AGRI-CLINIC & AGRI-BUSINESS CENTRES (ACABC)

(Updated till 17.09.2022)

OBJECTIVE OF THE SCHEME

 To supplement efforts of public extension by necessarily providing

extension and other services to the farmers on payment basis or free of cost
as per business model of agri-preneur, local needs and affordability of target
group of farmers

 To support agricultural development; and

 To create gainful self-employment opportunities to unemployed agricultural

graduates, agricultural diploma holders, intermediate in agriculture and
biological science graduates with PG in agri-related courses.
CONCEPT

AGRI - CLINICS:

 Agri-Clinics are meant to provide expert advice and services to farmers on

various technologies including soil health, cropping practices, plant
protection, crop insurance, post harvest technology and clinical services for
animals, feed and fodder management, prices of various crops in the market
etc. which would enhance productivity of crops/animals and ensure
increased income to farmers.

AGRI - BUSINESS CENTRES:

 Agri-Business Centres are commercial units of agri-ventures established

by trained agriculture professionals. Such ventures may include
maintenance and custom hiring of farm equipment, sale of inputs and
other services in agriculture and allied areas, including post harvest
management and market linkages for income generation and
entrepreneurship development.

BY: SAURABH MISHRA, MANAGER, CANARA BANK, INSPECTION WING Page 1

 ELIGIBILITY CRITERIA FOR CANDIDATES

 Age: Within 18 to 60 years only are eligible.

 Graduate/ Post Graduate in Agriculture and Allied subjects from

Universities recognized by ICAR/UGC, SAUs and of other Agencies
approved by DA&FW, MoA&FW, GoI.

 Graduate in agriculture and allied subjects like Horticulture, Sericulture,

Dairy, Animal Husbandry, Fisheries, Home/ Community Sciences,
Biotechnology, Agricultural Engineering, Forestry, Food Technology, Food
Nutrition and Dietetics etc, from SAUs/ Central Agricultural Universities/
Universities and graduates in Environmental Science, Botany, Zoology and
Chemistry recognized by ICAR/ UGC.

 Degree course recognized by UGC having more than 60% of the course in
Agriculture and Allied subjects.

 Diploma (with at least 50% marks)/ Post Graduate Diploma holders in

Agriculture and allied subjects.

 Diploma/Post-graduate Diploma courses with more than 60 percent of

course content in Agriculture and allied subjects, after B.Sc. with Biological
Sciences from recognized colleges and universities.

 Agricultural Intermediate (i.e. 12th standard) with at least 55% marks.

 Type of Projects : Individual or Group projects under Agriculture/Allied

sectors

PRODUCT CODE:

791: For monthly instalments

875: For quarterly/ half yearly/ yearly instalments

BY: SAURABH MISHRA, MANAGER, CANARA BANK, INSPECTION WING Page 2

 MARGIN: (IC/173/2022)
FOR LOANS UPTO RS. 500000/- NIL
FOR LOANS MORE THAN RS. 500000/- 15% - 25 % OF THE PROJECT COST

SECURITY:- (IC/173/2022)

Loan quantum Security to be stipulated

For loan up to Rs.5,00,000/-
For loan above Rs.5,00,000/- and up to a) Hypothecation of assets created out of our
Rs.10,00,000/-
For loans above Rs.10,00,000/-
a) Hypothecation of assets created out of our
finance.
b) Compulsory coverage for credit Guarantee
under CGFMU.
finance.
b) Mortgage of landed property if the same is
available as a part of prime security.
c) If the developments are undertaken on the
leased land and where legislation permits
mortgage of lease hold rights –
1) Mortgage of leased hold right may be
insisted.
2) Compulsory coverage for credit Guarantee
under CGFMU.
a) Hypothecation of assets created out of loan
b) Mortgage of landed property equivalent to
loan amount
c) Co-obligation/Guarantor (In deserving cases
co-obligation/guarantor may be waived by the
sanctioning authority)

SUBSIDY

 Subsidy Total project cost upto ₹20 lakh (Individual) & ₹100 lakh (for a
group of 5) is eligible for subsidy.
 An additional limit of ₹5 lakh for subsidy purpose is also provided for
extremely successful ventures.
 Credit linked, composite and back ended subsidy with a lock in period of 3
years.
 Subsidy is linked to extension services to farmers.
 36% for General category.
 44% for Women, SC/ST, North Eastern & Hill States.

