral Manager) SD 07
15.Letter of continuity - AD 09(M)
16.Letter of general lien and set off – AD (02) A
17.Letter of guarantee - SD 08 (if stipulated)
18.CIBIL – Letter of undertaking from borrower / Guarantor
Sanctioning Authority:
Individual loans to farmers should be sanctioned by branch/Regional office under
their delegated authority
Sanction & Disbursement:
a) The advance should be sanctioned to the farmers after lodgment of warehouse
receipts of central / State Warehouse Corporation / approved private warehouses
/ cold storage / rural godowns duly endorsed in bank’s favour.
b) After spot verification of genuineness of all receipts / commodities.
c) Detailed terms and conditions should be communicated to the farmer and
acknowledgement and acceptance letter to be obtained and to be held on record.
d) The balance amount after adjustment of existing crop loan if any should be
disbursed to the farmer’s account
Repayment:
• Entire loan amount along with accrued interest should be repaid within 12
months. Repayment period should be fixed based on the shelf life / prevailing
market condition of commodities at the time of sanctioning loan. No rollover of
credit facility is permitted.
• Part payments are allowed and proportionate security can be released.
Subvention:
a) Interest subvention to small and marginal farmers (SF/MF) having UGC loans
against Negotiable Warehouse Receipt (NWR) for maximum period up to 06
months post harvesting i.e. ROI to be charged is 7% to the loan account
36
b) Additional subvention of 3% per annum will also be provided to SF / MF whose

pays their loan as per the sanction stipulation i.e. within 12 months.
c) However additional subvention is available for a maximum period of 6 months
only
d) NWR loans up to and inclusive of Rs.3 lakhs are eligible for above subvention
benefits
Loan against Silver Ornaments

Objective
To help the farmers to meet short, medium and long term needs of agriculture and
allied activities
Eligibility
13.Any person engaged in agriculture or allied activities
14.Any individual/joint individual owning silver ornaments and Jewelry singly or
jointly.
15.Staff and their spouse are also eligible
Restrictions:
• The loan should be against pure silver jewellery and not against silver
vessels/articles
• Any person not engaged in agriculture
Type of loan:
• Short term production of crops / cash credit / short term loans (duration up to 1
year)
• In case of UGC, the limit is valid up to 5 years , subject to every year review
• Term loan for a period 36 to 60 months depending upon the purpose
Quantum of loan
1. For crop production it is based on the Scale of Finance or
2. For other than crop production it is actual credit requirement by the farmers or
3. Value of silver jewellery with 40% margin
Whichever is lower subject to maximum of Rs.5 lakhs
• While sanctioning crop loan component under UGC, up to 200% of SoF as fixed
by DLTC can be considered subject to “whichever is lower” concept is taken into
consideration as mentioned above
• However RO permission has to be obtained while considering SoF up to 200%
• Silver loan sanctioned for the crop loan component under UGC, the limit will be
fixed for the eligible amount for the 5th year. Hence value of the silver ornaments
37
obtained should cover the 05th year limit, even though the DP for the earlier
years are less the 5th year limit
Rate of Interest:
• As applicable to silver loans for agricultural advances mentioned separately in
the said circular subject to any changes made from time to time.
• Silver loan classified as agriculture loans extended for meeting cost of seasonal
operations of crops (crop loan) up to credit limit of Rs.3 lakhs under UGC scheme
only will be eligible for rate of interest of 7% per annum with interest subvention
to be claimed by the branch.
• For silver loan sanctioned for crop loan component under UGC, which is valid for
5 years, ROI applicable to Drawing Power (DP) of the particular year has to be
charged to the account and not the ROI applicable to the limit sanctioned for the
5th year
• However ROI applicable for the 5th year limit has to written on the security
documents
• Farmer is eligible for additional subvention of 3% for prompt repayment if the
loan is considered under UGC scheme. Menu option “PROMSUB” is created in
Finacle for crediting additional interest subvention of 3% to the customer’s
account for prompt payment of gold loan availed for raising crops up to Rs. 3.00
lakhs. The branch has to run the menu on date of repayment or closure of the
account. Report also can be generated in Finacle using this menu
• Additional Credit Risk premium for term loan over 1 year will be applicable over
and above interest rate based on the period of advances at the time of sanction
Margin:
Silver Jewelry- 40%
Documents to be provided by the applicant:
• Irrespective of the purposes(Agriculture only), for loan amount up to Rs.1 lakh
documentary proof and end utilization need not be insisted from the borrower as
farmers may avail the facility for emergent purpose only.
• When the loan given is up to Rs.1 lakh for meeting emergent needs, the party will
not be eligible for subvention.
• For loans above Rs.1 lakh sanctioned for crop production purposes, branch should
obtain a declaration to this effect indicating crop cultivated as well as a copy of
applicable land records as proof of land holding.
• Agricultural loans above Rs.1 lakh for other than crop loan, necessary proof of
activities/purposes to be obtained.
38
Security:
• Primary security: Hypothecation of crops and assets created out of loan.
• Collateral security: Pledge of silver jewelry
Security Documents
19.Application
20.Appropriate DPN
21.Pledge agreement
22.Hypothecation agreement for agricultural advances (SD 07)
• Delegated authority has to be exercised as per the scale of BM, subject to maximum
of Rs.5.00 lakhs for agricultural loans
• For crop loans sanctioned against silver ornaments under Union Green card scheme,
delegated authority applicable to working capital advances to be followed
• For agricultural loans other than crop loan, delegated authority depending up on the
scale of the BM as applicable to term loans subject to maximum of Rs.5.00 lakhs
• Loan may also be sanctioned to Bank’s staff in the name of their spouse by Branch
Managers as per scale of BM
• In case of loans to wife/husband of Branch Manager, the next sanctioning authority
will sanction the loan
Disbursement:
• The proceeds of the loan may be credited to the savings account of the borrower
• In case of CC / OD facility, the borrower may be allowed to draw from the account
directly depending on the need
• Cheque book facility may be extended only to literate borrowers in case of CC / OD
facility
• In case of UGC loans, RuPay ATM card may be given to individual literate borrower
Repayment
 Cash credit / overdraft / UGC:
a) Tenability / tenor of the loan up to 01 year subject to annual review
b) For a period of 05 years in case of Union Green Card (UGC) scheme subject
to annual review
 Demand Loan:
39
a) The repayment should be based on the income generation coinciding with

harvest and the marketing time, total period not exceeding 18 months
 Term Loan:
a) 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/income generation from the activity
Farm Transport Scheme

Purpose:
• For purchasing of new two / three / four wheelers / trucks / jeeps / pick-up vans,
Refrigerated Van, Delivery Vehicles, Mini Trucks, Vehicle with trolley etc. by the
agriculturists.
Eligibility:
• The applicant should be an agriculturist having sizeable own land.
• While financing to farmers, their repaying capacity to be ascertained carefully.
• Age of borrower restricted to 70 years.
• The finance may be considered preferably in case of :-
 Agriculturists having scattered land holding/land in two or more villages in more
than one piece/farm situated far away from residence.
 Agriculturists following intensive and multiple cropping systems.
 Agriculturists adopting heterogeneous activities, mixed farming practices viz.
Dairy, Poultry, Fisheries, Sericulture, Bee Keeping, etc., growing of vegetables,
horticulture, plantation or other such activities with seasonal crops.
 Agriculturists staying far away from agriculture produce markets/other markets.
 The applicant should be from service area village/within operational area of
branch.
Loan Limit:
• 85% of the cost of the vehicle (Ex-showroom price) excluding insurance charges &
registration charges, etc. subject to:
Maximum loan
Type of Vehicle
amount
Two Wheeler Rs. 1 lakh
Three wheeler Rs. 5 lakhs
Four wheeler Rs. 25 lakhs
Margin: 15% of the cost of the vehicle. All other charges & Taxes like insurance charges
& registration charges, etc. is to be borne by the Applicant.
40
Rate of Interest:
As per extant guidelines on Rate of Interest
Service charges:
As per extant guidelines on Service charges
Security:
loans up to  Hypothecation of vehicle & accessories.
Rs.1.60 lakh
loans above  Hypothecation of vehicle accessories and
Rs.1.60 lakh  Mortgage of land (Accepted value of land
should be more than 50% of loan amount)
and / or third party guarantee.
Guarantee:
• Guarantee of spouse must be obtained. In case borrower is single (Unmarried/
Widow/ Divorcee), 3rd party guarantee having means of at least equal to loan
amount be obtained.
Income criteria:
• Preferably Income tax return filed by borrower for last financial year should be
obtained as income proof.
or
• In case Income Tax Return is not available, Income Certificate issued by Tehsildar /
Block Level Revenue Authority should be obtained.
or
• In case where both ITR & Income Certificate from Tehsildar are not available, branch
may ascertain the income on the basis of land holding, cropping pattern & income
from allied activities, Spouse/Children Income, etc. and satisfy itself regarding his
income & the capacity of the borrower to repay the loan installment (Principle +
Interest). The calculation of the same must be held on record.
• 75% of net income should be considered for assessment of the repayment capacity
Disbursement:
• Loan amount along with margin amount should be paid directly to Dealers or
Suppliers by way of NEFT / RTGS only. Bills / invoices duly signed by borrowers
should be obtained & held on record. Post disbursement inspection should be carried
out & report should be kept on record.
Repayment Period:
41
2 Wheelers Max 3 years including moratorium

period
period
period
• Maximum moratorium period of 6 months. Repayment schedule can be fixed as per

the cash flow i.e. half yearly/ Quarterly/Monthly installments coinciding with the
surplus available with the farmer after harvesting/marketing of agriculture produce
or otherwise based on cash flow.
2 Branches are authorized to sanction only 2 wheeler vehicles with a
wheeler cap of 10 vehicles per year per branch.
3 or 4 sourced through spoke branch & processed at Union Samriddhi
wheeler Kendra & Sanctioned by USK Head / higher authority
Branches other than RuSU (Spoke & Hub) model are not permitted
to sanction proposals. Delegated authority is rest with Regional
Office only.
Security Documents:
1. DP Note
2. Hypothecation agreement – SD 07
3. Deed of guarantee - SD 08 (If applicable)
4. Mortgage deed– SD 12 (for SM) or AD 13 (for EM)
5. Letter of Continuity – AD 09 (M)
6. Letter of General Lien and set off – AD 02 (A)
7. Comprehensive insurance policy of vehicle with 3rd party coverage.
8. Lien on Bank in RC book.
9. Blank transfer forms – 29, 30, 31
10.MCLR Documents (SD – 24 & Modified AD – 09)
11.Duplicate key.
Other Terms & Conditions
• Processing charges to be debited to the linked operative account of the customer.
All the applicable charges viz. processing charges, vetting charges, insurance
premium etc., are to be debited from operative account only.
42
• Wherever available seeding of mobile no & / or e-mail Id of the customer/Guarantors

in the CIF ID of customer is to be done, so that provision for centralized
reminders/notices to the customers for overdue in loan accounts can be made and
delivered promptly.
• Branches to use services of Government of India under VAHAN SEVA (wherever
applicable) as available in particular state (National Register e-Services of Registered
Vehicles), wherein it provides SMS based facility by which one can get details of the
following information through SMS to 7738299899 or by visiting site vahan.nic.in
• Vehicle registration number
• Owner name
• Vehicle detail (model and vehicle type i.e., Car / Scooter)
• Expiry of Registration Certificate (RC)
• Name of financier
• Detail of tax paid
• Insurance validity and endorsement thereof.
• Branches to keep print-out of VAHAN SEVA inquiry in the record.
• Further proof of having done the vehicle search is to be held on record along with
post disbursement. On each such inspection, the report to be kept on record.
Special Instructions:
• Bank’s hypothecation charge on vehicle should be registered with RTA and ensured
that Bank's lien is recorded in registration book.
• A copy of the registration book evidencing charge should be obtained and kept on
record.
• The vehicle should be comprehensively insured in the name of the borrower with
Bank clause (Bank & Branch Name) for its full cost, and the relative policy should be
kept on record. Branches may explore the possibilities of obtaining insurance cover
from companies which have tie-up arrangement with our Bank.
• Two blank TTO forms duly signed by the borrower should be obtained and kept on
record.
• Bank's name should be painted or Sticker to be affixed on the vehicle.
Explore the possibility to obtain life insurance coverage for borrower.
Estate Purchase Loan

