GIST OF

“AGRICULTURE
LENDING
SCHEMES”
(UPDATED AS ON 24.12.2022)

Compiled by
R. C. Jha
AGM, HO: CRMD

Page 1 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
Sr Agriculture Lending Schemes Circular No/Date Page
1 Master Direction: Priority Sector Lending (PSL) – Targets and Classification AGRI: 55/27.09.2022 5-8
AGRI:69/04.11.2022
AGRI:74/18.11.2022
2 Procedural Guidelines for Agricultural Credit AGRI: 135/30.12.2017 9-10
AGRI: 02/13.01.2022
AGRI: 39/30.06.2022
3 Krishak Unnatti Yojana AGRI: 67/31.10.2022 11
4 E-Renewal of KCC accounts upto ₹ 1.60 Lakhs AGRI: 07/10.02.2022 12
5 Digital Renewal of KCC Accounts Upto ₹ 1.60 Lakhs AGRI: 61/17.10.2022 13
6 PNB Kisan Tatkal Rin Yojana PS: 35/30.04.2021 14
7 Scheme for Financing Green Houses PS: 31/26.03.2020 14
8 Scheme for Financing Development of Wasteland PS: 32/26.03.2020 15
9 Scheme for Financing Setting Up of Bio-Gas Units PS: 30/26.03.2020 16
10 Scheme for Financing Sericulture PS: 29/26.03.2020 16
11 PNB Krishak Saathi Scheme (PNBKSS) PS: 28/26.03.2020 16
12 Scheme for Financing Development of Horticulture (Fruits, Flowers & Vegetables) and Plantation Crops PS: 27/26.03.2020 17
13 Scheme for Financing Poultry Farming PS: 26/26.03.2020 17
14 Scheme for Financing Apiculture (Bee Keeping) PS: 25/20.03.2020 18
15 Scheme for Financing Piggery Development PS: 23/26.03.2020 18
16 Scheme for Financing Minor Irrigation Activities PS: 24/26.03.2020 19
17 Scheme on Organic Farming and Organic Inputs PS: 20/26.03.2020 20
18 Scheme for Financing Combine Harvesters PS: 16/26.03.2020 20
19 Scheme for Financing to Custom Hiring/Service Units PS: 19/26.03.2020 21
20 Scheme for Financing Purchase of Draft Animals and/or Animal Drawn Vehicles PS: 15/26.03.2020 21
21 PNB Krishi Bhu-Swami Yojana (PNB Agri-Land Purchase Scheme) PS: 42/14.05.2020 22
22 Produce (Marketing) Loan Scheme PS: 12/26.03.2020 22
23 Scheme for Financing Forestry Development Programmes PS: 18/26.03.2020 23
24 Scheme for Financing Sheep/Goat Breeding/Rearing Activities PS: 17/26.03.2020 24
25 Scheme for Financing Mushroom Cultivation and Spawn Production PS: 14/26.03.2020 24
26 Scheme for Financing Estate/Orchard Purchase (Estate/Orchard Purchase Loans) PS: 10/26.03.2020 25
27 Scheme for Financing Loan for Farm House Construction PS: 11/26.03.2020 26
28 Scheme for Financing Vehicle for Farmers/Agriculturists PS: 09/26.03.2020 27
29 Farm Mechanization Scheme for Financing of Farm Machinery and Repair/Renovation of Tractors & Power Tillers AGRI: 50/08.09.2022 28-29
30 Kisan Credit Card (KCC) Scheme: Working Capital for Animal Husbandry & Fisheries PS: 79/20.11.2021 29
AGRI: 17/23.03.2022
AGRI: 32/03.06.2022
31 Kisan Credit Card (KCC) Scheme: Master Circular PS: 51/27.07.2018 30
AGRI: 17/23.03.2022
AGRI: 64/18.10.2022
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32 Kisan Gold Scheme PS: 79/15.12.2017 31
33 Schemes for Financing Dairy Development Programmes PS:120/30.12.2017 32-33
PS: 27/19.04.2018
PS: 32/02.05.2018
34 Dairy Entrepreneurship Development Scheme (DEDS) PS: 21/26.06.2019 34
PS: 30/05.08.2019
35 Scheme for Providing Priority Sector Credit Against Bank Deposit, NSC & KVP PS:131/30.12.2017 34
36 Scheme for Financing Fisheries Development and Subsidy Scheme of National Fisheries Development Board (NFDB) PS:119/30.12.2017 35
37 PNB Swarnim - Agri Gold Loan Scheme AGRI: 49/30.08.2022 36
AGRI: 58/07.10.2022
38 Contract Farming PS: 82/15.12.2017 36
39 Scheme for Financing Food & Agro Processing Activities {Previously scheme name was PNB UTKARSH} PS: 20/20.06.2019 37
40 Scheme for Financing to Cold Storage Units for Facilitating the Farmers and also to Meet Running Expenditures PS: 73/05.10.2021 38
41 Capital Investment Subsidy Scheme for Construction/Expansion/Modernization of Cold Storages/Storages For Horticultural PS:133/30.12.2017 38
Produce
42 Agricultural Marketing Infrastructure (AMI) Scheme: Sub-Scheme of Integrated Scheme for Agricultural Marketing PS: 63/08.11.2018 39
AGRI: 28/09.05.2022
AGRI: 29/10.05.2022
AGRI: 60/14.10.2022
43 Agri-clinic and Agri-business Centres Scheme (ACABC): Revised Guidelines PS: 03/01.02.2019 40
AGRI: 22/02.04.2022
44 Scheme for Financing Farmers for Purchase of Trucks & Other Transport Vehicles PS: 64/08.11.2017 41
45 Scheme for Financing Agriculture activities on Unregistered leased/rented Land PS: 63/26.03.2020 41
46 Differential Rate of Interest (DRI) Scheme PS:122/30.12.2017 42
47 PNB Ujala Scheme PS: 99/28.12.2017 43
48 PNB Ladli SCHEME PS: 72/29.09.2020 43
49 Scheme for Financing Distressed Urban Poor (SFDUP) PS:101/28.12.2017 43
50 PNB Kisan Balak Shiksha Protsahan Yojana PS: 13/30.04.2019 44
51 PNB Vikas -- Construction of Toilets for Girl Students in Government Schools of Adopted Villages of PNB Vikas PS: 92/26.12.2017 44
52 Scheme for Providing Relief and Rehabilitation Assistance to People In Areas Affected By Natural Calamities PS: 21/26.03.2020 45
53 Self-Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) PS: 32/15.04.2014 46
54 Deendayal Antyodaya Yojana —National Urban Livelihoods Mission (DAY-NULM) PS: 36/11.05.2021 47
AGRI: 25/11.04.2022
AGRI: 73/18.11.2022
55 Deendayal Antyodaya Yojana –National Rural Livelihoods Mission (DAY- NRLM) AGRI: 48/30.08.2022 49
AGRI: 71/10.11.2022
56 Master Circular: SHG-Bank Linkage Programme AGRI: 30/17.05.2022 50
57 Scheme for Financing Micro Financing Institutions for On-Lending to Individual Members or SHGs/JLGs PS:110/29.12.2017 51
58 PNB Sakhi -- Incentive Scheme for Facilitating SHG Bank Linkage AGRI: 47/20.08.2022 52
59 Financing JLGS of SF/MF/Tenant Farmers/Oral Lessees & Share Croppers PS: 19/09.04.2014 53
60 Financing of JLGS of Micro Entrepreneurs/Artisans/Individuals in Non-Farm Sector PS: 69/04.08.2014 53
61 Financing of Joint Farming Groups (JLG) of ‘Bhoomi Heen Kisan’ PS: 86/19.11.2014 54
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62 Scheme for Financing WJLGS – Collateral Free Upto Rs. 10 Lakh PS: 14/04.03.2016 54
63 Uniform Model Guidelines for Financing to Individual Sugarcane Farmers PS: 45/25.11.2019 54
64 PM KUSUM Scheme (Components ‘B’ & ‘C’) PS: 47/06.06.2020 55
65 PM KUSUM (Component A) PS: 31/09.04.2021 56
66 Lead Bank Scheme AGRI: 33/17.05.2022 57-58
67 PM Formalization of Micro Food Processing Enterprises Scheme (PM-FME Scheme) PS: 59/24.08.2020 59
AGRI: 05/01.02.2022
AGRI: 43/22.08.2022
68 Animal Husbandry Infrastructure Development Fund (AHIDF) PS: 60/24.08.2020 60
PS: 61/29.08.2020
PS: 68/17.09.2020
69 Agriculture Infrastructure Fund (AIF) AGRI: 37/27.06.2022 61
70 Project for Digitization of SHGS – ESHAKTI PS: 71/28.12.2018 62
PS: 02/01.02.2019
71 Farmer’s Club Programme PS: 10/23.01.2009 62
72 Job Chart and Roles & Responsibilities of Agriculture Officers PS: 64/30.08.2021 63
73 Portal and Mobile App for Monitoring of Agriculture Officers PS: 95/18.12.2020 63
74 Master Circular – Credit Facilities to Minority Communities AGRI: 46/22.08.2022 64
75 Master Circular – Credit Facilities to Scheduled Castes (SCs)/Scheduled Tribes (STs) AGRI: 45/22.08.2022 65
76 Agreement with National Handicapped Finance & Development Corporation (NHFDC) For Financing to Person with Disability PS: 07/08.03.2019 66
77 Agreement with National Scheduled Caste Finance & Development Corporation (NSFDC) for Financing to SC Category PS: 04/12.01.2018 66
78 Agreement with National Scheduled Tribes Finance & Development Corporation (NSTFDC) for Financing to ST Category PS: 15/15.02.2018 67
79 Financial Literacy Centres (FLCS) PS: 93/26.12.2017 67
80 PNB Farmers’ Welfare Fund Scheme PS: 20/16.03.2018 68
81 Mahila Kaushal Vikas Yojana PS: 94/26.12.2017 68
82 Scheme for Tea Financing PS: 25/30.03.2021 69
AGRI: 57/07.10.2022
83 Co-Lending by Banks & NBFCs (Including HFCs) To Priority Sector AGRI: 34/06.06.2022 70
84 Revision of Loaning Powers of General Banking Branches for Agriculture Loans PS: 11/08.02.2021 71
85 Met Loan & Life Suraksha (MLLS) to Borrowers availing Agriculture Loans PS: 09/28.01.2021 71
86 Migration of Post-Dated Cheques (PDC)/Equated Monthly Installment (EMI) Cheques to Electronic Clearing Service (Debit) PS: 05/16.01.2021 71
87 Scheme for Financing Seed Producers/Processors AGRI: 03/03.01.2022 72
AGRI: 13/23.03.2022
88 National Livestock Mission (NLM) - EDEG Component -- Centrally Sponsored Scheme AGRI: 24/08.04.2022 73
PS: 81/23.12.2021
89 Guidelines for Engaging Corporate BCs/BC Agents for Marketing/Sourcing of Agriculture, Retail & MSME Advances AGRI: 23/07.04.2022 74
90 Revision in Threshold Limit of Credit Score Models for Farm Sector: PNB FARM SCORE AGRI: 27/09.05.2022 74
91 National Portal for Credit Linked Government Schemes: Jansamarth Portal AGRI: 31/27.05.2022 75
92 Capturing of Operative Account and Other details to Improve Collection Efficiency AGRI: 38/24.06.2022 75
93 Monitoring of Irregular Accounts – Crop Based Advances (CBR) AGRI: 44/21.08.2022 76
Strictly Confidential :: For Internal Circulation Only
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 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
1. Master Direction: Priority Sector Lending – Targets and Classification (AGRI: 55/27.09.22, 69/04.11.22, 74/18.11.22)
1. Categories under priority sector: a. Agriculture, b. MSME, c. Export Credit, d. Education, e. Housing, 3. Computation of Adjusted Net Bank Credit (ANBC):
f. Social Infrastructure, g. Renewable Energy, h. Others. For the purpose of priority sector lending, ANBC denotes the
2. Targets/Sub-targets for Priority sector: outstanding Bank Credit in India and computed as under: ---
The targets and sub-targets set under priority sector lending, to be computed on the basis of the ANBC/CEOBE as 1. Bank Credit in India
applicable as on the corresponding date of the preceding year, are as under: 2. Bills Rediscounted with RBI and other approved FIs
Categories Domestic commercial Foreign banks with Regional Rural Banks Small Finance Banks 3. Net Bank Credit (NBC) = 1-2
banks (excl. RRBs & SFBs) less than 20 branches {For the purpose of priority sector computation only. Banks should
& not deduct/net any amount like provisions, accrued interest, etc.
Foreign banks with 20 from NBC.}
branches & above 4. Outstanding Deposits under RIDF and other eligible funds with
Total 40% of ANBC or CEOBE 40% of ANBC or 75% of ANBC or 75% of ANBC or NABARD, NHB, SIDBI and MUDRA Ltd in lieu of non-achievement of
Priority whichever is higher CEOBE whichever is CEOBE whichever is CEOBE whichever is priority sector lending targets/sub-targets + outstanding PSLCs.
Sector higher; out of which higher; higher. 5. Eligible amount for exemptions on issuance of long-term bonds
up to 32% can be in However, lending to for infrastructure and affordable housing.
the form of lending to Medium Enterprises, 6. Advances extended in India against the incremental FCNR (B)/NRE
Exports and not less Social Infrastructure deposits, qualifying for exemption from CRR/SLR requirements,
than 8% can be to any and Renewable Energy 7. Investments made by public sector banks in the Recapitalization
other priority sector shall be reckoned for Bonds floated by Government of India,
priority sector 8. Other investments eligible to be treated as priority sector (e.g.
achievement only up investments in securitized assets),
to 15% of ANBC 9. Face Value of securities acquired and kept under HTM category
Agriculture 18% of ANBC or CEOBE, Not applicable 18% ANBC or CEOBE, 18% of ANBC or under the TLTRO 2.0
whichever is higher; whichever is higher; CEOBE, whichever is 10. Bonds/debentures in Non-SLR categories under HTM category.
out of which a target of higher; ANBC = 3 + 4 - (5 + 6 + 7) + 8 - 9 + 10
10% # is prescribed for out of which a target out of which a target 4. Adjustments for weights in PSL Achievement:
Small and Marginal of 10% # is prescribed of 10% # is ✓ To address regional disparities in the flow of PS credit at the
Farmers (SMFs) for SMFs prescribed for SMFs district level, RBI has ranked districts on the basis of per capita
Micro 7.5% of ANBC or CEOBE, Not applicable 7.5% of ANBC or 7.5% of ANBC or credit flow to priority sector and build an incentive
Enterprises whichever is higher CEOBE, whichever is CEOBE, whichever is framework for districts with comparatively lower flow of
higher higher credit and a dis-incentive framework for districts with
Advances 12%# of ANBC or CEOBE, Not applicable 15%# of ANBC or 12%# of ANBC or comparatively higher flow of PS credit.
to Weaker whichever is higher CEOBE, whichever is CEOBE, whichever is
Sections higher higher ✓ Accordingly, from FY 2021-22 onwards, a higher weight
(125%) would be assigned to the incremental PS credit in the
# The revised targets for lending to SMFs and for Weaker Sections are as follows: identified districts where the credit flow is comparatively
Financial Year Small and Marginal Farmers target Weaker Sections target lower (per capita PSL less than 6000), and a lower weight
2020-21 8% 10% (90%) would be assigned for incremental PS credit in the
2020-21 9% 11% identified districts where the credit flow is comparatively
2020-21 9.5% 11.5% higher (per capita PSL greater than 25,000).
2020-21 10% 12% ✓ The list of both categories of districts is given. This list will be
✓ All domestic banks (other than UCBs) and foreign banks with more than 20 branches to ensure that the overall valid for a period up to FY 2023-24 and will be reviewed
lending to Non-Corporate Farmers (NCFs) does not fall below the system-wide average of the last 3 years' thereafter.
achievement which will be separately notified every year. The applicable target for lending to non-corporate farmers ✓ The districts other than those mentioned in Annexure will
for FY 2021-22 was 12.73% of ANBC or CEOBE whichever is higher. Target for lending to Non-Corporate farmers will continue to have existing weightage of 100%.
now be 13.78% of ANBC/CEOBE, whichever is higher.
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5. Agriculture: The lending to agriculture sector will include Farm Credit (Agriculture and Allied Activities), lending
for Agriculture Infrastructure and Ancillary Activities.
A) Farm Credit - Individual farmers:
Loans to individual farmers including SHGs/JLGs i.e. groups of individual farmers and Proprietorship firms of
farmers, directly engaged in Agriculture and Allied Activities, viz. dairy, fishery, animal husbandry, poultry, bee-
keeping and sericulture. This will include:
a. Crop loans including loans for traditional/non-traditional plantations, horticulture and allied activities.
b. Medium and long-term loans for agriculture and allied activities (e.g. purchase of agricultural implements and
machinery and developmental loans for allied activities).
c. Loans for pre and post-harvest activities viz. spraying, harvesting, grading and transporting of their own farm
produce.
d. Loans to distressed farmers indebted to non-institutional lenders.
e. Loans under the Kisan Credit Card Scheme.
f. Loans to small and marginal farmers for purchase of land for agricultural purposes.
g. Loans against pledge/hypothecation of agricultural produce (including warehouse receipts) for a period not
exceeding 12 months, subject to a limit up to 75 Lakh against NWRs/eNWRs and up to 50 Lakh against
warehouse receipts other than NWRs/eNWRs.
h. Loans to farmers for installation of stand-alone Solar Agriculture Pumps and for solarisation of grid connected
Agriculture Pumps.
i. Loans to farmers for installation of solar power plants on barren/fallow land or in stilt fashion on agriculture land
owned by farmer.
B) Farm Credit - Corporate farmers, Farmer Producer Organizations (FPOs)/(FPC) Companies of Individual
Farmers, Partnership firms and Co-operatives of farmers engaged in Agriculture and Allied Activities:
a. Loans for the following activities subject to an aggregate limit of 2 crores per borrowing entity:
✓ Crop loans to farmers which will include traditional/non-traditional plantations and horticulture and loans for
allied activities.
✓ Medium and long-term loans for agriculture and allied activities (e.g. purchase of agricultural implements
and machinery and developmental loans for allied activities).
✓ Loans for pre and post-harvest activities viz. spraying, harvesting, grading and transporting of their own farm
produce.
b. Loans up to 75 Lakh against pledge/hypothecation of agricultural produce (including warehouse receipts) for a
period not exceeding 12 months against NWRs/eNWRs and up to 50 Lakh against warehouse receipts other than
NWRs/eNWRs.
c. Loans up to 5 crores per borrowing entity to FPOs/FPCs undertaking farming with assured marketing of their
produce at a pre-determined price.
C) Agriculture Infrastructure: Loans for agriculture infrastructure will be subject to an aggregate sanctioned limit
of 100 crores per borrower from the banking system. In terms of Master Directions on Priority Sector Lending
(PSL), loans for agriculture infrastructure and agri-ancillary shall be classified under priority sector subject to an
aggregate sanctioned limit of ₹100 Crore per borrower from the banking system.
D) Ancillary Services:
a. Following loans under ancillary services subject to limits prescribed as under:
✓ Loans up to 5 crores to co-operative societies of farmers for purchase of the produce of members.
✓ Loans up to 50 crores to Start-ups, as per definition of Ministry of Commerce and Industry, Govt. of India
that are engaged in agriculture and allied services.
✓ Loans for Food and Agro-processing up to an aggregate sanctioned limit of 100 crores per borrower from
the banking system.
b. Outstanding deposits under RIDF and other eligible funds with NABARD on account of priority sector shortfall.
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E) Small and Marginal Farmers (SMFs): For the purpose of computation of
achievement of the sub-target, Small and Marginal Farmers will include the
following: ---
a. Farmers with landholding of up to 1 hectare (Marginal Farmers).
b. Farmers with a landholding of more than 1 hectare and up to 2 hectares
(Small Farmers).
c. Landless agricultural laborers, tenant farmers, oral lessees and share-
croppers whose share of landholding is within the limits prescribed for
SMFs.
d. Loans to SHGs/JLGs, i.e. groups of individual SMFs directly engaged in
Agriculture and Allied Activities,
e. Loans up to 2 Lakh to individuals solely engaged in Allied activities
without any accompanying land holding criteria.
f. Loans to FPOs/FPC of individual farmers and co-operatives of farmers
directly engaged in Agriculture and Allied Activities where the land-holding
share of SMFs is not less than 75%.
F) Lending by banks to NBFCs and MFIs for on-lending in agriculture:
a. Bank credit extended to registered NBFC-MFIs and other MFIs (Societies,
Trusts etc.) which are members of RBI recognized SRO for the sector, for on-
lending to individuals and also to members of SHGs/JLGs will be eligible for
categorization as priority sector advance under respective categories of
agriculture.
b. Bank credit to registered NBFCs (other than MFIs) towards on-lending for
‘Term lending’ component under agriculture will be allowed up to ₹10 Lakh
per borrower.
6. Micro, Small and Medium Enterprises (MSMEs):
✓ The definition of MSMEs will be as per GoI, Gazette Notification dated
June 26, 2020 read with RBI circular dated July 2, 2020, August 21,
2020 on 'Credit flow to MSME Sector' and updated from time to time.
✓ MSMEs should be engaged in the manufacture or production of
goods, in any manner, pertaining to any industry specified in the First
Schedule to the Industries (Development and Regulation) Act, 1951 or
engaged in providing or rendering of any service or services.
✓ All bank loans to MSMEs conforming to the above guidelines qualify
for classification under priority sector lending.
A) Factoring Transactions:
a. ‘With Recourse' Factoring transactions by bank which carry out the
business of factoring departmentally wherever the 'assignor' is a MSME
would be eligible for classification under MSME category on the reporting
dates.
b. Factoring transactions pertaining to MSMEs taking place through the
Trade Receivables Discounting System (TReDS) shall also be eligible for
classification under priority sector.
B) Khadi and Village Industries Sector (KVI): All loans to units in the KVI
sector will be eligible for classification under the sub-target of 7.5%
prescribed for Micro Enterprises under priority sector.
C) Other Finance to MSMEs:
a. Loans up to 50 crores to Start-ups, as per definition of Ministry of Commerce and Industry, Govt.
of India that confirm to the definition of MSME.
b. Loans to entities involved in assisting the decentralized sector in the supply of inputs and
marketing of output of artisans, village and cottage industries.
c. Loans to co-operatives of producers in the decentralized sector viz. artisans, village and cottage
industries.
d. Loans sanctioned to NBFC-MFIs and other MFIs (Societies, Trusts etc.) which are members of RBI
recognized SRO for the sector for on-lending to MSME sector.
e. Loans to registered NBFCs (other than MFIs) for on-lending to Micro & Small Enterprises.
f. Credit outstanding under General Credit Cards (including Artisan Credit Card, Laghu Udyami Card,
Swarojgar Credit Card and Weaver's Card etc. in existence and catering to the non-farm
entrepreneurial credit needs of individuals).
g. Overdraft to Pradhan Mantri Jan-Dhan Yojana (PMJDY) account holders as per limits and
conditions prescribed by DFS, Ministry of Finance from time to time, will qualify as achievement of
the target for lending to Micro Enterprises.
h. Outstanding deposits with SIDBI and MUDRA Ltd. on account of priority sector shortfall.
7. Export Credit (not applicable to RRBs and LABs):
✓ Export credit under agriculture and MSME sectors are allowed to be classified as PSL in the
respective categories viz. agriculture and MSME.
✓ Export Credit (other than in agriculture and MSME) will be allowed to be classified as priority
sector as under: ---
Domestic banks/WoS of Foreign Foreign banks with 20 Foreign banks with
banks/SFBs/UCBs branches and above less than 20 branches
Incremental export credit over Incremental export credit Export credit up to
corresponding date of the preceding year, over corresponding date of 32% of ANBC or
up to 2% of ANBC or CEOBE whichever is the preceding year, up to CEOBE whichever is
higher, subject to a sanctioned limit of up 2% of ANBC or CEOBE higher.
to 40 crores per borrower. whichever is higher.
Export credit includes pre-shipment and post-shipment export credit (excluding off-balance sheet
items)
8. Education:
✓ Loans to individuals for educational purposes, including vocational courses, not exceeding 20
Lakh will be considered as eligible for priority sector classification.
✓ Loans currently classified as priority sector will continue till maturity.
9. Social Infrastructure: Bank loans to social infrastructure sector as per limits prescribed below are
eligible for priority sector classification: ---
✓ Bank loans up to a limit of 5 crores per borrower for setting up schools, drinking water
facilities and sanitation facilities including construction/refurbishment of household toilets
and water improvements at household level, etc. and loans up to a limit of 10 crores per
borrower for building health care facilities including under 'Ayushman Bharat' in Tier II to Tier
VI centres.
✓ Bank loans to MFIs extended for on-lending to individuals and also to members of SHGs/JLGs
for water and sanitation facilities.
10. Renewable Energy:
Bank loans up to a limit of 30 crores to borrowers for purposes like solar based power generators,
biomass-based power generators, wind mills, micro-hydel plants and for non-conventional energy
based public utilities, viz., street lighting systems and remote village electrification etc., will be eligible
for Priority Sector classification. For individual households, the loan limit will be 10 L per borrower.
Page 7 of 77
11. Housing:
i) Bank loans to Housing sector as per limits prescribed below are eligible for priority
sector classification: ---
a. Loans to individuals up to 35 Lakh in metropolitan centres (with population of 10 Lakh
& above) and up to 25 Lakh in other centres for purchase/construction of a dwelling unit
per family provided the overall cost of the dwelling unit in the metropolitan Centre and
at other centres does not exceed 45 Lakh & 30 Lakh respectively.
b. Housing loans to banks' own employees will not be eligible for classification under the
priority sector.
c. Since Housing loans which are backed by long term bonds are exempted from ANBC,
these loans should not be classified under priority sector.
ii) Loans up to 10 Lakh in metropolitan centres and up to 6 Lakh in other centres for
repairs to damaged dwelling units conforming to the overall cost of the dwelling unit as
prescribed above.
iii) Bank loans to any government agency for construction of dwelling units or for slum
clearance and rehabilitation of slum dwellers subject to dwelling units with carpet area of
not more than 60 sq.m.
iv) Bank loans for affordable housing projects using at least 50% of FAR/FSI for dwelling
units with carpet area of not more than 60 sq.m.
v) Bank loans to HFCs (approved by NHB for their refinance) for on-lending, up to 20 Lakh
for individual borrowers, for purchase/construction/reconstruction of individual dwelling
units or for slum clearance and rehabilitation of slum dwellers.
vi) Outstanding deposits with NHB on account of priority sector shortfall.
12. Others: The following loans as per the prescribed limits are eligible for priority sector
classification: ---
i) Loans not exceeding ₹2 Lakh provided by banks to SHG/JLG for activities other than
agriculture or MSME, viz., loans for meeting social needs, construction or repair of house,
construction of toilets or any viable common activity started by SHGs.
ii) Loans to distressed persons [other than distressed farmers indebted to non-institutional
lenders] not exceeding 1 Lakh per borrower to prepay their debt to non-institutional
lenders.
iii) Loans sanctioned to State Sponsored Organizations for Scheduled Castes/Scheduled
Tribes for the specific purpose of purchase and supply of inputs and/or the marketing of
the outputs of the beneficiaries of these organizations.
iv) Loans up to 50 crores to Start-ups, as per definition of Ministry of Commerce and
Industry, Govt. of India that are engaged in activities other than Agriculture or MSME.
13. Weaker Sections: Priority sector loans to the following borrowers will be considered as
lending under Weaker Sections category: -- i) Small & Marginal Farmers, ii) Artisans,
village & cottage industries where individual credit limits do not exceed 1 lakh, iii)
Beneficiaries under Govt Sponsored Schemes such as NRLM, NULM & SRMS, iv) Scheduled
Castes and Scheduled Tribes, v) Beneficiaries of Differential Rate of Interest (DRI) scheme,
vi) SHGs, vii) Distressed farmers indebted to non-institutional lenders, viii) Distressed
persons other than farmers, with loan amount not exceeding 1 lakh per borrower to
prepay their debt to non-institutional lenders, ix) Individual women beneficiaries up to 1
lakh per borrower, x) Persons with disabilities, xi) Minority communities as may be
notified by Government of India from time to time, In States, where one of the minority
communities notified is, in fact, in majority, only the other notified minorities. These
States/Union Territories are Punjab, Meghalaya, Mizoram, Nagaland, Lakshadweep and
Jammu & Kashmir. xii) Overdraft availed by PMJDY account holders.
14. Investments by banks in securitized assets: Investments by banks in 'securitization
notes' representing loans to various categories of priority sector, except 'others' category,
are eligible for classification under respective categories of priority sector depending on
the underlying assets provided: ---
a. The assets are originated by banks/FIs and are eligible to be classified as priority sector
advances prior to securitization and fulfil the RBI guidelines on securitization.
b. The all-inclusive interest charged to the ultimate borrower by the originating entity
should not exceed the investing bank's MCLR + 10% or EBLR + 14%.
C. Investment by banks in securitization notes with loans against gold jewellery originated
by NBFCs as underlying, are not eligible for priority sector status.
15.Transfer of Assets through Direct Assignment/Outright purchase: Assignment/
outright purchase of pool of assets by banks representing loans under various categories
of priority sector, except the 'others' category, will be eligible for classification under
respective categories of priority sector provided:
a. The assets are originated by banks and financial institutions which are eligible to be
classified as priority sector advances prior to the purchase and fulfil the RBI guidelines on
'Transfer of Loan Exposures'.
b. The all-inclusive interest charged to the ultimate borrower by the originating entity
should not exceed the investing bank's MCLR + 10% or EBLR + 14%.
c. Loans against gold jewellery acquired by banks from NBFCs are not eligible for priority
sector status.
16. Inter Bank Participation Certificates (IBPCs): IBPCs bought by banks, on a risk sharing
basis, are eligible for classification under respective categories of priority sector, provided
the underlying assets are eligible to be categorized under the respective categories of
priority sector and the banks fulfil the RBI guidelines on IBPCs.
17. Priority Sector Lending Certificates (PSLCs): The outstanding PSLCs bought by banks
will be eligible for classification under respective categories of priority sector provided the
underlying assets originated by banks are eligible to be classified as priority sector
advances and fulfil the RBI guidelines on PSLCs.
18. Bank loans to MFIs (NBFC-MFIs, Societies, Trusts, etc.) for on-lending:
a. Banks other than SFBs are allowed to extend credit to registered NBFC-MFIs and other
MFIs (Societies, trusts etc.) which are members of RBI recognized SRO for the sector, for
on-lending to individuals and also to members of SHGs/JLGs.
b. With effect from May 5, 2021, SFBs are allowed to extend fresh credit to registered
NBFC-MFIs and other MFIs (Societies, Trusts, etc.) which are members of RBI recognized
‘Self-Regulatory Organization’ of the sector, and which have a ‘gross loan portfolio’ (GLP)
of up to ₹500 crores as on March 31 of the previous year, for the purpose of on-lending to
individuals.
19. Bank loans to NBFCs for on-lending: Bank credit to registered NBFCs (other than MFIs)
for on-lending will be eligible for classification as priority sector under respective
categories subject to the following conditions:
a. Agriculture: On-lending by NBFCs for 'Term lending' component under Agriculture will
be allowed up to 10 Lakh per borrower.
b. Micro & Small enterprises: On-lending by NBFC will be allowed up to 20 Lakh per
borrower.
Strictly Confidential :: For Internal Circulation Only
Page 8 of 77
20. Bank loans to HFCs for on-lending (not applicable to RRBs, SFBs and LABs): Bank credit to
Housing Finance Companies (HFCs), approved by NHB for their refinance, for on-lending for the
purpose of purchase/construction/reconstruction of individual dwelling units or for slum clearance
and rehabilitation of slum dwellers, subject to an aggregate loan limit of 20 Lakh per borrower.
21. Cap on On-lending: Bank credit to NBFCs (including HFCs) for on-lending as applicable in sr 19 &
20 above, will be allowed up to an overall limit of 5% of individual bank's total priority sector
lending. Banks shall compute the eligible portfolio under on-lending mechanism by averaging across
4 quarters, to determine adherence to the prescribed cap.
22. Co-lending by Banks and NBFCs to Priority Sector: All Scheduled Commercial Banks (excluding
SFBs, RRBs, UCBs and LABs) are permitted to co-lend with all registered Non-Banking Financial
Companies (including Housing Finance Companies) for lending to the priority sector.
23. Monitoring of Priority Sector Lending targets: To ensure continuous flow of credit to priority
sector, the compliance of banks will be monitored on 'quarterly' basis. The data on priority sector
advances is required to be furnished by banks to FIDD, Central Office at quarterly and annual intervals
as per the reporting format (quarterly and annual), within fifteen days and one month, respectively
from the date of ending of each quarter and financial year.
24. Non-achievement of Priority Sector targets:
a. Banks having any shortfall in lending to priority sector shall be allocated amounts for contribution
to the Rural Infrastructure Development Fund (RIDF) established with NABARD and other funds
with NABARD/NHB/SIDBI/MUDRA Ltd., as decided by the Reserve Bank from time to time.
b. While computing priority sector target achievement, shortfall/excess lending for each quarter will
be monitored separately.
c. The interest rates on banks' contribution to RIDF or any other funds, tenure of deposits, etc. shall
be fixed by RBI from time to time.
d. Non-achievement of priority sector targets and sub-targets will be taken into account while
granting regulatory clearances/approvals for various purposes.
25. Common guidelines for priority sector loans: Banks should comply with the following common
guidelines for all categories of advances under the priority sector:
a. Rate of interest: The rates of interest on bank loans will be as per directives issued by Department
of Regulation (DoR), RBI from time to time.
b. Service charges: No loan related and ad hoc service charges/inspection charges should be levied
on priority sector loans up to 25000/-. In the case of eligible priority sector loans to SHGs/JLGs, this
limit will be applicable per member and not to the group as a whole.
c. Receipt, Sanction/Rejection/Disbursement Register: A register/electronic record should be
maintained by the bank wherein the date of receipt, sanction/rejection/disbursement with reasons
thereof, etc. should be recorded. The register/electronic record should be made available to all
inspecting agencies.
d. Issue of acknowledgement of loan applications: Banks should provide acknowledgement for loan
applications received under priority sector loans. Bank Boards should prescribe a time limit within
which the bank communicates its decision in writing to the applicants.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
2. Procedural Guidelines for Agricultural Credit (PS: 135/30.12.2017, 02/13.01.2022, 39/30.06.2022)
1.Margin Norms: 3. Security Norms:
(a) For production and/or Investment Credit: A) Production Credit/Investment Credit:
Project Cost Margin Sr Amount of Loan Security
Up to Rs. 1.60 lakh Nil i For loan upto Rs. 1.60 Hypothecation of crops and/or assets created out of
Above Rs. 1.60 lakh upto Rs.10.00 lakh 10% Lakh Bank loan.
Above Rs. 10.00 lakh upto Rs.25.00 lakh 15% ii KCC Hypothecation of crops and/or assets created out of
Above Rs.25.00 lakh 25% (crop/dairy/fishery/ani Bank loan.
(b) Under PNB Krishi Card Scheme: For production credit – NIL mal husbandry) loans
(c) Under the Scheme for Agri-Clinics/Agri-Business Centres: upto Rs. 3 Lakh under
Amount of Loan Margin tie-up arrangement
Up to Rs. 5 lakh Nil approved by HO:
Above Rs. 5 lakh 25% Agriculture Division
(d) For Tractor Loan without Mortgage of Land: Minimum Cash Margin- 40% iii Above Rs. 1.60 Lakh a) Hypothecation of crops and/or assets created out
Note: (i) In case of front ended subsidy i.e. when subsidy is disbursed with loan: - of bank loan AND
In this case, the subsidy amount is to be treated as margin and no further margin money should be b) Charge on land as per Agricultural Credit
stipulated unless subsidy falls short of requisite margin for the loan. Operations and Miscellaneous Provisions Act of the
(ii) If the subsidy is back-ended i.e. the benefit is to be passed to the applicant after a lapse of time, State concerned/Mortgage of agricultural
then the applicant has to contribute margin as per government/Bank guidelines. land/SARFAESI compliant immovable property valued
(iii) Labour and materials, etc., contributed by farmer should be treated towards building up of margin. at 75% of loan amount for other farmers and 50% of
(iv) Where the scheme has been approved by NABARD or any other Govt. agency the terms and the loan amount for small and marginal farmers.
conditions stipulated by NABARD or Govt. agency in respect of margin shall be followed. OR Alternate security viz. charge/lien over liquid
(v) In respect of Govt. sponsored schemes, the margin/security norms shall be as per the respective securities such as term deposits/NSC/KVP, etc. which
schemes for agricultural advances or the above mentioned margin, whichever is lower. may be considered adequate.
2. Service Area Approach – Removal of Restrictive Provisions and Distance Criteria for Rural Lending: OR Suitable third party guarantee.
The service area approach is applicable to Government Sponsored Schemes only. Note: If the Primary Security is in the shape of Land &
The rural lending, will however, be governed by following: Building, Residual Value over & above 100% of the
(i) Rural lending shall be restricted within the state boundary for effective supervision and follow-up. loan amount shall be treated as collateral security.
(ii) Rural lending shall be restricted within a radius of 25 Km from the General Banking Branch (GBB) for B) Under the Scheme of Agri-Clinics and Agri-Business Centres:
the loan proposals under GBB power. However, GBBs may sanction proposals beyond 25 km. within Sr Amount of Loan Security
their discretionary loaning powers after obtaining administrative clearance from respective Circle i For loan upto Rs. Hypothecation of crops and/or assets created out of Bank
Office. 5 Lakh loan.
(iii) Sanctioning Authority at PLP/MCC or above may extend finance beyond 25 Km from LGBs (Lead ii Above Rs. 5 Lakh a) Hypothecation of crops and/or assets created out of
Generating Branches) with proper justification. The visiting official shall mention the feasibility for post bank loan AND
sanction monitoring in such cases. b) Charge on land as per Agricultural Credit Operations and
(iv) In the Circles where the inter-branch distances are far below 25 Kms., the Circle Head may broadly Miscellaneous Provisions Act of the State
demarcate the area of operation for each rural/semi-urban branch under the control of the Circle to concerned/Mortgage of agricultural land/ SARFAESI
obviate unhealthy competition among our bank’s branches. compliant immovable property valued at 75% of loan
(v) It is also clarified that loan proposals may be dealt by that branch office of the Bank, which is near to amount for other farmers and 50% of the loan amount for
the place where the applicant resides or where the activities are carried on or landed properties are small and marginal farmers.
located. OR Alternate security viz. charge/lien over liquid securities
(vi) Service Area Approach continues to be applicable for Government Sponsored Schemes; however, such as term deposits/ NSC/ KVP, etc. which may be
the borrower is free to approach any bank branch in his service area for obtaining credit under considered adequate.
Government Sponsored Schemes. OR Suitable third-party guarantee.
(vii) Where the service area is already allocated beyond 25 Kms., the branches will continue to finance Note: If the Primary Security is in the shape of Land &
within the allocated service area. Building, Residual Value over & above 100% of the loan
Page 9 of 77 amount shall be treated as collateral security.
 2. Procedural Guidelines for Agricultural Credit
4. Time Schedule for Disposal of Loan Applications: 7. Confidential Report (CR) on Borrower(s) and Guarantor(s):
Credit Limit Time schedule (maximum) Amount of Loan CR to be complied
Upto Rs. 2 lakh 2 weeks i For loans upto No CR to be collected. However, information furnished by borrower
Above Rs. 2 lakh & upto Rs. 50 lakh 4 weeks Rs.50,000/- in loan application form must be verified by Branch Head/Agriculture
Above Rs. 50 lakh & upto Rs. 100 lakh 5-6 weeks Officers and they will record their opinion to this effect.
Above Rs. 100 lakh & upto Rs. 100 crores 6-7 weeks ii For loan above A brief CR on PNB 539 (R) (Simplified Confidential Report on
Above Rs. 100 crores 8-9 weeks Rs. 50,000/- & Borrowers and Guarantors in respect of Farm Advances) may be
5. RATE OF INTEREST: The rate of interest should be charged as per IRMD, LA Cir issued upto Rs. 10 Lakh obtained along with the information furnished by borrower in Loan
by HO from time to time. Application Form (PNB 1235) and here again, the information
Interest on KCC/Short Term Crop Loan/Produce Marketing Loan: furnished by borrower must be verified by Branch Head/Agriculture
Interest is 7% p.a. in the regular Crop loan/KCC/produce marketing loan against Officer; besides their report on brief CR.
negotiable ware house receipts (provided the farmer is having KCC) on running balance iii For loans above Regular CR may be compiled on bank’s prescribed Form PNB 282 A/B
outstanding upto Rs. 3 Lakh. On the irregular accounts/outstanding beyond Rs. 3 Lakh, Rs. 10 Lakh (R) depending upon constitution of borrower.
normal rate of interest is to be charged. At present Government of India is giving 8. Coverage under Pradhan Mantri Suraksha Bima Yojana (PMSBY):
additional subvention of 3% to prompt payee farmers. (i) All the KCC/Kisan Gold holders will have the option to take benefit of PMSBY.
NOTE: ii) The salient features of the Scheme are as under: ---
(i) Both working capital and term loans are to be clubbed together to determine the size (a) The premium payable for one-year policy is Rs. 12/-. Branches may cover all the co- borrowers
of the loan for the purpose of fixing the rate of interest for all agriculture borrowers. under the Pradhan Mantri Suraksha Bima Yojana Scheme, including the person who has been
(ii) Payment of interest should be insisted upon only at the time of repayment of loan authorized by the other co-obligants and in whose name KCC/Kisan Gold has been issued by us.
installments as fixed. (b) The benefit given under the scheme is Rs. 2.00 lakh in case of accidental death or total and
(iii) Interest on current dues should not be compounded. irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss
(iv) Application of interest: Interest on agricultural loans is applied and debited to loan of use of hand or foot and Rs. 1.00 lakh in case of total and irrecoverable loss of sight of one eye or
accounts at the end of year. loss of use of one hand or foot.
(v) When crop loans or installments under term loans become overdue, branches can add 9. Obtaining of “No Dues Certificate”:
interest outstanding to the principal and compound the interest. However, total interest ✓ No Dues Certificate is not to be obtained for agricultural loans from individual borrowers
debited to an account should not exceed the principal amount in respect of short-term (including SHGs and JLGs) in rural & semi urban areas.
advances to small and marginal farmers. ✓ However, for loans above Rs. 1.00 lakh, affidavit to this effect be obtained from such borrowers.
N.B.: Special terms & conditions and relaxations in margin, security, rate of interest, ✓ For borrowers in urban areas and borrowers other than above “No Dues Certificate”/’Affidavit’
disbursement of loan provided in certain agricultural credit schemes shall be complied is not to be obtained for agricultural loans upto Rs.1,00,000/-.
with. ✓ However, for agricultural loans above Rs.1,00,000/-, obtaining of Affidavit in lieu of "No Dues
6. LOANING POWERS: As per Loans & Advances Circulars issued from time to time. Certificate" is allowed.
A) For Tractor Financing: RBI has advised Banks to encourage use of alternative framework of due diligence as part of credit
(i) Branches (having tractor portfolio of Rs. 1 crore and above or 50 & above tractor appraisal exercise other than the ‘No Dues Certificate’ which could, among other, consist of one or
loan accounts) with recovery less than 75% in tractor advances, will not sanction any more of the following: -- Credit history check through credit information companies, Self-declaration
such advances at their level and will send proposals to the respective Circle Offices for or an affidavit from the borrower, CERSAI registration, Peer monitoring, Information sharing among
sanction. (ii) Other branches can consider tractor financing provided their annual lenders, Information search (writing to other lenders with an auto deadline).
recovery is above 75% under agriculture credit portfolio. As such it is advised as under:
B) Financing under KCC and Kisan Gold Scheme: (a) To conduct credit history, check through Credit Information Companies as per Bank guidelines.
(i) Circle Heads are empowered to sanction cases above Rs. 20 Lakh and upto Rs. 50 (b) To conduct search on CERSAI wherever applicable.
Lakh, within their discretionary loaning powers, on merits as per need of client, subject to (c) Spot verification be conducted independently and in a proper manner so that information on past
compliance of terms and conditions of KCC/Kisan Gold scheme. history of the borrower may be collected.
(ii) KCC/Kisan Gold loans in individual capacity, to promoters/Directors of company or (d) A good rapport be built with the people and the Banks/branches working in the area for sourcing
partners of firm may be sanctioned by Circle Heads (within their discretionary loaning information on borrowers.
power) even where the existing facilities, for business purposes, have been sanctioned by 10. Obtaining of “No Objection Certificate” From The Co-Sharers of Agricultural Land:
a higher authority provided that the loan is utilized for Agriculture purposes only and Obtaining of ‘No Objection Certificate’ from the co-sharer(s) of agricultural land has been dispensed
Agriculture land of individual Director/Partner is mortgaged exclusively for the said loan with. In lieu thereof, a simple declaration to be obtained from the intending borrower(s) stating that
and Bank’s charge on Agriculture land is created. there is no family dispute about title of the agricultural land to be mortgaged/charge created in favour
of the Bank for securing the loan.
Page 10 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
3. Krishak Unnatti Yojana (AGRI: 67/31.10.2022)
1. Introduction: With a view to facilitate farmers especially small & marginal farmers for meeting their higher credit needs for 6. Margin: NIL.
various agricultural purposes and with benefits of interest subvention, a comprehensive scheme has been formulated named 7. Security:
Krishak Unnatti Yojana. a. Primary Security: Hypothecation of crops/assets
2. Distinctive features of Krishak Unnatti Yojana: Component-wise Distribution of Limit: Under this scheme loan will be created out of bank loan. For cases upto Rs.1.60 lakh,
sanctioned in the form of an umbrella limit which will have following two components: --- only hypothecation of assets created out of bank loan
i) KCC component: KCC Component will be utilized for crop production purposes in terms of Master Circular on Kisan Credit shall be required.
Card. b. Collateral Security: Charge on land/Mortgage of
ii) Krishak Unnatti Component: Krishak Unnatti Component shall be utilized for development of Agriculture and Allied agricultural land/ SARFAESI compliant IP valued at 200%
Activities. In order to facilitate the borrower to avail the benefits of interest subvention, a separate KCC account will be of amount of loan.
maintained within the overall limit of the Krishak Unnatti Scheme. Valuation of agricultural land shall be assessed on the
3. Purpose: basis of Circle Rates decided by revenue authorities. The
a. Crop Production loan in the form of Kisan Credit Card. same shall be authenticated from the site/latest data
b. Krishak Unnatti Component in the form of Cash Credit for the purpose of development of Agriculture and Allied Activities published by revenue authorities.
which includes land development activities like fencing, bunding, trenching, land levelling, clearance, formation of disposal 8. Repayment, Renewal and Review:
drains etc., farm mechanization and loans for animal husbandry and fishery activities. a. KCC Component: The KCC account will be valid for a
4. Eligibility: period of 5 years, subject to annual review.
a. Only existing good agricultural land owner borrowers who have been continuously availing any loan from our Bank for last b. Krishak Unnatti Component: This component will be
2 years and whose none of the loan accounts are NPA in the last 2 years as on the date of application are eligible. valid for a period of 5 years, subject to annual review.
b. Applicants with evidence of satisfactory dealing with other Scheduled Commercial Banks for a minimum period of 2 years c. The Short-Term Cash Credit limit shall be reviewed
are also considered eligible provided that none of the loan accounts of the applicant were NPA in the last 2 years. In case of annually to ensure that crop and other sales proceeds
customers of other banks, Bank Statements of all loan accounts for last 12 months to be obtained invariably and perused. are routed through limit account.
d. Annual enhancement of KCC, renewal of KCC and
5. Quantum and Nature of Finance: Krishak Unnatti Component shall be done as per
a. Extent of Loan: Maximum Rs.10 Lakh guidelines of KCC Review/Renew.
b. The umbrella Limit will have following two components:
9. Other Guidelines:
I. KCC Component: KCC Component shall be utilized for crop production purposes in terms of Master Circular on Kisan Credit
a) The benefit of interest subvention/incentive for
Card.
prompt repayment as given by Government of India
II. Krishak Unnatti Component: This component shall be utilized by the farmer for the purpose of development of Agriculture
and/or State Governments will be provided to eligible
and Allied Activities which includes land development activities like fencing, bunding, trenching, land levelling, clearance,
accounts under KCC component.
formation of disposal drains etc., farm mechanization and loans for animal husbandry and fishery activities on an undertaking
b) Besides crop insurance, the borrower would have the
basis.
option to avail the benefit of any type of asset
c. The umbrella limit i.e. Overall Sanction Limit will be lowest of: insurance, accident insurance, health insurance
i. 2 times of KCC limit assessed for the proposed cropping pattern (2 times of KCC Sanction Limit). (wherever product is available) and have premium paid
ii. 50% of value of agriculture land on the basis of which overall limit is calculated. through his/her loan account. Premium has to be borne
iii. Maximum of Rs. 10 Lakh. by the farmer according to the terms of the scheme.
d. Features of the two components will be as under: c) Drawal beyond Drawing Power/Sanctioned Limit shall
I. KCC Component: Cash Credit not be permitted.
II. Krishak Unnatti Component: Cash Credit Limit = Remainder from Umbrella Limit after deducting KCC Component. d) Separate account(s) to be opened and maintained for
e. End use declaration/Simple undertaking should be obtained from customer, detailing the purpose for which the Krishak all the two component(s) under the Umbrella Limit.
Unnatti Component funds will be utilized.
f. There is an in-built provision for 10 % limit enhancement on annual basis under KCC component.