BY: SAURABH MISHRA, MANAGER, CANARA BANK, INSPECTION WING Page 3

 LOAN ASSISTANCE

 The term loan would be composite in nature and the financing branch would
extend bank loan, which would include fixed capital cost, working capital
for one operating cycle, and subsidy amount eligible,(as capital subsidy is
back-ended), but exclusive of margin money as stipulated.

 At least 10% value of the Total Financial Outlay (TFO) of the project should
be in capital form.

NATURE OF FACILITY:
 Term Loan
 Priority Sector: Agriculture (Ancillary Activity)

Time limit for completion of the project

 Time limit for completion of the project would be as envisaged under the
project subject to maximum of 6 months period from the date of
disbursement of the first installment of loan, which may be extended by a
further period of 6 months, if reasons for delay are considered justified by
the branch concerned.

 If the project is not completed within the stipulated period, benefit of

subsidy shall not be available and advance subsidy placed with the
branch/es, if any, will have to be refunded forthwith to NABARD.

REPAYMENT:

 Loans are to be repaid in 5-10 years in monthly / quarterly / half yearly

instalments depending on activity and generation of income.

 The repayment period may include a grace period of maximum of 2 years

based on income generation.

 Repayment holiday may be permitted for interest also during the gestation
period if essential. In that case, repayment of interest accrued has to be
specifically indicated.

BY: SAURABH MISHRA, MANAGER, CANARA BANK, INSPECTION WING Page 4

 NOTE:

 Candidates trained under this Scheme can avail subsidy from any Scheme of
Central or State Government related to his/her field of Agri-business, if it is
beneficial to the candidate. However, subsidy for the same project cannot be
availed from more than one Scheme by a candidate.

 Sometimes entrepreneurs start small and then ramp up their business later
on. Therefore, it has been decided that the benefit of subsidy will be
extended up to 2 times to a candidate under the Scheme as per the approved
rates mentioned at of the project cost of Rs. 20/25 lakhs or Rs. 100 lakhs as
the case may be. Such cases may include cases where the project is
expanded in phases or financed in phases. However, if an existing venture is
expanded or financed in phases, Composite Subsidy limits shall be reckoned
only on such incremental component of Total Financial Outlay.

Following are the cases where such a facility can be availed:

a) When two independent projects are financed to same beneficiaries.

b) When an existing project (that has availed subsidy under the scheme) is
undergoing expansion.

 The subsidy will be back - ended with minimum 3 years lock-in period. This
implies that once the loan is taken with subsidy, the account cannot be
closed within three years.

 The subsidy, which is back ended, will be admissible only if all repayments
till date had been made.

 The subsidy will be adjusted in one lump-sum against the last remaining
instalments of repayment of bank loan.

 The composite subsidy admissible under the scheme will be kept in the
“Subsidy Reserve Fund Account” (Borrower-wise) in the books of the
financing branch. No interest will be charged on this by the Bank. In view of
this, for the purpose of charging interest on the loan component the subsidy

BY: SAURABH MISHRA, MANAGER, CANARA BANK, INSPECTION WING Page 5

 amount should be excluded. The balance lying to the credit of the “Subsidy
Reserve Fund Account” will not form part of Demand and Time Liabilities.

 After crediting the subsidy in the Subsidy Reserve Fund Account of the
borrowers under the Scheme, a Utilization Certificate in the prescribed
format (Annexure 53/54 – Agri MOI) shall be submitted by the participating
bank to NABARD to the effect that the amount of subsidy received by them
has been fully utilized and adjusted in the books of account as per the
sanctioned terms and conditions of the project within the overall guidelines
of the scheme.

 An Agri-entrepreneur submits the project proposal for term loan and subsidy
to the Bank Branch on an application form as prescribed by the bank along
with the project report and other documents for appraisal and sanction of
loan. The banks have to process the application and take a decision of
acceptance or rejection within a time frame of 15 days.

 After sanction of the project and disbursal of first installment of loan, the
bank will furnish a brief project profile-cum-claim form for subsidy in the
prescribed format along with a copy of bank’s sanction letter to the Regional
office of NABARD (Annexure IV, V, VI – Cir No.92/2019), within 15 days
of disbursal of first installment of loan. (for further details – refer HO
Cir. 92/2019)

SPECIAL NOTE

a) Project under the scheme is to be treated as Agriculture Ancillary

Activities.

b) Branch should obtain a project report from applicant, which includes the
details of the project, viability aspect, projections, etc.

c) The projected cash and fund flow statement should be obtained covering
the period of repayment.

d) Average Debt Service Coverage Ratio (DSCR) should be 1.75 and above.

e) Sanctioning of loan is as per powers delegated for sanctioning of

agricultural loans.