Purpose
• To purchase estates growing traditional plantation crops viz. Coffee, tea, rubber,
cardamom, cashew, pepper, coconut and other perennial orchard crops.
Eligibility
43
16.The Borrower should have yielding estates and should be in a position to

rejuvenate the estate proposed to be purchased.
17.The intending borrowers should have satisfactory past dealings with the Bank.
18.The purchaser should be experienced in the line, financially sound and should be
in a position to bring in margin and service the debt.
19.The intending buyer should qualify the respective State Govt. norms of being an
agriculturist / satisfy the income criteria stipulated by the State Government, if
any.
20.The estate should preferably be a neglected one. The estate should have the
potential for realizing higher yields. The Estate should have the potential to
absorb substantial credit for development activities.
21.The total landholding including the land to be acquired should be within the .land
ceiling norms of respective state.
Quantum of loan
• Shall be based on the lowest of (i) Market value (ii) Guidance value / Circle rate
fixed by the state, or (iii) Purchase consideration
• The stamp duty and registration charges may also be considered.
• For the purpose of the valuation of land to be purchased, price indicated may be
cross checked with the last five years average registration value available with the
Registrar / Sub Registrar of the area and a view is to be taken by Bank for fixing the
quantum of finance.
• Valuation report in respect of estate proposed for purchase to be obtained as per
extant guidelines.
Margin
• Normally 50% on purchase consideration / registration amount or value of the
estate, whichever is lower. However, in deserving cases, margin may be relaxed up
to 25% by the next higher authority subject to condition that the cost of
registration/stamp duty is not considered in the project cost.
• The cost of registration / stamp duty may be considered in the project cost as
suggested, in view of steep cost in such charges and in such cases the margin need
to be kept at 50% only without further relaxation.
Security
• Mortgage of estate proposed to be purchased. Also collateral security by way of
mortgage of existing landed properties / including preferably residential property is
to be obtained.
44
• In any case, the value of the security should not be less than 200% of the loan
amount.
• Hypothecation of plantation crops on the land / estate.
Rate of Interest:
As per extant guidelines
Penal Interest:
• No penal interest shall be charged for loans up to Rs.25000.
• In case of loans above Rs.25000-/, penal interest to be charged as per the extant
guidelines.
Repayment period:
• The loan should be repayable within 9 years including a maximum moratorium period
up to the stages of crops attaining productive stage.
• In specific cases, depending on the status of the estate and rejuvenation period
required, it may be extended up to 20 years. The justification for stipulating
repayment period beyond 09 years should be vested with next higher authority.
Documents to be produced by the applicant
• Copies of land records regarding land owned and to be purchased, duly certified by
the concerned Revenue Authorities.
• No due certificate from Co Operative Credit Society / Commodity Boards / Financial
Institutions. This can be waived provided sanctioning authority is satisfied that the
applicant does not have Liability with society / financial institutions for loan up to
Rs.1 lakh.
• Documents of title and other relevant documents to establish the right over the
presently held landed property as well as land to be purchased are to be produced.
• Copy of sale agreement if entered into or offer letter by the vendor
• Crop history of the Estate to be purchased as well as existing Estates
• Valuation report of the Estate to be purchased from panel valuer and Non
Encumbrance Certificate legal opinion from panel advocate
Application & Documentation:
Applications as applicable to plantation may be obtained
Pre-Sanction visit:
• Branch Manager / RDO of the Bank should visit the farm to assess the technical
feasibility and economic viability of the proposal.
• The crop history of the Estate may be recorded at least for 4 to 5 years and analyzed
and confirm the potential of rejuvenation.
Disbursement
45
The loans are to be disbursed in stages

• Initially, Demand Loan will be sanctioned on the security of other collateral (if any)
to purchase the Estate.
• The loan is to be disbursed by way of Demand Draft directly to the vendor after
collecting the margin money or after ascertaining the advance paid with
documentary proof.
• Later, on receipt of the original sale deed, Term Loan is to be disbursed on putting
through EMT/Mortgage.
• The liability under Demand loan to be cleared by aforesaid term loan.
• Before disbursing DPN, Legal Scrutiny Report (LSR) from the Bank's panel Advocate
on the landed properties to be mortgaged is to be obtained and the lands should
have clear and marketable title.
• The legal opinion inter alia should specify whether the borrower qualifies for
purchase of land as per the provision of Land Reforms Act etc., prevailing in the
State.
• The draft sale deed shall be got approved by the panel advocate before disbursing
Demand loan.
• Receipt from the vendor for having received the consideration/sale proceeds in full
shall be kept along with loan papers.
Post Sanction monitoring
• Follow up visit to be undertaken to find out status of the activity of the borrower and
to give technical guidance and to remind the borrower of repayment in case of
default.
• Half yearly visit may be undertaken by the branch in respect of regular accounts.
Service charges
• As per extant guidelines on Service charges
• Processing charges to be debited to the linked operative account of the customer.
Delegated Authority
• As per extant guidelines on Delegated Authority
Other Aspects
• The Bank should facilitate the borrower with credit requirements under revised UGC
scheme / development / farm investment on the lands proposed to be purchased.
46
Renewable Energy Equipment

A. Financing solar energy based pump set loans:
Purpose:
Loan will be granted for installation of solar water pumping system. The proposed
scheme will help in harnessing the solar energy for pumping water by water pumps.
Eligibility:
1. The farmers' land should have adequate source of water. In case, any
public/Government source is being used like canal water, permission from
government / irrigation department should be produced to lift the water.
2. In case of Wells they should have sufficient recouping / recharging capacity to
irrigate the area proposed to be brought under irrigation.
3. Farmer should own an economic land holding with a minimum of 10 acres.
However, loans can be considered even if the benefiting area is less than 10 acres
provided the farmer is able to sell surplus water.
4. It is also possible that due to Technical limitation of solar pump set has been that
it can work at low Heads only (shallow water source) and low capacity (2.50 HP
Pump sets) and hence capacity to irrigate small area only (1-2 Hectares) due to
small discharge. In such cases it should be ensured that viability is ensured and
projected DSCR is not less than 1.60
Components:
1. Solar PV panel
2. One of the following motor pump sets compatible with the photovoltaic array:
a) Surface mounted centrifugal pump set,
b) Submersible pump set,
c) Floating pump set,
d) Any other type of motor-pump set, after approval from MNRE.
Quantum of loan: Maximum 75% of the cost of the equipment
Rate of Interest: As per extant guidelines
Margin: Minimum 25% if subsidy is available, the same can be considered as margin
Security:
Loans up to Hypothecation of equipment / assets financed
Rs.1.60 lakh
Loans above  Hypothecation of equipment / assets financed
Rs.1.60 lakh and
47
 Mortgage of land (Accepted value of land should

be more than 100% of loan amount) &/ or third
party guarantee.
Service charges: As per extant guidelines

Delegated Authority: As per extant guidelines
Repayment:
• In suitable installments coinciding with overall income generation of farmers without
linking to any individual project within a maximum period of 07 years
• Repayment should normally coincide with the harvest and marketing of the crop.
Classification: Priority Sector - Agriculture
B. Solar water heater:
Purpose:
To purchase brand new solar water heating systems with necessary accessories for
usage in Agro processing Units
Eligibility: Small & Marginal farmers / share croppers / tenant farmers / Entrepreneurs
Loan Amount: Maximum 85% of the project cost including the cost of accessories
Margin:
Minimum 15% of the cost of equipment’s including the cost of accessories.
If subsidy is available, the same can be considered as margin
Security:
loans up to  Hypothecation of equipment / assets
Rs.1.60 lakh financed.
loans above Hypothecation of equipment / assets
Rs.1.60 lakh financed and
 Mortgage of land (Accepted value of
land should be more than 100% of
loan amount) & / or third party
guarantee.

Repayment:
In suitable installments coinciding with overall income generation of farmers without
48

C. Solar Home lightening Scheme:
Purpose:
• Solar home lighting system aims at providing electricity for operating LED lights and
small DC loads for specified hours of operation per day in rural farms.
• Solar Lighting Models :
• Model-l One white LED luminaire
• PV Module 6Wp under STC, measured at 16.4V as Vload. Module Voc minimum
of 21V. Battery Sealed maintenance free, 12V-7 AH@C/20, Max DoD-75%
• Model-ll Two white LED luminaire
• PV Module 12Wp under STC, measured at 16.4V as Vload. Module Voc
minimum of 21V. Battery Lead acid flooded or VRLA 12V-12 AH@C/20, Max
DoD-75%
• Model-Ill Two white LED luminaire & one DC fan of wattage I upto 10W
DoD-75%
• Model-IV Four white LED
DoD-75%
Eligibility: Small & Marginal farmers / share croppers / tenant farmers / Entrepreneurs
Loan Amount: Maximum 85% of the project cost including the cost of accessories
Margin:
Minimum 15% of the cost of equipment’s including the cost of accessories.
If subsidy is available, the same can be considered as margin
Security:
loans up to Hypothecation of equipment / assets financed
Rs.1.60 lakhs
loans above  Hypothecation of equipment / assets financed and
Rs.1.60 lakhs  Mortgage of land (Accepted value of land should be more
than 100% of loan amount) &/ or third party guarantee

49
Repayment:
In suitable installments coinciding with overall income generation of farmers without
Financing to Food & Agro Processing Units