Page 11 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
4. E-Renewal of KCC accounts upto ₹ 1.60 Lakhs
1. Introduction:
✓ In order to increase efficiency of the appraisal process, reduce
TAT and give ease to the small borrowers, a simplified Straight
Through Process (STP) for renewal of KCC facilities with
satisfactory conduct of account and having exposure upto ₹
1.60 lacs has been approved by the competent authority.
✓ KCC accounts renewal through Straight Through Process
(STP) will be applicable for renewal of KCC accounts for 5
years at same limits as per the last sanction.
✓ However, cases involving enhancement or reduction in KCC
limit will not be eligible for e-renewal and Non eligible
accounts (i.e. A/Cs having outstanding balance above its DP,
A/Cs in which credit summation from last renewal date or
account opening date is ≤ interest or other charges debited in
the account during the same period, A/Cs wherein borrower’s
land details or cropping pattern has changed) will continue to
be renewed/processed manually by the respective branch
on merits as per existing bank guidelines.
✓ Also, those accounts, which are eligible for e-renewal, but
entry of details into CBS under ERENEWKC menu couldn’t be
completed by Branch well within data entry period for such
accounts, will be renewed/processed manually by the
respective branch.
✓ The system will initiate the e-Renewal process twice a month
i.e. on 1st and 16th of every month for accounts falling due
for renewal between 16th to last day of current month and
between 1st to 15th of next month respectively,
2. Steps to be taken by Branch:
In order to ensure maximum number of eligible accounts to be
covered under STP renewal, branches shall complete the following
steps for accounts falling due for renewal, well before the initiation
of renewal process by the system:
1. Branches should conduct the Visit and submit observations
through drop down in CBS System under menu option- ERENEWKC.
2. Extract the CIR/s of the eligible accounts as per existing
guidelines of the Bank and update the observations in drop down in
menu option ERENEWKC.
3. Branch to ensure that correct mobile number is available in CBS
to enable delivery of SMS.
4. Branch to confirm that there is no change in the cropping pattern
and land record in menu option- ERENEWKC.
5. Branch has to comment on inspection irregularity through drop
down in menu option- ERENEWKC.
6. System will automatically populate other details like Customer
name, Customer ID, Sanction limit, Drawing Power, Balance, Limit
Expiry Date and BC Letter date/document date.
(AGRI: 07/10.02.2022)
3. Procedure/steps for e-Renewal of KCC Accounts with exposure upto ₹ 1.60 lacs:
1. Fixed template SMS and/or e-mails shall be sent by system to the eligible borrowers on registered mobile number and/or e-mails.
As the e-Renewal is done through STP, therefore submission of hand written request or Renewal Application Form is not required.
2. Field visit shall be done for all KCC A/Cs eligible for e-renewal.
3. Intimation for renewal of account to borrower shall be given during field visit to circumvent the issue of non-delivery of SMS/e-mail.
4. CIR of the borrower & beneficiary shall be generated by the Branches. Credit Information Report should not be older than 90 days
at the time of e-Renewal. The Branches shall fill the following details in the ERENEWKC menu of CBS. Observations of the CIR/s:
Satisfactory/ Not Satisfactory.
5. Compilation of Confidential Report of the borrower: Waived.
4. Branches shall enter following in the ERENEWKC menu of CBS:
a. Field visit outcome (not older than 6 months) Satisfactory/ Not satisfactory
b. Change in the cropping pattern and land record details after last sanction – YES/NO
c. Whether any inspection irregularity exists – YES/NO.
5. Internal Risk rating is not applicable for renewal of KCC A/Cs upto Rs. 3 Lacs as per existing guidelines of the Bank.
6. Decision of the renewal will be taken by Finacle system on the basis of compliance of Business Logics and renewal is STP based,
therefore process note/sanction note is not required to be prepared.
7. The renewal of limit shall be marked in the system by Finacle itself and SMS will be sent by the system to the borrower informing
about the renewal.
8. SMS will be sent to the Borrower that renewal has been done on existing terms and conditions. Renewal will be STP based therefore
no manual sanction letter is required to be prepared.
9. Pre disbursement audit/Compliance: Not required in case of renewal with no major changes in terms and conditions.
10. Processing Fee & Documentation Charges for KCC A/Cs is NIL upto Rs. 3 Lakh. However, expenses other than Processing Fees (i.e.
CIC/CERSAI/Insurance and other applicable charges etc.) shall be borne by the borrower.
4. Renewal process will be initiated in Finacle as under:
Due date of renewal Renewal process (details entry into CBS SMS to customer will Renewal will be
under ERENEWKC menu) will be initiated be sent on marked by system on
Falling within 16th to last From 21st of previous month to 4th of 1 st of current month 5 th of current month
date of current month current month
Falling within 1st to 15th of On 6th of current month to 19th of current 16th of current month 20th of current month
next month month
5. Following checks have been applied in Finacle for initiating e-renewal under menu ERENEWKC:
1. Account is standard (Std-Regular) as on date of initiating process of renewal and as on date of marking renewal in the system.
SMA0, SMA1 & SMA2 will not be eligible. 2. Credit summation in the account from last renewal date or account opening date,
whichever is later, is ≥ interest & other charges debited in the account during the same period. 3. CIR of the borrower and
beneficiary/ies, 4. Field visit outcome, 5. There is no change in the cropping pattern and land record details after last sanction, 6. BC
letter date/Document date: Finacle will check if date entered in ERENEWKC menu is within 1 year as on the date of e-renewal, then
CBS will initiate e-renewal process for such account otherwise not. 7. Presence of inspection irregularity.
6. Steps to be taken by the Branch:
Branch official will enter details in ERENEWKC menu for e-renewal of KCC accounts. Details will be entered from 21st of previous
month to 4th of current month for the KCC accounts due for renewal from 16th to 30th or 31st of current month. Further, details for
KCC accounts due for renewal from 1st to 15th of next month will be entered from 6th of current month to 19th of current month.
Details to be entered in ERENEWKC menu for e-renewal of KCC accounts:
• Observations of the CIR/s (not older than 3 months): Satisfactory/ Not Satisfactory
• Field visit outcome (not older than 6 months) – Satisfactory/ Not Satisfactory
• Change in the cropping pattern and land record details after last sanction – YES/NO
• Whether any inspection irregularity exists – YES/NO
Page 12 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
5. Digital Renewal of KCC Accounts Upto ₹ 1.60 Lakhs
1. Background:
✓ Kisan Credit Card (KCC) facility is sanctioned for 5 years
and it is to be renewed after every 5 years.
✓ Presently, renewal of KCC accounts is done manually by
invoking “HACLHM” menu in CBS or through E-Renewal
process executed through “ERENEWKC” menu option.
✓ In order to increase efficiency of appraisal process,
reduce TAT, save man-hour of staff and give ease to the
small borrowers, a simplified Digital Renewal Process
for renewal of KCC facilities having exposure upto 1.60
lacs, with satisfactory conduct of account is developed
namely “KCC Digital Renewal”.
✓ KCC Digital Renewal will result in renewal of eligible
KCC accounts for next 5 years with limit and terms &
conditions as per the last sanction.
2. Key Points of KCC Digital Renewal:
a. The digital renewal process will be carried out for eligible
KCC customers based on pre-defined eligibility criteria and
centralized SMSs will be sent to registered mobile number of
such customers.
b. Drawing of CIR for individual account is waived since CIC
scrubbing will be done centrally for the customers eligible for
KCC Digital Renewal.
c. Pre-sanction visit is waived as the renewal journey is done
by customers; however, post sanction periodic visit to be
continued as per bank guidelines.
d. Appraisal of the credit limit will be done based on Business
rule engine digitally without involvement of branch staff.
e. Under the process, the KCC accounts will be renewed
through a Straight Through Process (STP) therefore process
note/sanction note is not be prepared.
f. EDW report on KCC A/Cs renewed through “KCC Digital
Renewal Process” will be made available in system for
extraction by the Branch for information and record.
g. Since the process of renewal is completely digital without
any manual intervention, no physical document to be
obtained from borrower such as Renewal Application Form.
However, in case of non-availability of Master Agreement for
any KCC account, Master Agreement shall be obtained and
placed on record by the branch official during post sanction
follow up.
h. Digital Renewal will be done on existing Terms & Conditions
and sanction is conveyed to borrower through SMS. As such
no manual sanction letter to be prepared.
i. Post sanction follow up to be carried out as per guidelines.
Strictly Confidential :: For Internal Circulation Only
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
(AGRI: 61/17.10.2022)
4. Eligibility criteria for Digital Renewal of KCC A/Cs:
✓ Scheme Code – CCAKC
✓ Limit Expiry Date of account to be falling within the next 3 months.
✓ The renewal process is to be initiated for the accounts falling due in next 3 months and upto 179 days after expiry of the current
limit.
✓ KCC A/C Sanction Limit ≤ Rs. 1.60 lacs.
✓ Account to be in standard category as on date of initiating process of digital renewal and as on date of marking renewal in the system.
✓ Date of BC letter shall not be older than 24 months.
✓ Eligible Borrowers having overdue amount in KCC account i.e., Outstanding balance is greater than Drawing Power (DP) of A/C, will
be required to pay the overdue amount either through the payment link (internal fund transfer from PNB saving account having
sufficient balance) or by branch visit and then digital renewal of such account will be carried out through digital channels.
✓ In case, outstanding balance is less than or equal to the Drawing Power (DP) of A/C, such accounts can be digitally renewed directly
through outreach channels.
✓ CIC scrubbing (from CIBIL) will be done for the customers filtered through above steps and borrowers having “no default” in CIR will
be marked as eligible.
✓ Combined limit of all KCCs for a particular customer (CIF) should be up to Rs. 1.60 lakhs.
5. Channels for Digital Renewal Journey: Digital Renewal Journey will be carried on following channels:
✓ Through Outreach Channels i.e., SMS/Missed Call/Outbound Interactive Voice Response (OIVR)
✓ Through digital channels: PNB Corporate Website; PNB ONE App; PNB Internet Banking.
6. Through SMS/Missed Call:
Step-1: Customers eligible for Digital Renewal will be sent SMS centrally on 1st working day of every week. SMS will be sent in vernacular
languages i.e., Hindi, English, Punjabi, Bengali and Assamese languages.
Step-2: Customer replies “Y” 5607040 or gives a missed call on 9266921350.
Step-3: KCC account will be renewed in CBS with revised Limit Expiry Date as “5 Year later to current date (i.e. date on which response “Y” or
missed call is received from customer)”.
Step-4: SMS will be sent to the registered mobile no. of the borrower.
7. Through OIVR:
Step-1: Customers eligible for Digital Renewal will be sent OIVR call on registered Number 4th working day of every week. OIVR call will be
made in vernacular languages i.e., Hindi, English, Punjabi, Bengali and Assamese languages.
Step-2: If customer presses “1”. Call response – Thank you for opting KCC digital renewal.
Step-3: KCC account will be renewed in CBS with revised Limit Expiry Date as “5 Year later to current date (i.e. date on which response “1” is
received from customer)”.
Step-4: SMS will be sent to the registered mobile no. of the borrower.
8. Through PNB Corporate Website/PNB ONE App/PNB Internet Banking:
Step-1: Customers eligible for Digital Renewal and account having some overdue amount will be sent SMS centrally on the registered
mobile no. on 1st working day of every week.
Step-2: Customer will visit Corporate Website/PNB One App or Internet Banking and click on “KCC DIGITAL RENEWAL”.
Step-3: Customer will enter KCC account no. and click on “Submit”. A 4 digit OTP will be sent to registered mobile no. of borrower to
validate the account. Customer will enter the OTP.
Step-4: KCC account details of the customer will be displayed.
Step-5: In case of any “Overdue Amount”, “PAY OVERDUE” will be displayed and once Customer click on it, a pop-up message will be
displayed – Please pay Rs. as overdue amount for the renewal of KCC A/C no. XXXX1234.
After completion of all the process, KCC account will be renewed in CBS with revised Limit Expiry Date as “5 Year later from renewal date”,
Remarks as “KCC DIGITAL RENEWAL”. SMS will also be sent to the registered mobile no. of the borrower.
Page 13 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
6. PNB Kisan Tatkal Rin Yojana
1. PURPOSE: An instant credit for farming community to meet the emergency
requirements for Agriculture and Allied activities and Household Needs for tiding over
temporary difficulties. The loan will be provided for following purposes: ---
✓ Field preparation & pre-sowing activities for crops.
✓ Immediate credit requirement for other agriculture and allied activities.
✓ Farmer’s household needs.
2. ELIGIBILITY:
✓ Individual farmers/joint borrowers (not exceeding 04 farmers) who are
existing KCC holders or borrowers availing loans for agriculture/allied
activities are eligible.
✓ The borrower shall have satisfactory track record of at least 02 years
(existing accounts should be in Standard/SMA-0 category).
3. NATURE OF LOAN: OD Limit with reducing DP/Term Loan
4. EXTENT OF LOAN:
✓ Need Based, Maximum Rs. 50000/-.
✓ 25% of the existing limit with Max Rs.50000/-
(PS: 37/09.04.2020, PS: 43/22.05.2020, PS: 50/03.07.2020, PS: 35/30.04.2021)
5. MARGIN: NIL
6. REPAYMENT:
✓ OD Limit with reducing DP: on yearly basis, as it is to be liquidated within 5 years.
DP be calculated on annual basis and accordingly withdrawal be allowed in the a/c.
✓ TL: Repayable in 5 Yearly installments starting after 12 months from date of
disbursement.
7. SECURITY:
✓ Security/ies obtained for existing credit facilities to be continued.
✓ However, same may not be further extended for this facility.
✓ Moreover, no additional securities to be obtained even if the combined exposure (existing
credit facilities plus proposed advance under Kisan Tatkal Rin Yojana) exceeds the present
cut-off ceiling of Rs.1.60 Lacs.
8. SERVICE CHARGES: NIL
9. DISBURSEMENT OF LOAN:
✓ In OD: Limit will be allowed as reducing OD Limit.
✓ In TL: disbursement will be made directly in the KCC A/C or Saving A/C.

