AGRICULTURE

No Nature of Credit facilities At Branch

1 Kisan Credit Card – Branch powers 15 days

/-2 Other Agriculture Loans upto 25000 15 days
3 Loans above Rs.25000 30 days
 Service Area Norms : upto 30 Km in their command
area for all Priority Sector Advances

 Insurance is waived upto ₹50,000/-

 Waived for agricultural loan up to ₹ 50000/- ,
development loans upto ₹ 2 lakhs

 Bird Insurance waiver Conduct Scoring- The corpus
fund at Borrower level to be collected as RD per month
(collected for 5 yrs) on working capital limit/s & should be
stipulated as collateral.
 Commercial Layer – 6 % of WC,
 Parent Broiler – 10% of WC.
 Commercial Broiler– 12% of WC
 AGRICULTURE

VALUATION : AEOs and AEO Promotee Managers - Agricultural loans upto a limit of
Rs.30.00 lakhs
AND Other Managers - loans upto a limit of Rs.20.00 lakhs

Periodicity of valuation : with structure (3 years)-

With out structures (5 years)

Exceptions on Margin Norms :

ALLHV loans other than Medium & Heavy Commercial vehicles (MCV/HCV)- 10%
Scheme for financing farmers for purchase of lands for agricultural purposes – 20 %
Medium / Heavy Commercial vehicles Second hand vehicles – 25 %
Kisan Credit Card Scheme
Purpose: Cultivation & other short term needs including consumption and
Term Loan requirement. Sub limit-I as per formula

Sub - Sectoral limit NORM

I) Crop maintenance (A) As per scale of finance (As decided

by District Level Technical
Committee)
x
Extent of area cultivated
ii}Post harvest / household / 10% of (i)
consumption requirements
iii)Repairs and maintenance expenses 20% of (i)
of farm assets
iv) Crop insurance and/or accident Actual cost incurred can be
insurance including PAIS, health considered
insurance & asset insurance
Total KCCS First year LIMIT (i)+ (ii) + (iii) + (iv)
There shall be 10 % annual increase in WC Limit subject to
satisfactory annual review.

Documents & Mortgage for final year limit :To be obtained

for the sanctioned for 5th year ST limit but withdrawal
permitted for relative season/year not entire 5 th Year ST WC
limit.

Loan limit should not exceed 50% of value of the produce

Each withdrawal under the short term sub-limit to be

liquidated in 12 months (short term crops)/18 months (in
case of long term crops).

Annual review : It shall be done as per the NF 974 format.

Validity/Tenability: The operative short term limit will be

valid for 5 years subject to annual review.
FLEXI KCCS - For Marginal Farmers: A flexible limit of Rs.
10,000 to Rs. 50,000 may be provided (as Flexi KCC)

Term Loan component (Sub Limit II):

shall be limited to 3 times the annual net income

of the farmer/a maximum of Rs. 5.00 lakhs.
Kisan Tatkal

Only for KCC holders to meet post harvest expenses

Min. ₹1000/- Maximum ₹50,000)

Repayment 3-5 years half yearly/ Yearly installments.

Krishi Mitra Credit Card Scheme (KMCCS)

Tenant farmers, oral lessess, share croppers and farmers

who have lands, but do not have land records

Loan amount ₹50,000/- Total limit should not exceed 50% of

the value of the produce

Tenability 3 years
Canara Kisan OD Scheme :

OD facility for Agriculturists having One year satisfactory track record.

This norm may be relaxed by the next higher authority provided
following norms of the scheme are complied with.

Purpose – NOT for crop production

Other purpose like repair/replacement of animals/machinery, land

development activities or expenses, repayment of genuine private
debts, nonfarm sector wc and consumption needs.

MINIMUM QUANTUM - ₹ 1.00 lakh

 )
 Conditions KOD sanction at IF RECOVERY IS MORE
branch THAN 90%
Maximum of 3 times Maximum of 4 times
of gross annual income of gross annual income
Quantum
or or
Max Limit-₹ 7.50 lakhs Max Limit-₹ 12.50 lakhs

₹ 1 lakh per acre ₹1.50 lakh per acre

Ceiling on Finance per
subject to 50% of the subject to 50% of the
acre of land mortgaged
value of landed property. value of landed property.

Maximum amount to be given under KOD for repayment of Private Debts is now Rs
2.00 Lakhs.

Folio Charges @₹100/- per folio ie 40 entries. Debited Quarterly

Tenability: 3 years with annual review.

Produce Loan

Maximum ₹50 lacs per farmer/ borrower.

Branch sanction limit is restricted to Rs 10.00 lacs per

party under the scheme. Loan above Rs 10.00 lacs
through higher authority as RO/CO.

Valid for one year Maximum 75 % of the assessed value.

The assessed value shall be least of the following:

➢Minimum Support Price declared by
state /Central Govt.
➢Current market price.
➢Value as per Negotiable Warehouse Receipt
Farm Machinery Loans

Purpose : Farm machinery loans are considered for

purchase of tractor, power tiller, trailer and accessories,
combine harvester, grain threshers, sprayers, dusters,
ploughs drills and such other farm implements and
equipments needed for agricultural activity.