Objective
 To meet the working capital requirements of food and agro processing activities
 For purchase of new machinery, equipment, expansion of unit
 For construction/renovation of factory building
Eligibility
 Existing and proposed food and agro based industrial units.
 Individuals, proprietorship, partnership concerns (including LLPs), Limited
companies, etc. engaged in the activity
 Units with internal rating minimum CR/UBC-4 & only those accounts are eligible
under the scheme which are having external credit rating of BB and better
 External rating is applicable in case of limit more than Rs. 25 crores
o Minimum CR: 1.17:1
o DER of 2.00:1
o TOL/TNW : 4:1
o DSCR: 1.50:1 (min DSCR 1.20 with average of 1.50)
Quantum of loan
Limit based on requirements and financials of the borrower to be assessed as per
Bank’s loan policy. Minimum amount of loan Rs.0.10 crores and maximum amount
of loan Rs.100 crores from entire banking system.
Rate of Interest: As per extant guidelines on Rate of Interest
Margin:
25% for stock
25% for Book debts
25% for term loan (acquisition of plant & machinery)
35% for factory building (construction/renovation)
Security:
 Primary: Hypothecation of stock & Book debts
 Collateral:
o Minimum collateral coverage to be 50% for limit upto Rs. 10.00 crores
o Minimum collateral coverage to be 40% for limit above Rs. 10 crores upto Rs.
50 crores, minimum collateral value ≥ Rs.5 crores
50
o Minimum collateral coverage to be 30% for limit above Rs. 50.00 crores up to
Rs. 100 crores, but minimum collateral value ≥ Rs. 20 crores
o If factory land & building, plant & machinery are offered as collateral security
then land/building should be either owned by the proprietor/partner/promoter
director/firm.
o ZLCC is empowered to permit deviation in collateral coverage up to 25% on
merits of case to case basis.
Guarantee:
Personal guarantee of promoter, directors, proprietor, partners of the firm/company
having sufficient means and of all mortgagor of collateral security
Appraisal:
Turnover method for working capital limit at 20% of the projected turnover
acceptable by the Bank up to the limit of Rs.5 crores and Flexible Bank Finance
Method for > Rs.5 crores
Repayment:
Working capital should be renewed in 12 months. Term loan to be repaid in
maximum 84 monthly installments inclusive of moratorium period
Account Label:
All branches are advised to enter label “FOODAGRO” in all existing as well as new
accounts
Other conditions:
 After 1.4.2020, stipulated collateral coverage as per revised scheme is to be
complied within 6 months from the date of renewal of working capital facilities or
else additional interest of 0.50% to be charges in the account
NURSERY UNITS
Objective
 Finance for establishment & maintenance of Mother Plant Garden
 Nurseries for growing Rootstock/Vegetable seedlings
 Erection of Poly house/ Green house, Shade net, etc.
 Establishment of Infrastructures & Utilities - Office Room, Store Room, Labour
Quarter, Fencing, Irrigation System & Other required equipments, etc.
 Land Development & Other developmental costs.
 The scheme is revalidated from 01.01.2019 and will be valid till 28.02.2021
Eligibility
 Nursery unit on own agriculture land: Borrower should have agriculture land in
his / her name.
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 Nursery unit on rented agriculture land: Most of the farmers are doing nursery
business on rented agriculture land having good connectivity to the nursery site.
There is good scope for financing such nursery owners with following conditions.
i. Rent agreement between Lessee and the land owner should be registered.
ii. Residual Lease period should be more than the tenure of loan.
iii. The land on which Nursery will be established to be mortgaged to the bank. In
case Nursery land is not available for mortgage, other collateral security of
equivalent value of loan amount is to be obtained.
iv. The owner of the land offered for mortgage to give Personal Guarantee for the
loan under the scheme.
 There should be assured & adequate perennial source of irrigation for the nursery.
 Applicant should obtain all required licenses I permissions for proposed business from
respective competent authority.
 Loan will be sanctioned depending upon the Nursery unit area and total project cost.
 Defaulters of any financial institution are not eligible for loan under such scheme
Quantum of loan
 As per NABARD / NHB / NHM guidelines subject to economic viability of the project
 Wherever it is specified that “Unit cost as per NABARD / NHM / NHB guidelines” is
to be followed, the delegated authority is authorized to consider 20% up & down
variation from NABARD / NHB / NHM unit cost with proper justification
 Minimum loan amount: Rs.50000/-
 Maximum loan amount: Rs.1 crores per individual borrower (Composite loan)
Margin: For both CC & TL: Minimum 20%
Security:
 Primary:
o Term loan: Hypothecation of plants and other assets purchased out of bank
finance
o Cash Credit: Hypothecation of plants and other assets purchased out of bank
finance and hypothecation of paid up stock and receivables
 Collateral:
o For loan up to Rs. 1.60 lakh: Nil
o For loan above Rs. 1.60 lakh up to Rs. 3.00 lakh: Mortgage of nursery
land or any other collateral acceptable to the bank & I or Third Party guarantee
with means at least equal to loan amount is to be obtained for entire exposure.
52
Property offered as collateral should be easily marketable & acceptable to the

bank.
o For Loan amount above Rs. 3.00 Lakh – Mortgage of nursery land or any
other collateral acceptable to the bank. Value of collateral should not to be
less than the amount of loan. Property offered as collateral should be easily
marketable & acceptable to the bank and personal guarantee of third party
having adequate means (at least equal to loan amount) is to be obtained
for entire exposure
Operational Guidelines:
 KYC & due diligence verification of the borrower /guarantors is to be carried out by
branch officials as per the extant guidelines.
 Pre-sanction inspection should be carried out by branch officials to verify assured &
adequate water supply, availability of electricity and other farm inputs.
 Post disbursement inspection should be carried out to verify end use of funds.
 Assets created by bank finance and Collateral property if any (other than land)
should be comprehensively insured with bank clause.
 Credit rating is to be carried out as per extant guidelines.
 Applicant should have permanent electricity connection at the nursery site.
Other conditions:
 Processing charges to be debited to the linked operative account of the customer.
All the applicable charges viz. processing charges, vetting charges, insurance
premium etc. are to be debited from operative account only.
 Wherever available seeding of mobile no & / or email Id of the
customer/guarantors in the CIF ID of customer is to be done, so that provision
for centralized reminders/notices to the customers for overdue in loan accounts
can be made and delivered promptly
Union agri. services

Objective
 Support farm mechanization by making available farm equipment/ machineries to
the farmer, especially small and marginal farmers to ensure timeliness of farm
operations thus ultimately leading to increase in agriculture production and
productivity.
 As per RBI guidelines, loans to Custom Service Units managed by individuals,
institutions or organizations who maintain a fleet of tractors, bulldozers, well-
boring equipment, threshers, combines, etc., and undertake farm work for farmers
on contract basis will be a part of ‘Agriculture Advances’ under ancillary activities.
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 In the extant scheme, agri-service and custom service are identical in meaning and
loans extended under Union Agri Service scheme shall be a part of Agriculture
Advances
Eligibility
 Applicant shall be Individuals, institutions or organizations (also include
firm/company) who maintain/desire to maintain a fleet of tractors, bulldozers,
well-boring equipment, threshers, combines etc., and undertake farm work for
farmers on contract/hire basis.
 Overall demand and supply position at the command area of the unit shall be
conductive for running the unit in a viable manner.
Quantum of loan
 Need /project based depending on economic viability and technical feasibility.
 Maximum limit shall be restricted to Rs. 5.00 crores per borrower.
 For limit above Rs. 5.00 crores in deserving cases, prior permission of the Central
Office may be obtained.
Margin:
 For New Assets: 25%
 For 2nd Hand / used Assets: 40%
Nature of facility
 Short term loan or cash credit facility for day to day running of business / operational
expenses.
 Medium to long Term Loan for acquiring/ maintenance of fleets and other assets
necessary to smoothly run the business.
 Loan for purchase of second hand/used equipment (Not older than 3 years) is not
permitted except in cases of tractors and combine harvesters where valuation shall
be lowest of purchase cost, value assessed / certified by an authorized dealer of the
make, value as per valuation report of an approved automobile valuer, insurance
valuer and value calculated by applying 15% depreciation p.a. on reducing balance
basis.
Security:
 Prime Security: Charge over asset created out of Bank finance.
 Collateral Security:
o Mortgage of immovable property and Hypothecation of non-encumbered
existing fleet not older than 2 years &/or pledge of specified financial
54
assets (FOR, NSC etc.) Value of collateral will be not less than 50% of the
loan amount.
o Stipulation for collateral security may be relaxed in deserving cases by
Sanctioning Authority in lieu of third party guarantee of acceptable means.
o Collateral security/third party Guarantee is not applicable for Agri
Clinics/Agribusiness Centers eligible under CGTMSE scheme. However,
relevant guidelines of CGTMSE scheme shall be applicable in such cases
Other conditions:
 All the applicable charges viz. processing charges, vetting charges, insurance
premium etc. are to be debited from operative account only.
 Wherever available seeding of mobile no / email Id of the customer/Guarantors in
the CIF ID of customer is to be done, so that provision for centralized
reminders/notices to the customers for overdue in loan accounts can be made and
delivered promptly.
 Branches to use services of Government of India under VAHAN SEVA (wherever
applicable) as available in particular state (National Register e-Services of Registered
Vehicles), wherein it provides SMS based facility by which one can get details of the
following information through SMS to 7738299899 or by visiting site vahan.nic.in.
o Vehicle registration number
o Owner name
o Vehicle detail (model and vehicle type i.e. Car / scooter)
o Expiry of Registration Certificate (RC)
o Name of financier
o Detail of tax paid
o Insurance validity and endorsement thereof.
o Branches to keep print-out of VAHAN SEVA inquiry in the record.
o Further proof of having done the vehicle search is to be held on record
along with post disbursement. On each such inspection, the report is kept
on record.
Financing sericulture
Objective
 To meet the expenditure in respect of cultivation of mulberry plantation as crop
loan.
 To purchase silk worm rearing equipments like wooden stands, bamboo trays,
chandrikas, knife, antwell, paraffin, wax etc.,
 Construction of rearing house
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 Rearing of silk worms up to cocoon stage

 Processing of cocoons and reeling out silk and its weaving and printing (covered
under MSME)
 Finance to first four points is a part of agricultural activity.
Eligibility
 Any individual desirous of rearing silk and having the necessary technical know-
how can be considered for the loan for development of sericulture.
 Individual farmers cultivating own land/registered leased land with irrigation
facilities for cultivation of mulberry, SHGs, Firms and companies engaged in
sericulture activities.
 Improved mulberry cuttings, suitable hybrid disease free layings (DFL), silk worm,
rearing equipments, other inputs and labour, and adequate facilities for marketing
of cocoons to be available in the locality.
 It should be ensured that the proposal is technically feasible and economically
viable
Quantum of loan
 As per latest NABARD guidelines subject to economical viability of the project.
 Wherever it is specified that “UNIT COST AS PER NABARD/NHM/NHB GUIDELINES”
is to be followed, the delegated authority is authorised to decide/consider 20% Up
& Down variation over/below the NABARD/NHM/NHB unit cost with proper
justification.
Margin:
 Margin (for crop loan-mulberry cultivation as per scale of finance): Nil
 For term loan
o Up to Rs. 1.60 lakhs: Nil
o Above Rs. 1.60 lakhs: Minimum 10%
Security:
 For loan up to Rs. 1.60 lakhs: Hypothecation of assets created out of Bank loan
 Loan above Rs. 1.60 lakhs:
o Hypothecation of assets created out of bank loan and
o Mortgage of land (accepted value of land should not be less than 100% of
loan amount) and /or third party guarantee (means should not be less
than 100% of loan amount)
Repayment Period:
56
 Short term loans: To be repaid within 12 months from the date of availing the
loan depending on harvest of mulberry crop.
 Term loans: Within maximum period of 07 years for tray system and 06 years for
shoot rearing system depending upon the income generation from the activity and
economic life of the asset.
 A moratorium of one year may be allowed for term loans.
Classification
 Loans sanctioned exclusively for cultivation of mulberry crop : agriculture-
production credit
 Composite loans sanctioned for cultivation of mulberry crop, construction of
rearing house, purchase of equipments, and rearing of worms: Agriculture -
investment credit.
Other conditions:
 All the charges viz. processing charges, vetting charges, etc. are to be debited from
operative account only.
 Separate proposal to be placed in ALCO for finalization of ROI
Finance for Plantation & Horticulture

Eligibility:
 Farmers taking up plantation and Horticultural crops conversant with management
techniques and should be otherwise eligible for finance. For large value proposals
the promoter should possess the necessary experience or employ qualified
personnel.
Subject to fulfilling following conditions;
 Borrower should have agriculture land in his / her name.
 There should be assured & adequate perennial source of irrigation for the Plantation
& horticulture crops.
 Applicant should obtain all required licenses/ permissions for proposed business
from respective competent authority.
 Defaulters of any bank/ financial institution are not eligible for loan under the
scheme.
Purpose:
To meet the following expenses for plantation & horticultural crops;
1) Plantation Expenses: (Cost of planting material, Manures & fertilizers,
Insecticides & pesticides, Cost of Labour, Power, Others if any)
2) Irrigation: Tube-well / submersible pump, Cost of Pipeline
3) Cost of Drip / Sprinkler
57
4) Infrastructure: (Store, Labour shed & Pump house, Farm Equipment)