7. Scheme for Financing Green Houses (PS: PS: 31/26.03.2020)

1. Green House: A green house is a framed structure made of GI pipe/MS angle/Wood/Bamboo 9. Margin Norms: For production credit and/or Investment Credit:
and covered with a transparent /translucent material fixed to frame with grippes. The green Amount of Loan Margin
house protects the plants from adverse climatic condition and provides an appropriate amount i) Upto Rs.1,60,000/- NIL
of light, temperature, humidity, carbon dioxide, etc. to achieve optimum yield with excellent ii) Above Rs. 1,60,000/ to Rs.2 Lacs 5%
quality. iii) Above Rs.2 Lacs to Rs 5 Lacs 10%
2. Benefits of Green House: iv) Above Rs 5 Lacs 25%
- Certain crops could be grown year round to meet the market demands. Where subsidy is available, the same should be treated as margin.
- High value and high quality crops could be grown for export market. Labour and materials, etc., contributed by farmer should be treated as margin.
- Income from small land holding can be increased many fold. 10. Security Norms:
- Helps to control pest and diseases. Production Credit/ Security
- Conserve moisture. Investment Credit
- On farm employment could be increased. For loan upto Hyp of crops/assets created out of bank loan.
3. Eligibility: The applicant should own required agricultural land and the site should be well Rs.1.60 L
connected with market. Good quality water, electricity, drainage facility etc should also be Above Rs.1.60 L a) Hyp of crops/assets created out of bank loan AND
available. Loan to only those progressive farmers who are already following modern agricultural b) Charge on land/Mortgage of agricultural land valued at
technologies and have some experience/training in green house or for expansion to those 100% of amount of loan for other farmers and 75% of the
farmers who are already having green house. loan amount for small farmers/marginal farmers. OR
4. Nature of Loan: Medium Term Loan/Short Term loan. Alternate security viz. charge/lien over liquid securities such
5. Extent of Loan: Need based. as term deposits/NSC/KVP, etc. which may be considered
6. Repayment of Loan: 5-7 years depending upon the quantum of loan, purpose of loan and adequate. OR Suitable third party guarantee.
request of the applicant. For short term production credit the repayment may be 12/18
11. Confidential Report (CR) on Borrower(s) and Guarantor(s):
months as per KCC scheme whichever is applicable.
i) For loans upto Rs.50,000/-: No CR to be obtained
7. Grace Period: one year for TL Component.
ii) For loan above Rs.50,000/- & upto Rs. 10 Lacs: Simplified CR on PNB 539 (R)
iii) For loans above Rs. 10 Lacs: Regular CRs on PNB 282 A/B (R)
Page 14 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
8. Scheme for Financing Development of Wasteland (PS: 32/26.03.2020)
1. For development of wasteland financial assistance may be provided II. Financing Under PNB Gram Uday Scheme:
to eligible persons under following three schemes, namely: ---
1. Objective To increase productivity of land and convert degraded land to arable land.
I. Scheme for financing Development of Wasteland including Tree Patta
2. Purpose (i) Reclamation of soil i.e. removal of salinity/alkalinity, water logging, etc.
Scheme.
(ii) Soil conservation measures to prevent wind erosion and water erosion like
II. Financing under PNB Gram Uday.
levelling, bunding, contouring, terracing, etc.
III. Central Sector Scheme “Investment Promotion Scheme for
(iii) Conditioning of land by raising seasonal crops in reclaimed area.
Development of non-forest wastelands”.
(iv) Purchase of inputs like seeds, bio-fertilizers, bio-pesticides, vermi compost,
I. Scheme For Financing Development of Wasteland (Including Farm Yard Manure (FYM), fruit & vegetable wate, compost, etc. for organic
Tree Patta Scheme): farming.
3. Eligibility (i) Owner cultivators and their SHGs/Joint Liability Groups.
1. Eligibility (i) Individual farmers having land holdings (ii) Applicant should have soil health card.
(either as owners or on the basis of long 4. Nature of Facility Term Loan
term tenancy/leasehold rights). 5. Extent of Loan Need based, Maximum upto Rs. 1,00,000/-
(ii) Panchayats/other bodies having such
6. Fixation of Limit The loan limit shall be fixed after assessing the total requirement of farmer for
community land.
undertaking reclamation & soil conservation work & one cycle of crop
2. Extent of Loan Need-based. production.
3. Margin NIL 7. Margin NIL
4. Repayment of Loan Between 5 to 15 years. 8. Security Hypothecation of crops/ assets created out of bank loan.
5. Gestation Period Upto 36 months during which interest 9. Repayment Maximum 5 years, including moratorium period, in half yearly/yearly
accrued shall be deferred for recovery. installments.
6. CR Same as other Agriculture Schemes. 10. Gestation Maximum 1 year.
7. Security Norms Same as other Agriculture Schemes. 11. Service Charges NIL

III. Central Sector Scheme “Investment Promotional Scheme For Development of Non-Forest Wastelands”:
1. OBJECTIVES: (i) To facilitate/attract/channelise/mobilise resources from financial institutions, banks, corporate bodies including user industries and other entrepreneurs for
development of wasteland in non-forest areas belonging to Central and State Governments, panchayats, village communities, private farmers, etc.
(ii) To promote group of farmers belonging to different categories, namely, large, small, marginal and SC/ST for bringing wasteland under productive use.
2. ELIGIBILITY: Projects promoted by: (i) Individual entrepreneurs and Individual/group of farmers, (ii) Central and State Governments Undertakings,
(iii) Co-operative Institutions, (iv) Public Trusts and Societies registered under the Societies Registration Act, (v) Corporate Bodies registered under the Companies Act.
3. AREA COVERAGE OF SCHEME: Scheme will primarily be restricted to non-forest wasteland owned by Central and State Governments. Central/State Government Undertakings,
Panchayats and Farmers, Government Community land given on long term lease (more than 25 years) and Private land holdings leased to user industries/corporate bodies on the basis
of mutual understanding/MOU. Regarding identification of wasteland, there will be a joint inspection by the concerned Revenue Authorities and the Bank. A certificate should be
obtained from the Revenue Authorities that the land has remained uncultivated continuously for the last 3 years.
4. SCOPE AND PATTERN OF FINANCIAL ASSISTANCE: The guidelines relating to subsidy shall be as issued by the nodal agency.
5. RELEASE OF PROMOTIONAL GRANT/SUBSIDY:
(i) Subsidy should flow only in promotion of Promoters contribution and bank loan. The subsidy from Government of India will be released in two installments, first being 60% and the
second at 40%.
(ii) In case an independent Agency/Organisation/NGO assists in mobilising the group of farmers and linking them with the concerned bank, it would be paid 3% of project cost for the
purpose and this amount shall be paid by the bank to the Agency/Organisation/NGO from within the Central Promotional subsidy of DOLR admissible to individual/group of farmers.

Page 15 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
9. Scheme for Financing Setting Up of Bio-Gas Units (PS: 30/26.03.2020)
1. PURPOSE: (i) For construction of biogas plant with sanitary latrines in rural areas. (ii) Biogas 3. Nature Of Loan: Medium Term Loan.
plants of 1 cubic metre capacity can be operated with dung collected from one or two adult cattle 4. Extent Of Loan: Need based depending upon models and capacities of biogas
heads and attachment of a latrine complex serviceable for 5-10 persons. plant.
5. Repayment Of Loan:
2. ELIGIBILITY: Intending borrower should have adequate number of cattle commensurate with size Loan up to 5 cubic metres -- 7 years,
of plant proposed to be set up. Since there is no apparent income from the activity, except saving in Loans for above 5 cubic metres -- 5 years
cost of fuel, eligibility of intending borrower should be linked with his income to repay from other Repayment should be linked with income generated from land, allied agriculture
sources, viz., land holding, allied agriculture activities or employment, etc. Intending borrower should activities or other sources of income and it should be yearly.
be identified by Khadi and Village Industries Commission/State Agro-Industries Corporation/ 6. Margin Norms, CR, Security Norms: Same as per other Agri schemes.
concerned Department of State Government. It has, however, been stipulated that beneficiary in case
of 1 cubic metre size plant should have at least 1 buffalo or 2 cross-bred cows or 3 local breed cows. 7. Classification Of Loan: Under Priority Sector - Renewable energy.
Daily requirement of wet dung is estimated as 25 kgs.
10. Scheme for Financing Sericulture (PS: 29/26.03.2020)
1. Introduction: Sericulture is both an art and science of raising silk worms for silk production. India is the 2. ELIGIBILITY: Loan may be extended to individual farmers, SHGs, firms,
second largest producer of silk and the biggest consumer of raw silk and silk fabric. Due to its tropical companies engaged in sericulture activity.
climate India has a distinct advantage of practicing sericulture all through the year, yielding about 4-6 3. NATURE OF LOAN: TL, CC limit and Composite loan.
crops per annum.
India has the unique distinction of being the only country producing all the five known commercial silks 4. EXTENT OF LOAN: Need based.
varieties, namely, Mulberry, Tropical Tasar, Oak Tasar, Eri and Muga, of which Muga with its golden 5. Margin Norms, CR, Security Norms: Same as per other Agri schemes.
yellow glitter is unique and prerogative in India. Mulberry silk is produced in the States of Karnataka, 6. GESTATION PERIOD: 12 Months.
West Bengal, Andhra Pradesh, Tamil Nadu and Jammu & Kashmir. However, 65% of the country’s
7. REPAYMENT OF LOAN: For 4 to 9 years including grace period depending
production is contributed by the Karnataka only. Tropical Tasar silk is produced in the States of
upon the activities financed.
Jharkhand, Chhattisgarh, Orissa, Maharashtra, West Bengal and Andhra Pradesh, while Oak Tasar is
produced in the Sub- Himalayan range. Eri silk is produced in North-Eastern States.
11. PNB Krishak Saathi Scheme (PNBKSS) (PS: 28/26.03.2020)
1. PURPOSE: Purpose of the scheme is to provide finance to the farmers to redeem their outstanding dues 7. MARGIN: Nil.
to moneylenders. 8. SECURITY NORMS: No security will be insisted upon from the
2. OBJECTIVE: borrowers.
- To redeem an indebted farmer from the clutches of private money lenders, 9. CONFIDENTIAL REPORT: No need of obtaining brief Confidential Report
- To effect synergy between bank and the farmers, for loan amount upto Rs. 50,000/-, whereas beyond Rs. 50,000/- loan
- To ensure ‘Financial Inclusion’. amount brief Confidential Report on PNB 539(R) (Simplified Confidential
Report on Borrowers) shall be obtained.
3. ELIGIBILITY: All farmers including small & marginal farmers, tenant farmers, oral lessees, sharecroppers,
agriculture labourers, etc., who are indebted to non-institutional money sources. 10. REPAYMENT OF LOAN: 5-7 years including a maximum moratorium
period of 12 months with half-yearly/yearly installment.
4. IDENTIFICATION: Branch officials shall identify the farmers who are in the clutches of moneylenders in
their area of operation. 11. AREA OF OPERATION: The scheme shall be implemented in all
rural/semi-urban/urban branches across the country.
5. NATURE OF FACILITY: Term Loan.
6. EXTENT OF LOAN: Need based credit against their indebtedness from money lender with a Maximum of
Rs.1,00,000/- per farmer.

Page 16 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
12. Scheme for Financing Development of Horticulture (Fruits, Flowers & Vegetables) and Plantation Crops (PS: 27/26.03.2020)
1. PURPOSE: 3. NATURE OF FACILITY:
(i) Establishment and development of new orchards or groves of: Fruit crops, Plantation (i) Short term loan or cash credit facility may be provided under KCC Scheme:
crops, Ornamental crops, Spices crops, Medicinal plants, Essential oil/aromatic plants etc. (ii) Medium term loan for development of orchards or vegetable/flower gardens,
(ii) Rejuvenation of existing orchards or plantation; (Some vegetable crops stand in the field for 4-5 years during one life cycle for which
(iii) Raising vegetables like parwal, kundru, squash, etc.; medium term loans may be considered.)
(iv) Raising flower crops; Note: Where the requirement of short-term loan or Cash Credit facility is upto Rs. 50 Lacs,
(v) Inter-cropping in horticultural crops; the same may be provided under KCC scheme as per the relevant guidelines of the scheme.
(vi) Marketing loan to meet picking, grading, crating, forwarding & transportation costs. 4. EXTENT OF LOAN: Need Based. (In case marketing loan is also considered, it should
not exceed 20% of the estimated value of crop.)
2. ELIGIBILITY:
(i) Individual farmers or group of farmers having aptitude/adequate experience together 5. Margin Norms, CR, Security Norms: Same as per other Agri schemes.
with stipulated land holding (either as owner or on the basis of long-term tenancy/lease
6. GESTATION PERIOD: Vary with variety of plants/trees grown.
right) will be eligible for loan. Tenancy/lease period should be adequate i.e. at least 3 years
more than the economic life of plants to be grown. 7. REPAYMENT OF LOAN:
(i) Short Term Loans: As per KCC Scheme.
(ii) Public Sector Undertakings or private firms desirous of seeking financial assistance for
(ii) Medium Term Loan
plantation of fruit trees or other economic plants on project basis.
13. Scheme for Financing Poultry Farming (PS: 26/26.03.2020)
1. PURPOSE: 4. KIND OF BIRDS WHICH MAY BE FINANCED:
(i) For subsidiary activity: Investment credit in the shape of medium-term loan for acquiring fixed assets For the purpose of egg production, White Leghorn is popular egg type
whereas production credit will be given to meet the working capital requirements in the shape of Short- breed besides Australorp and Rhode Island Red. For rearing of broilers,
Term Loan. White-Plymouth-Rock, White-Cornish and New Hampshire breeds are
(ii) For main activity: Investment credit will be provided as mentioned above whereas production credit will recommended.
be given either in the shape of cash credit limit or as an integral component of investment credit.
5. EXTENT OF LOAN: Need based.
2. ELIGIBILITY:
(i) For subsidiary activity: The borrower may be a small farmer, landless agricultural labourer or other 6. REPAYMENT OF LOAN: Production credit, if given as short-term loan,
person who is under-employed and intends to supplement his income through poultry. He should have would be recovered in maximum period of 18/12 months providing
adequate land/shed where he proposes to establish poultry farm. gestation period of 6/3 months in the case of layers and broilers,
respectively.
(ii) For main activity: The borrower should be well experienced in running poultry unit and should be
engaged/desirous of engaging himself in such an activity on commercial basis as his main vocation. He Repayment of investment loan should start after adequate gestation
should be having required land/shed where he intends to establish or enlarge a poultry farm. period (upto 12 months in the case of layers and upto 3 months in the
Note: On the basis of the judgment/order of Hon’ble High Court of Uttarkhand regarding the ban of use of Battery Cages case of broilers) in suitable monthly/quarterly/ half-yearly installments
for Poultry farming it has been decided that no financing to Battery Cage Component of Poultry Farming Projects is over a period of 6-7 years in the case of small farmers depending upon
allowed with immediate effect on PAN INDIA Basis. their repaying capacity.
3. UNIT SIZE: Minimum size of the poultry unit to be financed as subsidiary activity should be 500 birds for 7. Margin Norms, CR, Security Norms: Same as per other Agri schemes.
providing in-built viability owing to economics of scale of operations. In the case of proposals sponsored by
other developmental agencies providing capital/interest subsidy (DRDAs, Poultry Development Corporation,
etc.) comparatively smaller unit size may be considered, if viable. In such cases, financing should be done on
cluster basis for not less than 5 units in contiguous areas of 1-2 kms.

Strictly Confidential :: For Internal Circulation Only

Page 17 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
14. Scheme For Financing Apiculture (Bee Keeping) (PS: 25/26.03.2020)
1.PURPOSE: Financial assistance will be made available for the following purposes: 5. REPAYMENT: Maximum 5 years. Gestation Period: 12 Months
A. Fixed cost such as: 6. INSURANCE: Equipment purchased should be new and any equipment costing more
a) Construction of honey houses; than Rs.10, 000/- should be insured.
b) Purchase of colonies; and 7. Margin Norms, CR, Security Norms: Same as per other Agri schemes.
c) Purchase of equipments such as bee-boxes, honey extractors, smokers and bee veil, bee
9. OTHER TERMS & CONDITIONS:
knife, hive tool, queen gate, feeder, solar wax extractor, plastic drums for storing honey,
a) Minimum unit for financing should be of 10 bee hives.
sting proof rubber gloves, etc.
b) Artificial bee hives are kept in the vicinity of flowering crops or trees to facilitate cross
B. Recurring Costs: Purchase of foundation sheets, sugar, medicines, gloves, etc.
pollination of crops or collection of nectar from blooming flowers. Site may change as per
2. ELIGIBILITY: a) Small/marginal farmer(s)/agricultural laborer(s) who are trained in bee-keeping.
blooming season from field to field.
b) Individuals/Association of persons/Partnerships/Companies.
c) Equipments should be duly marked with ISI specifications. In South India, ISI-A type
3. NATURE OF LOAN: Term loan. Provision for initial recurring costs will also form an integral
boxes are recommended. From Central to Northern India ISI-B type boxes are
part of term loan only.
recommended. In extreme North, still bigger boxes may be required. For rearing 10 bee
4. EXTENT OF LOAN: Need based.
colonies, borrower(s) will require 15 bee boxes; out of which 5 boxes are earmarked for
However, scale of finance according to yield/size should be worked out on the basis of
developing daughter colonies either for self or for sale. Hive stands, honey extractors and
number of colonies, cost of equipments, comb foundation sheets and sugar solution, etc.
bee houses are also designed and standardized.
15. Scheme For Financing Piggery Development (PS: 23/26.03.2020)
1. PURPOSE: Financial assistance may be provided for the following 3. EXTENT OF LOAN:
purposes:- (i) Pig Breeding: (a) For subsidiary activity: Need based and according to the unit cost approved by the State
(i) Breeding of pigs: Unit Cost Committee for that area. The loan components may include purchase of boar (male), sows (female
(a) For purchase of exotic boars like Large or Middle White Yorkshire pigs), construction of shed, purchase of equipment, feed for 9-12 months, medicine and insurance cost, etc.
(white breeds), Land Race (Brown), Large Black, Saddle Black, (b) For main activity: Need based and according to the project report which should be scrutinized for its
Hampshire (black breeds), etc., and for purchase of sows of improved techno-economic viability and cost of the items involved. It is preferable to ascertain if piggery on commercial
breeds. lines in that area has been successful.
(b) Construction of pig-pens (enclosures with fence). (ii) Pig Rearing: Need based. Loan is provided for purchase of weaned piglets, construction of pig-pens,
(c) Purchase of feed and medicines for a period not exceeding 9 M. purchase of feed up to 9-12 months, medicines, equipment, insurance cost, etc.
(d) Purchase of equipments, if required. (a) Progressive farmers who have sufficient land to produce home grown feeds may be financed a minimum
(ii) Rearing of pigs: breeding unit of 1 boar and 3 sows. Farmers who have very limited capacity to produce home grown feeds
(a) For purchase of weaned piglets (1-2 months old) for rearing/ may be preferred for undertaking rearing activity.
fattening upto a period of 9-12 months for disposal in the market. 4. Margin Norms, CR, Security Norms: Same as per other Agri schemes.
(b) For establishment of a farm on commercial lines as main activity for
production of piglets/breeders. Under this, financial assistance may 6. INSURANCE: Animals may be got insured in case financing is for breeding and rearing of pigs.
include housing, water and electricity, fencing, equipment including 7. GESTATION PERIOD: 12 Months (for TL only).
weighing scale, pork processing facilities, etc. 8. REPAYMENT OF LOAN:
2. ELIGIBILITY: (i) For Production Credit: Working capital loan will be repaid in a maximum period of one & half years from
(i) Individuals, farmers, agricultural labourers, tenant farmers, group of the date of advance.
farmers, SHGs, JLGs, firms, co-operative societies and companies having (ii) For Investment Credit: Repayment of the medium term loan is to be made in yearly installments within a
aptitude/adequate experience/training/exposure in the activity period of 5-6 years including gestation period.
together with the requisite land holding will be eligible. (iii) Fixing Due Date of Repayment: Due date of repayment should be fixed on annual basis.
(ii) Persons undertaking activity on commercial lines must have 9. OTHER: Pigs when financed should be, preferably, within the age group of 1.5 to 2 years.
adequate technical knowhow/training/exposure of the activity.

Page 18 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
16. Scheme For Financing Minor Irrigation Activities (PS: 24/26.03.2020)
Introduction: Irrigation projects can broadly be classified into following 3 3. NATURE OF LOAN: Medium term loan.
categories depending on Culturable Command Area (CCA - It is the area which
4. EXTENT OF LOAN: Need based.
can be physically irrigated and is fit for cultivation):---
Size of tube wells/pumpsets should be commensurate with land holdings to ensure optimum
utilization of investment. Under-financing/over-financing should be avoided.
1. Major Irrigation Projects: Projects having CCA more than 10,000 hectare.
2. Medium Irrigation Projects: Projects having CCA more than 2,000 to 5. MARGIN NORMS, CR, SECURITY NORMS: Same as per other Agri schemes.
10,000 hectare.
6. INSURANCE:
3. Minor Irrigation Projects: Projects having CCA less than 2,000 hectare.
(i) Insurance cover against the risk of theft and mechanical breakdown should be obtained where
loan amount exceeds Rs.10000/-. In case loan amount is less than Rs.10000/- insurance may not
Details of the scheme for financing minor irrigation activities are as be insisted upon and instead a letter of request from borrower requesting for waiver of insurance
under: may be obtained in view of cost of insurance involved.
1. PURPOSE: (i) Purchase of Pumpsets, (ii) Dug wells, (iii) Deepening of
(ii) Other items of machinery forming security for advances and valued at Rs.10000/- or more shall be
Wells/Repair to wells, (iv) Bore wells, (v) Shallow Tube wells, (vi) Deep Tube
insured with agreed bank clause for mechanical breakdown, theft, etc.
wells, (vii) Installation of Persian Wheels/Rehats, (viii) Sprinkler Sets, (ix) Drip
Irrigation, (x) Solar Pumps, (xi) Wind Mills (xii) Check Dams, (xiii) Construction of 7. GESTATION PERIOD: The gestation period varies with individual types of investment/activity which
pump house, water tanks, laying of field channels, pipe lines and water courses, should be allowed in terms of NABARD guidelines as under:--
(xiv) Use of PVC and MS pipes and GI bends, (xv) Standby Diesel Engines, (xvi) Gestation Period
Minor Irrigation Activities
Pumpsets fitted on Trolleys, (xvii) Bicycle along with Diesel pumpsets, (xviii)
Replacement of pumping equipment, (xix) Generator sets for powering of Pumpsets, Shallow Tube wells, Filter point & pump set, deepening of wells, 1 year
pumpsets used for agricultural purposes, (xx) Lift Irrigation Scheme, (xxi) Repair Bore well, Sprinkler/drip irrigation, Persian wheels/Rehat, Linking of water
and renovation of pumpsets and other farm assets. courses/ field channels.
On-Farm Development (OFD) under Command Area Development (CAD) 2 years
2. ELIGIBILITY: Project, Dug well with or without pump set
(A) Loan to Individuals: Lift Irrigation 3 years
(i) A borrower intending to implement a minor irrigation project including Other Minor Irrigation Activities Max. 1 year
sprinkler/drip irrigation projects must have a holding of at least 1 acre of land.
8. REPAYMENT OF LOAN: NABARD has prescribed following minimum and maximum repayment
However, in case of borrower sponsored by State Development Agencies where periods for different activities:---
smaller holdings of any farmer has been considered viable, the condition of
minimum holding of 1 acre of land will not apply. Activity Repayment Period
(including Gestation period)
(ii) For financing minor irrigation project, following conditions must be
(i) Deepening of wells, Persian wheels/Rehat 5 Years
fulfilled:--
a) Minor irrigation project is set-up in the area where water is abundantly (ii) Pump sets 9 Years
available from ground water resources. Solar pump sets 10 Years
b) Project is technically feasible and economically viable. (iii) Linking of water courses/field channels 9-15 Years
c) Minimum distance criteria of at least 200 sq. yards between tube wells (iv) Sprinkler/drip irrigation 10-15 Years
should be maintained. (v) Filter point & pump set, Shallow Tube wells, Bore Well, 11-15 Years
(B) Group Financing–Community Projects: Small and marginal farmers in groups Dug well with or without pump set, Lift Irrigation and
or community minor irrigation projects may be financed. On Farm Development (OFD) under Command Area
Development (CAD) Project.

Page 19 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
17. Scheme On Organic Farming and Organic Inputs
INTRODUCTION: Organic Farming is a method of farming system which avoids or largely excludes the
use of synthetic inputs (such as fertilizers, pesticides, hormones etc.) and aims at cultivating the land
and raising crops in such a way, so as to keep the soil alive and in good health by use of organic wastes
and other biological materials along with beneficial microbes (bio-fertilizers) to release nutrients to
crops for increased sustainable production in an eco-friendly pollution free environment.
Organic farming system rely upon crop rotations, use of crop residues, animal manures, legumes, green
manures, off farm organic wastes, bio fertilizers, mechanical cultivation, mineral bearing rocks and
aspects of biological control to maintain soil productivity & tilth to supply plant nutrients and to control
insect, weeds and other pests.
1. OBJECTIVE: To promote organic farming.
2. PURPOSE: Loan may be given for the following purposes:---
(i) Initial expenditure on fencing if not already put. (ii) Purchase of inputs, (iii) Land development.
(iv) Small farming equipment. (v) To help farmer for conversion from conventional farming to organic
farming. (vi) Investment credit to develop a farm design and management under Organic Farming
for an initial period of 5 years.
3. ELIGIBILITY:
(i) All Farmers – Individuals/Joint borrowers who are Owner cultivators, Tenant Farmers, Oral Lessees &
Share Croppers, SHGs or Joint Liability Groups of Farmers.
(ii) The applicant should have adequate land for taking up the activity. Vacant land in/around
residential houses with right to use such land may also be used for the purpose.
18. Scheme For Financing Combine Harvesters
1. PURPOSE: Loan may be given for financing purchase of combine harvester to persons/group of farmers/individual
farmers desirous of setting up of custom service units or for custom hiring, State Agriculture Farms having larger area
and intending to use the combines in their farm area apart from such corporations which are engaged in land
development activities.
2. ELIGIBILITY:
(i) In case of farmers: Intending borrowers should be able to maintain and run combine harvester or should make
suitable arrangements for the same.
(ii) In case of persons other than farmers: Intending borrowers should be technically qualified having adequate
know-how, skill and managerial ability to run custom service units.
(iii) In case of State Agriculture Farms/Corporations: State Agriculture Farms/Corporations engaged in land
development activities should have adequate resources and command area to run and maintain combine harvesters.
3. NATURE OF LOAN: Term loan.
4. EXTENT OF LOAN: Need based.
5. MARGIN NORMS, CR, SECURITY NORMS: Same as per other Agri schemes.
Page 20 of 77
(PS: 20/26.03.2020)
4. Nature of Facility: Cash Credit and/ or Term Loan.
5. Extent of Loan: Cash Credit: Need Based. Max. upto Rs. 50 Lacs (as per KCC
guidelines); Term Loan: Need Based.
6. Fixation of Limit:
(i) The limit shall be fixed after assessing the total requirement of farmer for
undertaking various farm activities in totality for production (involving Kisan
Credit Card) as well as investment purposes.
(ii) For production credit KCC may be issued for limit upto Rs.50 Lacs and all
guidelines as applicable for KCC be followed. As the cost involved in organic
farming is more than the cost involved in conventional agriculture, due to
being labour intensive, the credit limit should be fixed in accordance with
actual costs involved and not on the basis of scale of finance fixed for
conventional agriculture.
(iii) For investment credit, the guidelines contained in respective agriculture
credit schemes shall be adhered to.
7. Repayment: Cash Credit: As per KCC guidelines.
TL: As per extant guidelines pertaining to the particular scheme.
8. CLASSIFICATION: Agriculture.
9. MARGIN NORMS, CR, SECURITY NORMS: Same as per other Agri schemes.
(PS: 16/26.03.2020)
6. GESTATION PERIOD: Maximum 6 months linked with seasonal
harvesting and marketing of crops.
7. REPAYMENT OF LOAN: 5-7 years in half-yearly/yearly
installments, depending upon income generation.
8. OTHER TERMS & CONDITIONS:
(i) Financing is to be done of new combine harvester models
which are approved by Head Office.
(ii) Proposal should be from areas which offer good potential for
custom hiring i.e. a minimum of 1600 acres per year.
(iii) Borrower must give an Undertaking that combine harvester
will be driven by persons having regular and valid driving license.
(iv) Since the use of combine harvesters restricted only to the
harvesting season, the density of population of such harvesters,
scope of custom hiring, impact of density on custom rates, etc.,
should be kept in view.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
19. Scheme For Financing To Custom Hiring/Service Units (PS: 19/26.03.2020)
1 Objective To meet the capital investment and working capital requirements of custom hiring/service units that maintain a fleet of tractors, bulldozers, well boring
equipment, combines, threshers etc. and undertake work for farmers on contract.
2 Eligibility All individuals, organizations, institutions eligible to be covered under Agriculture credit as per extant guidelines issued from time to time.
3 Purpose Financing for setting up of custom hiring/service units that maintain a fleet of tractors, bulldozers, well-boring equipment, threshers, combines, harvester
etc. and undertake work for farmers on contract.
4 Nature i) Term Loan, ii) Working capital
5 Extent of loan i) Term Loan: Need based.
ii) Working capital: Need based; subject to 50% of the projected receipts with a maximum of 66% of realizable value of mortgaged IP.
6 Margin Term Loan: 25%
However, in case the entrepreneur owns unencumbered other farm machineries like sugarcane harvester/planter/seeder/mulcher, etc. the same will
be treated as margin contribution. Value of such existing machineries to be arrived at by charging depreciation @15% (7 years’ life) and 20% (5 years’ life)
of the machinery.
7 Security i) Primary Security: (A) Term Loan: Hypothecation of Machinery/Equipment/Assets etc. created out of Bank loan.
(B) Working capital: Immovable property equivalent to 150% of the limit sanctioned.
ii) Collateral Security (for term loan):
(a) In case where the farm machinery is jointly registered with RTO; collateral security equivalent to 50% (realizable value) of the loan amount in the
shape of immovable property and/or other liquid security, duly charged to the Bank.
(b) In other cases where the farm machinery cannot be jointly registered with RTO; collateral security equivalent to 100% (realizable value) of the loan
amount in the shape of immovable property and/or other liquid security, duly charged to the Bank.
8 Repayment Term loan shall be sanctioned for a maximum period of 7 years including gestation period of maximum 12 months.
Working Capital shall be sanctioned for a period of 1 year and shall be subject to renewal/review annually. Interest is to be recovered as and when levied.
9 Classification Such advances will be classified Priority Sector – Agriculture -- Ancillary Activities.