BY: SAURABH MISHRA, MANAGER, CANARA BANK, INSPECTION WING Page 6

 f) The continuation of the Scheme shall be as advised from time to time.

g) Scheme is eligible for NABARD refinance. However, availing refinance

is subject to ongoing refinance policy of Bank.

h) Details of the documents to be submitted while forwarding the Subsidy

Claims are listed in annexure 55 (Agri MOI)

i) Detailed Progress status to be maintained as per Annexure 56 (Agri

MOI).

j) The branches will adhere to the norms of Appraising the projects

regarding Technical Feasibility and Commercial/ Financial viability.

k) The branches should ensure insurance of the assets created under the
project, wherever required statutorily. If the beneficiary opts to buy
insurance on these assets, even if insurance is not required statutorily,
such expenditure would be eligible component of TFO.

l) A sign board displaying “Assisted under the scheme of Agri-Clinics and

Agri- Business Centres, Ministry of Agriculture, Government of India”
by Canara Bank should be exhibited at the Unit.

m) Pre and post completion inspection of the project shall be undertaken by

the branches as per extant guidelines for agriculture projects to verify
physical, financial and operational progress as and when required.

DELEGATION OF POWER: (IC/482/2022)

 As per agricultural term loans.

INSPECTION CHARGES/ PROCESSING CHARGES/ DOCUMENTATION

CHARGES : (50/2021)

CIR CHARGES & CIR GUIDELINES: (165/2020 & 117/2020)

RATE OF INTEREST:

 As applicable to Priority Agriculture Loans.

BY: SAURABH MISHRA, MANAGER, CANARA BANK, INSPECTION WING Page 7
 DOCUMENTATION

1. NF – 414
2. NF – 588
3. NF – 589
4. NF – 546
5. NF – 482
6. NF - 803
7. NF – 110
8. NF – 461 & NF – 462 (If mortgage is involved – as applicable)
9. Sanction Memo
10. Appraisal Note (PN)
11. NF – 821 (As applicable)
12. Annexure from Cir. No. 846/2021 (Communication of repayment schedule
to Borrowers – RBI Guidelines)
13. KYC
14. Photographs
15. Copy of Degree Certificate/ marks sheet as a proof of being graduate in
Agriculture Science
16. Copy of Project report
17. Valuation Certificate of land as per bank guidelines
18. Quotations/Proforma Invoice for Machinery/ Equipment/ Vehicles to be
purchased
19. CERSAI & Insurance coverage
20. CGFMU coverage (As per norms)
21. Pre Sanction Visit Report (As per Cir. No. 770/2021)
22. Post Sanction Visit Report
23. Land records incl latest land tax paid receipts regarding land owned as
certified by revenue authority.
24. Legal opinion/ legal scrutiny report (LSR)
25. Appendix – iv check list for scrutiny and approval of LSR by branches
(157/2020)
26. Appendix – v format to be submitted by the branch officials on inspection
of the immovable properties mortgaged/ offered as security (157/2020)
27. EC report
28. Mortgage of land (As applicable)

BY: SAURABH MISHRA, MANAGER, CANARA BANK, INSPECTION WING Page 8

 OD/Limit

29. NF – 795
30. NF – 372
31. NF – 721
32. NF – 480
33. NF – 1003/540
34. NF – 814
35. NF – 373

Term loan

36. NF – 720
37. NF – 723
38. NF – 373
39. NF – 855
40. NF – 1024

ATTENTION

 Generation of loan documents only through LAPS has been made mandatory
w.e.f. 01/09/2022.
 The loan documents are to be printed on Legal Size papers only.
(IC/500/2022 & IC/527/2022).

ACABC Circulars: IC/92/2019 dated 27.02.2019, IC/431/2022 dated

04.07.2022)

This material is for ready reference, for more details please refer to the Manual of
Instructions and various circulars/policies issued by the bank from time to time.

Compiled by:
SAURABH MISHRA
B.Sc. (Hons.) Banking & Finance Management
Kerala Agricultural University (KAU)
Manager
Inspection Wing
Canara Bank
Head Office, Bangalore
Mob- 8868948096

BY: SAURABH MISHRA, MANAGER, CANARA BANK, INSPECTION WING Page 9