Features FM/ Tractor Loan Small Tractor Loan
Eligible Farmers / Group of farmers Farmers / Group of farmers owning
customers owning 8 acres irrigated or 6 acres irrigated or 12 acres dry
16 acres dry land Land

Financing tractor/ Farm Purchase of brand new small

Machinery as per Scoring tractor (up to 30HP), accessories
matrix. and Implements.
Tractor usage for 1200-
1400 hours. Minimum 600 Usage : At least 1000-1200
hours in farmers own working hours including minimum
land. 500 hours on the farmers own
land.

Max. loan amount for purchase of

tractor is 3.5 lacs and
additional loan of Rs. 50,000 for
accessories/implements/trailer
may be considered
Repayable within 7 to 9 years
Dairy loans:

Normal Economic Life of Buffalo is 5 to 7 lactations

and Cow is 10 lactations.

Finance upto age of their 3rd lactation.

High Yielding Milch Cattle: Not less than 5 litres milk

yield per day.
Matsya Suraksha” A Scheme to Finance Fishermen
cost of fuel, oil, consumables and stores, repairs and maintenance of own boats,
selling and other WC related expenses.
Minimum: Rs. 10,000/- Maximum Rs. 1,00,000/-
Repaid in 35 months in 24 equal instalments.(Repayment holiday from June to Sept
every year)
“Matsya Parirakshan” (A Scheme to Finance Fisher Women )
To meet recurring expenses of fisherwomen
Single transaction Short- term loan
Min 5000/- Max 50000/-
Repaid in 35 months NO HOLIDAY period.
“Matsya Samruddhi” (A Scheme to Finance SHGs/JLGs)

(Women at fish markets either individually or in groups

Purpose : Fresh Fish vending, drying, salting, net making, feed production, manure
production, boat/ net purchase, carrying vehicle purchase, inland fisheries. The
total savings of the group for Five years at current rate shall be calculated.

Quantum depends on rate of savings. Maximum loan of Rs. 50,000/- per member
with a maximum of 10 lac per group.

CC limit tenable till 5 years, with repayable monthly interest

 • Agriclinics & Agribusiness Centres
Purpose • Constitution – individual, joint or partnership firms, Limited
companies, etc. Graduates in agriculture only
Ceiling on Project • Rs 20 lacs per graduate with max. Rs 100 lakhs per group of 5
eligible candidates (of whom one can be
Accounting/Management graduate)
Margin • Up to Rs 5 lacs: Nil and above Rs 5 lacs – 15 to 25%.

Agri-Clinics: To provide expert advice and services to farmers on

technology, cropping practices, protection from pests and diseases, market
trends, prices of various crops in the markets and also clinical services for
animal health, etc., which would enhance productivity of crops/animals
and increased income to farmers.

Agri-Business Centers: To Provide farm equipments on hire, sale of inputs

and other services.
 (AGRICULTURE)

PMFBY : Pradhan Mantri Fasal Bhima Yojana

Rabi 1.5% Kharif 2.% Commercial 5.00%

3 levels of indemnity : High 70%,

Moderate 80%,
Low 90%
 (AGRICULTURE)
Modification in Security and Margin norms of Agriculture Loans.

Margin for Agriculture Loans : Up to Rs 1.60 lakhs: NIL
Above Rs 1.60 lakhs: 15-25%

Security Norms : For loans up to Rs. 1.60 Lakhs: Hypothecation of crops/assets created
out of finance

 For loans above Rs. 1.60 Lakhs :

 Hypothecation of crops/ assets created out of our finance.

 Mortgage of landed properties.
 In states where charge creation is done manually/online, charges shall be created in
respect of loans above Rs. 1.60 Lakhs.

 In case of existing KCC Loans, the limit will be tenable for 5 years from the date of
sanction, during which period farmers will continue to operate the account.
 At the end of the 5th Year, he/she has to close the account fully and fresh sanction,
documentation has to be taken, during which the revised security guidelines will be
applicable.
 (AGRICULTURE)
 POLICY ON POST SANCTION MONITORING AND RECOVERY OF GOLD
LOANS.

 For proper monitoring and to maintain the stipulated LTV ratio during the loan
tenure, Bank has set a “trigger LTV” ratio, (the point where the monitoring
will commence) for all the Gold loan schemes. This trigger LTV ratio prevents
loans from crossing Regulatory LTV ratio.

 Trigger LTV ratio is 3% lower than the RBI stipulated LTV ratio for non-
agriculture purposes gold loans.

 For agriculture gold loans, trigger LTV ratio start from 4% lower than the RBI
Stipulated LTV ratio.