20. Scheme for Financing Purchase of Draft Animals and/or Animal Drawn Vehicles (PS: 15/26.03.2020)
1. PURPOSE: (i) Purchase of draft animals which are of good quality, healthy 3. EXTENT OF LOAN: Need based keeping in view unit cost fixed by State Unit Cost Committee and
and draft worthy. (ii) Animal drawn carts for transport of agriculture inputs repaying capacity of applicant(s).
and farm produce and other such purposes simultaneously with animals to 4. MARGIN NORMS, CR, SECURITY NORMS: Same as per other Agri schemes.
draw it or alone if borrower(s) already has draft animals. 5. REPAYMENT OF LOAN: Repayment period should be fixed through Monthly/Quarterly/Half-yearly
2. ELIGIBILITY: intervals as under: ---
(i) Farmers having owned/registered leased land may be provided credit for Assets Created Repayment Period
purchasing two animals as per requirement. Farmers owning minimum 2 (i) Bullocks only 4 years
acres of land or having perpetual right of cultivation of minimum 2 acres of (ii) Male buffaloes & drawn carts (Jhota Buggies) 4-5 years
land. (Minimum land holding criteria may be waived where cases are (iii) Camel only 5 years
sponsored by DRDA under SGSY or specific scheme is formulated on area (iv) Bullocks & carts 5-7 years
approach basis and approved by Regional Manager.) (v) Animal drawn carts only 5-7 years
(ii) Farmers/landless labourers may be financed for a pair of animals and cart (vi) Camel & carts 5-7 years
where there is enough scope for hiring the cart, provided financing has been Note: Repayment should be linked with useful life of animal(s).
done with a view to providing self-employment to the borrower(s). 6. OTHER TERMS & CONDITIONS:
(iii) A farmer can also be financed for one animal provided he/she is already (i) Loan may be given only in respect of young and healthy draft animals within age group of 2-6 years.
owning an animal or in cases where the farmer is already owning an animal or (ii) Health Certificate of animal(s) should be obtained from qualified Veterinary Surgeon and kept on
in cases where the farmer cannot afford more than one animal. bank’s records.
Page 21 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
21. PNB Krishi Bhu-Swami Yojana (PNB Agri-Land Purchase Scheme) (PS: 42/14.05.2020)
1. PURPOSE: The scheme aims at providing term loan to small/marginal farmers including share 8. REPAYMENT OF LOAN:
croppers/tenant cultivators to purchase agricultural land as well as fallow and wasteland to develop (i) The financing branch should satisfy itself that the borrower(s) would have adequate
and cultivate it with a view to increasing production/productivity. income surpluses from their production activities on the land being purchased and
It also enables them to diversify the present activities and to take up allied activities. other income to repay the bank loan with interest and the repayment period may be
2. ELIGIBILITY: fixed accordingly.
- Small and marginal farmers i.e. those who would own maximum of 5 acres of unirrigated land or (ii) Loan may be repaid in 7-12 years in half-yearly/yearly installments including
2.5 acres of irrigated land including the land to be purchased. maximum moratorium period of 24 months. The moratorium period may be fixed
- Share croppers/tenant farmers cultivating upto 2.5 acres of irrigated land or 5 acres of unirrigated taking into account the gestation period of the project and cash flow.
land as the case may be. 9. GESTATION PERIOD: Maximum 24 months.
- Entrepreneurs with agricultural background are also eligible (Provided State laws permit purchase 10. POST SANCTION MONITORING OF THE SCHEME:
of agriculture lands by non-agriculturists) Follow up visit to be undertaken to find out status of the activity of the borrower
- The total land holding of the borrower after the purchase of the land under the scheme should not and to give technical guidance to farmers and to remind the borrower of
exceed 2.5 acres of irrigated land or 5 acres of unirrigated land or equivalent. repayment in case of default. Half yearly visits may be undertaken by the branch
in respect of regular accounts.
3. NATURE OF LOAN: Term loan. 11. OTHER TERMS & CONDITIONS:
4. EXTENT OF LOAN: The Extent of loan will depend upon: (i) valuation as assessed by the Branch (i) Applicant farmers may be allowed to purchase agriculture land within a radius
(ii) Guidance value/Circle rate fixed by the State or (iii) the Registration Value whichever is lower, of 15 KMs from the existing land owned by him or from the residence or within
plus value of stamp duty, registration charges for sale/mortgage deed. Maximum amt Rs. 20 L. the service area villages, whichever is higher.
5. MARGIN NORMS, CR: Same as per other Agri schemes. (ii) Whenever farmers avail themselves of loan for purchase of virgin land, they must
6. SECURITY NORMS: (i) The land presently owned, if any and also the land to be purchased out of be encouraged to develop the land and put the same under cultivation without delay.
the bank finance to be mortgaged in favour of the Bank. (ii) Hypothecation of Crops.
22. Produce (Marketing) Loan Scheme (PS: 12/26.03.2020)
1. PURPOSE: To meet short term credit requirement to adjust/repay the outstanding KCC limit availed by farmers 4. NATURE OF FACILITY: Short term loan (Demand Loan).
from the branch and to procure better price by storing farm produce and selling it at favourable price within a 5. EXTENT OF LOAN: Maximum loan upto Rs. 50 Lacs. Extent of loan would
specified period. be 75% of the Minimum Support Price or Current Market Price whichever is
2. ELIGIBILITY: i. All the farmers irrespective of whether they were given crop loans for raising the produce or not; lower, at the time of disbursement.
will be eligible for advances. 6. REPAYMENT OF LOAN: Produce (Marketing) Loan shall be repaid within
ii. However, where the farmers have availed KCC facility for crop production from our Bank for raising the crops, the a maximum period of 12 months from the date of its disbursement.
same should not be overdue for repayment. However, the benefit of concessional rate of interest and additional
iii. Loan against hypothecation of produce stored at the Farmers’ own premises will be allowed only to the farmers subvention (for loan upto Rs. 3 L) given to small and marginal farmers as
who have availed crop loan from our Bank. per Govt. of India scheme shall be restricted upto 6 months only.
iv. Other farmers will be financed only against pledge of warehouse/cold storage receipts. Such finance will be
allowed only against the receipts issued by Godowns of Central Ware Housing Corporation (CWCs), State Ware 7. INSURANCE: i) For loans upto Rs.10,000/-: No insurance is required.
Housing Corporations (SWCs), warehouses/cold storages duly accredited by WDRA. ii) For loans exceeding Rs.10,000/-: Insurance of stocks hypothecated/
v. An undertaking to the effect that the produce proposed to be offered as security to the bank is free from any pledged should be got done including quality deterioration clause.
encumbrance/charge is to be obtained from the applicant. 8. PERIODICAL INSPECTION:
3. SUBVENTION SCHEME OF GOVT OF INDIA: i) Incumbents Incharge to conduct quarterly inspection of produce
(a) Only small/marginal farmers who have availed KCC facility and have been financed against negotiable hypothecated/pledged to the Bank.
warehouse receipt (NWRs) issued by warehouses registered with the Warehousing Development Regulation ii) Stocks covered under Warehouse Receipts should be inspected and
Authority (WDRA) will be eligible for the subvention. physically checked/verified by the branches before sanction/release of
(b) The Rate of interest upto loan of Rs. 3 lakh will be 7% for a period of 6 months and thereafter it will be charged credit facility.
@ normal applicable interest. iii) The inspection of the produce pledged shall be conducted by the Staff
(c) The subvention will be calculated for a period of 6 months from the date of disbursement /drawal or date of periodically, but at least once a month.
actual repayment of the loan which is earlier. 8. CLASSIFICATION OF ADVANCE: Under PS- Agriculture Adv to farmers.
Page 22 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
23. Scheme For Financing Forestry Development Programmes (PS: 18/26.03.2020)
Broad scope of these forestry programs is as under: 4. EXTENT OF LOAN: Need based.
I. Farm Forestry: Raising of trees on bunds and boundaries of fields and/or raising trees on private agricultural 5. SECURITY NORMS: Investment/Production Credit:
lands. II. Production/Commercial Forestry: Raising of trees with objective of producing timber, fuel wood, (i) Upto Rs.1,60,000/-: Hypothecation of crops/assets created out
fodder and other forest products as a business enterprise. of Bank loan;
III. Development of Tree Borne Oilseeds (TBOs). IV. Jatropha Plantation, V. Bamboo Plantation. (ii) Ab Rs.1,60,000/-: (a) Hypothecation of crops/assets created
Detailed guidelines for financing forestry development programmes are as follows:-- out of Bank loan; AND (b) Charge on land as per Agricultural
Credit Operations and miscellaneous (Provisions) Act of the State
1. PURPOSE: (i) Development of nurseries. (ii) Plantation and raising forestry trees upto harvesting. concerned/Mortgage of agricultural land valued at 150% of
2. ELIGIBILITY: Farmers, SHGs, JLGs, Companies, State Undertakings having ownership/lease-hold/perpetual amount of loan for other farmers and 100% of the loan amount for
tenancy rights over land in their name shall be eligible for availing loan under the scheme. small farmers/marginal farmers; OR
Alternate security, viz., charge/lien over liquid securities such as
The following criteria should also be taken into account:-- term deposits/NSCs/KVPs, etc., which may be considered
(i) In case of individual borrowers, minimum area for which loan may be considered to be kept at one acre or 150 adequate. OR Suitable third party guarantee.
trees. In case of companies/joint sector undertakings, minimum area to be planted will have to be 5000 hectares
over 3 years span of plantations. 6. Margin Norms, CR: Same as per other Agri schemes.
(ii) Lands proposed for raising forest plantations should be marginal/degraded/wastelands. Other lands which are 7. GRACE PERIOD: Upto 6 years.
already under cultivation for raising cereals, etc., should not be diverted for afforestation.
8. REPAYMENT OF LOAN:
3. MINIMUM AREA OF PLANTATION: (i) Short term loan for nursery: As per KCC Scheme.
(i) Loan shall be calculated for raising minimum of 25,000 seedlings which can be planted over an area of 10
hectares. (ii) Medium Term Loan for forest plantation:
Loan for scheme where trees are grown should be repaid within a
(ii) Minimum area of cultivation should be one acre. In case of plantation of trees on bunds, economic viability of maximum period of 15 years inclusive of grace period.
project should be done with respect to minimum number of trees to be planted. (a) Principal: Repayment of loan is to be worked out according to
(iii) For financing individual borrowers for raising plantations:--- cash in flows arising out of implementation of project. Since
- Minimum area for which loan can be granted to individual borrowers may be kept as 1 acre or 150 trees. income is derived from various sources, namely, by sale of poles,
- If financing is to be done to private entrepreneur for raising plantations to meet needs of user industry, fodder, fuel, etc., repayment shall be worked out keeping in view
minimum area to be planted should be 100 hectares and tie-up arrangement with user industry should have generation of income and as returns are expected. However,
been finalised. Area to be planted should be nearer to user industry so that transport cost is minimised. repayment period is to be fixed with a minimum of 7 years to
maximum of 15 years.
(iv) Financing of projects formulated by Companies/Joint Sector Undertakings:---
(a) Minimum area to be planted will have to be 5000 hectares over 3 years span of plantation so as to make the (b) Interest: Interest shall be recovered alongwith principal in
investment proposal viable. lump-sum, if repayment of loan is stipulated in one full and final
(b) Joint Sector Undertaking or private or joint sector company or Forest Development Corporation should utilize installment. However, where returns are expected to be over a
degraded, marginal or wastelands for raising fuels, fodder and plantations. number of years, interest accrued upto first year of harvesting
(c) Lands which are already under cultivation for raising cereals, etc., should not be diverted for raising forestry/fuel shall be recovered alongwith first installment of loan. Thereafter,
or fodder purpose. interest may be recovered alongwith installment.
(d) Nurseries raised by companies should not only meet plantation requirements but also supply seedlings of 9. RATE OF INTEREST: As per LA: Cir 42/26.03.2020 & PS: Cir
required species on payment to farmers in neighbouring areas who are willing to take up such plantations on 80/08.12.2021
wastelands or marginal lands.

Strictly Confidential :: For Internal Circulation Only

Page 23 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
24. Scheme For Financing Sheep/Goat Breeding/Rearing Activities (PS: 17/26.03.2020)
1. PURPOSE: 4. EXTENT OF LOAN:
(i) Purchase of sheep/goat of recognized breed for the purpose (i) Purchase of sheep/goat: Need based loan should be provided to the applicant(s) for purchase of animals.
of breeding and/or rearing them for wool, meat and milk Normally, farmer(s) adopt unit size of 1:20 (male: female) in case of sheep and 1:4 (male: female) in goats.
production. (ii) Loan for Construction of Shed, etc.: In villages, construction of sheds for keeping sheep/goats is not usual.
(ii) Construction of sheds for sheep/goat, if considered However, workable enclosure of wooden poles and hedge to keep the animals from straying to other areas during
necessary, and also for purchase of equipments/tools. nights is desirable for which financial assistance can be considered as per need. Similarly, loan may be needed for
(iii) Purchase of concentrate feed, if considered necessary. equipments used for shearing of wool.
2. ELIGIBILITY: Small and marginal farmer(s) and agricultural (iii) Commercial Rearing: Applicant(s) should submit a project report containing details of cost of project,
labourer(s) desirous of undertaking sheep/goat breeding/ arrangements for purchase of good quality animals, arrangements for purchase of concentrate feed, construction of
rearing as subsidiary activity or trained persons including shed, marketing, etc.
farmer(s) desirous of taking up the venture as whole-time
business on commercial lines are eligible. 5. MARGIN NORMS, CR, SECURITY NORMS: Same as per other Agri schemes.

3. NATURE OF FACILITY: 6. INSURANCE: Animals purchased as well as progeny should be got insured.
(i) Subsidiary activity: 7. GESTATION PERIOD: 12 Months for sheep/goat breeding/rearing.
In case of farmer(s)/agricultural labourer(s)/individual(s) 8. REPAYMENT OF LOAN: The medium term loan should be given with gestation and repayment periods as under:--
undertaking sheep/goat breeding/rearing as subsidiary activity,
loan will be given as medium TL. Activity Minimum & maximum repayment Mode of repayment
period, including gestation period
(ii) Main activity on commercial lines:
Sheep Breeding 5-6 years Quarterly/ Half-yearly/ Yearly
In case of breeding/rearing projects on commercial lines where
activity is taken up on whole-time basis, medium term loan Goat Rearing 5-6 years Quarterly/ Half-yearly/ Yearly
may be given for purchase of animals and equipments and TL should be repaid within a maximum period of 5-6 years in installments commencing with the sale of animals (lamb,
separate working capital facility may be granted for feed cost, etc.) for meat purpose and/or shearing of wool, etc. WC loan will be repaid within maximum period of 1.5 years
insurance, etc., depending upon requirement. Working capital from the date of advance. If given as CC limit, the facilities shall be renewable every year.
loan may be given either as a short-term loan or cash credit 9. OTHER TERMS & CONDITIONS: Only good quality healthy animals of reputed breeds, preferably, of 1-1.5 years
limit. should be financed.
25. Scheme For Financing Mushroom Cultivation and Spawn Production (PS: 14/26.03.2020)
1. INTRODUCTION: - Mushrooms are edible fleshy fruity bodies of certain fungi which may be grown under controlled 4. NATURE OF LOAN:
conditions of cultivation. Mushroom is rich in protein and other nutrients and low in fat. (i) Investment Credit (Term Loan),
- Only three types, the button mushroom, oyster mushroom and paddy straw mushroom are generally grown in (ii) Working Capital or Recurring Expenses (Financing may be
India. More emphasis is given to the cultivation of button mushroom. considered under PNB KCC Scheme for two cycles of spawn
- Spawn is just equivalent to the seed of a plant. production).
2. PURPOSE: (A) For Mushroom Cultivation: i) Investment Credit, ii) Working Capital (For Initial One Crop Only), 5. QUANTUM OF LOAN: Need Based.
(B) For Mushroom Spawn Production. 6. MARGIN NORMS, CR, SECURITY NORMS: Same as per other
3. ELIGIBILITY: Agri schemes.
(A) FOR MUSHROOM CULTIVATION: Loan may be considered for individuals as well as for large sized units possessing 7. GESTATION PERIOD:
adequate experience of mushroom cultivation. For mushroom cultivation: 6 months.
(B) FOR SPAWN PRODUCTION: Individuals as well as large sized units possessing qualification in plant pathology or For spawn production: 1 year.
having proper background and training for spawn production.
Note: Loan may be considered for cultivation of following popular varieties of mushroom: --- 8. REPAYMENT OF LOAN: 7 years including gestation period.
i) White Button Mushroom, ii) Paddy Straw Mushroom, iii) Oyster Mushroom

Page 24 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
26. Scheme For Financing Estate/Orchard Purchase (Estate/Orchard Purchase Loans) (PS: 10/26.03.2020)
1. PURPOSE: 3. NATURE OF FACILITY: Term Loan
-- To purchase estates/orchards growing traditional plantation crops viz.
coffee, tea, rubber and cardamom. 4. QUANTUM OF LOAN: Maximum up to Rs. 2 Cr.
-- To purchase estates/orchards growing high value crops like cashew,
pepper, coconut, and other perennial orchard crops. 5. MARGIN: Minimum 40%
- To purchase Areca garden.
-- To pay stamp duty and registration expenses involved in purchase of 6. ASSESSMENT AND EXTENT OF LIMIT:
estate/ orchards. The assessment and extent of limit shall be fixed least of the followings after retaining 40%
margin:---
2. ELIGIBILITY: --- Maximum 60% of the realizable value of the property.
-- Only individuals/joint borrowers and proprietorship firms will be --- Purchase consideration
financed. --- Market value
-- The purchaser should qualify the respective State Government norms --- Guidance value/Circle rate fixed by the state.
for being an agriculturist/satisfy any criteria stipulated by State --- Guidance of state horticulture department will be taken for arriving at the value of the
Government. estate/plantation/orchard.
-- The purchaser should have good track record and have existing yielding
estates/orchards. 7. REPAYMENT: Within 7-10 years.
-- Non-estate/orchard owners may also be financed provided that they --- Repayment should be fixed on the basis of economic life of the crop undertaken for
will be able to develop the estate/orchards on the desired lines (subject cultivation.
to State Laws permitting such purchase). --- Repaying capacity/assessment of loan, is to be calculated on the basis of latest ITRs.
-- The purchaser should be experienced in the line and financially sound. ---Installment may be recovered from borrower out of the income derived from
-- The purchaser should be in a position to bring margin and service the intercropping or from any other identifiable source of income, wherever possible.
debt.
-- Intending buyer should qualify the State Government norms of being 8. SECURITY: Mortgage of property to be purchased.
an agriculturist/satisfy the income criteria stipulated by the state --- If security does not commensurate with the loan exposure additional security in form of
government in case where loan is considered for purchase of areca mortgage of existing land/property/including preferably residential property to be obtained.
gardens. --- Owner (s)/joint owner(s) of IP to be made co-obligant(s)/guarantor(s).
-- Normally, purchaser(s) and seller(s) should not be close relatives. --- Third party guarantee to be obtained.
-- The total land holding including the land to be acquired should be
within the land ceiling norms of the respective state. 9. OTHER TERMS AND CONDITIONS: It should be ensured that the property against which
-- The loan should also have spin off benefits in form of deposits, other loan is being sanctioned should not form part of primary or collateral security in any other
business support, non- fund-based income etc. advance of our Bank or any other Bank.
-- The DSCR ranging from 1.5 to 2 is considered ideal for considering the
viability of the project.

Strictly Confidential :: For Internal Circulation Only

Page 25 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
27. Scheme For Financing Loan for Farm House Construction
1. PURPOSE: a. Construction of farm structures on agriculture land to facilitate the
agriculturist/farmer to meet the requirement of utility unit for covering the requirement as well as
dwelling structure.
b. For repair of existing farmhouse structure.
2. ELIGIBILITY:
a. Fresh as well as existing borrowers who are owner cultivators are eligible.
Existing borrower shall have satisfactory track record of 3 years with the bank.
In case of fresh borrower, KCC should also be sanctioned along with Farmhouse loan and entire
land be mortgaged in favor of Bank.
b. The proposed plot/land portion should have independent approach/access.
c. Repayment of loan along with interest should not extend beyond 70 years of age. In case the
loan is allowed to joint owners, it should be ensured that at least one of the joint owners should be
able to repay the loan along with interest maximum up to the age of 70 years. However, Circle Head
& above may relax repayment period up to the age of 80 years.
d. For takeover of existing loans from other Banks/FIs is also permissible however, the customer
should have satisfactory track record.
3. NATURE OF LOAN: Term Loan.
4. QUANTUM OF LOAN:
i) FOR CONSTRUCTION OF FARMHOUSE: Need based loan depending upon the project cost and
repaying capacity of the borrower, Maximum Rs. 15 Lacs.
ii) FOR REPAIR OF EXISTING FARMHOUSE STRUCTURE: Maximum Rs. 5 Lacs.
NOTE:
a. Total quantum of loan including the loan for repair will be within the Max limit of Rs. 15 L.
b. Quantum will be decided on the basis of the income flow and repayment capacity of borrower.
Difference between the project cost and eligible loan amount will be borne by the borrower.
c. Net Take Home (NTH) should be 40% of gross annual income at the time of applying for loan with
Minimum of Rs. 1.50 Lacs p.a.
d. Quantum of loan should be fixed taking into account the overall limit of Priority Sector Advances.
5. ELIGIBILITY CALCULATION: Depending on cost of project, assessment will be as under: ---
A. ON THE BASIS OF INCOME:
a. Farm Income: 5 times of net annual income OR
b. 3 times the value of annual crop production from the farm taking into consideration type of crop,
area under cultivation, market value of produce etc. AND
c. In case of other income/income from allied activities: 3 times the value of net anticipated annual
profit from economic activity undertaken by the applicant. (Existing and proposed activity
income/salary income/income from other sources may also be included)
B. ON THE BASIS OF VALUE OF COLLATERAL SECURITY:
a. 80% the value of immovable property offered as security.
b. 100% the value of liquid securities such as LIC policy (surrender value), FDR, NSC/KVP etc.
C. LOWER OF A OR B i.e. Assessment Value on basis of Income Or Collateral Security whichever Is
lower will be taken.
Page 26 of 77
(PS: 11/26.03.2020)
6. INCOME PROOF:
a. It is desirable to take latest ITR where agricultural income is also declared for
ascertaining the gross annual income. In case of non-availability of ITR, Income
certificate issued by the Tehsildar/Mandal Revenue Officer/District Revenue
Authorities or any competent authority (Permitted by the State Govt. to issue such
certificates) may be accepted as proof of income for reckoning the eligibility.
b. Income of farmers shall be determined based on: (i) Land availability and
cropping pattern, (ii) Expected income from allied agriculture/non-farm activities,
7. MARGIN: 20% of the estimated cost of construction/repair. (LTV Max 80%)
8. MORATORIUM: a. For Construction: Upto 12-18 M, b. For Repairs: NIL
9. REPAYMENT: Repayment should be fixed on realistic basis on the basis of the
activity and cash inflow of the agriculturist.
a. For Construction: Maximum 20 years or 70 years of age of the borrower
whichever is lower. (Upto 80 years by CH)
b. For repairs: Maximum for a period of 5 years or 70 years of age whichever is
lower. (Upto 80 years by CH)
Note: Repayment to be made in half-yearly/quarterly/monthly installments along
with interest and to be linked with cash inflow and activity of the agriculturist.
10. SECURITY: a. Mortgage/Charge on the land/s and structures thereon.
b. Extension of charge on land/property already mortgaged with bank (in case the
borrower is existing borrower)
c. In case of fresh borrower, where KCC is also sanctioned along with Farmhouse
loan and entire land is mortgaged in favor of Bank.
d. In case the land/property cannot be mortgaged for some reason, alternative
security where valid mortgage can be created to the extent of 100% of loan
amount be taken.
e. Liquid security, such as NSC, FDR (own bank), LIC Policy (surrender value),
Government security or any other such security acceptable to the bank may be
taken as security to commensurate with the loan amount. Liquid security should
at least be 100% of the value of the loan.
f. Security of shares will not be accepted.
g. Suitable third party guarantee may be obtained.
h. NACH/RECS (Debit)/PDCs/Standing Instruction mandate of customer.
11. CLASSIFICATION: Priority Sector: Agri Infrastructure.
12. OTHER TERMS & CONDITIONS:
i) In case property cannot be mortgaged for some reason, alternative security likes
alternative property, liquid security e.g. FDR (own bank), NSC/KVP etc. or any such
security acceptable to bank may be obtained to commensurate the loan amount.
ii) Other credit facilities of the borrower will not be clubbed with this facility for
arriving at the applicable ROI.
iii) Eligibility of the applicant should be based the criteria of adequate income,
liquidity and capacity to serve the loan installment.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
28. Scheme For Financing Vehicle for Farmers/Agriculturists
1. PURPOSE:
a. Purchase of New 4 wheelers, 3 wheelers (carriers) and 2 Wheelers (LMVs) of all types, by Agriculturists for
managing and supervising their farming activities and other farm related marketing activities etc., for transporting
agriculture inputs/produce, labours etc. to and from their farm.
b. The loan amount will comprise of:--- i. Cost of vehicle (invoice price), ii. One-time Insurance & Registration
cost. But, Costs of accessories are NOT to be included.
2. ELIGIBILITY: All new and existing farmers engaged in agriculture and/or allied activities having repayment
capacity assessed by the branch based on income from agriculture and/or allied activities.
a. For 2 Wheeler: Individual should be engaged in direct agriculture and/or allied agriculture activity.
b. For Three Wheeler (carrier) and Four Wheeler (LMV): All agriculturists owning and cultivating agricultural
lands of more than 1 acre of agriculture land in their name/s with 2 years of satisfactory dealing with the bank are
eligible to apply under the scheme.
c. In case of agriculturists engaged in Dairy farming, Poultry farming, Plantation Crops and Horticultural
produce or other allied activity, the minimum land holding requirement does not apply, instead they should have
minimum gross annual income of Rs. 2.50 Lacs for 3 & 4 wheeler.
d. Financing at 1 acre may be allowed only in cases where the Branch Head is satisfied that farmer would be able
to use the vehicle for purposes like transportation of farm produce and economic viability of the loan must be
ensured.
3. INCOME CRITERIA/PRE-REQUISITES & ELIGIBILITY CALCULATIONS:
A. INCOME CITERIA:
a. In case of loans up to Rs. 10 Lacs, though it is desirable to submit latest ITR where agricultural income is also
declared for ascertaining the gross annual income, in case of non-availability of ITR, Income certificate issued by
the Tehsildar/Mandal Revenue Officer/District Revenue Authorities or any competent authority (Permitted by the
State Govt. to issue such certificates) may be accepted as proof of income for reckoning the eligibility.
b. In case of loans above Rs. 10 Lacs, ITR where agricultural income is also declared is compulsory.
c. Net Take Home (NTH) should be 40% of the gross annual income at the time of applying for the loan (after
meeting the installment of the proposed loan under this scheme) with a Min of Rs.1.50 Lacs p.a.
Note: Genuineness of the declared income to be verified by the branch. Income of farmers shall be determined
based on:--- (i) Land availability and cropping pattern. (ii) Expected income from allied agriculture/non-farm
activities. (iii) Any other income.
B. ELIGIBILITY CALCULATION: Lowest of the following will be financed:
a. Farm Income: 4 times of net annual income OR
b. 3 times the value of annual crop production from the farm taking into consideration, type of crop, area under
cultivation, market value of produce etc. OR
c. In case of other income/income from allied activities: 3 times the value of net anticipated annual profit from
economic activity undertaken by the applicant. (Existing and proposed activity income/salary income/income
from other sources may be included.)
d. Net Take Home (NTH) should be 40% of the gross annual income at the time of applying for the loan (after
meeting the installment of the proposed loan under this scheme) with a Min of Rs. 1.50 Lacs p.a.
Where borrower is having non-agricultural income of regular nature (either through salary, business or
profession), the same may also be included for determining the repayment capacity. However, adding the non-
agricultural income shall be subject to the income being declared in ITR or subject to production of documentary
evidence. In case, any other family member is also having Agricultural income and intends to join as Co-Borrower,
Page 27 of 77
the same can be permitted for arriving at Annual Income, Repayment Capacity accordingly.
(PS: 09/26.03.2020)
4. LOAN AMOUNT:
a. For Scooters, Motorcycles etc.: Need Based. Maximum Rs 1 Lac.
b. For Three-Wheeler (carriers): Need based, Maximum Rs. 3 Lacs.
c. For Four- Wheeler (LMVs): Need Based. Maximum Rs. 15 Lacs.
5. MARGIN: Minimum margin on the on-Road price inclusive of
invoice value, life tax, registration charges and insurance premium,
will be as under:--- a. For Loan upto Rs. 10 Lacs: 10%
b. For Loans above Rs. 10 Lacs & upto Rs. 15 Lacs: 15%
5. REPAYMENT PERIOD:
a. In case of 2/3 wheeler: Maximum 60 months.
b. In case of new 4 wheeler vehicle: Maximum 84 months.
c. The periodicity of repayment i.e., monthly/quarterly/half yearly
should be fixed depending upon the activity carried on by the
borrower/income stream of the borrower/cropping pattern etc.
d. Circle Head may extend repayment period by 12 months based on
merits of the case.
6. SECURITY:
a. Vehicle purchased to be hypothecated to the bank. Name of the
branch must be mentioned on the JRC and a BM verified copy of the
same to be kept on record. and
b. Creation or extension of charge on agricultural land &/or suitable
third party guarantee should be obtained to secure the loan.
7. DISBURSEMENT: Draft/RTGS representing cost of the vehicle is
delivered to authorized dealer/seller of the vehicle and receipt/bill
in joint names is obtained. While making delivery of the proceeds of
the vehicle, an undertaking from the Dealer/Authorized agent be
obtained and held on record that in case of cancellation of booking
of vehicle for whatsoever reason, the proceeds shall be refunded
directly to the Bank and in any case should not be refunded/handed
over to the borrower.
8. SECURITY INSPECTION:
a. Where the loan a/c is running regular the requirement of
periodical Inspection may be done away with.
b. For irregular a/c & accounts under NPA category, the inspection
to be done on quarterly or at such shorter intervals as the situation
demands and PNB 551 to be obtained on half yearly basis.
c. However, the requirement of first verification of vehicle will
continue to be mandatory.
d. In case vehicle is not produced for inspection, immediate action
against the borrower should be initiated to safeguard Bank’s
interest.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
29. Farm Mechanization Scheme For Financing of Farm Machinery and Repair/Renovation of Tractors & Power Tillers
A. Farm Mechanization Scheme for Financing of Farm Machinery & Repair/Renovation of 3. EXTENT OF LOAN: (TERM LOAN)
Tractors & Power Tillers: For purchase of farm machinery/equipment: Need based.
1. PURPOSE: For renovation/repairs of tractors: Maximum Rs. 1 Lac.
(i) Purchase of new tractors and matching implements/equipments etc.;
(ii) Purchase of new power tillers;
(iii) Purchase of tractors/power tillers for the second time with matching implements;
(iv) Purchase of second hand tractors with matching implements;
(v) Purchase of tractors, implements, power tillers, rice trans planters and other farm machinery under the
Sub-Mission on Agricultural Mechanization (SMAM) of Govt. of India. Under the submission subsidy is
provided for tractors delivering up to 70 horse power at the Rear Power Take off (PTO) shaft with
matching implements, power tillers and farm machinery like rice transplanters, reaper cum binder etc.
(vi) Purchase of agricultural machinery such as threshers, harvesters, seed drills, seed cum fertilizer drills,
harrows, hoes, sprayers, plant protection equipment, etc.
(vii) Repair/renovation of tractors.
2. ELIGIBILITY:
(i) For tractors: (a) Farmer or a group of farmers holding land jointly should have a land holding either
owned by them or held by them on perpetual leasehold rights of minimum 2.5 acres of perennially
irrigated land or corresponding acreage as prescribed for different categories of land.
(b) Minimum land holding criteria may be waived in cases where financing of tractor is secured up to 100%
of loan by liquid security. However, the applicant should be a farmer.
(c) Financing of tractor at 2.5 acres may be allowed only in cases where the Branch Head is satisfied that
farmer would be able to use the tractor for other purposes like custom hiring/transportation, etc., besides
using it on his own farm.
(d) Economic viability of financing tractor in each case shall be worked out by taking income derived by use
of tractor in farm as well as non-farm use.
(ii) For Power tillers: (a) Farmer or a group of farmers holding land jointly should have a land holding either
owned by them or held by them on perpetual lease hold rights of minimum 1.5 acres of perennially
irrigated land or corresponding acreage as prescribed for different categories of land under the State Land
Ceiling Act.
(b) In cases, where financing of power tillers is secured up to 100% of loan by liquid security like FDR, NSC
etc, we may not stipulate any Minimum land holding criteria except that the applicant should be a farmer.
(iii) For other farm machinery/equipment: No condition of minimum land holding has been stipulated.
Farmer should have proper scope for utilization of assets and based on economics should be in a position
to conveniently repay loan. In case intending borrowers are holding land jointly with others, loan may
be provided if their share in joint holding is not less than 1.5 acres irrigated land for power tiller loan and
2.5 acres irrigated land for tractor loan.
(iv) For repair/renovation of tractors:
(a) Tractor borrowers who have already availed the loan facility from our bank and whose accounts are
closed/or regular and have a satisfactory track record. Tractor borrowers of other banks, who have a good
track record, and have adjusted their loan account. Tractor owners, who are our customers, and have
purchased tractor from their own sources.
(b) Farmer or group of farmers shall have land holdings of minimum 2.5 acres of irrigated land or
corresponding acreage as prescribed for different category of land under the State Land Ceiling Act, either
owned by him or held by him on perpetual lease hold rights.
(c) Tractor for which loan is to be obtained should be more than 5 years old but should not
Pagebe28
older than
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12 years from the date of manufacture.
(AGRI: 50/08.09.2022)
For second hand tractor with three implements including a trailer: Max Rs. 2 Lac.
4. MARGIN, CR, SECURITY NORMS: Same as per other Agri schemes.
(For purchase of IInd hand tractor margin will be 25% of depreciated value of
tractor.)
5. LOANING POWERS: Branches (having tractor portfolio of Rs 1 Crore and above or
50 and more tractor loan a/cs with less than 75% of recovery in tractor advances)
will not sanction any such advance at their level and send proposals to the respective
Circle Heads for sanction. Other branches can consider tractor financing provided
their recovery is ab 75% under agriculture credit portfolio.
Branch Heads (with less than 75% of recovery under tractor financing) may finance
tractor to those existing borrowers (past borrowers also) who have availed loan
earlier for any purpose and have satisfactory repayment history/dealing with the
bank for minimum 2 years.
6. ROI: (i) Both WC & TL are to be clubbed together to determine the size of the loan
for the purpose of fixing the rate of interest for all agriculture borrowers.
(ii) Payment of interest should be insisted upon only at the time of repayment of
loan installments as fixed. (iii) Interest on current dues should not be compounded.
7. GESTATION PERIOD: Maximum 6 months. Small and marginal farmers may be
allowed a repayment holiday up to one year.
8. REPAYMENT OF LOAN: In half yearly/yearly installments linked with harvesting
and marketing of major crops as under: ---
Sr Particulars Repayment Period (Years)
(i) Tractors 7-9
(ii) Second hand tractors 5
(iii) Power tillers 7
(iv) Other farm machinery: 7
a) Small & marginal farmers (including grace period of 1 year)
b) Other farmers 5
(v) Repair/renovation of tractors 5
9. INSURANCE: The tractor borrowers who have opted for PNB Farmers’ Welfare
Fund Scheme are required to get their tractor and matching implements insured
against “Third Party Liability” . Subscription will be recovered from the accounts of
borrowers who give their consent to opt for it. The structure of fee for existing as
well as new tractor accounts will be Rs. 1200/- (inclusive of GST).
10. INSPECTION OF SECURITIES: At half-yearly intervals for all types of
machineries/implements including power tillers and on yearly basis for tractors. In
case where overdue is older than 6 months, securities are to be inspected on
quarterly basis. While inspecting securities for loans exceeding Rs 25,000/-, a
declaration from borrower be obtained and certified by inspecting officials as to
verification of the machinery.
Special Farm Mechanization Scheme: B. Guidelines for Financing Farmers for Purchase of Tractor Without Mortgage of Land:
I. Guidelines for Financing Farmers for Purchase of Second Hand (While the existing Scheme continues, this is an additional mode of financing under the existing
Tractors: Scheme and all other guidelines of the scheme will remain unchanged.)
1. Eligibility: A farmer or a group of farmers should have land holding either 1. PURPOSE: Purchase of new tractors with or without matching implements/equipment such as
owned by him/them or held by him/them on perpetual lease hold rights of a cultivators, harrows, disc ploughs, trolleys, etc.
minimum 2.5 acres of perennially irrigated land or corresponding acreage as 2. ELIGIBILITY:
prescribed for different categories of land under the State Land Ceiling Act; i. Individual farmers who own at least 2.5 acres of perennially irrigated land or corresponding acreage
and financing of tractor shall be done after ensuring economic viability of the as prescribed for different categories of land under the State Land Ceiling Act. And
tractor loan proposal. ii. The farmer having no NPA record for last three years as on the date of application will be eligible.
2. Extent of Loan: Amount of loan will be 75% of depreciated value of tractor. 3. EXTENT OF LOAN: Need Based;
Loan for second hand tractor and three implements including a trailer shall be 4. MARGIN: Minimum 40% cash margin.
restricted to Rs.2 Lacs only. 5. SECURITY: i. PRIMARY: Hypothecation of assets created out of bank loan.
3. Valuation of Tractor: only in respect of first re-sale of tractor, Cost of ii. COLLATERAL: Third Party Guarantee(s) having adequate means.
second hand tractor should be assessed by an approved surveyor or calculated Further, 4 PDCs (CTS-2010) are to be procured/maintained by the branches to keep remedy alive under
by applying 15% depreciation, whichever is less. Insurance Companies like GIC Section-138 of Negotiable Instruments Act or NACH Mandate to be obtained from borrower.
may be approached to issue valuation certificate for second hand tractor. 6. REPAYMENT: Max 5 years in form of monthly/quarterly/half yearly installments. The Circle Heads
4. Repayment of Loan: In half-yearly/yly installments linked with harvesting under their discretionary powers may extend the repayment period on merits from 60 M to 72 months.
and marketing of major crops within 5 yr (including gestation period). 7. MORATORIUM PERIOD: No moratorium period is prescribed.