5) Land Development: (Soil Leveling, Digging, Fencing, Others if any- please
specify)
6) Land, if newly purchased: Cost of newly purchased land will be limited to 10%
of the total project cost.
Nature of facility: Term Loan
Quantum of loan:
1. As per NABARD / NHB / NHM guidelines subject to economic viability of the project.
2. Wherever it is specified that “Unit cost as per NABARD / NHM / NHB guidelines” is
to be followed, the delegated authority is authorised to decide/consider 20% Up &
Down variation over / below the NABARD / NHM / NHB unit cost with proper
justification.
Margin:
 Up to Rs.1, 60,000/-: Nil.
 Above Rs. 1, 60,000/- : minimum 10%
Rate of Interest & Service Charges: As per extant guidelines
Delegated Authority: As per extant guidelines on Delegated Authority
Security:
1. Loans up to Rs.1.60 lakh - Hypothecation of asset created out of bank finance.
2. Loans above Rs.1.60 lakh - Hypothecation of asset created out of bank finance and
Mortgage of land (Accepted value of land should not be less than 100% of loan
amount) and / or third party guarantee (means should not be less than 100% of
loan)
Security documents:
1. Appropriate DPN
2. Hypothecation of crops, equipment / machineries - SD 07
3. Letter of guarantee - SD 08 (if stipulated)
5. Letter of Lien - AD 02A
6. SM/EM of property (SD 12 / AD 13 ) as the case may be
7. CIBIL letter of undertaking both borrower and guarantor
Insurance:
1. Plantation & Horticulture crop should be covered under insurance if available for the
same.
2. Equipment and Machineries if financed should be adequately insured.
Disbursement:
58
1. Disbursement of loan amount along with margin will be made directly to supplier
through DD / NEFT / RTGS & obtain original bills & receipts & other disbursement
norms to be followed.
2. Disbursement in stages depending on schedule of implementation &end use
verification should be done at every stage of disbursements. Relative invoices / bills
for assets financed if any should be obtained and held on record.
Repayment period:
1. The repayment period may be fixed as per the anticipated harvesting marketing
period for the crop for which a loan has been sanctioned.
2. Many of the plantation and horticulture plants are having long gestation period.
Hence required moratorium should be given as per NABARD guidelines.
3. Long repayment period are normally stipulated for plantation crops as they have
long economic life.
4. However repayment period normally fixed will be around 08 to 12 years based on
NABARD guidelines.
Classification: Priority – Agriculture - Investment Credit
Other Terms & Conditions:
 Processing charges to be debited to the linked operative account of the customer. All
the applicable charges viz. processing charges, vetting charges, insurance premium
etc. are to be debited from operative account only.
 Parameters like Quantum of loan, Repayment Period, field functionaries have to
depend on NABARD / NHB / NHM guidelines, which may change from time to time.
Hence updated guidelines from NABARD / NHB / NHM be made available in UBINET
/ separate portal on regular basis. Since NABARD / NHB / NHM guidelines differ from
state to state, respective Zonal offices to issue the guidelines from time to time to
the field functionaries.
Finance to Dairy Unit

Objective: To provide hassle free credit to milch cattle owners/dairy operators
Eligibility:
1. Individual farmers [including Self Help Groups or Joint Liability Groups, i.e. groups
of individual farmers engaged directly in dairy activities.
2. Dairy owners can also be financed against receivables from Milk unions / Co-
operatives / Big Dairies on production of satisfactory proof.
3. Corporates Farmers, FPOs / Companies of individual farmers, Partnership Firms, Co-
operatives of farmers directly engaged in Agri. & Agri. allied activities
59
4. All existing and prospective dairy operators.

Purpose:
1. To finance for purchase of milch cattle and purchase of machines, utensils,
construction of sheds (TL) and working capital limits for purchase of fodder,
transportation of milk, veterinary needs etc.
2. Finance to small dairy units subject to maximum 10 animals
Nature of facility:
1. Term Loan for purchasing animals / construction of shed / milking equipment / water
storage tank / bore well or well / other assets necessary to smoothly run the business
/ chilling unit / pasteurizing units / Biogas / Gobar gas as per NABARD unit Cost
etc.
2. Working Capital (If applied for Term Loan Only): In case of availing only term loan,
the one month operating expenses should be capitalized in project cost.
3. The Cash Credit facility can be granted under “CCAHF”-The separate Kisan Credit
Card scheme for Working Capital requirement of Animal Husbandry & Fishery is
circulated vide IC No:01791-2019 dated 12.12.2019.
Quantum of loan:
 As per NABARD guidelines subject to economic viability of the project
 Wherever it is specified that “Unit cost as per NABARD guidelines” is to be followed,
the delegated authority is authorised to decide/consider 20% Up & Down variation
over/below the NABARD unit cost with proper justification
Margin:
 Up to Rs. 1, 60,000/-: Nil.
 Above Rs. 1, 60,000/- : Minimum 10%
Rate of Interest & Service Charges:
As applicable to total agriculture term loan exposure to the farmer including the
present loan as advised from CO from time to time
Delegated Authority: As per the extant guidelines
Security:
• For loans up to Rs.1.60 lakhs, Hypothecation of asset created out of bank finance
• For loans above Rs.1.60 lakhs, Hypothecation of asset created out of bank finance
and Mortgage of land (Accepted value of land should not be less than 100% of loan
amount) and/ or third party guarantee (means should not be less than 100% of loan
amount).
Security documents:
26.Appropriate DPN
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27.Hypothecation Agreement for Agricultural Advances (SD 07)

28.EM /SM of land if stipulated.
29.Extension of mortgage already created for UGC
30.Deed of Guarantee (SD 08) if stipulated
Insurance:
Comprehensive Insurance for assets created including livestock insurance and
property mortgaged with bank clause
Disbursement:
norms to be followed
2. Disbursement in stages depending on schedule of implementation & end use
Repayment:
Maximum 84 months repayment period including moratorium period which may
depend on size of unit maximum up to 6 months
Other Terms & Conditions:
1. Milch cattle to be duly insured with bank clause.
2. Veterinary certification of good health / fitness of milch animals should be taken
before purchase of animal and held on record.
3. Milch cattle purchased should be high yielding breed.
4. As far as possible purchase of milch animals should be from marketing federation.
5. Payment should be made directly to vendor of milch animal along with margin
Money.
6. Processing of credit needs of the dairy unit should be assessed as per usual
procedure together with calculation of economics of Business and surpluses
derived for repayment of advanced after sustenance of the family of the
borrower.
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Financing to Commercial Dairy Unit

Objective:
To provide hassle free, Timely and adequate supply of credit to the dairy farmers /
dairy operators, ensuring regular cash flow to meet daily requirements and timely
repayment of loans.
Eligibility:
1. Individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups
(JLGs), i.e. groups of individual farmers engaged directly in dairy activities.
2. Dairy owners can also be financed against receivables from Milk unions/Co-
operatives/Big Dairies on production of satisfactory proof.
3. Corporates Farmers, FPOs/Companies of individual farmers, Partnership Firms, Co-
operatives of farmers directly engaged in Agriculture & Agri. allied activities.
4. All existing and prospective dairy operators.
Purpose:
1. To finance for purchase of milch cattle and purchase of machines, utensils,
construction of sheds (term Loans) and working capital limits for purchase of fodder,
transportation of milk, veterinary needs etc.
2. Finance to commercial dairy units subject to commercial unit has more than 10
animals.
Nature of Facility:
1. Term Loan for purchasing animals / construction of shed / milking equipment / water
storage tank / bore well or well / other assets necessary to smoothly run the business
/ chilling unit / pasteurizing units / Biogas / Gobar gas as per NABARD unit Cost
etc.
2. Vehicle i.e. two / three / four wheeler for transportation can be financed as per the
project requirement.
3. Working Capital :
 If applied for Term Loan Only: In case of availing only term loan, the one month
operating expenses should be capitalized in project cost.
 If applied for Working Capital: The assessment of Working Capital for stock &
book debts (Flexible Bank Finance method).
Quantum of loan:
 As per NABARD guidelines subject to economic viability of the project
62

the delegated authority is authorised to decide/consider 20% Up & Down variation
over/below the NABARD unit cost with proper justification
Margin:
 Term Loan: Minimum 10%
 Working Capital: Minimum 25%
Rate of Interest & Service Charges:
As applicable to total agriculture term loan exposure to the farmer including the
present loan as advised from CO from time to time
Delegated Authority: As per the extant guidelines on Delegated Authority
Security:
1. Prime: Hypothecation of asset created out of bank finance.
2. Collateral: Mortgage of land/other property owned by the farmer/guarantors
(Accepted value of land/other property should not be less than 100% of loan
amount).
3. Guarantee: 3rd party guarantee with sufficient means (means should not be less than
100% of loan amount).
Assessment of Limit:
1. Term Loan for purchasing animals/construction of shed/ milking equipments/ water
storage tank/ bore well or well/other assets necessary to smoothly run the
business/chilling unit /pasteurizing units/ Biogas/Gobar gas as per NABARD unit
Cost etc.
2. Vehicle i.e. two/three/four wheeler for transportation can be financed as per the
project requirement.
3. Working Capital :
 If applied for Term Loan Only: In case of availing only term loan, the one month
operating expenses should be capitalized in project cost.
 If applied for Working Capital: The assessment of Working Capital for stock &
book debts (Flexible Bank Finance method).
Repayment period:
Maximum 84 months for repayment excluding moratorium period. Moratorium
period may be allowed depending on size of unit maximum up to six months.
Insurance:
1. Comprehensive Insurance for assets created including livestock insurance, with bank
clause.
2. Comprehensive insurance for the property mortgaged to the Bank with bank clause.
63
Security documents: Security documents to be obtained as per extant guidelines

Disbursement:
through DD/ NEFT/RTGS & obtain original bills & receipts & other disbursement
2. Disbursement in stages depending on schedule of implementation & end use
Classification: Priority Sector – Agriculture – Agri. Allied Activity
Farm Mechanisation Scheme

A) For Agriculturist:
For purchase of new Tractors with accessories / new Combine Harvester
with accessories / new Power Tillers with accessories
Purpose:
Purchase of new Tractors with accessories, new Combine Harvester with
accessories and new Power Tillers with accessories
Eligibility:
For Combine Harvesters:
 Farmers having 10 acres of perennially irrigated land or corresponding
acreage as prescribed for different categories of land under the concerned
State Land Ceiling Act
 Productive work / custom hiring of minimum 2000 hours per year
For Tractors with accessories, implements and/or trolley:
 On the basis of HP of Tractor;
1. Upto 35 HP - 3 acres perennially irrigated land or 6 acres of dry land
2. Above 35 HP - 5 acres perennially irrigated land or 10 acres of dry land
 Productive work/custom hiring of minimum 1000 hours per year.
For Power Tillers:
 1 acres perennially irrigated land or 2 acres of dry land
 Productive work/custom hiring of minimum 600 hours per year
Perennially irrigated land means where irrigation is available throughout the
year and crops are grown round the year in all seasons. If land is only p artially
irrigated, then minimum acreage of land to be mortgaged is to be
proportionately revised upward.
Margin:
 Up to Rs. 1.60 lakhs is Nil
64
 Above Rs. 1.60 lakhs is 15% on Road Price

 Second tractor (after disposal of first tractor) : 25%
Quantum of loan:
Maximum 85% of unit cost (Including implements) based on quotation.
Rate of Interest: As conveyed by Central Office from time to time
Security:
 Loans up to Rs.1.60 lakh - Hypothecation of asset created out of bank finance.
 Loans above Rs.1.60 lakh - Hypothecation of asset created out of bank finance,
Mortgage of land (Accepted value of land should be more than 100% of loan amount)
and / or third party guarantee (with means not less than 100% of loan amount).
Repayment Period:
 Tractor, Combine Harvester : Maximum of 9 years
 Power Tiller : Maximum of 7 years
Documents Application Forms:
As per extant guidelines on documentation
Security Documents: As per extant guidelines on documentation
Disbursement:
Loan amount along with margin amount should be paid directly to Dealers or
Suppliers by way of NEFT / RTGS only.
Bills / invoices duly signed by borrowers should be obtained & held on record.
For repairs / overhauling of tractors:
Quantum of loan: Maximum Rs.0.50 lakhs
Margin: 40%
Other terms:
 Estimate from authorized garage / service station
 Information to Insurance Co. & their consent in case of accidental case.
Repayment: 3 years
B) Non-Agricultural purposes:
 Loans for tractors with trolley may be sanctioned to suppliers of building
materials, tent houses etc., under Micro and Small enterprises subject to
registration with RTA for commercial use of Trolley.
 Brick Kiln owners may also be allowed finance for tractor with trolley under Micro
and Small Enterprises subject to registration with RTA for commercial use of
trolley.
 Stone crushing units may also be granted loans for tractors/power tillers under
Micro a Small Enterprises.
65
Scoring model for Farm Mechanization loans:

 With a view to ensure better quality of advances in land based Agricultural loans,
our Bank has introduced scoring models for land based Agricultural loans of
above Rs.2 lakhs vide IC: 8439 dated 17.09.2009. Scoring model is applicable
for farm mechanization loans of above Rs.2 lakhs. The scoring model is divided
into 3 parts with appropriate weightages as follows:
Particulars No. of Max
Basic customer 9
parameters 50
Marks
Loan details 5 40
information
Other information 3 10
The minimum entry level score is fixed at 50 and above. Hence, the borrowers
achieving score marks of 50 and above should only be sanctioned loans under the
scheme.
Other guidelines for financing Tractors:
 Tractor financed by Banks/refinanced by NABARD should comply with Minimum
Performance Standards (MPS) prescribed by Government of India.
 Practice of advising Banks the names of makes and models of tractors and power
tillers based on Commercial Test Report (CTR) issued by the Central Farm
Machinery Training and Testing Institute (CFMTTI), Budni, Madhya Pradesh has
been done away with by NABARD, as the manufacturers are under obligation to
comply with MPS. Branches are advised to extend finance for tractors based on
economic viability and those conforming to the norms of MPS.
Checks to be considered at the time of financing tractors:
 The earlier instructions to the effect that financing in excess of 50 tractors at any
branch in one year should be approved by concerned Regional Offices will continue.
 Regional Offices while according such permission have to assess the viability of
proposals by taking into consideration the status and health of tractors financed
earlier, adherence to the rules of the scheme. Whenever the viability depends on
outside income, i.e. income derived from carting, custom hiring of tractors etc., the
Regional Offices have to look into the aspects of tie up with Sugar Mills, enough
availability of carting activities etc.
C)All other Farm Equipment:

Purpose:
 To purchase all the farm equipment like Thresher, Winnowers, Seed cum fertilizer
drills, Groundnut decorticator, Puddler, Rice planters & similar other equipment.
Eligibility: Farmers with own agricultural land
66
Margin: Minimum 15%

Quantum of loan: Maximum 85% of unit cost
Rate of Interest & Service charges: As per extant guidelines on Rate of Interest
Delegated Authority: As per extant guidelines on Delegated Authority
Security:
 Loans up to Rs.1.60 lakhs - Hypothecation of asset created out of bank finance
 Loans above Rs.1.60 lakhs - Hypothecation of asset created out of bank finance,
Mortgage of land (Accepted value of land should be more than 100% of loan amount)
and / or third party guarantee (with means more than the loan amount).
Repayment:
 Maximum 5 years including moratorium period
 Moratorium period can be allowed upto maximum 6 months
Security documents: As per extant guidelines on documentation for amalgamated
entity
Special Instructions:
 Bank’s hypothecation charge on vehicle should be registered with RTA and ensured
that Bank's lien is recorded in registration book (wherever is applicable).
 A copy of the registration book evidencing said charge should be obtained and kept
on record (wherever is applicable).
 The vehicle should be comprehensively insured in the name of the borrower with
Bank clause for its full cost, and the relative policy should be kept on record
(wherever is applicable).
 Two blank TTO forms duly signed by the borrower should be obtained and kept on
record (wherever is applicable).
 Bank's name should be painted or Sticker to be affixed on the farm equipment
purchased.
Classification: Priority Sector – Agriculture - Investment Credit
For repairs/overhauling of tractors:-
 Age of the tractor should not be older than 5 years
 Margin for repairs / overhauling of tractors is stated as 40%
Finance to Fishery Sector

Objective: Finance to fishery sector (Inland as well as Marine)
Purpose:
For fish culture, boat loan, construction / deepening / widening / desilting of ponds,
purchase of fingerlings, equipment, manures, feeds and labour inputs etc.
Eligibility:
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 Individual, Company, Partnership firm, Co-operative society, Group of fish farmers,

SHG, JLG
 Loan will be sanctioned depending on the area of cultivation
Nature of Facility:
 Term Loan
 The Cash Credit facility can be granted under “CCAHF”-The separate Kisan Credit
Card scheme for Working Capital requirement of Animal Husbandry & Fishery is
circulated vide IC No: 01791-2019 dated 12.12.2019.
Margin:
 Up to Rs.1.60 lakhs, Nil
 Above Rs.1.60 lakhs, Minimum 10%
Loan Amount:
 Based on the NABARD unit cost subject to economic viability of the project
the delegated authority is authorised to decide / consider 20% Up & Down variation
over / below the NABARD unit cost with proper justification.
Disbursement:
 Disbursement of loan amount along with margin be made directly to supplier of
material / contractor through DD / NEFT / RTGS / transfer to CD / SB account.
 Branch should obtain the bills/receipts of the materials purchased by the
entrepreneur and held the same on record and to conduct post sanction inspection
to ensure end use verification.
Rate of Interest & Service Charges: As per extant guidelines
Repayment Schedule:
Maximum 7 years including moratorium period of maximum 6 months. Repayment
may be in monthly / quarterly / half-yearly / yearly installments based on the cash
flow and surplus within the economic life of the asset
Security:
 Loans up to Rs.1.60 lakhs, Hypothecation of asset created out of bank finance.
 loans above Rs.1.60 lakhs, Hypothecation of asset created out of bank finance
Mortgage of land (Accepted value of land should be more than 100% of loan
amount) &/ or third party guarantee (with means more than the loan amount)
Documents: As per extant guidelines
Terms & Conditions:
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Branch to label the account opened under this scheme as "Fishery" in Finacle in
ACM Menu.
Classification: Priority Sector – Agriculture - Allied Activity
Scheme Validity: Valid upto 5.11.2020
Finance to Poultry Sector

Objective: Financing to the poultry units
Purpose: For meeting the requirements as under;
• Construction of brooder/grower and layer sheds, feed store, quarters etc.
• Purchase of poultry equipment such as cage, feeders, waterers etc
• Creating infrastructure items for supply of electricity, feed, water etc
• Purchase of day old chicks or ready to lay pullets.
• Meeting working capital requirement in respect of feed for maximum 3 months,
medicines and veterinary aid etc. for the first 5 to 6 months (i.e. till the stage of
income generation).
• Any other innovative activity adopted by unit for increasing production or better
management.
Eligibility
• Individual / Joint individual / Firm / Company experienced in the line of poultry
farming and is competent to run the business.
• The unit should be technically feasible and economically viable
Nature of facilities: Term Loan & Working capital
Quantum of Finance
 As per NABARD unit cost & guidelines subject to economic viability of the project.
 Wherever it is specified that “unit cost as per NABARD guidelines” is to be followed,
the delegated authority is authorised to decide / consider 20% Up & Down variation
 In case existing loan accounts: Renewal of limit within the existing sanctioned limit
shall continue as per existing terms & conditions of original sanction.
Margin
• Term loan - 25%
• Working capital – 25%
Rate of Interest, Service charges & Credit rating: As per extant guidelines
Security
 Primary Security: Hypothecation of asset created out of bank finance.
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 Collateral Security : Mortgage of land or any other collateral security acceptable to

the bank (Accepted value of land/other collateral security should be more than 110%
of loan amount)
Personal Guarantee
Personal guarantee of the Proprietor, Partners, Promoter Directors of the
Firm/company having sufficient means (not less than 100% of loan amount) and of
all mortgagor of collateral security to be obtained
Waiver of insurance in case of live stock
 Waiver of bird insurance with the condition that the party undertakes to create one
time risk fund Rs. 5/- per layer bird per year
 The corpus will be linked to full (maximum no. of layers) capacity of layer birds in
the farm as per loan policy
Delegation: As per extant guidelines on Delegated Authority
Repayment
 Working capital / Term Loan:
 12 months for WC subject to renewal as per extant guidelines.
 Maximum 84 months for TL (including moratorium of maximum 6 months)
Additional Facility for seasonal requirement
 Seasonal limits up to 20% of total WCL for existing poultry farm as under; for
maximum 2 months in a financial year (Maximum 2 times in a year) in addition to
sanctioned regular working capital limit, with the minimum gap of 30 days between
2 drawals can be provided
Reporting & other terms & conditions
• The scheme will be applicable to all new limits
• Existing units which are not covered under the scheme may be covered under the
scheme at the time of review / renewal
• Comprehensive insurance of shed / building, equipment, feed, medicines to be
obtained with usual Bank clause
• The poultry unit to adopt all bio-security norms such as sanitary practices, timely
vaccination etc, availability of services of veterinary doctor, to avoid contamination
and disease problem
• Branch to label the account opened under this scheme as "POULTRY" in Finacle
through ACM Menu
Classification: Priority Sector Advance – Agriculture – Agri. Allied Activities
Scheme Validity: Valid up to 30.8.2020
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Gold loan scheme

Eligibility
• Any individual owning gold ornaments / Jewellery / Coins, either singly or jointly
• Pawnbrokers, Jewelers & Jewellery shop-owners are not eligible for Gold Loan
• Loans can be granted against Gold Ornaments / Jewellery and specially minted pure
Gold Coins sold by our Bank/other Banks. The weight of the coins should not exceed
50 grams per customer
• Gold Loans may also be sanctioned to Bank's Staffs, including staffs posted at
Regional Office, Zonal Office and Central Office as well as their spouse by Branch
Manager (except the Branch Manager's spouse) without seeking prior sanction from
Regional Office. In case of loans to Branch Manager or spouse of Branch Manager,
the RLCC is delegated to approve such loans
• Loans to staff members / their spouses can be extended at the same terms and
conditions as applicable to other customers availing loan against gold
• The applicant should be properly introduced to the Bank or his identity and address
should be established by verifying ration card / identity card / passport / Aadhaar
Card / similar documents acceptable to the Bank
• Branches are to ensure that all KYC/AML norms are complied with for all borrowers
Purpose of Gold Loan
• Agriculture: Gold loans for meeting crop production expenses and / or for creation
of assets to be used in farming operation or for allied agricultural activities like diary,
poultry, fisheries etc. and other agriculture related activities
• Other priority sector: Gold Loans can also be sanctioned for all eligible purposes
under other priority sectors. Typical requirements under other priority sector are
loans for day to day working capital requirement of business unit, petty trade,
purchase of business tools, furnishing of business premises, purchase of furniture &
fixtures etc. The loan amount will be sanctioned based on a declaration by the
borrower
• Non-priority sector: Gold loan for consumption purposes are sanctioned to meet
unforeseen expenses / contingencies / expenses for medical treatment/ for marriage
and other ceremonies / expenses, for education / business needs, etc. The loan
amount will be sanctioned based on a declaration by the borrower
• Gold loans will not be covered under Credit Guarantee Fund Trust for Micro and
Small Enterprises (CGTMSE) Scheme
Assessment of loan amount
 Loan amount requested by Applicant / assessed amount on declaration or
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 75% of the appraised value of Gold Ornaments of 22 carat fineness or