 Once the trigger LTV is breached, follow up notices will be sent to borrowers
advising them to top up /bring within the LTV

 Once the Trigger LTV ratio is breached, borrower is to be advised
to top up/bring within the LTV by sending follow up notices

 Notice 1 : On the day when LTV breached the specified limit

 Notice 2 : limit 15 days from notice 1
 Notice 3: 30 days from Notice 1 (Auction cum reminder Notice)

 The entire auction process to be completed in 45 days for Agriculture
Gold Loans and in 30 days for Non-Agriculture Gold Loans

 Branches should put in a system to declare every 4 th Friday of the
month for conducting monthly auction for sale of gold ornaments
to realize and recover the dues of NPA.

 The Regional Head is empowered to reduce the reserve price up to
10% of the first auction price. Beyond 10 % the powers are with the
Circle Head.
 (AGRICULTURE)

 GOLD LOAN OUTSTANDING AND BALANCING

REPORT-271004 daily
 Gold loans should be balanced by branches
quarterly on last Friday of Mar, June, Sep & Dec.

 AND last working day MARCH FOR Balance sheet

purpose

 During regular RBIA the Gold packets should be
verified with balancing report on date of
Commencement of inspection
 OBSERVING NOVEMBER 2020 AS “SELF HELP
GROUP CREDIT LINKAGE MONTH”

 As per the directions of top management, every
year one month in each quarter (May, August,
November & February) is being observed as “SHG
Credit linkage month” by identifying and financing
targeted number of SHGs.
 PRIORITY (AGRICULTURE)

 The ratio of Jewel appraisers in the panel at R.O. shall be
linked to the Branch network with Gold loan

 exposure and shall be in the ratio of 1:10, with 1 extra

appraiser for meeting contingencies.

 However the ratio of the same is relaxed to 1:20 for the
circles except in the states of Karnataka, Kerala, Tamil
Nadu, Andhra Pradesh, Telangana & UT of Pondicherry till
March 2021
 PRIORITY (AGRICULTURE)

 PMFBY/RWBCIS Schemes – Payment of Service Charges for

online transmission of Farmers’ Premium to Insurance
Companies, through e Payment Gateway.

 Service Charge of Rs. 5/- plus applicable GST @18% i.e. Rs.
5.90 is to be debited from the Branch Expenditure Head.
 Launching of Central Sector Interest Subvention Scheme for
financing under Agriculture Infrastructure Fund, of Ministry of
Agriculture, Cooperation and Farmer’s Welfare, GOI.

 IMLEMENATION PERIOD : FY 2020-2021 TILL 2029-30.

 To ensure the above, GOI has announced Rs. 1.00 Lakh Crore Agri
Infrastructure Fund for farm-gate Infrastructure for farmers

 Interest subvention for infrastructure projects under Agriculture @
3% for loans up to Rs. 2.00 Cr, for a period of 7 Years.

 CGTMSE Coverage for eligible loans under the scheme for loans up
to Rs. 2.00 Cr.


 AGRICULTURE

 477/2020 :

 Empanelment of Panel of Agriculture Consultants (PACs) for sourcing

Agriculture & Allied activities proposals – Additional Guidelines

 Empanelled Agriculture Consultants will be paid service fee/ commission of
0.10% of loan amount sanctioned for maximum of Rs 50000/-


 (PAIS) - M/s. Bajaj Allianz General Insurance company Limited
 Sum assured amount is Rs.1,50,000/-
 Premium amount is Rs. 25/- (Including GST) per year (BANK 17 and farmer 8/-) including GST

SR Criteria Risk Coverage

NO
1 Death due to accident (within 12 months of Rs. 1,50,000/-
the accident) caused by outward violent and
visible means
2 Permanent total disability Rs. 1,87,500/-
3 Loss of two limbs or two eyes or one limb & Rs. 1,87,500/-
one eye
4 Loss of one limb or one eye Rs.75,000/-

 This policy will cover the KCC card holders up to the age of 70 years

 a) In respect of HUF accounts, coverage is restricted to Karth Only.
 b) In case of joint accounts, No. 1 applicant shall be covered.
 c) In case of partnership firms, Managing partner / partner having maximum share be covered.
 d) Accounts of the companies be excluded from coverage

 AGRICULTURE
 Hon’ble Finance Minister has announced to cover
2.5 Crore farmers under the KCC scheme in a
mission mode to facilitate credit to the farm
sector

 - KHARIF SEASON- June to September
 RABI SEASON – NOV TO MAY
:

WAIVER OF ALL SERVICE CHARGES FOR KCCS/CROP LOANS UP TO Rs.

3.00 LAKHS TO SMALL AND MARGINAL FARMERS TILL 31.03.2021

AGRICULTURAL INNOVATION CENTRE (AIC)

Undertake appraisal of high value Agricultural projects for clients seeking financial assistance
from our bank and project appraisal for outside clients

For New Customers: Project Cost above Rs 150 lakhs

For Existing Customers: Project Cost above Rs 300 lakhs

Viability study/Restructuring package for sick units shall be conducted by AIC in respect of
Agriculture accounts with outstanding of Rs 100 lakhs and above