30. Kisan Credit Card (KCC) Scheme: Working Capital for Animal Husbandry & Fisheries
1. Purpose: KCC facility to meet the Short Term Credit
requirement of rearing of animals, birds, fish, shrimp, other
aquatic organisms, capture of fish etc.
2. Eligibility:
A. Fisheries:
a. Inland Fisheries and Aquaculture:
i. Fishers, Fish Farmers (individual & groups/partners/ share
croppers/tenant farmers), SGs, JLGs and women groups.
ii. The beneficiaries must own or lease any fisheries related
assets such as ponds, tanks, open water bodies, raceways,
hatcheries, rearing units, boats, nets and such other fishing
gear as the case may be and possess necessary
authorization/certification as may be applicable in respective
states for fish farming and fishing related activities and for
any other state specific fisheries and allied activities.
b. Marine Fisheries: Beneficiaries listed above, who own or
lease registered fishing vessel/ boat, possess necessary
fishing license/permission for fishing in estuary and sea, fish
farming/mari-cultural activities in estuaries and open sea and
any other State specific fisheries and allied activities.
B. Poultry & small ruminants: Farmers, poultry farmers
either individual or joint borrower, JLGs or SGs including
tenant farmers of sheep/goats/pigs/poultry/birds/rabbit &
having owned/rented/ leased sheds.
C. Dairy: Farmers and Dairy farmers either individual or joint
borrower, JLGs or SGs including tenant farmers having
owned/rented/leased sheds.
(PS: 79/20.11.21, AGRI: 17/23.03.22, 32/03.06.22)
3. Extent of Loan: Need based loan on the basis of Scale of Finance as fixed by DLTC (District Level Technical
Committee)/SLTC (State Level Technical Committee). Maximum Rs. 10 Crore; (Previously Max: Rs. 50 L)
4. Scale of Finance:
1. The scale of finance will be fixed by the District Level Technical Committee (DLTC) based on local cost worked out on
the basis of per acre/per unit/per animal/per bird etc.
2. The working capital components in fisheries, under the scale of finance, may include recurring cost towards seed,
feed, organic and inorganic fertilizers, lime/other soil conditioners, harvesting and marketing charges, fuel/electricity
charges, labor, lease rent (if leased water area) etc. For capture fisheries, working capital may include the cost of fuel,
ice, laboring charges, mooring/landing charges etc. may form part of the scale of finance.
3. The working capital components in Animal Husbandry, under the scale of finance, may include recurring cost towards
feeding, veterinary aid, labor, water and electricity supply.
4. The maximum period for assessment of working capital requirement may be based on the cash flow statement or
completion of one production cycle.
5. Assistance of Fisheries and Animal Husbandry experts of the local Govt., Progressive entrepreneurs of
livestock/fisheries sector may be taken for technical inputs for assessing the cash credit requirement of the farmer
applicant.
5. 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.
6. 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.
7. Collateral Security: No collateral for loans upto Rs. 1.60 Lacs, Above 1.60 lakh: As per extant Bank guidelines.
8. Interest Subvention: • Interest Subvention (IS) at 2% and Prompt Repayment Incentive (PRI) at 3% to fisheries and
animal husbandry farmers to meet their working capital needs are available under the scheme. • Interest subvention is
to be provided on a maximum limit of Rs. 2 Lakh to farmers involved in animal husbandry and fisheries. The farmers
already possessing KCC (crop) and involved in activities related to fisheries and animal husbandry can be provided IS and
PRI benefits within the overall limit of ₹3 Lakh and subject to a maximum limit of Rs. 2 Lakh per farmer for activities
related to animal husbandry and/or fisheries.
Page 29 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
31. Kisan Credit Card (KCC) Scheme: Master Circular
1. OBJECTIVE/PURPOSE: The KCC scheme aims at providing adequate and timely credit
support from the banking system under a single window with flexible and simplified
procedure to the farmers for their cultivation and other needs as indicated below: ---
a. To meet the short term credit requirements for cultivation of crops;
b. Post-harvest expenses;
c. Produce marketing loan;
d. Consumption requirements of farmer household;
e. Working capital for maintenance of farm assets and activities allied to agriculture;
f. Investment credit requirement for agriculture and allied activities.
2. ELIGIBILITY:
a. Farmers - individual/joint borrowers who are owner cultivators;
b. Tenant farmers, oral lessees & share croppers;
c. SHGs or JLGs of farmers including tenant farmers, share croppers etc.
❖ Oral tenants can be eligible for loan only if land owners agree to become co-borrowers.
❖ However, in case the loan is secured by liquid security like FDR, NSC/KVP etc. (at least
100% value) the above condition may be waived.
❖ The land taken from the relative or friend including NRI relatives on oral tenancy basis
may be included while calculating the eligible limit, provided the collateral security
offered by the borrower farmer is 200% of the loan limit. It should be ensured that no
double financing takes place.
❖ After obtaining prior permission of the Circle Head, PNB KCC can be issued to the staff
members also, provided he is a cultivator owner of the requisite land holding and is
residing at a place from where he can conveniently undertake/supervise all agriculture
operations and sanctioning authority is satisfied in this regard.
❖ The eligibility criteria of acceptable CIBIL score of 650 & above or equivalent will not be
applicable to KCC loans upto Rs. 3 lakh provided there is no record of default in the
applicant’s CIC report.
3. EXTENT OF LIMIT: Maximum Rs. 10 Crore; (Previously Max: Rs. 50 L)
Circle heads are empowered to sanction cases above Rs. 20 Lacs and upto Rs. 50 Lacs, within
their respective discretionary loaning powers, on merits as per the need of client, subject to
the compliance of terms and conditions of KCC Scheme.
4. FIXATION OF CREDIT LIMIT/LOAN AMOUNT:
a. Need based credit is to be provided to the farmers depending upon scale of finance for
respective crops duly approved by the concerned DLCC. However, Circle Offices have the
freedom to decide the scale of finance and District Level Technical Committee (DLTC) norms
should only be used as a broad indicator.
b. For Marginal Farmers: A flexible limit of ₹ 10,000 to ₹ 50,000 may be provided (as Flexi
KCC).
c. Produce (Marketing) Loans: In case the farmers apply for loan against the negotiable
warehouse receipts of his produce, the branches would consider such requests as per the
guidelines of Produce (Marketing) Loan Scheme. However, when such loans are sanctioned,
these should be linked to the crop loan account (short term production credit) and the crop
loan outstanding in the CC account should be adjusted at the stage of disbursal of the Produce
Marketing Loan.
Page 30 of 77
(PS: 51/27.04.2018, AGRI: 17/23.03.2022, 64/18.10.2022)
5. PRE-SANCTION: Visit to borrowers/guarantors farm/office/business premises/residence
constitutes an important part of pre-sanction appraisal. Pre-Sanction visit should be done by the
Agriculture Officer/Branch Officer to know the correctness and suitability of the project. Local
enquiries should be made about the asset/liabilities/previous business credibility, integrity and
related aspects about the borrower.
6. OBTAINING NO- DUES CERTIFICATE:
a. “No Dues Certificate” is not to be obtained for agricultural loans from individual borrowers
(including SHGs and JLGs) in rural and semi urban areas. However, for loans above Rs.1 L,
affidavit to this effect be obtained from such borrowers.
b. For borrowers in urban areas and borrowers other than above, “No Dues Certificate”/
‟Affidavit‟ is not to be obtained for agricultural loans up to Rs.1 Lac
c. However, for agricultural loans above Rs.1 L, obtaining of Affidavit in lieu of "No Dues
Certificate" is allowed.
RBI has advised Banks to encourage use of alternative framework of due diligence as part of credit
appraisal exercise other than the “No Dues Certificate” which could, among other, consist of one
or more of the following: ---
✓ Credit history check through credit information companies.
✓ Self -declaration or an affidavit from the borrower.
✓ CERSAI registration.
✓ Peer monitoring Information sharing among lenders.
✓ Information search (writing to other lenders with an auto deadline).
7. FARM SCORE: PNB Farm Score is a comprehensive structured model for agriculture lending up
to Rs.50 Lacs to supplement pre-sanction appraisal process by evaluating loan proposals
(Fresh/Renewal/Enhancement).
8. Validity/Renewal: i. The limit is valid for a period of 5 years, subject to annual review.
ii. The C/C limit shall be reviewed annually to ensure that crop and other sales proceeds are
routed through limit account.
9. Asset Classification:
a. As per extant guidelines the IRAC norms for Agricultural Advances are as follows: “A loan
granted for short duration crops will be treated as NPA, if the installment of principal or interest
thereon remains overdue for two crop seasons. A loan granted for long duration crops will be
treated as NPA, if the installment of principal or interest thereon remains overdue for one crop
season.
b. A KCC account will be treated as out of order in the following circumstances: ---
-- There are no credits in the account continuously for two crop seasons/one crop season (as the
case may be) as on the date of balance sheet.
-- The outstanding remains continuously in excess of the limit for two crop seasons/one crop
season (as the case may be) as on the date of balance sheet.
-- The credits in the account are not sufficient even to cover the interest debited in respect of the
account for two crop seasons/one crop season (as the case may be).
10. Rate of Interest:
i) Regular KCC/Crop Loans -- O/S upto ₹3 Lacs → 7.00%
ii) Up to ₹20 Lacs (including irregular KCC/Crop Loans) → MCLR(1 Yr) + 1.25%
iii) Above ₹20 Lakh and upto ₹50 lakh → MCLR (1 Yr) + 2.00%
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
32. Kisan Gold Scheme (KGS)
1. PURPOSE:
a) Productive purpose (production and investment credit) related to agriculture
and allied activities. (At least 75% of the limit).
b) Rural Housing related activities e.g. construction/purchase of new house,
purchase of plot for construction of house, repair/ renovation/extension of existing
house, providing sanitary latrine, toilet, bathroom, drinking water facility, etc.
c) Consumption loan e.g. marriage, education, religious/family function, medical
expenditure, consumer goods, car, two wheelers, etc.
Sub Limit: 25% of the overall limit or Maximum Rs 5 Lacs may be given for non-
productive purposes which may comprise of Maximum of Rs. 3 Lacs for Rural
Housing and Maximum of Rs. 2 Lacs for consumption.
2. ELIGIBILITY:
(i) Only existing good agricultural land owner borrowers who have been
continuously availing of any loan and having no NPA record for last 2 years as on
the date of application will be eligible.
New farmers with evidence of satisfactory dealing with other banks for a minimum
period of 2 years will also be eligible.
If the land mortgaged is in the name of more than one farmer, then all will be
eligible jointly/individually.
(ii) The above condition of track record of 2 years may be relaxed in case of new
farmers having good amount of deposit for the last 2 years provided: --- Loan is
secured by 100% liquid collateral security like Deposit/ NSCs, etc OR
Loan is secured by 50% liquid collateral security and 50% by mortgage of land
(valued at 50% of Bank Loan for Small/Marginal farmers and 75% of Bank Loan for
other farmers).
3. EXTENT OF LOAN: Maximum Rs. 10 Crore; (Previously Max: Rs. 50 L)
Circle Heads are empowered to sanction cases above Rs. 20 Lacs & upto Rs. 50
Lacs, within their discretionary loaning powers.
(i) Loan limit will be the lowest of:
(a) 5 times average annual (2 years) total income of the borrower.
(b) 50% of value of mortgage land. (Valuation of land may be done on the basis of
current Circle rate/market rate whichever is lower.)
(ii) Total income will include income from agriculture and allied activities and non-
farm activities.
(iii) If the number of borrowers is more than one then the sum total of their income
will be considered.
(iv) Min 75% of the limit should be sanctioned for productive purposes.
(v) 25% of the loan amount or Rs 5 lakh, whichever is lower may be given for non-
productive purposes. Out of this maximum of Rs. 3 Lacs for rural housing activities
and Rs. 2 Lacs for consumption purposes may be sanctioned.
(vi) The land taken from the relatives or friends including NRI relatives or friends on
oral tenancy basis may be included while reckoning the credit requirement of the
farmer, provided the collateral security is sufficient to cover the total limit as per
bank’s guidelines.
(vii) Only consumption loan will not be sanctioned.
(PS: 79/15.12.2017, AGRI: 17/23.03.2022)
4. NATURE OF LOAN:
(i) The entire limit of Rs 50 Lacs may be allowed as Cash Credit Limit for crop production including consumption needs.
However, following restrictions shall continue: ---
(a) Minimum 75% of the limit should be sanctioned for productive purposes.
(b) 25% of the overall limit, Maximum Rs 5 Lacs, may be given for non-productive purposes which may comprise of
maximum of Rs. 3 Lacs for Rural Housing and maximum of Rs. 2 Lacs for consumption.
(ii) Need based term loan within overall ceiling of Rs. 50 Lacs including cash credit limit mentioned above & loan
maximum up to Rs 3 L for Rural Housing. To encourage investment credit there is no upper ceiling on investment
loan.
5. RURAL HOUSING LOAN:
(i) If the land for which the house related loan is to be given is in the name of spouse then spouse will be co-borrower.
(ii) Maximum age limit at the time of sanction of loan may be 60 years. Applicants above 60 years but maximum 65
years may be considered for sanction of loan if all the legal heirs join as guarantors.
(iii) Required approval from competent authority for plan, etc., will have to be obtained.
(iv) Other requirements of Bank’s Housing Loan Scheme are to be fulfilled.
6. SECURITY NORMS:
(i) Primary Security: Hypothecation of assets created with bank loan.
(ii) Collateral Security: Mortgage of land valued at 200% of loan amount along with primary security, if any.
(iii) Valuation of land may be done on the basis of current Circle rate/market rate whichever is lower.
(iv) The prevalent procedure of verifying the fact that the bank’s charge has been noted by the Patwari in the related
revenue records should be followed.
In case of new farmers having good amount of deposit for the last 2 years, security will be as under: ---
(i) Loan is secured by 100% liquid collateral security like Deposit/ NSCs, etc, OR
(ii) Loan is secured by 50% liquid collateral security and 50% by mortgage of land (valued at 50% of Bank Loan for
Small/Marginal farmers and 75% of Bank Loan for other farmers).
7. RATE OF INTEREST: As per LA: Cir 42/26.03.2020 & PS: Cir 80/08.12.2021
However, interest is 7% p.a. in the regular Crop loan/KCC accounts on running balance o/s upto Rs. 3 Lacs. On the
irregular accounts/outstanding beyond Rs. 3 Lacs, normal ROI is to be charged.
8. DISBURSEMENT OF LOAN AND OPERATION IN THE ACCOUNTS:
The disbursement in cash for limits sanctioned upto Rs. 20 Lacs may be continued viz. loan limit of Rs. 20 Lacs may be
disbursed in cash for which no bills/receipts may be obtained except in cases where there is statutory requirement like
in case of Tractor, etc. However, an undertaking/self-certification be obtained from/by the borrower for utilization of
funds.
However, in respect of limit sanctioned above Rs. 20 Lacs, amount above Rs. 20 Lacs will be disbursed through
borrower account and end use to be verified by the Branch Official.
Maximum 4 types of Accounts may be opened as under:- (a) CC A/C for crop loan/consumption credit needs. (b) CC
A/C for working capital requirement for allied agriculture activities. (c) Term Loan Account for Housing loan. (d) Term
Loan Account for Agricultural/ allied Activities.
9. GRACE PERIOD AND REPAYMENT OF LOAN:
(i) Grace period for term loan: Adequate grace period as prescribed in the respective investment agricultural credit
schemes shall be provided.
(ii) Production Credit/Consumption Credit may be provided in the form of Cash Credit limit.
(iii) For housing loan maximum repayment period of 9 years including gestation period of 12 months.
(iv) For Main Agricultural Activities the repayment period may be allowed upto maximum of 9 years.
(v) For allied agriculture activities repayment period may be allowed upto maximum of 7 years.
Page 31 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
33. Schemes For Financing Dairy Development Programmes (PS: 120/30.12.2017, 27/19.04.2018, 32/02.05.2018)
Part-I: Financing For Milk Production Activity i.e. Purchase And Maintenance Of 4. Margin, CR, Security Norms: Same as per other Agri schemes.
Milch Animals (Lactating Cows/Buffaloes) For Milk Production: --- 5. REPAYMENT OF LOAN:
1. PURPOSE: Bank provides loan for following purposes: ---
Sr Types of Investment Repayment period Gestation period
a. Purchase of good quality high milk cows/buffaloes with minimum average daily milk yield
(including gestation
of 6.5 liters or exotic cross bred cow. Animals at the time of advance should not preferably
period)
be in more than second lactation. However, relaxation in deserving cases may be given by
1 Cross bred cow(s) 5 years Repayment to be linked
Incumbents for one more lactation. In no case the animals financed should be in more than
with lactation period.
their third lactation.
b. Construction of shed(s) for keeping the animals. 2 Buffaloes 5 years -do-
c. Purchase of dairy machinery or other equipment of dairy business in case the activity is 3 2 Graded Murrah 5 years -do-
run on commercial lines and as main occupation. buffaloes
d. In case where the borrower is not capable of providing fodder for the animals maintained 4 Cross bred calf rearing 6 years 30 months
by them, he may be extended additional need based credit facility for purchase of fodder PART-II: Scheme for Financing Rearing of Good Quality Female Calves:
and other feeds for 3 months from the date of purchase of the milch animals. This may also
be given term loan which is to be recovered with the installments of milch animals. 1. PURPOSE: Rearing of female calves of about 4 months of age born of healthy parents
e. Cost of transportation of animal from cattle market, if any, and insurance premium may (exotic/cross bred calves or calves of established indigenous breeds namely, Sahiwal, Red
also be considered for bank financing along with cattle. Sindhi, Gir, Tharpatkar, Haryana and Rathi) up to the age of first calving.
f. Composite loans may be given for purchase of milch cattle and one-month concentrate 2. ELIGIBILITY: Cattle breeders/ progressive farmers having female calves and retain them
feed requirements as also for cultivation of fodder crops in integrated manner. Under for milk production or sell them on first calving. Farmer should have land for raising
composite loan, financial assistance shall be given keeping in view the following factors: -- adequate fodder.
- Minimum economic size of unit shall comprise of two milch animals, with the second 3. EXTENT OF LOAN: Amount of loan shall depend upon the number of calves the
animal being purchased after a lapse of 6-8 months. borrower(s) intends to rear. The unit may normally comprise of two calves. However,
- Financial assistance for meeting feed requirement for a period of one month @ 4 kg of farmers of means or cattle breeders having good fodder resources and managerial
concentration per day per animal (total 120 Kgs per animal) shall be provided. capabilities may be given loan for units of bigger size depending upon individual
- Cost of cultivation of fodder for one complete cycle to prospective farmers who intend to requirements and merits of each case.
avail of the facility and hold irrigated land (owned/leased) at least one acre for every milch Bank shall consider financial assistance for the following items out of total rearing
animal. expenses: ---
2. ELIGIBILITY: (i) Purchase of cross bred/exotic or calf of aforesaid Indian breeds of up to 4 months age.
(i) Individual borrowers undertaking dairying as subsidiary activity (ii) Cost of concentrate feed. (iii) Veterinary aid. (iv) Insurance charges. (v) Breeding
(ii) Individual borrowers undertaking commercial dairy as main activity Expenses.
(iii) Eligibility of corporate borrowers for dairy farming for milk production activity. NOTE: Expenses on green and dry fodder and labor contributed by the farmer may be
3. EXTENT OF LOAN: i. Need-based loan should be provided. A unit of 2 milch animals is treated as margin. Items of expenditure for rearing shall include cost of dry/green fodder
considered viable minimum size for such an activity for continuous production of milk. Cost up to 30 months, cost of milk/feed, concentrates, veterinary aid expenses and insurance
of the milch animals should be in conformity with the unit cost approved by the Standing charges for 2 years.
Unit Cost Committee circulated to Branch Offices by Circle Offices. 4. REPAYMENT OF LOAN: If the calf is retained as lactating cow, loan and interest shall be
ii. Financing for purchase of single animal dairy unit may be done subject to the usual norms recovered in maximum 4 years after first calving in suitable installments. If the calf is
of technical feasibility and financial viability and also the following conditions:-- sold as fresh calver, principal and interest should be recovered in lump sum from the sale
a. Dairy unit is undertaken as a supplementary activity by the borrower(s). proceeds of the animal. Accordingly, maximum repayment period shall be 5-6 years in
b. While fixing repayment schedule, incremental income from investment and repaying the former case while it shall be 2 years and 6 months in the latter case.
capacity of the borrower(s) is taken into account.
c. Working capital for maintenance of animal during the dry period, if any, may be provided
by the bank.
Page 32 of 77
PART-III: PNB DAIRY VIKAS CARD SCHEME:
PNB Dairy Vikas Card Scheme has a special credit card for meeting all credit
needs of landless agriculture labourers, share croppers and tenant farmers,
small farmers/marginal farmers and any individual having experience in
maintaining milch animals.
1. OBJECTIVE: To meet production and investment requirement for dairy
development.
2. PURPOSE:
(i) Purchase of good quality high milk yielding cows/buffaloes or exotic cross
bred cows.
(ii) Animals at the time of advance should not preferably be in more than
second lactation. However, relaxation in deserving cases may be given by
Incumbents In charge for one more lactation. In no case, the animals
financed should be in more than their third lactation.
(iii) Construction of shed for keeping the animals.
(iv) Purchase of working capital items like, dairy feeds, veterinary medicines,
fodder, dairy machinery or other equipment, etc.
3. ELIGIBILITY:
(i) Landless agricultural laborer or farmer/any individual having experience in
maintaining milch animals.
(ii) The applicant should have shed/accommodation for keeping the animals
or should have adequate space for constructing the shed for keeping the
animals as also arrangements for supply of adequate quantity of fodder.
4. MARGIN: NIL
5. NATURE OF LIMIT: Composite Cash credit limit.
6. TYPE OF CARD: PNB Dairy Vikas Card.
7. VALIDITY OF CARD: 5 Years.
8. EXTENT OF LOAN : Rs.1,00,000/-
9. FIXATION OF LIMIT: Production Credit and/or Investment Credit – Need
based. Max. Rs. 1 Lacs. Production credit limit may be sanctioned on the
basis of existing cattle strength.
10. SECURITY: - Hypothecation of dairy animals and/or Assets financed by
the Bank. - No collateral security.
11. REPAYMENT OF LOAN: Investment credit will be repayable in 5 years
with reducing composite cash credit limit on yearly basis. Installments in the
account shall be repaid on monthly/quarterly basis as per the existing
guidelines. Drawing Power (DP) be calculated on annual basis and
accordingly withdrawal be allowed in the a/c.
12. Purchase Of New Buffalo/Replacement Of Existing Buffalo: Borrower(s)
may be allowed to purchase new buffalo/replacement of existing buffalo to
the extent of reduction in limit provided the conduct of a/c is observed
satisfactory for 1 year. Such a facility will be allowed upto 3rd year.
PART–IV: PNB DUGDH VIKAS YOJANA:
India is the largest producer of milk in the world. Majority of these producers maintain one or two
animals, comprising cows and/or buffaloes. The dairying as a subsidiary activity provides round the year
income to such farmers/labourers whose income is otherwise seasonal.
Target Group: The scheme is targeted at those small producers who are linked with milk societies/co-
operatives or private sector companies and supplying their surplus milk to them and facilitating opening
of milk collection centres at village level.
Part A – Scheme for financing milch cattle, working capital, construction of shed etc.
Part B – Scheme for financing for setting up of milk collection centres.
Part A
1. Objective: To provide hassle free credit to small milk producers who are members of village level milk
society of Co-operative Milk Union or Private Dairy Company. Additional smart/ mobile phones and two-
wheeler vehicles may also be provided to the dairy farmers. This will be an integrated scheme that fulfills
the needs of agriculturists including dairy farming, communication and transportation.
2. Eligibility: 1. Individuals/JLGs/SHGs, 2. The milk producer should be a member of village milk society
of Co-operative Milk Union or Private Dairy Company. 3. Financing to farmers will be done under tie-up
arrangement only.
3. Nature of Facility: Term Loan and/ or working capital
4. Purpose: 1. For purchase of good quality milch cattle, working capital, construction of shed etc.
2. Purchase of Mobile/ smart phones. 3. Purchase of Two-wheeler for milk transport
5. Extent of Loan:
Term Loan: 1. Purchase of animals: Maximum upto Rs. 75,000/- per animal may be financed.
2. Purchase of Smart/Mobile phones: Maximum to a limit of Rs. 10,000/-,
3. Purchase of Two-Wheeler: Maximum to a limit of Rs. 1,00,000/- as per the scheme for
financing vehicles to farmers/ agriculturists.
Working Capital: Need based. It is to be calculated on the basis of 6 months requirement.
6. Margin: As per extant bank guidelines.
7. Repayment:
Term Loan: Max. 5 years (including gestation period) in form of monthly/quarterly installments.
Working Capital shall be sanctioned for a period of 1 year and shall be subject to renewal/review
annually. Interest is to be recovered as and when levied.
8. Gestation Period: Maximum 3 months.
Part B
1. Objective: Facilitating setting up of milk collection centers at village level.
2. Eligibility: i) JLGs/ SHGs, ii) Individuals, iii) Milk Societies.
The applicant should be associated with Co-operative Milk Unions or Private Dairy.
3. Nature of Facility: Term Loan
4. Purpose: For setting up of milk collection centre. Financing for vehicle and bulk chiller may also be
considered under the scheme depending on feasibility.
5. Extent of Loan: Need based.
6. Margin, Security, Loaning Powers: As per extant bank guidelines for agriculture credit.
7. Repayment: Max. 7 years (including gestation period) in monthly/quarterly installments.
8. Gestation Period: Maximum 6 months.
Page 33 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
34. Dairy Entrepreneurship Development Scheme (DEDS) (PS: 21/26.06.2019, 30/05.08.2019)
1. Objectives: 3. Pattern of Assistance:
• To generate self- employment and provide infrastructure for dairy sector. i) Back ended capital subsidy @25% of the
• To set up modern dairy farms and infrastructure for production of clean milk. project cost for general category and
• To encourage heifer calf rearing for conservation & development of good breeding stock. @33.33% for SC/ST farmers.
• To bring structural changes in the unorganized sector, so that initial processing of milk can be taken up at the village level. ii) Entrepreneur Contribution (Margin) for
• To upgrade traditional technology to handle milk on a commercial scale. loans beyond Rs. 1.60 Lacs: 10% of the
• To provide value addition to milk through processing and production of milk products. Project cost (minimum).
2. Eligible Beneficiaries: iii) Bank Loan: Balance portion.
1. Farmers, individual entrepreneurs and Groups of Unorganized & Organized Sector are eligible under DEDS. Group of
4. Adjustment of Subsidy:
organized sector, includes Self Help Groups on behalf of their members, Dairy Cooperative Societies, Milk Unions on behalf
Capital subsidy will be back ended
of their members, Milk Federation, Panchayati Raj Institutions (PRIs) etc.
(adjusted) against last few installments of
2. An applicant will be eligible to avail assistance for all the components under the scheme but only once for each
repayment of the bank loan with a
component. However, more than one member of a family can be assisted under the scheme provided they set up
minimum lock-in period of 3 years, and
separate units with separate infrastructure at different locations. The distance between the boundaries of two such
shall be refunded if the A/C becomes NPA.
farms should be at least 500 m.
3. Priority shall be given to projects being implemented in a cluster mode covering dairy farmers/Women in SHGs, 5. Repayment:
Cooperatives and Producer Companies including creation of facilities of processing, value addition and marketing of milk Repayment period will vary between 3-7
produced in the cluster. years. Grace period may range from 3-6
4. Priority may also be given to the beneficiaries from the categories of SC, ST, landless, small, marginal & BPL category months in case of Dairy farms to 3 years
farmers alongwith farmers belonging to drought & flood affected areas of the country. for Calf rearing units.