 Amount eligible based on the per gram rate fixed by the bank for 22 carat
fineness (daily price data and the Quantum of Gold Loan / per gram to be
taken from link created in UBINET) or
 Loan amount assessed based on scale of finance for crop production/ actual
amount of credit requirement for other than crop production, as the case may
be.
Whichever is lower
Specially minted gold coins sold by any Bank (24 carat fineness) shall be treated as
gold ornaments for loan assessment purpose.
Appraisal of Gold Ornaments and Coins
• The Gold Ornaments / Coins are to be invariably appraised by an approved jewel
appraiser to determine the value and purity
• An approved appraiser should certify quality, gross & net weight, etc. of Gold
Ornaments / Coins offered as security. Advance should be granted only after the
Branch Manager is satisfied about the genuineness, quality, weight, etc. of the Gold
Ornaments / Coins.
• Touch Stone Method and Nitric Acid Test should invariably be applied in order to
ascertain the true nature of Ornaments / Coins. Under Touch Stone Method, the
Ornaments / Coins are rubbed against the touch stone and the impression is
compared with the impression of the standard gold. Simultaneously, few drops of
the acid should be dropped on the impression of gold on the touch stone and reaction
/ degree of discoloration, if any, be observed by the Jewel appraiser. Jewel
appraisers should perform any other test wherever necessary, based on their
professional judgment.
Valuation of Gold Ornaments and Coins
• As a prudential measure, RBI has prescribed a Loan to Value (LTV) ratio of not
exceeding 75 per cent for banks' lending against gold jewellery (including bullet
repayment loans against pledge of gold jewellery). Amount of gold loans sanctioned
should not exceed 75% of the value of Ornaments / Coins
• For the purpose of valuation of gold, our Bank will use the historical spot gold price
data prevailing at Mumbai and publicly disseminated by Indian Bullion & Jewellery
Association (www.ibjrates.com). For the benefit of the field functionaries a link has
been created in UBINET to give the daily price data and the quantum of gold loan /
per gram on daily basis.
Maximum amount of Loan and Delegated Authority
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• Delegated authority has to be exercised as per the scale of Branch Manager, subject
to maximum of Rs.20 lakhs for priority sector loans including agriculture purposes
and maximum of Rs.25 lakhs for non-priority sector loans.
• Delegated authority has to be exercised by RLCC if the loan beyond the delegated
authority of BM, subject to maximum of Rs.20 lakhs for priority sector loans including
agriculture purposes and maximum of Rs.25 lakhs for non-priority sector loans.
• In case of crop loans (either extended as UGC, CC, SOD, Demand Loan or Short
Term Loan) sanctioned against gold ornaments/coins for meeting seasonal
agricultural operation, delegated authority applicable to working capital advances
has to be followed
Rate of Interest: As per the extant guidelines
Nature of facility
• Union Green Card with operative limit up to 5 years, Short Term Crop Loan, Cash
Credit (Pledge), Secured Overdraft, Demand Loan or Term Loan Repayable in
Installments with tenure up to 3 years.
• Gold loan sanctioned for the crop loan component under UGC, the limit will be fixed
for the eligible amount for the fifth year. Hence value of the gold Ornaments / Coins
obtained should cover the fifth year's limit, even though the DP for the earlier years
is less than the fifth year's limit.
Repayment period
• Principal repayment schedules may be fixed at monthly, quarterly, half yearly, yearly
installment or bullet repayment depending on income generation and / or
seasonality. Interest shall be charged and collected at monthly rests unless loans
are extended for agricultural activities or loans are eligible for criteria of bullet
repayment for nonagricultural loans as mentioned hereinafter. Repayment schedules
can also be fixed in equated monthly installments in case of Demand / Term Loan
repayable in Installments.
• For Agricultural Gold Loan, repayment period of loan will be as per the repayment
period of Union Green Card. The repayment of loan should coincide with harvesting
/ marketing of crops.
• As regard to agricultural gold loan other than Union Green Card for agricultural and
allied agricultural activities such as dairy, fishery, piggery, poultry, bee-keeping,
etc., For demand loan, repayment period should be fixed based on the income
generation coinciding with harvest and the marketing time, total period not
exceeding 18 months. For term loan, the repayment period of the loan should be
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fixed in line with the term loan purposes but not exceeding 3 years. Interest is to be
recovered along with loan installment in case of agricultural purposes.
• For other than agricultural purposes, where both interest and principal are due for
payment at maturity of the loan will be subject to the following additional conditions:
 The tenor of the loans shall not exceed 12 months from the date of sanction;
 Interest will be charged to the account at monthly rests and may be
recognized on accrual basis provided the account is classified as ‘standard’
account. This will also apply to existing loans;
• Whenever, Drawing Power is reduced or prescribed margin is not maintained, either
proportionate recovery is to be made or additional ornaments/coins/other
acceptable securities of requisite value have to be pledged so as to maintain the
prescribed margin.
• While fixing repayment schedule, Branches may ensure that anticipated exposure
on due date along with interest accrued/other charges do not exceed present value
of pledged Ornaments / Coins.
Restrictions on Gold Loan
• No advance should be granted against Gold bar, Bullion or Primary Gold
• No advance should be granted for speculative or hoarding purposes
• No advance should be granted against Gold Ornaments / Coins for further purchase
of Gold / Jewellery
• No advance against units of gold Exchange Traded Funds (ETF) and gold Mutual
Funds is permitted, as these products are backed by bullion/primary gold
Disbursement
• The proceeds of the loan are to be credited to the savings account of the borrower.
• In case of cash credit / overdraft facility, the borrower may be allowed to draw from
the account directly.
• Cheque book facility may be extended to eligible literate borrowers in case of
revolving facility.
• In case of UGC loans or other revolving accounts, RuPay ATM card / other Debit
cards (as the case may be) may be given to eligible individual literate borrowers
Documentation
1. Application (Annexure I) / appraisers valuation (Annexure II) / Recommendation
/ sanction advice / DPN
2. Gold loan pledge form (Annexure III)
3. Hypothecation of crops / assets Agriculture (SD07)
4. Hypothecation of asset - other than agriculture - SD03 / SD 06
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5. Letter of continuity - AD09

6. Letter of general Lien and set off – AD02 (A)
Wherever it is not possible for the Borrower to execute such documents or not inclined
to execute such documents, Gold Ornaments/Coins will be treated as Primary Security
Reappraisal: (IC No.02226-2020 dated 28.09.2020)
Branches sanctioning Gold loans should reappraise the following gold loan accounts;
• All gold loan accounts where sanctioned limit is Rs.5 lakhs and more
• Select 5% of Gold loan accounts (randomly) where sanctioned limit is below Rs.5
lakhs.
• All existing irregular/suspicious gold loan accounts.
• Every year, all ornaments under pledge for a period beyond 15 months from the
date of allowing loan (including those renewed if any) are to be reappraised by an
appraiser other than the one who appraised the ornaments initially.
• Branches have to prepare a certificate under the signature of the joint custodians
every year of having got the securities reappraised/revalued by other than the original
appraiser and hold it on record for verification by the Auditors. This process has to be
continued each year, so that any suspicious transaction could be identified in time.
Declaration Form for Gold Loan Ornaments:
 Branches are advised to obtain No Objection Letter from the borrowers along with
the gold loan documents for re appraisal of gold jewel ornaments in his/ her absence.
 A uniform declaration as per Annexure to IC No.02396-2021 dated 15.01.2021 is to
be obtained by branches along with other Gold loan documents without fail.
Modifications in Gold Jewel Loan Scheme:
Following modifications/additional guidelines are approved for ensuring healthy and
performing Gold Loan portfolio. (IC No.02335-2020 dated 04.12.2020):
At Branches:
1. 1.Branch has to tally the number of Gold Jewel Pouches with the loans
outstanding as on last working day of every month and a certificate has to be
submitted concerned Regional Office before 5th of succeeding month.
2. Entry and exit movements of staff/locker operating customers moving in and out
of the strong room should be fully covered by CCTV surveillance. It should also
be placed in such vantage positions, to capture the activity of Gold Loan
operations including appraisers, Cash safe and Gold Safe Area (Excluding Locker
Area)
3. CCTV footage should be available for a minimum period of 6 months and the
same should be recorded in Branch visit report by Regional Security Officer during
his inspection.
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4. Branches have to mandatorily enter the Unique Alpha Numeric Numbers of the
tamper proof transparent pouches while opening the Gold Jewel Loan Account.
5. Unclaimed Gold Jewellery Pouches are to be kept separately in safe custody duly
mentioning the reasons for holding the same and the branch has to ensure
delivery of the ornaments to the rightful owner within one month of closure of
Gold Loan Account, else safe custody charges are to be collected from the
borrower.
6. The borrower while taking delivery of the ornaments has to invariably submit the
original acknowledgement receipt, otherwise affidavit / indemnity in the lines of
issuing duplicate TDR/DD to be obtained.
7. When Gold Ornaments / Coins bearing initials or other marks which are prima
facie not those of the borrower are accepted as security for loans, Branch Officials
should fully satisfy themselves about the bonafide ownership. A declaration to be
obtained from the borrower on the following lines:
“I/We hereby declare that the above ________________ (Description of the
ornaments such as ring, chain, etc.) bearing the initials not related to my / our
name belongs to me/us absolutely. The name mentioned on the ornaments is
related to me as ___________. Signature of borrower”
8. All ornaments under pledge outstanding for a period beyond 12 months from the
date of allowing loan to be re-appraised by an appraiser other than the one who
appraised the ornaments initially irrespective of the loan amount.
9. Pouches which are opened for reappraisal are to be kept in the new pouch. The
reason for opening the pouch should be mentioned on the new pouch. New
unique Alpha Numeric Number to be entered in the system. Further once the
pouch is opened for inspection / reappraisal, Gold jewels along with old pouch be
kept in new pouch and then sealed as per existing guidelines.
10. Gold loans should be processed through LAS mandatorily. In addition, entire
Gold Loan process like applications, process, sanction, account opening and
monitoring should be done through LAS for better monitoring. No direct entry in
finacle should be done.
11.Key holding officers and employees handling Gold Loan Portfolio should be
rotated at regular intervals for ensuring job rotation.
12.Branches to ensure sufficient stock of Transparent tamper proof Gold Loan
Pouches are held with them.
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13.The fresh gold loans sanctioned / disbursed during the current quarter are to be
re-appraised within the following quarter on regular basis by appraiser other than
the one who has appraised.
At Regional Office:
1. Regional Offices to conduct a quarterly Surprise verification of Gold Loans to
ensure that the branches are following the stipulated guidelines in handling Gold
Jewel Loans, scrupulously.
2. Regional Offices to empanel minimum 3 to 5 pool Gold Jewel Appraisers/ Super
Appraisers for exclusively attending to Re-appraisal of Gold Loan Ornaments
pledged with branches in Regions on quarterly basis. The fresh Gold Loans
disbursed during the current quarter are to be reappraised within the following
quarter on a regular basis and also these pool of Appraisers for re appraising of
Gold Loan ornaments in the branches more particularly where ever the services
of an empanelled appraiser is being utilised for more than 3 years.
3. Regional Offices should depute empanelled Jewel Appraiser of one branch to
another branch on non-reciprocal basis (Non-reciprocal basis means, when the
Jewel appraiser of “Branch A” is deputed to “Branch B” for recertification, the
jewel appraiser of “ Branch B” shall not be deputed to “Branch A”) for reappraisal
of Gold ornaments.
4. Where ever the branches does not have the infrastructure facilities like strong
room, staff, security , etc. the same are to be provided immediately or the Gold
Loan portfolio may be shifted to nearby branches at the discretion of FGMO as
per recommendations of Regional Head.
5. Further the Gold Loan activity at the new branches should be allowed by FGM on
recommendations of Regional Head based on the potential and availability of
infrastructure.
6. The existing branches extending Gold Loan facility should also be reviewed for
continuing Gold Loan activity once in two years.
7. Training should also be imparted to the staff for identifying the fitness of the Gold
and on the systems and procedures to be followed/ adhered while handling Gold
Loan portfolio.
8. Database/ MIS are developed for the appraisers who are debarred from our Bank
and such list be circulated to the branches by respective Regional Offices.
9. Regional Offices to verify all the jewel appraisers working in the regions are duly
appointed as per norms/guidelines.
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10. In addition to the already existing guidelines, Regional Security Officer to ensure
that CCTV in the branch should be placed in such vantage positions, to capture
the activity of Gold Loan operations including appraisers, Cash Safe and Gold
Safe area (excluding locker area). Entry and exit movements of staff/ locker
operating customers moving in and out of the Strong Room should be fully
covered by CCTV, storage of CCTV footage should be for a minimum period of 6
months and the same should be recorded in the Branch Visit Report by the
officials of Regional Office during their inspection.
11.Regional Office officials who does surprise verification of Branches should submit
the report in the format as per Annexure – I and the same to be kept on record
for audit purpose at Regional Office and Branch along with
compliance/rectification of irregularities observed.
12.Job rotation is mandatory for employees handling Gold Loan Portfolio. Regional
Offices/ Branches to ensure the same.
13.During empanelment of New Gold Appraisers, Regional Offices to stipulate
minimum security deposit of Rs.50000/- for Rural and Semi Urban branches and
Rs.100000/- for Urban and Metro
SOD against GOLD ornaments for selected branches:

 Scope:
 The scheme will be operational on selected branches identified and approved by
FGMO.
 Selected branches shall have proper infrastructures for safe custody of Gold
Ornaments, exclusive jewel appraiser, etc. as per the guidelines of Gold Loan
Scheme stipulated in IC No.1953 dated 20.03.2020.
 Purpose:
 Overdraft can be allowed for Agriculture and Allied Activities, Business Activities,
consumption purposes and contingencies.
 Loan shall not be given for speculative purpose.
 The limit will be sanctioned based on the declaration of the borrower.
 Eligibility:
 Any individual owning gold ornaments/Jewellery/Coins, either singly or jointly
having saving bank account with our bank.
 The applicant should be properly introduced to the Bank or his identity and
address should be established by verifying identity card/passport/Aadhaar
Card/similar documents acceptable to the bank.
 Branches to ensure that all KYC/AML norms are complied with for all borrowers.
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 Pawn brokers and jewellery shop owners are not eligible under the scheme.
 Staffs are not eligible under this scheme.
 Valuation of Gold Ornaments and Assessment of eligible amount:
 As a prudential measure, RBI has prescribed a Loan to Value (LTV) ratio of 75
percent for bank’s lending against Gold Jewellery at any point of time.
 Limit under SOD is to be assessed as under:
Amount requested by Applicant/amount assessed on declaration
(or)
75% of the appraised value of Gold Ornaments of 22 carat fitness
(or)
Amount eligible based on the per gram rate fixed by the bank for 22 carat fitness
(daily price data and the Quantum of Gold rate per gram is updated by RABD
department on UBINET)
Whichever is lower
 Repayment period:
 Running account – repayable on demand subject to renewal every year. Interest
to be serviced as and when debited.
 Maintenance of prescribed margin i.e.25% needs to be ensured at the time of
renewal. Drawing power is to be realigned at the time of renewal. Whenever,
drawing power is reduced or prescribed margin is not maintained, either
proportionate recovery is to be made or additional ornaments/coins of requisite
value have to be pledged so as to maintain the prescribed margin.
 Disbursement :
 A separate SOD account (Scheme Code: ODGLD) will be opened and the borrower
may be allowed to draw from this account directly.
 Debit and Credit transactions are allowed for the scheme.
 In addition to the Cheque Book facility, borrower may be provided with the
following facilities:
-Debit Card facility / SOD can be linked to the existing debit card if already
applicable, Mobile Banking, Internet Banking
 Scheme Code : ODGLD
 Others:
 Common application form for Gold loan as per annexure – II (IC No.02184-2020
dated 03.09.2020) shall be obtained from the borrower.
 Apart from the above , all other guidelines of Gold Loan Scheme will remain same
as per IC No.1953 dated 20.03.2020
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Finance for Sheep, Goat & Pig rearing

Objective
Sheep rearing: Sheep with its multi-facet utility for wool, meat, skins/leather and
manure, form an important component of rural economy particularly in the arid,
semi-arid and mountainous areas of the country. It provides a dependable source of
income to the shepherds through sale of wool and animals. Mutton production has
great scope in the developing economy of India.
Goat rearing: Goats are reared to get meat, milk and manure. The contribution of
goat to total meat production in the country is around 14 percent.
Pig rearing: Schemes to popularize the scientific pig breeding cum rearing of meat
producing animals with adequate financial provisions are necessary to modernize
the Indian pig industry and to improve the productivity of small sized rural pig farms.
Purpose
Sheep rearing: Meat purpose, Breeding and selling lambs, wool, skin / leather
purposes and combination of all above
Goat rearing: Purchase of goats - does and bucks for meat purpose, Construction
of sheds (pens), Feeding cost for one cycle
Pig rearing: Purchase of sows (female) and boar (male) animals, construction of
sheds, Feeding cost for one cycle
Nature of Facility
• Term loan
• For working capital requirement, the branches to follow guidelines of the separate
Kisan Credit Card scheme (CCAHF) for Working Capital requirement of Animal
Husbandry & Fishery is circulated vide IC No: 01791-2019 dated 12.12.2019.
Quantum of loan
“Unit cost as per NABARD guidelines” is to be followed. The delegated authority is
authorised to decide / consider 20% Up & Down variation over / below the NABARD unit
cost with proper justification.
Margin
• Up to Rs.1,60,000/-: Nil
• Above Rs.1,60,000/- : minimum 10%
Rate of Interest & Service Charges: As per the extant guidelines
Delegated Authority: As per the extant guidelines
Security
• Loans up to Rs.1.60 lakhs: Hypothecation of asset created out of bank finance.
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• Loans above Rs.1.60 lakhs: Hypothecation of asset created out of bank finance and
Mortgage of land (Accepted value of land should not be less than 100% of loan
amount) and/ or third party guarantee (means should not be less than 100% of loan
amount).
Insurance
• Comprehensive Insurance for assets created including livestock insurance, with bank
clause.
• Comprehensive insurance for the property mortgaged to the Bank with bank clause.
Sanction & Disbursement
Sheep rearing:
• Good breed of flock should be purchased from a known source belonging to a
traditional shepherd.
• Relative invoices / bills should be obtained and held on record
• End use verification should be done at every stage of disbursements.
• Wherever loans for purchase of sheep unit are sanctioned under Government
sponsored subsidy schemes, sheep should be purchased in the presence of
purchase committee members normally consisting of Banker, borrower,
veterinary doctor, and representative from sponsoring agency.
Goat rearing:
• A purchase committee, consisting of the borrower, the financing bank's
representative and a veterinary assistant surgeon may be constituted and
animals are purchased in the presence of committee members in case of
government sponsored schemes.
• A certificate regarding age and health of goats is obtained from the veterinary
doctor.
• The animals purchased have to be identified by tagging the ears.
• Bills / receipts may be obtained & end use to be verified.
• Goat should be vaccinated for preventing any diseases.
Repayment
Repayable in half yearly / yearly installments within a period of maximum 7 years
including moratorium period of 01 year
Security documents: As per extant guidelines
Classification: Priority Sector – Agriculture - Farm Credit
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SHG finance
Objectives
• To meet the credit needs of the poor
• To build mutual trust and confidence between the bankers and the rural poor
• To encourage banking activity both on thrift as well as credit side in a segment of
the population that the formal financial institutions usually find difficult to cover
• To enable additional employment generation
• To facilitate women empowerment in case of women SHGs
Linkage programme:
There are two ways of linkages:
 By opening an SB account in the name of SHG immediately after formation of the
group
 Credit linkage by giving loan to the SHG/ extending bank finance to SHGs
Credit linkage will be normally after 06 months of successful/satisfactory
operations of the SHG with the Bank
Purpose of the loan
For meeting emergent requirements of the group members or purchase of assets/
productive and income generating activities
Extent of Loan
First Phase:
• SHG with satisfactory transactions in their SB account for at least a minimum period
of six months reflecting regular savings, withdrawal of internal lending & recoveries
etc. would be eligible for first phase of credit linkage subject to fulfilling grading
norms
• The quantum of credit given to the group shall be in proportion of savings/corpus
fund to the loan may range from 1:1 to 1:6 depending on the assessment of SHG
subject to minimum Rs.1 lakh per group
Second Phase:
• SHG which has taken first phase of loan from the Bank, utilized the same properly
and conducted the account satisfactorily for minimum period of six months would be
eligible for second phase of credit linkage subject to fulfilling grading norms
• SHG groups qualifying the above criteria will be eligible for loan upto 1:10 times of
savings/corpus fund subject to maximum ceiling of Rs.5 lakhs per group
Third Phase:
82
• SHG which has taken second phase of loan from the Bank, utilized the same properly
and conducted the account satisfactorily for minimum period of twelve months would
be eligible for third phase of credit linkage subject to fulfilling grading norms
• SHG groups qualifying the above criteria will be eligible for loan upto 1:10 times of
savings/corpus fund subject to maximum ceiling of Rs.10 lakh per group.
Subsequent Phases:
• SHG which has taken third phase of loan from the Bank, utilized the same properly
and conducted the account satisfactorily for minimum period of twelve months would
be eligible for subsequent phases of credit linkage subject to fulfilling grading norms.
• SHG groups qualifying the above criteria will be eligible for loan up to 1:10 times of
savings/corpus fund depending on the assessment of SHG.
• In case of credit limit more than Rs.10 lakhs, collateral security to the extent of
100% of loan amount is to be obtained.
However, in states/UTs where Micro Credit Plan MCP) is followed for assessment of limit
for SHG finance should be continued.
Type of loan account
• Term loan OR Cash Credit
• SHG sunder Government schemes having back ended subsidy to be provided with
term loan facility.
• SHGs where members of group are engaged in same activity and loan is taken to
undertake this activity to be provided with term loan facility.
• In all other cases, advances to SHGs in the form of cash credit facility to be provided
and drawings to be allowed as per DP
• All loans to be reviewed every year
• To open the Cash Credit Account of Self Help Groups, a new scheme code "CCSHG"
has to be used in Finacle
Security
Prime Security:
• Hypothecation of assets created out of Bank's finance.
• Credit limit up to Rs.10 lakhs: Nil
• Credit limit above Rs.10 lakhs: Collateral security to the extent of 100% of
loan amount is to be obtained.
• For NRLM scheme: please refer NRLM guidelines issued from time to time.
Security Documents:
1. Application by the SHG
83
2. Copy of by laws
3. Copy of proceedings/ resolution
4. Inter-se Agreement by all members.
5. Articles of Agreement by authorized members.
6. Appropriate DPN
7. Hypothecation Agreement – SD 07 in case of agriculture loans / SD 03 for all
other loans(in case assets are created)
9. MCLR agreement – SD 24
10.SM(SD12/14/1S)/EM of property (AD13) if stipulated for loans above Rs.10.00
lakhs
11.Third party guarantee (SD 08 / SD 01) if stipulated
12.Comprehensive insurance of assets created
Important: Loan documents have to be obtained for the loan amount and ROI applicable
to the 5th year limit in respect of CC accounts.
Rate of Interest (ROI): As per the extant guidelines
Margin
• No margin is stipulated for loans sanctioned based on 1:4 or 1:10 concept of savings
of SHGs
• However loans sanctioned to SHGs for creating any assets/ productive / income
generating activity, usual margin norms has to be stipulated i.e.
• Subsidy portion in case of government sponsored schemes may be treated as part
of margin.
Service Charges: As per the extant guidelines on Service charges
Repayment
• Repayment period in negotiation with the group, which may range from 3 to 7 years.
• Monthly installments or as determined at the time of sanctioning the loan based on
local practice, activities undertaken by members etc.
Records/ Books of Accounts to be maintained by SHGs
• Attendance Register
• Membership Register
• Proceedings Book / minutes register
• Savings Register member-wise
• Credit Register member-wise
• Bank Borrowing /Deposit Register etc
Grading of SHGs
84
• Grading of SHGs at two stages:

At the time of first credit linkage of SHG.
For mature SHGs where higher quantum of credit is requested
• The SHGs which have scored 70 marks out of 100 marks may be considered for
credit linkage.
• A mature SHG is assumed as one that has availed at least two cycles of credit from
bank and repaid it.
Farm Irrigation Scheme