35. Scheme For Providing Priority Sector Credit Against Bank Deposit, NSC & KVP (PS: 131/30.12.2017)
PART I: SCHEME FOR ADVANCES AGAINST BANK DEPOSIT: PART III: SCHEME FOR ADVANCES AGAINST THE SECURITY OF
1. PURPOSE: For undertaking priority sector activity/ies viz, agriculture, MSE, etc. NATIONAL SAVING CERTIFICATES (NSCs):
2. NATURE & PURPOSE OF ADVANCE: Loan may be allowed by way of demand loan/overdraft for 1. NATURE & PURPOSE OF ADVANCE: Loan may be allowed by
productive purpose and for meeting the contingencies. way of demand loan/overdraft for productive purpose and for
3. EXTENT OF LOAN: Need based depending upon the activity financed and stipulated margin. meeting the contingencies.
4. MARGIN: As per IRMD, Loans & Advances Circular issued from time to time. 2. SECURITY: Pledge of NSC in favour of the Bank.
Note: No advance be allowed to customers against deposits of other banks.
GENERAL GUIDELINES APPLICABLE FOR ALL PARTS OF THE SCHEME:
PART II : SCHEME FOR ADVANCES AGAINST KISAN VIKAS PATRAS
1. Extent of loan: Need based.
1. NATURE & PURPOSE OF ADVANCE: Loan may be allowed by way of demand loan/overdraft for
2. Rate of interest: Rate of interest shall be charged as per IRMD
productive purpose and for meeting the contingencies.
Loans & Advances Circulars issued from time to time.
2. EXTENT OF LOAN: Need based with stipulated margin.
3. Loaning Powers: As per IRMD L&A Circulars issued.
3. SECURITY: Pledge of Kisan Vikas Patras.
4. MARGIN: The margin norm for pledge of KVP is as per circular issued by IRMD, L&A. 4. Classification of Advances: Classification of loans under
5. GENERAL GUIDELINES/SAFEGUARDS: priority sector shall be as per the activity financed e.g. Advances
i) Advance against KVPs may also be allowed to a third party & made to known persons/parties. made to the farmers against security of NSCs, FD, KVP and
ii) Branches should ensure that lien on KVPs is marked by sending the same through registered post or fulfilling the stipulated terms & conditions should, invariably, be
through a staff member and in no case such certificates be handed over to the borrower/third party for classified as Farm Credit under priority sector.
getting the lien marked in favour of bank.
Page 34 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
36. Scheme for Financing Fisheries Development and Subsidy Scheme of National Fisheries Development Board (NFDB)
INTRODUCTION: II. Scheme For Financing Marine Fisheries: ---
(i) Inland Fisheries: Development of fish in ponds, tanks, lakes, reservoirs, etc., is called ‘inland
fisheries’.
(ii) Brackish-Water Fish and Prawn Farming: Another dimension added to fisheries development
is brackish water (saline water) fish and prawn farming which is practiced in coastal areas,
predominantly in Kerala, Goa, West Bengal, Orissa, Tamil Nadu and Andhra Pradesh.
(iii) Marine Fisheries: Marine fisheries take into account the fish catching from sea water.
Scheme for fisheries development has been bifurcated into two parts, as detailed hereunder:---
I. Inland Fisheries Development and Brackish Water Prawn and Fish Culture.
II. Marine Fisheries Development.
I. Scheme For Financing Inland Fisheries Development & Brackish Water Fish & Prawn
Culture:---
1. PURPOSE: Financial assistance can be extended for:---
(i) Construction/renovation of ponds/tanks. (ii) Construction of sluices.
(iii) Purchase of fish prawn, fry and fingerlings/fish seed/prawn seed.
(iv) Purchase of inputs like oil cake, fertilizers, organic fertilizers and other feed materials upto the
first harvest.
(v) Purchase of nets, boxes, baskets, ropes, shovels, hooks and other accessories.
(vi) In case of reservoir or lake fisheries, purchase of country made boats may be considered.
2. ELIGIBILITY: Loan assistance may be extended to farmers, individuals, co-operative societies,
companies, association of persons etc. Applicant should have experience or undergone training in
the type of activity for which loan(s) is/are to be utilized. Borrower(s) should be owner(s) of the
pond or land where pond is to be constructed or they should have lease hold rights till completion
of the project. Similarly, in case of reservoir/lake fisheries, farmer(s)/individual(s) or society (ies)
should have fishing rights for the tenure of loan.
3. NATURE OF FACILITY: Medium term loan.
4. EXTENT OF LOAN: Need based. Project submitted by applicant(s) should be technically feasible
and economically viable which may be got verified from the Fish Farmer Development Agency
(FFDA)/ State Fishery Department/ NABARD Consultancy Services Ltd.
5. GESTATION PERIOD: 11 months.
6. REPAYMENT OF LOAN:
As per NABARD guidelines, loans can be repaid within the period:---
(i) Pond fish culture: 5-8 years including gestation period with yearly mode of repayment.
(ii) Brackish water fish/prawn culture: 5-10 years including gestation period with half-
7. MARGIN NORMS, CR, SECURITY NORMS: Same as per other Agri schemes.
yearly mode of repayment.
7. MARGIN NORMS, CR, SECURITY NORMS: Same as per other Agri schemes.
Page 35 of 77
(PS: 119/30.12.2017)
1. PURPOSE: Loan can be considered for the following purposes: ---
(i) Purchase of mechanized/non-mechanized boats/deep sea fishing
vessels/trawlers.
(ii)Purchase of nets-travel net/purse-seine/grill nets, other deck equipments, etc.
In addition to the above, in deserving cases, working capital facility can be
considered for below given purposes: ---
(iii) Labour/wage charges. (iv) Purchase of ice for storage of fish.
(v) Insurance charges. (vi) Carrying out repairs, painting.
2. ELIGIBILITY: Loan can be extended to individual(s)/partnership firm(s), co-
operative society(ies), limited company(ies) who are technically qualified and having
adequate experience to undertake such venture. In case of deep-sea fishing vessels,
necessary permission from Government Authorities for operating in the maritime
zone should be submitted by the intending borrower(s). Similarly, for purpose of
fishing trawlers/ vessels, necessary Government clearance will be required.
3. NATURE OF FACILITY: Medium Term Loan and Cash Credit limit.
4. EXTENT OF LOAN: Amount of loan will be in conformity with NABARD guidelines
and according to the requirements of project report submitted by intending
borrower(s). Government subsidy, if available, should also be taken into account for
working out the extent of loan.
5. GESTATION PERIOD: NABARD has stipulated that in case of financing under
marine fisheries for both non-mechanized and mechanized boats, gestation period
of 4 months in each year should be provided corresponding to the monsoon periods
when fishing is not undertaken.
6. REPAYMENT OF LOAN: Repayment period should not be in variance with
repayment period indicated by NABARD which is as under:---
(i) Medium Term Loan:
(a) Non-mechanized boats/vessels: 6-7 years.
(b) Mechanized boats: 8-12 years.
Installments may be fixed with monthly/quarterly intervals excluding monsoon
period.
(ii) Cash Credit Limit for working capital requirements should be renewed every
year.
(iii) Fixing due date of repayment: As stipulated under scheme for financing inland
and brackish fisheries.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
37. PNB Swarnim - Agri Gold Loan Scheme (AGRI: 49/30.08.2022, 58/07.10.2022)
1. Objective: To enable farmers to quickly meet their agricultural credit needs. 6. Extent of Loan: Maximum Extent of Loan: Rs.10 Lakh per borrower.
2. Purpose of the Loan: To meet the short-term production/investment credit for: Note:
a) Crop production/allied agriculture activities. i. Aggregate limit of the gold loans to a single borrower should be restricted to Rs.10 Lakh.
b) Acquiring farm machinery, irrigation equipment, taking up horticulture activity, Further, maximum upto 5 loans only can be sanctioned to a single borrower.
transport vehicle for transporting of agri. produce etc. Loans upto Rs. 2 Lakh may be sanctioned to applicants on undertaking basis and copy of land
c) Repayment of loans availed from non-institutional lenders. records should not be insisted upon.
d) All other agriculture activities which are permitted to be classified under ii. Evidence of land holding record and agriculture activity for loans above Rs. 2 Lakh.
agriculture as per RBI/GoI/NABARD guidelines. iii. Requirement to be calculated on the basis of scale of finance/unit cost/project cost.
3. Eligibility: 7. Loan to Value Ratio: LTV ratio should not exceed 75% of the value of security during the entire
a) All farmers: Individuals/ Agri. entrepreneurs including Tenant farmers, Oral tenure of loan.
lessees and Sharecroppers. 8. Repayment of Loan: Due date of repayment shall be 12 months from the date of disbursement.
b) Any person engaged in any agriculture or allied activities as well as persons 9. Security: Pledge of Gold Jewellery/ornaments.
engaged in activities permitted by RBI to be classified under agriculture. No loan to be sanctioned against bullion, primary gold and gold coins.
c) In case loan is to be utilized for repayment of loan availed from non-institutional In case of ornaments with jewel fittings, infillings, net weight as certified by assessor shall be
lenders a self- declaration has to be obtained from the applicant that he/she is considered for determination of quantum of loan.
engaged in Agri. and allied activities and that the loan availed against the pledge of 10. Disbursement: No cash disbursement. The proceeds of the loan are to be credited to the
Gold ornaments is for repayment of higher interest rate loans availed from non – Saving a/c or KCC a/c or saving account with other bank of the borrower.
institutional lenders. 12. Classification of Advances: Such advances will fall under Priority Sector - Agriculture.
d) Borrower should be KYC compliant. 13. Service Charges:
e) Declaration for Agriculture Gold Loan: For sanction of Agriculture gold loan up to Upfront Fee - i. Upto Rs.50000 – NIL, ii. Above Rs. 50000 upto Rs. 2.00 lakh- Rs. 500 +GST,
the loan limit of Rs 2.00 lakh, a self-declaration must be obtained from the iii. Above Rs. 2.00 lakh- 0.30% of the loan amount +GST
applicant. Documentation Charges - NIL
f) For loans above Rs. 2.00 lakh evidence of land holding record and Agri activities is 14. Asset Classification:
to be obtained. ✓ In terms of IRAC norms, a loan granted for short duration crops will be treated as NPA, if the
4. Nature of Loan: Demand Loan – Demand loan facility with one-year tenor. instalment of principal or interest thereon remains overdue for two crop seasons.
5.Processing through PNB LENS: Earlier the accounts under PNB Swarnim - Agri ✓ A loan granted for long duration crops will be treated as NPA, if the instalment of principal or
Gold Loan Scheme were processed manually and accounts were opened directly in interest thereon remains overdue for one crop season.
CBS since this scheme was not customized in LENS. Now PNB Swarnim - Agri Gold ✓ In respect of agricultural loans, other than crop production, identification of NPAs would be
Loan product has been customized in Agriculture Module of PNB LenS. done on the same basis as non-agricultural advances, which is the 90 days delinquency norm.

38. Contract Farming (PS: 82/15.12.2017)

Scheme For Financing to Farmers/ Producers under Contract Farming Arrangement: -- 5. Extent of Loan: Need based.
6. Margin (other than KCC/ crop loan):
1. Purpose: To meet credit requirement of the individual farmer/producer identified for a) For loans Upto Rs. 1.60 L: NIL,
production of specified crops/commodities by way of WC and/or TL as per the b) For loans above Rs. 1.60 L to 5 L: 10%,
requirement. c) For loans above Rs. 5 L: 15%
2. Target Group: Individual farmer/producer willing to produce specified crops/ 7. Security:
commodities as mentioned in the forward agreement between the Buyer & the Farmer. Primary: Hypothecation of crops/ assets created out of bank loan
3. Eligibility: Eligibility criteria shall be as per Bank’s guidelines (Scheme wise). Collateral: For loans Upto 3 L - Nil. For loans above Rs. 3 L: as per prevalent guidelines.
4. Nature of Facility: Term Loan and /or Working Capital. 8. Repayment: As per extant guidelines pertaining to the particular scheme.

Page 36 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
39. Scheme For Financing Food & Agro Processing Activities {Previously scheme name was PNB UTKARSH}
1. OBJECTIVE: a. To provide financial assistance for creation of processing and preservation
capacities i.e. new projects and modernization/expansion of existing food and agro processing
units.
b. To provide credit support for small food processing units including halwais, bakery, small milk
processing units, cane crushing units etc.
2.ELIGIBILITY:
Individuals/SHGs/JLGs/Proprietorship Firms/Partnership/LLP/Pvt. Ltd. Co./Public Ltd. Co/Trust
and Co-operative Societies registered under any law relating to co-operative societies/Farmer
Producer Organizations and other legal entities etc.
3. ELIGIBLE SECTORS: Sectors eligible under Food processing sectors is as under:---
a. Fruit and vegetable processing, b. Milk processing, c. Meat/Poultry/Fish Processing.
d. Ready to eat/ready to cook food products/breakfast cereals/snacks/bakery and other food
products including nutritional health foods, e. Grains/pulses, oil seed milling and processing,
f. Rice milling, g. Other Agri-Horti products including spices, coconut, soyabean, mushroom
processing, honey processing etc. h. Fruit/honey based wines, i. Natural food flavors, food
additives/food extracts & colors, oleoresins, guar gum, cocoa products etc. j. Small food
processing units including halwais, bakery, small milk processing units, cane crushing units etc.
4. ELIGIBLE PROCESSING ACTIVITIES: The processing units undertake a wide range of activities
that result in value-addition, enhancing shelf- life of the products and reduction of wastage. The
project should include and result in creation/increase in processing capacity.
5. PROJECT COST COMPONENETS:
a. Eligible project cost includes cost of Land, Building, Plant & Machinery and Technical Civil
work.
b. The cost of land will be computed in the project cost only when the land is to be purchased by
the enterprise. The value of land not exceeding 10% of project cost can be included in project
cost. This cost can be reckoned towards margin money required to be met by the enterprise.
c. Working Capital requirements.
6. NATURE OF FACILITY & EXTENT OF LOAN:
a. Term loan: Need Based,
b. Working Capital (FB+NFB): Need based,
c. Composite loan: Need based.
{However, the entire requirement of funds, irrespective of its location (loan up to Rs.100 Lacs)
may be met by way of composite loan, to cater to the need of both for term loan and working
capital.}
7. METHOD OF ASSESSMENT FOR MAX. PERMISSIBLE BANK FINANCE (MPBF):
The following methods to be adopted for assessment of the Maximum Permissible Bank Finance
(MPBF) under the scheme:---
a. Upto Rs. 500 Lacs: Need based working capital requirement be fixed as per Nayak Committee
recommendations/simplified turnover method.
b. Above Rs.500 Lacs: Traditional Method/CMA data system.
Page 37 of 77
(PS: 20/20.06.2019)
8. MARGIN:
i) Term Loan Components: NIL to 25%
ii) Working Capital against stocks of raw material, components, spares, stores,
material in process and finished goods: NIL to 30%
9. SECURITY NORMS:
PRIMARY SECURITY: Mortgage/Hypothecation/pledge/assignment etc. of
assets created out of the loan will be in terms of Bank’s extant guidelines.
COLLATERAL SECURITY:
a) Loan amount up to Rs. 10 Lacs: Coverage under Credit Guarantee Scheme of
CGTMSE,
b) Loan amount above Rs.10 L to Rs. 50 L: Where collateral security is available,
Incumbents in all the scales are empowered to sanction the loans, as per extant
guidelines. However, if any eligible loan is proposed to be covered under CGTMSE,
prior concurrence to be obtained from CIRCLE HEAD.
c) Loan amount above Rs.50 L to Rs. 200 L: In highly deserving cases, ZM shall have
the discretion to examine each proposed case on merits, to cover it in CGTMSE. In
case the CGTMSE Coverage is not obtained, the extant guidelines for obtaining
collateral security and/or third party guarantee, shall apply.
d) Other advances not covered under S. No. a to c above i.e. advances not covered
under CGTMSE etc.: The collateral security is to be obtained on merits of each case
as indicative in next table.
10. REPAYMENT OF LOAN:
a. Term Loan: Except for the items mentioned below, the repayment period
would be 5 to 7 years depending upon the project profitability over and above
the gestation period of 6 to 12 months.
i) Old generator sets: 30 months beginning after 6 months from the date of
advance.
ii) New generator sets: 42 months beginning after 6 months from the date of
advance.
iii) In case of working capital loan against security of existing unencumbered
machinery: The loan together with interest to be repaid well within the
remaining expected life of the machinery or 5 years, whichever is less.
b. The working capital limits shall be sanctioned for a period of one year and
shall be renewed annually.
11. CLASSIFICATION: Loans for Food and Agro-processing upto an aggregate
sanctioned limit of Rs. 100 crore per borrower from the banking system will
form a part of Ancillary Agriculture Activities for classification and reporting
purpose. Other advances will be classified in terms of limits for investment in
plant and machinery/equipment for manufacturing/service enterprise.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
40. Scheme For Financing to Cold Storage Units for Facilitating the Farmers and also to Meet Running Expenditures (PS: 73/05.10.2021)
Scheme For Financing To Cold Storage Units For Facilitating The Farmers 8. Method of Assessment:
And Also To Meet Running Expenditures Of Cold Storages:--- 1. For On-Lending to farmers: DP is to be arrived at based on monthly statement of advances made to the
1. Objective: To meet the working capital requirement of the Cold Storage farmers by the Cold Storage, by maintaining stipulated margin.
units for onward-lending to the farmers & to meet the running expenditure 2. For running the Cold Storage: On actual basis. Expenditure on electricity, maintenance etc.
of the Cold Storages. 9. Security:
2. Eligibility: All existing Cold Storage units which are in commercial 1. For On-Lending to farmers:
operation with satisfactory track record. Primary: Hypothecation of third party stock of agriculture commodity stored in Cold Storage against which
3. Purpose: To provide working capital facility to the Cold Storage units for farmer has taken advance from Cold Storage. OR Hypothecation of receivables, i.e. advances made to the
facilitating the farmers against stock of their agriculture produce and also farmers. However, the Cold Storage owner to ensure that commodity being stored will have sufficient shelf
to meet the running expense (electricity bills, repair, maintenance, etc). life up to next season.
i) For On-Lending to the farmers: To provide financial assistance in the Collateral: Min 100% security in the form of mortgage of IP (land & building)/other liquid security. For this
shape of CC Limit to Cold Storage units for On Lending to the farmers. purpose, realizable/market value of land and building whichever is lower shall be considered. Security can
ii) For running the Cold Storage: Recurring expenditure like electricity bills, be fresh IP/Liquid security or extension of charge on existing security so that 100% exposure is covered.
repair & maintenance etc will be included in assessment of CC Limit. 2. For running the Cold Storage:
4. Classification: Priority Sector- Agriculture. Primary: Assignment of entire Rental Income (present and future) of the cold storage unit.
5. Nature of facility: CC Limit Collateral: In case of existing borrower extension of charge on Land/building already mortgaged with the
6. Extent of Facility: bank, equivalent to the amt of the limit sanctioned. If the value of the mortgaged Land/ Building falls short,
i) For On-Lending to farmers: The overall maximum limit for On-Lending to then additional security acceptable to the bank to be obtained, equivalent to the deficit value. In case of
the farmers shall be fixed based on acceptable loading capacity of the Cold fresh facility, minimum 100% (realizable value) collateral coverage in the form of mortgage of IP (land &
Storage unit multiplied by the average market value of crop for last 1 year building)/other liquid security be obtained.
(to be fixed by Circle Office). The acceptable loading capacity would be 90% 10. Processing Charges/Upfront Fee: 50% concession in the applicable rate.
of the actual loading capacity. 11. Repayment: Cash Credit limits shall be sanctioned for a period of 1 year and shall be subject to
ii) For running the Cold Storage: To be assessed on the basis of average of renewal/review annually. Limit shall be valid for 12 months. No DP to be allowed against the advances
the actual expenditures [as per Audited Financials for last 3 years, incurred made against the commodity stored in Cold Storage beyond one season.
under the following heads during the preceding last 3 years (where 12. Loaning Power: The GBBs/PLPs/MCCs will sanction loans upto Rs.25 Crore only within their vested
available)] or as per actual available from the date of COD. loaning powers. Loans above Rs.25 Crore are to be considered by HOCAC-I & above under their
7. Margin: 25% discretionary loaning power.
41. Capital Investment Subsidy Scheme For Construction/Expansion/Modernization of Cold Storages/Storages For Horticultural Produce (PS: 133/30.12.2017)
Introduction: India is the largest producer of fruits and second largest producer of vegetables. 7. Margin: Minimum 25%
1 Eligibility: A natural person, a group of individuals or a legal person (Partnership Firm, a Trust , Cooperative 8. Security: As per agriculture term loan schemes
Society, a Society registered under Registration of Society Act, a Company, Self-help group, Farmer Producer 9. Repayment: Repayment period will depend upon the cash flow and
Organization, Cooperatives, Agricultural Produce Marketing Committees, Marketing Boards/Committees, will be max. upto 9 years including a grace period of 2 years.
Municipal Corporations/Committees, Agro-Industries Corporations may apply for assistance. 10. Subsidy: The subsidy will be available @ 35% of the cost of project
2. Purpose: For construction/expansion/modernization of cold storages and storages for horticulture produce. in, general Areas and 50% in case of North East, Hilly States and
3. Eligible Projects: Credit linked projects relating to Cold Storages including Controlled Atmosphere (CA) and scheduled areas for capacity above 5000 MT. In case of N.E. region,
their modernization are eligible for assistance under this scheme as per approved cost norms and pattern of projects having capacity above 1000 MT are eligible.
assistance.
4. Classification of Advances: Priority Sector -- Agriculture Infrastructure 11. Subsidy Providing Agency: National Horticulture Board (NHB).
5. Nature of Facility: Term Loan. 12. Time limit for Completion of project: Time limit for completion of
6. Project Cost: The value of land not exceeding 10% of project cost can be included in project cost. This cost can be the project would be maximum of 18 months period from the date of
reckoned towards margin money required to be met by the enterprise. The above is subject to following conditions:--- disbursement of the 1st installment of term loan, which may be
1. The cost of land will be computed in the project cost only when the land is to be purchased by the enterprise. extended by a further period of 6 months, if reasons for delay are
2. The cost of land should be the purchase value and not the market value. 3. The value of that portion of the land, considered, justified by the financial institution concerned and agreed
which is, need based for the project only is included. Page 38 of 77 to by NHB.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
42. Agricultural Marketing Infrastructure (AMI) Scheme: Sub-Scheme of Integrated Scheme for Agricultural Marketing
(PS: 63/08.11.2018, 04/18.03.2020, 46/05.06.2020, 55/13.07.2020, 92/05.12.2020, AGRI: 28/09.05.2022, 29/10.05.2022, 60/14.10.2022)
1. OBJECTIVES OF THE SUB-SCHEME:
i) To develop marketing infrastructure to effectively handle and manage marketable surpluses of
agricultural and allied produce including horticulture livestock, poultry, fishery, bamboo, minor forest
produce and such like produce supportive to enhance farmers’ income.
ii) To promote innovative and latest technologies in post-harvest and agricultural marketing
infrastructure.
iii) To develop alternative & competitive marketing channels for agricultural and allied produce
through incentivizing private and cooperative sectors to make investments there for.
iv) To promote creation of scientific storage capacity for storing farm produce, processed farm produce
and agricultural inputs etc.
2. SALIENT FEATURES: i) Linkage to Marketing Reforms, ii) Promotion of Farmers Consumer Market
and Rural Haats, iii) Promotion of Common Facilitation Centre by Farmer Producer Organizations
(FPOs)/Farmer Producer Companies (FPCs)
3. ELIGIBLE MARKETING INFRASTRUCTURE: Primary processing for the purpose of this sub scheme
relates to value addition to a raw agricultural produce which, after processing, does not result in
change of product form. Primary processing for which subsidy under AMI is available are those such as
cleaning, cutting, de-podding, de-cortication, de-husking, de-sheller, Grain cleaner, specific gravity
separator, mini rice huller, drying equipments (solar/normal), bleaching, grading, sorting, packing/bag
stitching, labelling, waxing, ripening, chilling, pasteurization, homogenization, freezing, refrigeration
and other value addition activities etc.
4. ELIGIBLE BENEFICIARIES:
i) For creation of storage infrastructure (Capacity 50-5000 MTs) and Non- storage infrastructure:
Individuals, Group of farmers/growers, FPOs/FPCs registered under respective companies
Act/cooperatives societies Act/societies registration Act (with minimum 50 farmer members);
Partnership/Proprietary firms, Companies, Corporations; NGOs, SHGs; Cooperatives, Cooperative
Marketing Federations; Autonomous Bodies of the Govt, Local Bodies, Panchayats; State agencies
including State Govt Departments and autonomous organization/State owned corporations etc.
ii) For creation of storage infrastructure (Capacity 50–10,000 MTs): State agencies including State Govt
Departments and autonomous organization/State owned corporations such as Agricultural Produce
Market Committees & Marketing Boards, State Warehousing Corporations, etc.
iii) For development/upgradation of farmer-consumer market and Rural Haats/RPMs:
State Govt. or State Govt. agencies nominated by State Govt. for village haat owned/managed by
Panchayats, APMCs/RMCs, FPOs/FPCs registered under respective companies Act/cooperatives
societies Act/ societies registration Act (with minimum 50 farmer members), State Agencies, farmers,
Individual, Trustee etc.
5. INSTITUTIONAL LENDING: Subsidy under the sub-scheme is linked to institutional credit and will be
available to only such projects financed by:---
Commercial, Cooperative, RRBs, Agricultural Development Finance Companies (ADFCs), State
Cooperative Banks (SCBs), State Cooperative Agricultural and Rural Development Banks (SCARDBs),
Scheduled Urban Cooperative Banks, Scheduled Primary Cooperative Banks (PCBs), etc.
6. CHANNELISING AGENCIES FOR RELEASE OF SUBSIDY:
Subsidy will be released through NABARD for the projects financed by Commercial, Cooperative, RRBs,
ADFCs, SCBs, SCARDBs, Scheduled Urban Cooperative Banks, PCBs, NEDFi, other institutions eligible for
refinance by NABARD or any other financial institution such as SFCs approved by DAC&FW.
Page 39 of 77
7. PROMOTER’S CONTRIBUTION & TERM LOAN:
i) Minimum promoter’s contribution should be 20% of the project cost. This should also
be ensured at the time of actual expenditure on completion of the project. If it is less
than 20%, the actual TFO of the project shall be restricted to 5 times of the promoter’s
contribution on completion of the project for the calculation of subsidy. Minimum Term
loan (including subsidy) to be sanctioned by the Financial Institution (FI) should be 50%
of the project cost. The promoter’s contribution may vary from 20-50% of TFO and the
term loan may vary from 50-80% of the TFO.
ii) However, Promoter’s contribution for storage infrastructure projects of State Govt
and State Govt agencies financed under RIDF/Warehouse Infrastructure Fund (WIF) of
NABARD may be relaxed as per their respective fund guidelines.
iii) Promoter’s Contribution in case of own funded State agency projects should be
75%/66.67% of the project cost as the case may be.
8. SUBSIDY PATTERN: The sub scheme envisages back-ended capital subsidy for
investment in eligible storage, marketing infrastructure projects.
9. Standalone Cold Storage units: NABARD has issued clarification regarding eligibility of
Standalone Cold Storage units under AMI scheme which are as under:
i. Standalone Cold Storage projects will not be eligible for subsidy under the AMI sub-
scheme of ISAM beyond 1000 MTs capacity, as it comes under negative list.
ii. However, standalone standardized cold storage units as per standards promoted by
NCCD upto 1000 MTs are allowed as per MIDH cost norms for all the eligible
beneficiaries subject to eligibility of the subsidy which are as under: ---
Category Rate of Subsidy Maximum Subsidy
(on capital cost) Ceiling (Rs. in lakhs)
A) North Eastern States, Sikkim, States of 33.33% 30 Lacs
Uttarakhand, Himachal Pradesh, Jammu &
Kashmir, UTs of Andaman & Nicobar and
Lakshadweep Islands, hilly and tribal areas
B) In Other Areas
1. For Registered FPOs, Panchayati Raj 33.33% 30 Lacs
Institutions, Women farmers/entrepreneurs,
SC/ST entrepreneurs and their cooperatives
2. For all Other categories of beneficiaries 25% 25 Lacs
9. Previously, the guidelines were not applicable for state of Mizoram, Rajasthan,
Madhya Pradesh, Chhattisgarh and Telangana. Now, the Department of Agriculture,
Cooperation & Farmers’ Welfare, Ministry of Agriculture & Farmers’ Welfare, GoI has
clarified that the scheme/guidelines are applicable for all the states of India.
10. Recent Modification:
✓ NABARD vide notification dated 13-10-2022 has notified that Ministry of
Agriculture & Farmers’ Welfare, Govt. of India has accorded approval for
implementation of the AMI scheme under ISAM upto 31st March, 2023.
✓ The subsidy claims for projects where bank loan has been sanctioned from 1st
October, 2022 to 31 st March, 2023 can be submitted in the portal within 60 days
of disbursal of 1st instalment of loan.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
43. Agri clinic and Agri-business Centres Scheme (ACABC): Revised Guidelines
(1) OBJECTIVE: (i) 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.
(2) DEFINITION:
• Agri-Clinics: Agri-Clinics are envisaged to provide expert advice and services to
farmers on various technologies including soil health, cropping practices, plant
protection, crop insurance, post-harvest technology and clinical services for
animals, feed and fodder management, prices of various crops in the market etc.
which would enhance productivity of crops/animals and ensure increased income
to farmers.
• Agri-Business Centres: Agri-Business Centres are commercial units of 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.
(3) ELIGIBILITY CRITERIA FOR CANDIDATES:
Following categories of candidates of age group of 18 to 60 yrs:
1. Graduates in agriculture and allied subjects from SAUs/Central Agricultural
Universities/Universities recognized by ICAR/UGC.
2. Diploma (with at least 50% marks)/Post Graduate Diploma holders in Agriculture
and allied subjects from State Agricultural Universities, State Agriculture & Allied
Departments and State Department of Technical Education.
3. Post-Graduation in Agriculture & allied subjects.
4. Degree courses recognized by UGC having more than 60% of the course content
in Agri & allied subjects.
5. Diploma/Post-graduate Diploma courses with more than 60% of course content
in Agriculture and allied subjects, after B.Sc. with Biological Sciences, from
recognized colleges and universities.
6. Agriculture related courses at intermediate (+2) level, with at least 55% marks.
(4) TRAINING & HAND HOLDING: National Institute of Agricultural Extension
Management (MANAGE) will be responsible for providing training to eligible
candidates. The Revised training cost per trainee shall be limited to Rs. 35000/-
(5) SUBSIDY: 1. Change of Capital & Interest Subsidy to Composite Subsidy: Subsidy
pattern has been revised from “Capital & Interest Subsidy” to “Composite Subsidy”
which will be back-ended in nature @ 44% of project cost for women, SC/ST & all
categories of candidates from NE and Hill states and @ 36% of project cost for all
others. Interest Subsidy scheme is replaced with enhanced quantum of back-ended
subsidy. 2. The Subsidy will be back-ended with minimum 3 years lock-in period.
3. The maximum permissible subsidy amount shall be restricted to the amount of bank
loan sanctioned.
(6) Others: a) Repayment period shall be minimum three years and the borrower
has to pay only the interest portion till the subsidy amount is released to bank. b)
From the date of receipt of subsidy amount from NABARD, interest shall not be
charged from the borrower. c) Bank shall adjust the subsidy amount already
deposited by NABARD with the loan principal amount. d) GOI has accorded
approval for implementation of the ACABC scheme upto Sep, 22 during FY 2022-23.
(PS: 03/01.02.2019, Agri: 22/02.04.22, 26/27.04.22)
(7) Credit Support:
1. Linkage with Credit: Assistance under the scheme would be purely credit linked and subject to sanction of
the project by banks based on economic viability and commercial considerations.
2. Project Cost Ceiling:
i) Ceiling of Project Cost for Subsidy is Rs. 20 Lacs for individual project (Rs. 25 Lacs in case of extremely
successful individual projects) and upto Rs. 100 Lacs for a Group project (established by a group comprising
at least 5 trained persons under the scheme).
The Bank may finance groups formed by 2 or more trained persons under the scheme, within the TFO ceiling
of Rs. 20 Lacs per trained persons and overall ceiling of Rs. 100 Lacs, whichever is less for the purpose of
subsidy.
However, the actual credit sanctioned by the bank for a venture established under the scheme could be
higher depending on the financial viability and technical feasibility. Thus, for instance, if an individual is
granted a loan for TFO of Rs. 35 Lacs, subsidy shall be reckoned only on TFO of Rs. 20 Lacs.
ii) To encourage exceptionally successful individual Agri-preneurs, the project cost limit for subsidy
purposes may be extended by Rs. 5 Lacs in addition to the generally applicable project cost limit of Rs. 20
Lacs for calculating subsidy. This will serve as an incentive to an Agri-preneurs to expand his already
established and successful venture. Ventures which score minimum 75 marks will be considered
exceptionally successful.
iii) To attract more women candidates to the scheme parents/husbands/in-laws of the trained women
candidate can be made co-borrowers with the eligibility for subsidy.
3. TERM LOAN:
i) Extent of Loan: Need Based depending on financial viability and technical feasibility.
ii) The Term Loan would be composite in nature and participating bank would extend bank loan as per the
TFO, which would include fixed capital cost and working capital for one operating cycle. Loan Sanctioned
will be the differential amount between TFO and margin money.
iii) Composite subsidy will be provided even for low capital investment cases as it is definitely possible that
some Agri-preneurs already have capital (e.g. a building) to start a venture, thereby requiring minimal capital
investment. At least 10% value of the Total Financial Outlay (TFO) of the project should be in capital form.
iv) Repayment period will depend on the nature of activity and will vary between 5 to 10 years. The
repayment period may include a maximum grace period of 2 years.
4. MARGIN MONEY:
i) The stipulations on Margin Money shall be in accordance with the guidelines of RBI. In case of loans upto
Rs. 5 Lacs, no margin money is required.
ii) The margin money to be contributed by the General category entrepreneur will be as per prevailing norms.
However, concessions would be made in respect of SCs/STs, women & beneficiaries of NE states, Hill areas. In such
cases, a Max of 50% of the margin money prescribed by banks could be given by NABARD to meet the shortfall in
borrower’s contribution, if the bank is satisfied that the borrower is unable to meet the margin money
requirements. Such assistance to banks by NABARD will be without any interest. The banks may levy a service
charge upto 2% p.a. from the borrowers.
5. SECURITY: • Upto Rs.5 L: Hypothecation of assets created out of bank loan.
• Above Rs. 5 Lacs: as applicable on normal agriculture loans.
6. Time limit for completion of the project:
1. Max 6 months period from the date of disbursement of the first installment of loan, which may be extended for
6 months. 2. If the project is not completed within the stipulated period, benefit of subsidy shall not be available
and advance subsidy placed with the participating bank, if any, will have to be refunded forthwith to NABARD.
Page 40 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
44. Scheme For Financing Farmers For Purchase of Trucks & Other Transport Vehicles
1. PURPOSE: Loan may be given for purchase of following vehicles:---
(i) New trucks made by standard manufacturing concerns,
(ii) Other new motorized light/medium vehicles like tempo, matador, jeeps, pick-up vans, mini-trucks and other
light commercial vehicles made by standard manufacturing concerns.
(iii) New two wheelers.
2. ELIGIBILITY:
(i) An individual/HUF/Association of persons not being a company/Co-operative Society being the owner, tenant
or lessee of land and engaged in farming or allied agricultural activity.
(ii) Borrower should hold necessary permit/driving licence required under law. Where borrower is not having a
driving licence in his own name, an undertaking to the effect that vehicle shall be driven by a person holding valid
driving licence should be obtained as in the case of financing for tractors.
(iii) Loan for purchase of trucks shall be given to farmers whose land holding is 3 acres or more.
(iv) Loans for purchase of light/medium vehicles like jeeps, pick-up vans, mini-trucks, etc., to be used for
transport of agricultural inputs and farm products shall also be made to farmers whose land holding is
comparatively smaller, i.e. 2 acres or more.
(v) For two wheelers, farmer should have 1 acre or more.
(vi) If more than one farmer raise loan jointly, their land holding may be considered as one unit.
(vii) Satisfactory proof to the effect that borrower is a farmer and that the purpose for purchase of vehicle is to
transport agricultural inputs and farm products must be obtained and kept on record. Proof may be in the form of
extract from revenue records that borrower is a farmer and declaration from him that he would use vehicle for
transporting agricultural inputs and farm products.
3. NATURE OF LOAN: Term Loan
4. EXTENT OF LOAN: Need based
5. MARGIN NORMS, CR, SECURITY NORMS: Same as per other Agri schemes.
45. Scheme for Financing Agriculture activities on Unregistered leased/rented Land
1. Objective: To provide credit support to farmers who practice Agriculture on unregistered leased land/rented land.
2. Purpose: Loan may be given for Agriculture/Allied Agriculture activities being carried out on unregistered leased
land/rented land.
3. Eligibility: All individuals/SHGs/JLGs.
4. Nature of Facility: Loan may be given in the form of Working Capital.
5. Extent of Loan: Need Based. However, the loan amount should be above Rs. 1 Lac.
For SHGs/JLGs the loan amount should be above Rs. 1 Lac per member.
6. Fixation of Limit: For production credit for Agriculture & Allied Agriculture activities/KCC the guidelines contained in
respective agriculture credit schemes shall be adhered to.
7. Margin: As per extant bank guidelines.
8. Security:
(A) Primary Security: (i) Hypothecation of crops/assets created out of bank loan
(B) Collateral Security: (i) Immovable Property valued at 150% of amount of loan, OR
(ii) Charge/lien over liquid securities such as term deposits/NSC/KVP, etc. valued at 100% of amt of loan.
Note: A combination of B(i) & B(ii) may be considered for collateral security.
9. CR & Repayment: As per extant bank guidelines.
10. Documentation Charges, Processing Fee/Upfront Fee: As per extant bank guidelines.
Page 41 of 77
(PS: 64/08.11.2017)
6. REPAYMENT OF LOAN:
(i) Maximum period of 60 months in suitable installments starting 1 month
from the date when vehicle purchased with bank's loan is put on road or after
completion of 2 months from date of advance, whichever is earlier.
(ii) The repayment of loan should be made in monthly/quarterly/half
yearly/annual installments depending upon income generation.
(iii) The Circle Heads under their discretionary powers may extend the
repayment period on merits from 60 months to 72 months.
(iv) For two wheelers – upto 5 years in 10 half yearly installments.
(v) Installments may be fixed on higher side in the beginning as chances of
break down/repair expenses are minimal during the initial year(s).
7. PERIODICAL INSPECTION: Borrower will be required to produce the
vehicle financed, alongwith Registration Certificate, the Permit, Certificate
of Fitness, Certificate of Insurance, Certificate of Road Tax paid and
Certificate in respect of other taxes pertaining to plying the vehicles, for
inspection once in every half-year on the date fixed by the lending branch
office. Certificate of Inspection of vehicle financed, PNB 551, will be got filled
in and signed by the borrower.
8. CLASSIFICATION: (i) Loan will be classified as 'Farm Credit’.
(ii) Loan to farmers having land holding upto 2 hectares will fall in the
category of ‘Advances to Weaker Sections’.
9. NABARD REFINANCE: NABARD provides refinance to the extent of 90%-
100% of bank loan, depending upon the agricultural activity and the
geographic location of lending. Refinance from NABARD is to be availed by
Circle Heads in conformity with Head Office decision taken from time to time.
(PS: 63/26.03.2020)
11. The safeguards to be observed: Besides obtaining an affidavit from
the borrower, the branch must ensure as under: ---
i) Land taken on lease/rent is not already mortgaged in favour of any
other branch/bank.
ii) Affidavit/ undertaking from the lessor/landlord that he has not taken
and will not take any loan on the leased/rented land in future until the
expiry of lease/rent period (Appendix II).
iii) It should be ensured that no double financing takes place.
iv) Lease Deed/Rent Agreement to be stamped as per State Stamp Act.
v) It is to be ensured that Lease Deed/Rent Agreement is for a period of
11 months and it contains clause related to extension of lease/rent for a
further period of at least two terms of 11 months each at the request of
the lessee/tenant and if he fails to submit request, he is deemed to have
exercised option of extending the same.
vi) Nowadays, concept of Reverse Tenancy has also started wherein
small and marginal farmers rent out their land to more capable farmers
who in turn consolidate agriculture land for taking up agriculture activity
in a commercial way.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
46. Differential Rate of Interest (DRI) Scheme (PS: 122/30.12.2017)
1. Objective: To improve the economic conditions of the weakest of the weaker sections of community by providing financial 7. Coverage: The benefit of DRI scheme will be available only
assistance at concessional rate of interest for engaging in productive and gainful activities. to those borrowers, within the prescribed criteria, who are not
2. Targets: i) At least 2/3 of the DRI advances should be granted through rural and semi-urban branches. ii) It should be assisted under any subsidy linked scheme of central/state
ensured that at least 40% of the total advances granted under DRI scheme go to eligible borrowers belonging to SC/ST category. government and state owned corporations.
3. Selection of Beneficiaries: The financing branch will identify eligible borrowers. It is not intended that a borrower should 8. Quantum of Loan: The maximum amount of assistance for
produce documentary evidences to establish his/her eligibility. It is expected that Branch officials of the bank should be beneficiary should not exceed Rs.15000/-. This will include
conversant with the economic condition and other related aspects of the borrowers. They may make such local enquires as may term loan and/or working capital loan. Maximum limits for
be required in each case before sanctioning loan. No income certificate should be asked from scheduled caste and scheduled housing loan under the scheme is Rs. 20000/- per beneficiary.
tribe beneficiaries. Branch should verify income through interviews and enquiries. In the case of physically handicapped persons, a sum of
Rs.5000/-for purchase of aids, appliances and equipments may
4. Eligibility norms:
be granted, apart from the loan amount of Rs.15000/-
a) Land-Holding Norms: 1) Persons not owning any land or 2) The size of land holding does not exceed 1 acre in case of irrigated
land and 2.5 acres in case of unirrigated land. However, the members of SC/ST category are eligible for the loan, irrespective of 9. Margin: NIL
land holding, if they satisfy the other eligibility criteria. 10. Security: i) Assets purchased with bank loan may be
b) Income Criteria: Family income of the borrower from all sources does not exceed Rs.18000/- p.a. in rural areas and hypothecated to the bank, ii) No collateral security or third
Rs.24000/- p.a. in urban and semi-urban areas. party guarantee to be asked
Note: The beneficiary largely works on his own and with such help as other members of his family. The beneficiary should not 11. Insurance: No insurance cover is required under the
have another source of finance while DRI loan exists. scheme. However, where insurance of vehicle, machinery or
5. DRI through Institutions: 1. Orphanages and women homes, 2. Institutions for physically handicapped, 3. State corporations other equipments or for fire hazardous goods which is
for SC/ST, 4. State Minority finance/Development corporation. 5. Members of unorganised labour Board constituted by compulsory under the provisions of any law, it should be taken
respective State Government. but the bank will bear the insurance cost.
6. Activities: Persons who satisfy the land holding and income criteria and broadly falling within the categories specified below 12. Rate of interest: Rate of interest shall be uniformly at 4%
will be eligible for assistance under the scheme: --- p.a. Interest on current dues of advances shall not be
a) SC/STs and others engaged on a very modest scale, in agriculture and/or allied agricultural activities, compounded and penal rate of interest shall not be applied in
b) People who themselves collect or do elementary processing of forest products and people who themselves collect fodder in case of overdue amounts under the scheme.
difficult areas and sell them to farmers and traders.
13. Repayment: The repayment schedule should be worked
c) People physically engaged on a modest scale in the fields of cottage and rural industries and vocations. e.g. Cutting cloth and
out in each case separately taking into account the economics
sewing garments, making reasonably cheap eatables, home delivery services of articles and commodities of daily use, running
of the schemes and generation of income and repaying
way-side tea stalls, plying of self-owned manual rickshaws and cycle rickshaws, repairing of shoes/sandals mainly by hand, basket
capacity of the borrower with due regard to sustenance
making by hand etc.
requirement of the borrower.
d) Indigent students of merit going for higher studies who do not get scholarships/maintenance grants from government or
✓ Maximum of 5 years,
educational authorities.
✓ In case of housing loan, the repayment period is
e) Physically handicapped persons pursuing a gainful occupation.
extendable to 7 years in hardship cases.
f) Institutions of physically handicapped persons pursuing a gainful occupation where some durable equipment and/or
✓ Installments to be fixed monthly or otherwise depending
continuous supply of raw material is useful
on income generation.
g) Orphanages and women’s homes where saleable goods are made and for which there is no adequate and dependable source
of finance (these are exempted from both land holding and income criteria). 14. Other terms and conditions: An Entrepreneur should have
h) Installation of Solar Home Lighting System (SHLS). the capability of standing on its own after some time.
Note: Institutions for physically handicapped persons, orphanages and Women Homes will be exempted from income and land The income eligibility criteria for determining entitlement to
holding criteria. However, it should be ensured that these institutions utilize the funds for productive purposes only and not for the finance under the scheme are to be applied only at the
meeting their normal, administrative and establishment expenses. It is also necessary to verify from independent sources about time when the loan is to be sanctioned and will not affect the
the genuineness of these institutions. The maximum amount of borrowings for such institutions will be so calculated that the entitlement of the borrower during the tenure of a sanctioned
assistance per beneficiary does not exceed the ceiling fixed for individuals under the scheme. loan. However, if a borrower seeks, another loan on
• DRI loans to institutions involving higher quantum of loan exceeding the normal stipulated ceiling may be sanctioned by the repayment of first loan, then the prescribed eligibility tests will
Board of Directors of the concerned Bank. have to be satisfied again.
Page 42 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
47. PNB Ujala Scheme (PS: 99/28.12.2017)
Extension of ‘PNB Ujala’ Scheme For Providing Solar Street Lights and/or 4. One of the activities that can be undertaken in adopted villages of PNB is providing of Solar Street
Solar Lights In Houses Of Adopted Villages Of Rural India Through PNB Vikas: Lights in the villages.
1. As part of Corporate Social Responsibility initiatives the bank has adopted 5. There are organizations engaged in the development of Solar Street Light system which is specially
villages under PNB Vikas to promote activities in the area of human, economic designed for outdoor application in un-electrified remote rural areas. This system is an ideal application
and infrastructure development projects as per needs of the adopted villages. for village street lighting.
2. The basic objective of PNB VIKAS is to develop the adopted villages in an 6. As a onetime measure it has been decided to provide 4 solar street lights in all the adopted villages,
integrated manner, in co-ordination with the other stake holders, the funds for which will be given by PNB Farmer Welfare Trust (PNBFWT).
villagers, the Govt. Authorities, local bodied etc. 7. It has also been decided to provide a solar lantern costing Rs. 500/- approx. to each girl student
3. Scarcity of electricity is a major problem in rural areas which hinders already adopted under PNB LADLI Scheme.
development. In the near future it may not be possible to provide unrestricted 8. This scheme is to be implemented through Circle Offices. Therefore, it is advised to procure the Solar
electricity to the whole of India through conventional sources. In view of the Street Lights with maximum cost of Rs. 20,000/- per light, inclusive of all taxes and installation charges,
increasing gap between the demand & supply of electricity in India, maximum (Rs. 80,000/- for 4 lights per village) and Solar Lanterns with Max cost of Rs. 500/- (inclusive of all
utilization of renewable sources like solar energy may be a good idea. taxes). The expenditure will be reimbursed to Circle Offices by PNBFWT, HO.