Objective
Finance to be extended for various farm irrigation activities such as, Minor irrigation
(Digging / deepening of bore-well / Dug-well), Micro Irrigation (Drip, Sprinkler
irrigation), Lift irrigation & pipeline, Pump-set, Construction of tanks / ponds / laying
of pipeline, Other irrigation equipment and artificial recharge of dug wells
Eligibility: All categories of borrowers who meet Bank’s borrowing norms
Nature of facility: Term loan
Margin
 Up to Rs. 1, 60,000/-: Nil
 Above Rs. 1, 60,000/- : minimum 10%
Quantum of loan
 Wherever it is specified that “UNIT COST AS PER NABARD GUIDELINES” is to be
followed, the delegated authority is authorized to decide/consider 20% Up & Down
variation over/below the NABARD unit cost with proper justification.
Mode of Disbursement
 Disbursement of loan amount along with margin will be made directly to supplier
 Disbursement in stages depending on schedule of implementation & end use
Rate of Interest & other charges: As per extant guidelines on Rate of Interest by
Bank
Delegated Authority: As per extant guidelines on Delegated Authority by Bank
Security
85
loans up to Hypothecation of asset created out of bank finance

Rs.1.60 lakh
loans above  Hypothecation of asset created out of bank finance
Rs.1.60 lakh and
 Mortgage of land (Accepted value of land should not
be less than 100% of loan amount) and / or third
party guarantee (means should not be less than
100% of loan amount)
Security documents: As per the extant guidelines on documentation by Bank

Repayment period
 Term loan to be repaid in maximum 9 years with moratorium period of maximum
12 months
 The repayment period may be fixed as per the anticipated harvesting & marketing
period for the crop grown
Insurance: Assets created by bank finance will be comprehensively insured with bank
clause.
Post-sanction monitoring
Post-sanction inspection & periodical follow-up inspection to be undertaken and
report should be prepared and held on record.
Farm Development Scheme

Objective
Finance to be extended for various Farm Development activities, such as Land
Leveling, Land Reclamation, Bunding & Terracing, Gully plugging with stone, Soil &
Water Conservation activities, Watershed Management, Fencing and any other farm
development activity
Nature of facility: Term loan
Margin
 Up to Rs. 1,60,000/-: Nil
 Above Rs. 1,60,000/- : Minimum 10%
Quantum of loan
86

the delegated authority is authorized to decide/consider 20% Up & Down variation
 In stages depending on schedule of implementation & end use verification should be
done at every stage of disbursements. Relative invoices / bills for assets financed if
any should be obtained and held on record.
Rate of Interest & other charges
As per extant guidelines on Rate of Interest by Bank
Security
loans up to Hypothecation of asset created out of bank finance.
Rs.1.60 lakhs
loans above  Hypothecation of asset created out of bank finance and
Rs.1.60 lakhs  Mortgage of land (Accepted value of land should not be
less than 100% of loan amount) and / or third party
guarantee (means should not be less than 100% of loan
amount).
Security documents
As per the extant guidelines on documentation of the Bank
Repayment period
 Term loan to be repaid in maximum 9 years with moratorium period of maximum
12 months.
 The repayment period may be fixed as per the anticipated harvesting & marketing
period for the crop grown.
 Many of the plantation and horticulture plants are having long gestation period.
Hence required moratorium should be given as per NABARD guidelines.
 Long repayment period are normally stipulated for plantation crops as they have
long economic life
Insurance
Assets created by bank finance will be comprehensively insured with bank clause.
87
 KYC norms & due diligence should be carried out by branch officials as per the extant
guidelines.
 All applicable guidelines of the Bank on agriculture term loans to be strictly adhered
to.
Hi-Tech Agriculture projects

Objective
Loans to individual, joint individuals, SHG / JLG, Corporates including farmers
producer companies of individual farmers, partnership firms and co-operatives of
farmers for various activities, such as Union Bio-Tech(Tissue Culture), Floriculture,
Poly House / Green House, Mushroom Cultivation, Other Hi-tech agricultural projects
Eligibility
 The beneficiaries under the project could be qualified professional entrepreneurs,
SHG / JLG / sole proprietary concerns / partnership firms / public and private limited
companies / co-operatives.
 Farmers / Individuals with domain knowledge of the hi-tech project to be
undertaken.
 Borrower should have own land of 3 acres or in case the land is on lease, the lease
agreement should be for a period, at least 2 years more than the period of
repayment.
Nature of Facility
TL facility till setting-up of unit & Working Capital facility later-on for running of the
unit
Margin: Minimum 25% of the Loan amount.
Quantum of loan
o Loans to individuals, Joint individual, SHG / JLG under the Scheme will be
classified as Agriculture advances subject to maximum aggregate sanctioned
limit of Rs.100 crores per borrower from the banking system
o As per NABARD unit cost & guidelines subject to economic viability of the project.
o Wherever it is specified that “Unit cost as per NABARD guidelines” is to be followed,
the delegated authority is authorized to decide/consider 20% Up & Down variation
88
o In case existing loan accounts: Renewal of limit within the existing sanctioned limit
Due diligence
Thorough due diligence of Borrower, Guarantor, Supplier & Land Record should be
carried out as per extant guidelines on Due Diligence by Bank.
Mode of disbursement
o Disbursement of loan amount along with margin will be made directly to supplier
o Disbursement in stages depending on schedule of implementation & end use
Rate of Interest (ROI) & other charges: Extant guidelines on Rate of Interest by
Bank
Security
Prime Security Hypothecation of asset created out of bank finance.
Collateral o Mortgage of Land / building / NSC / FDR etc., of
Security value equal to 100 % of the Loan amount. However,
in deserving cases the value of mortgage not less
than 50% of the loan amount may be considered
by next higher authority
o Personal Guarantees of partners / promoters /
directors / / owners of mortgaged property to be
obtained having net worth of minimum 50% of
Bank loan
Security documents: As per the extant guidelines on documentation by Bank

Repayment period:
The repayment period will be 7 years with maximum Moratorium of 24 months
Insurance: Assets created by bank finance will be comprehensively insured with bank
clause
Classification
89
Loans to individuals, Joint individual, SHG / JLG under the Scheme will be classified
as Agriculture advances subject to maximum aggregate sanctioned limit of ₹100
crores per borrower from the banking system.
 KYC norms & due diligence should be carried out by branch officials as per the extant
guidelines
 All applicable guidelines of the Bank on agriculture working capital and term loans
to be strictly adhered to
VERMI-CULTURE
Objective
 Vermi-culture is now a bankable activity. With the increasing awareness and demand
for chemical and residue free agricultural produce, more particularly the fruits and
vegetables, a thrust is being given on chemical free cultivation, where organic
manures like vermi compost have a major role to play.
 Technology is now available for manufacturing vermi compost on commercial lines
using diverse organic wastes, available in plenty around us. So, finance can be
extended to small and marginal farmers, other farmers, individual or corporate
entrepreneurs for establishing suitable units to produce vermi compost.
 Besides extending financial assistance, Banks, by virtue of their operations, may
also render some extension services to propagate vermi-culture among rural folk.
 Vermi-culture may also be given a place while formulating schemes for horticultural
crops and wasteland development.
Nature of Facility: Term loan
Margin
 Up to Rs. 1, 60,000/-: Nil.
 Above Rs. 1, 60,000/- : minimum 10%
Quantum of loan
the delegated authority is authorized to decide / consider 20% Up & Down variation
90
 Disbursement in stages depending on schedule of implementation & end use
Rate of Interest & other charges: As per extant guidelines on Rate of Interest by
Bank
Security
loans up to Hypothecation of asset created out of bank finance.
Rs.1.60 lakh
loans above  Hypothecation of asset created out of bank finance
Rs.1.60 lakh and
 Mortgage of land (Accepted value of land should not
be less than 100% of loan amount) and/ or third
party guarantee (means should not be less than
100% of loan amount).
Security documents: As per the extant guidelines on documentation by Bank.

Repayment period:
TL to be repaid in maximum 7 years with moratorium period of maximum 12 months
Insurance
Assets created by bank finance will be comprehensively insured with bank clause.
Classification: Priority Sector – Agriculture – Agri. infrastructure
Union Agri. Infrastructure Fund Scheme

Purpose of Finance:
A. Post-Harvest Management Projects like
 Supply chain services including e-marketing platforms
 Warehouses
 Silos
 Pack houses
 Assaying units
91
 Sorting & grading units

 Cold chains
 Logistics facilities
 Primary processing center
 Ripening Chambers
B. Viable project for building community farming assets including
 Organic inputs production
 Bio stimulant production units
 Infrastructure for smart and precision agriculture
 Projects identified for providing supply chain infrastructure for clusters of
crops including export clusters
Projects promoted by Central/State/Local Governments or their agencies under PPP
for building community farming assets or post-harvest management projects.
Margin:
• Minimum 25%
• Any grant or subsidy available under any present or future scheme of
Central/State Government can be availed for projects under this
financing facility.
• In case of capital subsidy, such amount shall be considered as promoter’s
contribution.
• A minimum of 10% of the project cost shall be mandatory as promoter’s
contribution
Quantum of Loan
• It is assessed based on the project cost
• Aggregate sanctioned limit up to Rs. 100 crore per borrower from
Banking system (PSA)
Interest Subvention
• All loans under this financing facility will have interest subvention of 3 %
per annum up to a limit of Rs. 2 crore. This subvention will be available
for a maximum period of 7 years
• In case of loans beyond Rs. 2 crore, interest subvention will be limited up
to Rs. 200 lakh
92

Agri Handbook Loans Schemes

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Agri Handbook Loans Schemes

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Compiled by Agri. Business and FI Discipline

August 15th, 2021

Union Green Card

1. For loans above Rs.1.60 Lakhs:-

Note: Repayment of KCC limit on or before due date will be treated as

2. With tie up facility for recovery- Hypothecation of crop up to Rs.3 lakhs

3. Letter of continuity - AD 09(M)

 Extension/ Reschedulement as per norms can be granted in case of natural

KCC of above Rs 25.00 Lakhs

Nature of Facility: KCC / Union Green Card

Fixation of Limit: For KCC limits above Rs25.00 lakhs. '

For fresh exposure and enhancements:

 Limits to be disbursed in a phased manner ensuring the end use of funds by

Review of the limit:

In case of Inland Fishery & Aquaculture activity:

 In respect of loans on lease hold lands,

 For fresh / enhancement of limits above Rs25.00 lakhs under KCC it is to be

CIBIL 6 Credit history report:

Digitization of land records:

Credit Process Audit:

Kisan Credit Card Gold Loan Scheme

 To meet short term requirement for cultivation of crops

Working Capital requirement for Animal Husbandry and Fisheries

 Farmers – Individual/Joint borrowers who are owner cultivators, Tenant

 Primary Security- Hypothecation of crops/assets created out of our finance.

Scheme Code & Labelling For KCC:

Other Terms and conditions:

 Whenever Gold Jewellery is accepted as Collateral Security, limit to be fixed

Debt Swap Scheme

Kisan All Purpose Term Loan

 Within 20 days of disbursement by the borrower for creation of the asset /

Kisaan Tatkal scheme

 Existing securities obtained for UGC to be continued / extended

 To make the small & marginal holdings economically viable

 Margin may be reduced to 10% by the sanctioning authority including BM based on

KCC - Allied Activities

Joint Liability Group finance

Government Initiatives in promoting Bee Keeping Activity

 Individual farmer including groups of individual farmers, farmers, producer

Pledge Loan (WHR Finance)

c) Price communicated by Regional office;

11.Negotiable warehouse / cold storage receipt OR non-negotiable WHR standing in

b) Additional subvention of 3% per annum will also be provided to SF / MF whose

Loan against Silver Ornaments

a) The repayment should be based on the income generation coinciding with

Farm Transport Scheme

2 Wheelers Max 3 years including moratorium

• Maximum moratorium period of 6 months. Repayment schedule can be fixed as per

• Wherever available seeding of mobile no & / or e-mail Id of the customer/Guarantors

Estate Purchase Loan

16.The Borrower should have yielding estates and should be in a position to

The loans are to be disbursed in stages

Renewable Energy Equipment

 Mortgage of land (Accepted value of land should

Service charges: As per extant guidelines

Service charges: As per extant guidelines

Classification: Priority Sector - Agriculture

Service charges: As per extant guidelines

Financing to Food & Agro Processing Units

Property offered as collateral should be easily marketable & acceptable to the

Union agri. services