48. PNB Ladli SCHEME (PS: 72/29.09.2020)

‘PNB LADLI’ Scheme For Popularisation Of Education Among Girls Of 4. The adopted girl students shall be provided study material like books, notebooks, uniform etc.
Rural/Semi Urban India: relevant to their course and payment of school fees if considered essential. The value of such study
1. The scheme is implemented through all the villages in the country. The bank material and fees will not exceed Rs. 2500/- per student per annum (inclusive of all taxes). All the
officials will contact Government School for adoption of needy girl students. The material so provided will bear a PNB STICKER. This will be a continuous process and every year the
selection shall be made amongst those girl students who are studying in class VI selected girl students shall be provided this help.
to class X. The new girl students may also be selected in addition to already 5. Saving Fund accounts of all the girl students adopted under PNB LADLI Scheme will be opened and
selected girls. Rs. 600/- on Half Yearly basis (Rs. 100/- PM) will be deposited to meet their out of pocket expenses.
2. Identification of the 10 needy girl students from a single village, who are The amount will be credited in their Savings Fund accounts in April & October every year.
willing to continue studies till at least 12th class. 6. Circle Offices are advised to ensure that this CASH-INCENTIVE is credited to accounts of only those
girls who are willing to continue their studies.
3. Selection of students will be finalized by a Committee comprising of an official 7. All the girl students already selected under PNB LADLI are eligible to receive the cash incentive. The
from Circle Office, LDM, and Principal of the School where school is situated. cash incentive will continue to be paid till the selected girl students complete 12th class.
49. Scheme for Financing Distressed Urban Poor (SFDUP) (PS:101/28.12.2017)
1. Eligibility: Individual urban poor/urban poor in groups shall include those families living below the 6. Mode of disbursement: The entire loan amount shall be disbursed through Savings
poverty line. The criterion of annual family income for eligibility under the scheme will be same as that Fund Account of the borrower as follows: ---
of the SJSRY (Now reframed as DAY- NULM). i. Firstly, the loan component for prepayment of the debt taken from the money lender.
2. Purpose and Extent of loan: To prepay the loan taken by the urban poor from the non-institutional ii. On prepayment of debt, a receipt duly signed by the concerned money lender, or
lenders i.e. private money lenders and undertaking farm sector and non-farm sector economic alternatively, the borrower's letter containing declaration that debt taken from money
activities for income generation to repay the bank's loan. lender has been fully cleared should be obtained and held on bank's record.
i. Need based with a maximum of Rs.50,000/- (out of which a maximum of 50% shall be for iii. Secondly, the loan amount for carrying out the proposed economic activity. The term
prepayment of debt taken, and the rest shall be for investment purposes). loan may be disbursed in stages or lump sum depending upon requirement of borrower.
ii. Total credit need of the urban poor shall be assessed on the basis of the following: -- Amount of debt 7. Repayment of loan: The loan shall be repayable in 5 years with monthly/quarterly
taken from the money lender and declared by the applicant in the affidavit submitted to the branch or installments depending upon the nature of economic activity and the accruing income
on the basis of certificate from the money lender. there from. An initial grace period of maximum 3 months may be provided, if needed.
3. Nature of Loan: Term Loan; 4. Margin: Nil 8. Classification of loan: Such loans to urban poor may be classified under Priority
5. Security: i. Hypothecation of assets created out of bank loan. sector- weaker sections. However, such loans may be reported under a separate
ii. Any collateral security available with the urban poor equivalent to amount of loan. OR subhead, "Loans to urban poor indebted to non-institutional lenders" under the broad
iii. Suitable third-party guarantee/group guarantee. head "Priority Sector".
Page 43 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
50. PNB Kisan Balak Shiksha Protsahan Yojana (PS: 13/30.04.2019)
Revised Scholarship Scheme ‘PNB KISAN BALAK SHIKSHA PROTSAHAN YOJANA’ 5. Amount of Financial Assistance (Lump sum): Lump sum financial assistance of Rs.
for promoting of education among children of agricultural borrowers 2500/- per child shall be payable once a year. However, Girl students shall get an
(small farmers, marginal farmers, tenant farmers, oral lessees and agriculture labour):--- additional annual assistance of Rs. 1,000/- under each of the above category. The
amount of financial assistance shall be credited to SF account of the beneficiary.
1. Purpose: To provide financial assistance to the son and daughter students of the poor
farmers encompassing those small farmers, marginal farmers, tenant farmers, oral lessees 6. Maximum Number of Awards:
and agriculture labour who have availed agriculture loan from our branches. The students (i) The ceiling on number of cases has been restricted to 100 children per Circle.
having passed 8th class and onwards with minimum 50% marks in the School/Board or (ii) In addition 100 children per LDM Office may also be selected.
recognized University Examination during the relevant academic year shall be eligible under (iii) Total number of cases for financial assistance during a year shall be restricted to 7600
the Scheme. on first come first serve basis.
2. Eligibility: 7. Procedure for implementation of the scheme for claiming financial assistance:
(i) The agriculture borrowers comprising of small farmers, marginal farmers, tenant farmers, (i) The financing branch shall receive the application in writing from the agriculture
oral lessees and agriculture labour are eligible to claim financial assistance for maximum of borrowers whose son/daughter fulfills the eligibility criteria. The application shall be
two children if both are girl child or if the second child is girl provided their loan account is received only up to 28 February every year, along with the attested copies of Marks
running regular. Sheet of their son/daughter.
(ii) A child having got financial assistance once under any other scheme of the Bank shall be (ii) The Application, satisfying the eligibility criteria, so received under the Scheme shall
eligible for subsequent assistance as well. be processed/scrutinized at Circle Office through a Special Committee to be constituted
(iii) Students of Govt and Govt aided/Pvt Schools/Colleges/Universities shall be eligible. as under: ---
(iv) In the eventuality of receiving more than 100 applications, the top 100 students will be For Lead Districts: a. Lead District Manager – Chairman, b. Director FTC/RSETI,
selected for scholarship on the basis of marks secured in the respective examination. wherever available - Member, c. Sr. Manager of the Main Branch – Member.
3. Criteria for providing Financial Assistance: All children of eligible loanee farmers who For Non-Lead Districts: a. Dy. Circle Head/Chief Manager, P&D – Chairman,
have passed 8th class, Matriculation, Inter/10+2 and Graduation and have secured 50% and b. Sr. Manager, P&D, CO – Member, c. Sr. Manager of the Main Branch – Member.
above marks shall be provided financial assistance under the scheme. (iii) The Circle Office shall seek reimbursement of the financial assistance disbursed in
4. In case of grading system, the conversion formula, if any, shall be applied to calculate
accordance with the scheme, from PNB Farmers Welfare Trust on or before 31st March
percentage of the marks. every year
51. PNB Vikas -- Construction of Toilets For Girl Students in Government Schools of Adopted Villages of PNB Vikas (PS: 92/26.12.2017)
Construction of toilets for girl students in government Schools of adopted villages of PNB 5. Provision of sports kits – To encourage sports activities in the girls/co-
VIKAS:--- In view of GOI’s “Swachchh Vidyalaya Campaign”, a Scheme for construction of toilets for educational government schools, initially a sum of Rs. 10,000/- will be provided.
girl students, provision of library and sports kits in Government schools running in the adopted 6. A Project Implementation Committee in the Circle Offices may be constituted as
villages under PNB VIKAS and villages adopted by FTCs was formulated on 09.10.2014. under: - Circle Head, - IInd Man of Circle Office, - Local LDM (or a CM/SM of the
The details of the Scheme are as under: ---- branch), if no LDM in the Circle, - One representative of village preferably Pradhan
of Village.
1. The above activities are to be undertaken in all adopted villages of PNB and FTCs. 7. LDMs will identify the girls/co-educational government schools in the adopted
2. Construction of Toilets - The scheme is focused on girls and coeducational government schools. The villages under their command area and coordinate & supervise the construction
total estimate/limit of expenditure for the toilet is Rs. 1.20 Lacs. of toilets till completion. In government schools where toilets are already
3. For construction of these toilets, a comprehensive detail of construction design of one toilet in available renovation may be considered to make them clean and usable.
each government school has been suggested by GSAD, HO. 8. After completion, the maintenance of toilets, Library etc. will be done by the
4. Provision of library – Initially a sum of Rs. 15,000/- (Rs. 10,000/- for almirah and Rs 5,000/- for respective government schools and an undertaking to this effect will be obtained
books) will be provided to start a library in girls/co-educational government school. A sum of Rs. before construction of toilet.
700/- PM will also be provided to meet the running expenses for newspapers and periodicals. 9. All above expenditure will be reimbursed by PNB Farmer’s Welfare Trust on
receipt of claims from respective circle offices.

Page 44 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
52. Scheme For Providing Relief and Rehabilitation Assistance To People In Areas Affected By Natural Calamities
1. BACKGROUND: In terms of the National Disaster Management Framework, there are two funds
constituted viz. National Disaster Response Fund (NDRF) and State Disaster Response Fund (SDRF) for
providing relief in the affected areas. The NDRF framework currently recognizes 12 types of natural
calamities viz. cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud
burst, pest attack and cold wave/frost.
The Ministry of Agriculture is the nodal point for 4 of the calamities i.e. drought, hailstorms, pest attack
and cold wave/frost and for the remaining 8, the Ministry of Home Affairs is the nodal ministry to make
the necessary administrative arrangements.
2. INSTITUTIONAL FRAMEWORK:
A) Circle Head’s Discretion:
i) CHs have been vested with discretionary powers to take immediate action in providing relief to
people affected by natural calamities in conformity to the line of action agreed to by the DCC/SLBC
without waiting for its approval except for rate of interest on the advances which has a revenue
implication for the Bank.
ii) Such discretionary powers are with regard to adoption of scale of finance, need based restructuring
of loans, extension of loan periods, sanction of new loans keeping in view the total liability of the
borrower (i.e. arising out of the old loan where the assets financed was damaged or lost on account of
natural calamity as well as the new loan for creation/repair of such assets), margin, security, etc.
iii) Decisions regarding relaxation in rate of interest (up to MCLR Rate), issues/concessions having
financial implications and other relief measures (for which Circle Heads are not empowered) in
conformity with the line of action agreed to by the District Level/SLBC shall be taken by ZO. Further,
concessions as decided by DCC/SLBC which are beyond discretionary powers of ZMs may also be
implemented on priority basis and the action be got ratified by referring the matter to HO: PSFI Division.
B) Declaration of Natural Calamity: Declaration of natural calamities is the domain of the Central/State
Governments. These declarations/certificates are called by different names such as Annewari,
Paisewari, Girdawari, etc in different States. Nevertheless, the common thread to extend relief measures
including rescheduling of loans, is that the crop loss assessed should be 33% or more.
3. RESTRUCTURING/RESCHEDULING OF EXISTING LOANS:
A) As the repaying capacity of the people affected by natural calamities, relief in repayment of loans
becomes necessary in areas affected by natural calamity and hence, restructuring of the existing loans
will be required.
B) Agriculture Loans:
1. Short-term Production Credit (Crop Loans)
(i) All short-term loans, except those which are overdue at the time of occurrence of natural calamity,
shall be eligible for restructuring.
(ii) Conversion of loan by Incumbent Incharge of Branches: Branches may allow a maximum period of
repayment of up to 2 years (including the moratorium period of 1 year) if the loss is between 33% &
50%. If the crop loss is 50% or more, the restructured period for repayment may be extended up to a
maximum of 5 years.
(iii) In all cases of restructuring, moratorium period of at least 1 year shall be considered and the bank
branches may not insist for additional collateral security.
Page 45 of 77
(PS: 21/26.03.2020)
2. Agriculture Loans - Long term (Investment) Credit: The existing TL
installments will have to be rescheduled keeping in view the repaying capacity of
the borrowers and the nature of natural calamity.
C) Other Loans: Depending on the severity of a natural calamity, SLBC/DCC shall
take a view as to whether a general rescheduling of all other loans such as loans
granted for allied activities, loans to rural artisans, traders, micro/small industrial
units or in case of extreme situations, medium enterprises are required.
D) Asset Classification:
(i) The restructured portion of the short term as well as long-term loans may be
treated as current dues and need not be classified as NPA. The asset
classification of these fresh term loans would thereafter be governed by the
revised terms and conditions. But, higher provisions for such restructured
advances are to be made as prescribed by Recovery Division/RBI from time to
time.
(ii) The asset classification of the remaining amount due, which has not been
restructured shall continue to be governed by the original terms and conditions
of its sanction.
(iii) Additional finance, if any, may be treated as “standard asset” and its future
asset classification will be governed by the terms and conditions of its sanction.
The benefit of asset classification of the restructured accounts as on the date of
natural calamity will be available only if the restructuring is completed within a
period of 3 months from the date of declaration of natural calamity by the
Government. In the event of extreme calamity, when the SLBC/DCC is of the view
that this period will not be sufficient for the banking sector to reschedule all the
affected loans, it shall approach the CGM, RBI.
(E) Utilization of Insurance Proceeds: Under the PMFBY, all Seasonal Agricultural
Operations loans for notified crops in notified areas are to be compulsorily
provided insurance cover.
4. SANCTIONING OF FRESH LOANS:
1. Once the decisions on the rescheduling of loans is taken by SLBC/DCC, pending
conversion of short-term loans, branches shall grant fresh crop loans to the
affected farmers which will be based on the scale of finance for the particular
crop and the cultivation area. as per the extant guidelines.
2. Assistance in relation to agriculture and allied activities (poultry, fishery,
animal husbandry, etc.) would also be needed for long term loans for a variety of
purposes such as repair of existing economic assets or acquisition of new assets.
3. Branches may extend general consumption loans up to Rs. 10,000/- to eligible
existing borrowers without any collateral security. Loan will be secured by the
personal guarantee of the borrower. The branches, however, will exercise
general lien in respect of consumption loan on the security held for productive
loan given to the borrower.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
53. Self-Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) (PS: 32/15.04.2014)
Details of the major revisions in the Self-Employment Scheme for Rehabilitation of Manual 1. Objective of the scheme: The objective of the Scheme is to assist the manual scavengers,
Scavengers (SRMS): The following modifications have been made in the existing Scheme: --- identified during various surveys, for their rehabilitation in alternative occupations.
Sr Component Pre-Revised Revised Provision 2. Eligibility: Manual Scavengers and their dependents, irrespective of their income, will
Provision be eligible for assistance.
1 Cash Assistance No Provision Cash Assistance of Rs. 40000/- payable in
Monthly Installments of Rs. 7000/- after the i) A “manual scavenger” means a person engaged or employed by an individual or a local
identification of manual scavenger. authority or a public or private agency, for manually cleaning, carrying, disposing of, or
2 Maximum Project Rs. 5 Lacs Rs. 10 L & Rs. 15 L, in case of sanitation related otherwise handling in any manner, human excreta in an insanitary latrine or in an open
Cost projects. drain or pit into which human excreta from insanitary latrines is disposed of, or on a
3 Provision of Capital Upfront Capital Back-end Capital Subsidy as given below: - railway track, before the excreta fully decomposes, and the expression “manual scavenging
subsidy, based on Subsidy: -- shall be interpreted accordingly;
Project Cost i) For Projects Range of Project Rate of Subsidy
upto Rs. Cost (Rs.)
ii) The dependent of manual scavengers is one who is a member of their family or is
25000/-: 50% of Upto 2 L 50% of project cost dependent on them. Each individual manual scavenger and his/her spouse or children
Project Cost. 2 L to 5 L Rs. 1 L + 33.3% of who are of 18 years of age & above, who are not employed (other than manual
ii) For Projects project cost, between scavengers) will be provided assistance.
above Rs. Rs. 2 L-5 L 3. Cash Assistance: The identified manual scavengers, one from each family, would be
25000/-: 25% of 5 L to 10 L Rs. 2 L + 25% of project eligible for receiving Cash Assistance of Rs. 40,000 immediately after identification. The
Project Cost, cost, between Rs. 5 L-
subject to beneficiary would be allowed to withdraw the amount in monthly installments of
10 L
Minimum Rs. maximum of Rs. 7,000. He/she would also be eligible for Capital Subsidy, Interest Subsidy
10 L to 15 L Rs. 3.25 L
12500/- and Training with stipend at the rates prescribed under the scheme. The dependents of
4 ROI to be charged 4-6% based on No Change manual scavengers would not be eligible for initial Cash Assistance.
from beneficiaries the amount of 4. Project Cost: Loan upto a maximum cost of Rs. 10 L will be admissible under the
loan
scheme, and Rs. 15 L in case of sanitation related projects.
5 Provision of Interest Gap between No Change
Subsidy, depending the actual rate 5. Moratorium & Repayment Period: The moratorium period to start the repayment of
on the amount of of interest loan will be two years. The period of repayment of loan, including moratorium period will
Loan charged by be 5 years for projects upto Rs. 5 Lacs and 7 years for projects above Rs.5 Lacs. The State
banks and the Channelizing Agencies (SCAs) would distribute the funds within a period of 3 months after
rate of interest receiving the application from the eligible beneficiaries.
at which the
loan is to be 6. Rate of Interest:
provided under (a) For projects upto Rs. 25,000/- : 5% p.a. (4% per annum for women beneficiaries)
the scheme. (b) For projects above Rs 25,000/-: 6% p.a.
6 Moratorium period Upto 6 months Upto 2 years 7. Implementing Agency: National Safai Karmacharis Finance and Development
for Repayment of
Corporation (NSKFDC) or any other agency identified under the scheme, will undertake all
loan
7 Maximum period of 1 year 2 years
activities under the scheme and will co-ordinate with the concerned agencies to ensure
Training optimum benefits to the beneficiaries.
8 Stipend during Rs. 1,000 p.m. Rs. 3,000 p.m. 8. Penal Provision for misuse of funds: In case of diversion of funds by beneficiaries for
Training their other needs, the banks can initiate action as per their policy and rules in this regard.
9 Repayment period Upto 5 years For projects costing upto Rs. 5 L: 5 years In case it is found that the beneficiary has diverted the subsidy for any other purpose.
including the For projects costing more than Rs. 5 L: 7 years i) He shall be liable to repay the entire amount of subsidy immediately with a penal
Moratorium Period
interest of 9% p.a. ii) He shall become ineligible for any assistance under the scheme, in
10 Penal Provisions for No provisions Penal provisions for misuse of funds by
future.
misuse of funds beneficiaries, provided under the scheme.
Page 46 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
54. Deendayal Antyodaya Yojana —National Urban Livelihoods Mission (DAY-NULM)
(PS: 36/11.05.2021, AGRI: 25/11.04.2022, AGRI: 73/18.11.2022)
The operational guidelines of the Self-Employment Program (SEP) component of DAY-NULM are as 6. Group Enterprises (SEP-G)-Loan & Subsidy:
under:--- A SHG or members of an SHG constituted under DAY-NULM or a group of
1. Introduction: urban poor for self-employment can avail benefit of subsidized loans under
i) The SEP provides financial assistance to individuals/groups including street venders/hawkers of urban this component from any bank. The norms/specifications for group based
poor for setting up gainful self-employment ventures/micro-enterprises, suited to their skills, training, micro-enterprise loans are as follows: ---
aptitude and local conditions. The programme also supports Self Help Groups (SHGs) of urban poor to i) Eligibility Criteria: The group enterprises should have minimum of Three
access easy credit from bank and avail interest subsidy on SHG loans. (3) members with a minimum of 70% of the members from urban poor
ii) The underemployed and unemployed urban poor will be encouraged to set up small enterprises families. More than one person from the same family should not be
relating to manufacturing, service and small business for which there is considerable local demand. included in the same group.
iii) The percentage of women beneficiaries under SEP shall not be less than 30%. SCs & STs must be ii) Age: All members of the group enterprise should have attained an age of
benefited at least to the extent of the proportion of their strength in the city/town population of poor. A 18 years at the time of applying for bank loan.
special provision of 5% reservation should be made for the differently-abled under this program with iii) Project Cost (PC): The group will be eligible for a maximum loan of Rs. 2
priority to women. In view of the Prime Minister’s 15-Point Program for the Welfare of Minorities, at least Lacs per member or Rs. 10 Lacs, whichever is lower.
15% of the physical and financial targets under this component shall be earmarked for the minority iv) Type of Loan: Loan can be extended either as a single loan to the group
communities. functioning as one borrowing unit or each member of the group can be
2. Selection of Beneficiary & Procedure for Sponsoring Applications: The Community Organizers (COs) provided individual loans upto 2 Lacs and an overall cap of 10 Lacs based
and professionals from Urban Local Body (ULB) shall identify the prospective beneficiaries from among the on the principal of joint liability of the group.
urban poor. The application for individual and group enterprise loans will be sponsored by the Urban v) Type of Loan Facility: Finance to groups can be extended for capital
Local Body (ULB) which will be the sponsoring agency for the individual and group enterprise. expenditure in the form of Term Loan and for Working Capital, through
3. Educational Qualifications and Training Requirement: No minimum educational qualification is Cash Credit Facility. Composite Loans for Capital Expenditure and Working
required. However, where the identified activity for micro-enterprise development requires some special Capital, depending upon Group’s requirement may also be extended.
skills appropriate training must be provided to the beneficiaries before extending financial support. vi) Loan and Margin Money: The Project Cost minus the beneficiary
4. Pattern of Financial Assistance: The financial assistance available to urban poor in setting up individual contribution (Margin Money) would be made available as loan amount to
and group enterprises will be in the form of Interest subsidy on the bank loans. Interest subsidy, over and the group enterprise by the bank. No margin money should be taken for
above 7% rate of interest will be available on a bank loan for setting up of individual or group enterprises. loan upto ₹ 50,000 and for higher amount loans, preferably 5% should be
The difference between 7% p.a. and the rate of interest charged by the bank will be provided to banks taken as margin money and it should in no case be more than 10% of the
under DAYNULM. Intt subsidy will be given only in case of timely repayment of loan. project cost.
An additional 3% interest subvention will be provided to all Women Self Help Groups (WSHGs) who repay vii) Collateral Guarantee on Bank Loan: No collateral guarantee is
their loan in time. The Interest subsidy will be subject to timely repayment of the loan and suitable required. Only the assets created would be hypothecated/
certification obtained from banks by the ULB. The additional 3% interest subvention amount will be mortgaged/pledged to banks for advancing loans. The banks may approach
reimbursed to the eligible WSHGs. The banks will credit the amount of 3% interest subvention to the CGTMSE or any other appropriate guarantee fund.
eligible WHSGs accounts and thereafter seek the reimbursement. viii) Repayment: Repayment schedule would range between 5 to 7 Years
5. Individual Enterprises (SEP-I)- Loan & Subsidy: An urban poor individual beneficiary desirous of setting after initial moratorium of 6-18 months as per the norms of the banks.
up an individual micro-enterprise for self-employment can avail benefit of subsidized loan under this 7. SHG-Bank Linkage–General Guidelines: SHGs may be sanctioned
component from any bank. The norms for individual micro-enterprise loans are as follows: --- Savings Linked Loans (varying from a saving to loan ratio of 1:1 to 1:4) after
i) Age: The prospective beneficiary should have attained the age of 18 Years at the time of applying for due assessment or grading by banks. However, in case of matured SHGs,
loan. loans may be given beyond the limit of 4 times the savings as per the
ii) Project Cost (PC): The Maximum unit Project Cost for an individual micro enterprise is ₹ 2,00,000. discretion of the bank.
iii) Collateral Guarantee on Bank Loan: No collateral required. As per RBI guidelines, banks are mandated 8. Loaning Powers:
not to accept collateral security in the case of loans up to ₹ 10 lakhs extended to units in the MSE sector. i) The Incumbents of branches in JMG Scale-I, MMG Scale-II & III are
Therefore, only the assets created would be hypothecated/mortgaged/pledged to banks for advancing empowered to sanction unsecured loan/clean advance per SHG up to a
loans. Branches may avail guarantee cover from CGTMSE setup by SIDBI or any other guarantee fund. maximum limit as under: JMG Scale-I: Rs. 2 L, MMG Scale-II: Rs. 5 L, MMG
iv) Repayment: Repayment schedule would range between 5 to 7 Years after initialPage moratorium
47 of 77 of 6-18 Scale-III: Rs. 8 L
months as per norms of the banks. ii) Loaning powers of Incumbents of branches Scale-IV & above for
v) Margin Money: No margin money should be taken for a loan up to ₹ 50,000. For loans above ₹ 50,000
preferably 5% should be taken as margin money and it should in no case be more than 10% of the project
cost.
vi) Type of Loan Facility: Financing facility may be extended to individuals for capital expenditure in the
form of Term Loan and Working Capital loans through Cash Credit. Composite Loans consisting of Capital
Expenditure and Working Capital components, may also be extended depending upon individual
borrower’s requirement.
financing unsecured loans/clean advance to SHG may be upto Rs. 10 L per
SHG.
iii) Circle Head (Even in SMG Scale-V) will have powers in case of unsecured
loan/clean advance to SHG as per power chart issued by the Bank.
9. Period of Scheme: The Ministry of Housing and Urban Affairs, GoI has
informed that the DAY-NULM Scheme has been further extended upto
March 31, 2023 or till the approval of the new Scheme, whichever is earlier.

GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)

(COMPILED BY R. C. JHA, AGM, HO: CRMD)
55. Deendayal Antyodaya Yojana –National Rural Livelihoods Mission (DAY- NRLM) (AGRI: 48/30.08.2022, AGRI: 71/10.11.2022)
1. Background: C) Loan amount:
i) DAY-NRLM is the flagship program of Govt. of India for promoting poverty reduction I. Emphasis is laid on the multiple doses of assistance under DAY-NRLM. This would mean
through building strong institutions of the poor, particularly women. assisting an SHG over a period of time, through repeat doses of credit, to enable the group to
ii) A women’s SHG, coming together on the basis of mutual affinity is the primary access higher amounts of credit for taking up sustainable livelihoods and improving the quality
building block of the DAY-NRLM community institutional design. The mission provides of life.
a continuous hand-holding support to the institutions of poor for a period of 5–7 II. SHGs may avail either Term Loan (TL) or a Cash Credit Limit (CCL) or both based on their
years till they come out of abject poverty. requirement. In case of need, additional loan may be sanctioned even though the previous loan
iii) DAY-NRLM enables the State rural livelihoods missions to professionalize their is outstanding, based on the repayment behavior and performance of the SHG.
human resources at State, district and block level. The blocks and districts in which all III. Cash Credit Limit (CCL): In case of CCL, each SHG to be sanctioned minimum loan of ₹6 lakhs
the components of DAY-NRLM will be implemented, either through the State Rural to each eligible SHG for a period of 3 years with a yearly drawing power (DP). The drawing
Livelihood Missions (SRLMs) or partner institutions or NGOs, will be the intensive power may be enhanced annually based on the repayment performance of the SHG. The
blocks and districts, whereas remaining will be non- intensive blocks and districts. drawing power may be calculated as follows:
2. Women SHGs and their Federations: ✓ DP for First Year: 6 times of the existing corpus or minimum of ₹1.5 Lakh, whichever is
i) Women SHGs under DAY-NRLM consist of 10-20 persons. In case of special SHGs i.e. higher
groups in the difficult areas, groups with disabled persons, and groups formed in ✓ DP for Second Year: 8 times of the corpus at the time of review/enhancement or
remote tribal areas, this number may be a minimum of 5 persons. minimum of ₹3 Lakh, whichever is higher
ii) DAY-NRLM promotes affinity-based women Self Help Groups (SHGs). ✓ DP for Third Year: Minimum of ₹6 Lakh based on the Micro Credit Plan (MCP) prepared by
iii) Only for groups to be formed with Persons with disabilities, and other special SHG and appraised by the federations/support agency and the previous credit history.
categories like elders, trans genders, DAY-NRLM will have both men and women in ✓ DP for Fourth Year onwards: Above ₹6 Lakh, based on the MCP prepared by SHG and
the Self-Help Groups. appraised by the federations/support agency and the previous credit history.
3. Financial Assistance to the SHGs: IV. Term Loan:
3.1 Revolving Fund (RF): DAY-NRLM would provide Revolving Fund (RF) support to ✓ First Dose: 6 times of the existing corpus or minimum of ₹1.5 Lakh, whichever is higher.
SHGs in existence for a minimum period of 3/6 months and follow the norms of good ✓ Second Dose: 8 times of the existing corpus or minimum of ₹3 Lakh, whichever is higher.
SHGs, i.e. they follow ‘Panchasutra’ – regular meetings, regular savings, regular ✓ Third Dose: Minimum of ₹6 Lakh, based on the MCP prepared by the SHGs and appraised
internal lending, regular recoveries and maintenance of proper books of accounts. by the federations/support agency and the previous credit history.
Only such SHGs that have not received any RF earlier will be provided with RF, as ✓ Fourth Dose onwards: Above ₹6 Lakh, based on the MCP prepared by the SHGs and
corpus, with a minimum of ₹10, 000 and up to a maximum of ₹15,000 per SHG. appraised by the federations/support agency and the previous credit history.
3.2 Capital Subsidy has been discontinued under DAY-NRLM: • Branches are advised take necessary measures to ensure that eligible SHGs are provided with
No Capital Subsidy will be sanctioned to any SHG from the date of implementation of repeat loans.
DAY-NRLM. Note: Corpus is inclusive of revolving funds, if any, received by the SHG, its own savings, interest
3.3 Introduction of Interest subvention for Women SHG: earned by the SHG from on-lending to its members, income from other sources, and funds from
I. Interest subvention scheme on Credit to Women SHG during the year 2022-23 for other sources in case of promotion by other institutes/NGOs.
all Public Sector Banks, Private Sector Banks and Small Finance Banks in all districts. D) Credit facilities to SHG members:
II. The scheme is limited to Women Self Help Groups under DAY-NRLM in rural areasPage I. 48
In order
of 77 to facilitate women SHG members to graduate to entrepreneurs, branches may
only.
III. For loans up to ₹3 Lakh under the scheme, Bank will extend credit at a
concessional interest rate of 7% per annum. For outstanding credit balance upto ₹3
lakh, Bank will be subvented at a uniform rate of 4.5% per annum during FY 2022-23.
IV. For loans above ₹3 Lakh and up to ₹5 Lakh under the scheme, Bank will extend
credit at interest rate equivalent to their 1 year-MCLR or any other external
benchmark based lending rate or 10% per annum, whichever is lower. For outstanding
credit balance above ₹3 Lakh and upto ₹5 lakh, bank will be subvented at a uniform
rate of 5% per annum during FY 2022-23.
4. Role of Branches:
4.1. Opening of Savings/Current Accounts:
i) The role of branches would commence with opening of accounts for all the SHGs
including those having members with disability and for the federations of SHGs. The
SHGs engaged in promoting of savings habits among their members would be eligible
to open savings bank accounts.
ii) RBI has instructed that PAN No. of the SHG/SHG members should not be insisted
upon and Branches can open saving account of SHGs on the basis of Form No.60.
4.2 Transaction in Savings/Cash Credit account of SHGs and Federation of SHGs:
i) SHGs and their federations encouraged to transact through their respective
savings/cash credit accounts.
ii) There will be dual-authentication facility in both ON-US and OFF-US environment
to enable SHGs to perform transactions in jointly operated savings/cash credit
accounts at retail outlets managed by Business Correspondents and also advised to
extend all such services to SHGs and their federations through Business
Correspondents.
4.3 Lending to SHGs and their individual members:
A) Eligibility Criteria for SHGs to avail loans:
I. SHGs should be in active existence for at least 6 months as per their books of
accounts (and not from the date of opening of S/B account).
II. SHGs should be practicing ‘Panchasutras’ i.e., regular meetings, regular savings,
regular inter-loaning, timely repayment and up-to-date books of accounts.
III. SHGs should qualify as per grading norms fixed by NABARD. As and when the
federations of the SHGs come into existence, the grading exercise may be done by the
federations.
IV. The existing defunct SHGs are also eligible for credit if these are revived and
continue to be active for a minimum period of three months.
B) Loan Application:
I. Common Loan Application Forms recommended by Indian Bank’s Association (IBA)
are to be used for extending credit facility to SHGs.
II. Loan applications may also be submitted online through the system developed by
DAY-NRLM and the National Portal for Credit Linked Schemes.
Strictly Confidential :: For Internal Circulation Only
Page 49 of 77
consider extending loans up to ₹10 Lakh to individual members of select matured well
performing SHGs (SHGs which are more than 2 years old and have accessed at least one dose
of bank loan with timely repayment) as per their lending policy. The individual should be running
a viable economic enterprise. Bank will share data on individual loans to women SHGs members
in a mutually agreed format and periodicity with DAY-NRLM.
II. One woman in every SHG under DAY-NRLM may be provided a loan up to ₹1 lakh under the
MUDRA Scheme, if she is otherwise eligible.
III. Branches are advised to provide minimum OD facility of ₹5000 to every woman SHG
member having PMJDY account in accordance with the guidelines issued by Indian Banks’
Association (IBA). Bank will regularly share data on OD limit to women SHGs’ members in a
mutually agreed format and periodicity with DAY-NRLM.
E) Purpose of loan and repayment:
I. The loan amount would be distributed among members based on the MCP prepared by the
SHGs. The loans may be used by members for meeting social needs, high cost debt swapping,
construction or repair of house, construction of toilets and taking up sustainable livelihoods or
to finance any viable common activity started by the SHGs.
II. In order to facilitate use of loans for augmenting livelihoods of SHG members, at least 50% of
loans above ₹1 Lakh, 75% of loans above ₹4 Lakh and at least 85% of loans above ₹6 Lakh
should be used primarily for income generating productive purposes. MCPs prepared by SHGs
would form the basis for determining the purpose and usage of loans.
III. Repayment schedule for Term Loans may be as follows: ---
a) The first dose of loan may be repaid in 24-36 months in monthly/quarterly instalments.
b) The second dose of loan may be repaid in 36-48 months in monthly/quarterly instalments.
c) The third dose of loan may be repaid in 48-60 months based on the cash flow in
monthly/quarterly instalments.
d) From the fourth dose onwards loans may be repaid between 60-84 months based on the cash
flow in monthly/quarterly installments.
e) All credit facilities sanctioned under DAY-NRLM would be governed by the asset classification
norms issued by Reserve Bank of India from time to time.
F) Security and Margin:
I. For loans to SHGs up to ₹10.00 Lakh, no collateral and no margin will be obtained. No lien
should be marked against savings bank accounts of SHGs and no deposits should be insisted
upon while sanctioning loans.
II. For loans to SHGs above ₹10 Lakh and up to ₹20 Lakh, no collateral should be obtained, and
no lien should be marked against savings bank account of SHGs. However, the entire loan
(irrespective of the loan outstanding, even if it subsequently goes below ₹10 Lakh) would be
eligible for coverage under Credit Guarantee Fund for Micro Units (CGFMU). Branches shall
ensure that guarantee cover code ‘CGFMU’ is fed in CBS in ‘MIS details’ in the guarantee cover
code field while sanctioning the loan under the said scheme. Further, Non-feeding/incorrect
feeding/non-checking of CGFMU code in the eligible cases, shall make the concerned
officer/employee at the Branch level, accountable.
III. For loan to SHGs above ₹10 Lakh and up to ₹20 Lakh, a margin not exceeding 10% of the
loan amount exceeding ₹10 Lakh may be obtained.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
56. Master Circular: SHG-Bank Linkage Programme (AGRI: 30/17.05.2022)
1. Background: 4. Interest rates: Rates of interest shall be applicable in
✓ SHGs have the potential to bring together the formal banking structure and the rural poor for mutual terms of extant guidelines of the bank.
benefit. 5. Service/Processing charges: No loan related and ad hoc
✓ Recognizing the importance of SHG Bank linkage, banks have been advised by RBI to meet the entire service charges/inspection charges should be levied on
credit requirements of SHG members, namely, (a) income generation activities, (b) social needs like priority sector loans up to ₹ 25000. In the case of eligible
housing, education, marriage, etc. and (c) debt swapping. priority sector loans to SHGs/ JLGs, this limit will be
✓ Banks should provide adequate incentives to their branches in financing the SHGs and establish applicable per member and not to the group as a whole.
linkages with them, making the procedures simple and easy. Other service charges will be applicable in terms of extant
✓ The group dynamics of working of the SHGs need neither be regulated nor formal structures imposed Bank guidelines.
or insisted upon.
6. Separate Segment under priority sector:
✓ The approach to financing of SHGs should be totally hassle-free and may also include consumption
Loans to SHGs are allowed to be classified under Priority
expenditures.
Sector Lending (PSL) under the respective categories viz
✓ Accordingly, the following guidelines should be adhered to enable effective linkage of SHGs with the
Agriculture, MSME, Social Infrastructure and others,
banking sector: ---
subject to extant guidelines of Master Directions – Priority
2. Opening of Savings Bank A/C: Sector Lending (PSL) – Targets and Classification.
a) The SHGs, registered or unregistered, which are engaged in promoting savings habits among their
7. Presence of defaulters in SHGs: Defaults by a few
members are eligible to open savings bank accounts with banks. These SHGs need not necessarily have
members of SHGs and/or their family members should not
already availed of credit facilities from banks before opening savings bank accounts.
ordinarily come in the way of financing SHGs, provided the
b) Simplified KYC Due Diligence norms for Self Help Groups (SHGs): --- SHG is not in default. However, the bank loan may not be
i. CDD of all the members of SHG shall not be required while opening the savings bank account of the utilized by the SHG for financing a defaulter member to the
SHG. CDD of all the office bearers shall suffice. bank.
ii. Customer Due Diligence (CDD) of all the members of SHG may be undertaken at the time of credit
8. Capacity Building and Training: Banks may initiate
linking of SHGs.
suitable steps to internalize the SHGs linkage project and
3. Lending to SHGs: organize exclusive short duration programmes for the field
a) Bank lending to SHGs should be included in branch credit plan, block credit plan, district credit plan and level functionaries. In addition, suitable awareness/
state credit plan of each bank. Utmost priority should be accorded to the sector in preparation of these sensitization programmes may be conducted for their
plans. It should also form an integral part of the corporate credit plan. middle level controlling officers as well as senior officers.
b) As per operational guidelines issued by NABARD, SHGs may be sanctioned savings linked loans (varying 9. Monitoring and Review of SHG Lending: Considering
from a saving to loan ratio of 1:1 to 1:4). However, in case of matured SHGs, loans may be given beyond the potential of SHGs, banks shall closely monitor the
the limit of 4 times the savings as per the discretion of the sanctioning authority. progress regularly at various levels and at the SLBC & DCC
c) A simple system requiring minimum procedures and documentation is a precondition for augmenting meetings. It should be reviewed at the highest corporate
flow of credit to SHGs. Branches should strive to remove all operational irritants and make arrangements level on a quarterly basis.
to expeditiously sanction and disburse credit within the delegated loaning powers. The simplified loan
application forms, procedures and documents should be used for providing prompt and hassle-free credit.

Strictly Confidential :: For Internal Circulation Only

Page 50 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
57. Scheme For Financing Micro Financing Institutions for On-Lending to Individual Members or SHGs/JLGs
1. Micro Credit and Micro Finance Institutions: (i) Micro Credit has been defined as the provision of thrift,
credit and other financial services and products of very small amount to the poor in rural, semi urban and
urban areas for enabling them to raise their income levels and improve their living standards.
(ii) Micro Finance Institutions (MFIs) are those which provide the above mentioned services.
2. Objectives: To provide easy access to timely credit to the poor who are still not reached by the Banking
system and also the small artisans/handicraftsman/micro entrepreneurs/Small and marginal farmers/Agri
labourers/ tenant and share croppers/oral lessees etc, who require small amounts with an objective of
improving their income generating capabilities and increasing the networth.
3. Eligibility:
a. Bank credit to MFIs extended for on-lending to individuals and also to members of SHGs/JLGs will be
eligible for categorisation as priority sector advance under respective categories viz., Agriculture, MSMEs,
Social Infrastructure and Others, provided not less than 85% of total assets of MFI are in the nature of
“qualifying assets”. In addition, aggregate amount of loan, extended for income generating activity,
should be not less than 50% of the total loans given by MFIs.
b. A “qualifying asset” shall mean a loan disbursed by MFI, which satisfies the following criteria: --
i. The loan is to be extended to a borrower whose household annual income in rural areas does not
exceed ₹ 1,00,000/- while for non-rural areas it should not exceed ₹ 1,60,000/-.
ii. Loan does not exceed ₹ 60,000/- in the first cycle and ₹ 1,00,000/- in the subsequent cycles.
iii. Total indebtedness of the borrower does not exceed ₹ 1,00,000/-.
iv. Tenure of loan is not less than 24 months when loan amount exceeds ₹30,000/-
v. The loan is without collateral.
vi. Loan is repayable by weekly, fortnightly or monthly installments at the choice of the borrower.
c. Further, the banks have to ensure that MFIs comply with the following caps on margin and interest
rate, to be eligible to classify these loans as priority sector loans:---
i. Margin cap: The margin cap should not exceed 10% for MFIs having loan portfolio exceeding ₹100
crores and 12 % for others. The interest cost is to be calculated on average fortnightly balances of
outstanding borrowings and interest income is to be calculated on average fortnightly balances of
outstanding loan portfolio of qualifying assets.
ii. Interest cap on individual loans: With effect from April 1, 2014, interest rate on individual loans will be
the average Base Rate of 5 largest commercial banks by assets multiplied by 2.75 p.a. or cost of funds plus
margin cap, whichever is less. The average of the Base Rate shall be advised by Reserve Bank of India.
iii. Only 3 components are to be included in pricing of loans viz., (a) a processing fee not exceeding 1% of
the gross loan amount, (b) the interest charge and (c) the insurance premium.
iv. The processing fee is not to be included in the margin cap or the interest cap.
v. Only the actual cost of insurance i.e. actual cost of group insurance for life, health and livestock for
borrower and spouse can be recovered; administrative charges may be recovered as per IRDA guidelines.
vi. There should not be any penalty for delayed payment.
vii. No Security Deposit/Margin is to be taken.
Bank loans to MFIs, which do not comply with above conditions and bank loans to other NBFCs will not
be classified as priority sector loans.
Page 51 of 77
(PS:110/29.12.2017)
4. Selection Criteria for identifying MFIs:
(i) Existing MFIs: The MFI has been in existence for at least 3 years and/or it
has a demonstrated track record of running a successful micro-credit
programme at least for the last two years.
(ii) New MFIs: Any new MFI desirous of initiating a micro credit programme
may be considered for assistance if it has been promoted and managed by
experienced micro finance professionals with experience of at least 3 years
in micro credit.
(iii) The MFI should have achieved a minimum out reach of 3000 poor
members within a period of next 12 months. This can be relaxed to 500
members in case of SHG Federations.
5. Mode of Disbursement: (i) MFIs may on-lend directly to individual
members/SHGs/JLGs or route their assistance through their partner
NGOs/MFIs. (ii) All such groups/individual members should be specifically
earmarked to be covered by the bank finance.
6. Eligible Activities: (i) The loans to ultimate borrowers should be utilized
for financing micro enterprises and farm/non-farm activities. (ii) In the
project report/proposal submitted to the Bank, the activity wise groups in
each area should be indicated by the MFI. (iii) Bank should be provided
with the end use details when the Bank finance is utilized.
7. Type of facility: (i) Term Loan is repayable over a period of 3 to 7 years.
(ii) Short Term and Working Capital requirements also can be considered on
merits and cash flow basis.
8. Extent of Loan: Loan assistance per MFI for on lending is subject to
maximum cap of Rs. 200 crores.
9. Margin: (i) Minimum margin requirement: 10% of the project outlay.
(ii) In lieu of the above it may be feasible to insist on any one of the following: ---
a. Term Deposit equivalent to 10% of the loan amount. The Term Deposit
should be for a minimum duration of 3 years or currency of the loan
whichever is later duly discharged and lodged with the Bank. (or)
b. Stand-By Letter of Credit (SBLC) from a Financial Institution equivalent
to 10% of loan amount.
This margin would be appropriated for the first default occurrence and the
MFI should in due course bring the margin to the original level of 10%.
11. Security: 1. If the MFI is offering Term Deposit or SBLC equivalent to
10% of loan amount: Hypothecation of book debts, valued equivalent to
the loan amount. In other cases, the value of the book debts hypothecated
should be at least 125% of loan amount.
2. In respect of the groups/Book Debts specifically charged, an Auditor may
be engaged from Bank’s Panel to certify the Book Debts.
3. EM of any other collateral offered if any by the MFI.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
58. PNB Sakhi -- Incentive Scheme For Facilitating SHG Bank Linkage
1. Objectives: The objective of the scheme is to strengthen Bank SHG linkage and
increase Bank’s outreach in rural areas.
2. Eligibility: A Women, residing from Command area of the branch, who has
been a member of an SHG or well conversant about the SHG concept. PNB Sakhi
will be a suitable woman who can easily communicate/facilitate to Banks as well
as SHG members.
PNB Sakhi must possess following qualifications/characteristics:
i. Min education of 8th/10th pass with basic reading, writing and numeracy skills;
ii. Absence of any criminal record.
iii. Understands basic banking procedures and familiar with opening of SHG bank
account, credit and debit transactions of SHGs and SHG credit linkage protocols;
iv. Possess good communication skills;
v. Ability to undertake frequent travel to the Bank branches and other villages;
vi. Skills of articulation and persuasion;
4. Selection Procedure: The selection procedure for PNB Sakhi shall be as under:
a) Eligible Individuals shall submit (in duplicate) the prescribed Application form along
with related papers.
b) The application on the prescribed form along with annexure shall be directly
received by Branch Office where it shall be scrutinized. The particulars given by the
applicants shall be critically examined and shall be got cross-verified.
c) Competent Authority to appoint PNB Bank Sakhi
✓ In Lead Districts - LDM
Other than Lead Districts - Deputy Circle Head (Second man) in Circle office.
3. Responsibilities of a PNB Sakhi:
i) Training:
a. Encourage the rural poor to organize into SHG and their saving linkage with the
Bank.
b. Undertake awareness among SHGs on credit linkage,
c. Educate the group members on bank procedures & schemes.
ii) Handholding of SHGs:
a. PNB Sakhi should help the SHG members in conducting regular meetings and
should guide them about proper bookkeeping.
b. Should help the SHG in completing documentation formalities for account
opening; loan application and related documentation etc.
c. Act as a liaison between the SHGs and the Bank.
Strictly Confidential :: For Internal Circulation Only
Page 52 of 77
(AGRI: 47/20.08.2022)
5. Incentive: For formation and credit linkage of SHGs: Rs. 1000/- per SHG formed and
credit linked with the Bank. The stages for making payment of the incentive to PNB Sakhi
shall be as follows: ---
Sr Stages of payment of incentives Amt of Incentive
i. For stationery and overhead expenses after saving linkage of SHG 300
ii. 4 months after saving linkage of SHG 300
iii. Immediately after credit linkage of SHG 400
Total 1000
Apart from above the PNB Sakhi will also be provided honorarium of Rs. 1500 per month
which will be in addition to honorarium given under NRLM, if any.
5. Period of selection: PNB Sakhi shall be selected initially for a period of two years and the
period can be further extended by one year at a time, subject to their satisfactory
performance and at the exclusive discretion of the Bank.
6. Terms & Conditions:
i. PNB Sakhi will be appointed in those branches (previously in rural/semi-urban branches)
where there is potential for SHG financing.
ii. PNB Sakhi will not be appointed in branches where a Bank Sakhi/Bank Mitra has been
placed under MoRD scheme. Where such Sakhi has been appointed same should be used
for Bank purpose and additional honorarium as envisaged can be paid.
iii. Honorarium will be paid invariably to all the PNB Sakhis/Bank Sakhis for the first 3
months.
After 3 months, honorarium shall be paid only to those Sakhis who have saving linked at
least 10 new SHGs with the Bank and after 6 months of appointment honorarium will be
paid only to those Sakhis who have credit linked at least 5 SHGs and are facilitating at
least 25 SHGs.
Till the PNB Sakhi attains the minimum level, she will be entitled for incentive only.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
59. Financing JLGS of SF/MF/Tenant Farmers/Oral Lessees & Share Croppers
1. Objectives: • To augment flow of credit to farmers, especially small, marginal, tenant
farmers, oral lessess, share croppers/individuals taking up farm activities. • To serve as
collateral substitute for loans to be provided to the target group.
2. General features of JLG: A Joint Liability Group (JLG) is an informal group comprising
of 4-10 individuals coming together for the purpose of availing bank loan on individual
basis or through group mechanism against mutual guarantee. Generally, the members
of a JLG would engage in a similar type of economic activity in the Agriculture and
Allied Sector. The members would offer a joint undertaking to the bank that enables
them to avail loans. JLG members are expected to provide support to each other in
carrying out occupational and social activities.
3. Criteria for membership: i) Members should belong to similar socio-economic status,
background and environment carrying out farming and Allied activities and who agree to
function as a joint liability group. This way the groups would be homogeneous and
organized by likeminded farmers/individuals and develop mutual trust and respect.
ii) The members should be residing in the same village/area/neighbourhood and should
know and trust each other well enough to take up joint liability for group/individual
loans.
iii) Members who have defaulted to any other formal financial Institution, in the past, are
debarred from the Group Membership.
iv) More than one person from the same family should not be included in the same JLG.
4. Group Approach: All members of the JLGs should be active enough to assume
leadership of the group to ensure the activities of the JLG. The leader fosters a sense of
unity, oversees and maintains discipline, shares information and facilitates repayments.
For the bank, he is the focal point for group activities.
(PS: 19/09.04.2014)
5. Who can form JLGs: Business Facilitators, NGOs, Farmers Clubs, Farmers Associations,
Panchayat Raj Institutions (PRIs), Krishi Vikas Kendras (KVKs), State Agriculture Universities
(SAUs), Agriculture Technology Management Agency (ATMA), Bank branches, PACs, other
cooperatives, Govt Depts, Individuals, Input dealers, and Document writers (in cooperative
banks), MFIs/MFOs, etc.
6. Savings: JLG members need to be encouraged to save regularly. Banks may open savings
account by the JLG/individual members of the JLG to ensure regular savings and thrift habit
amongst them. However, the quantum of loan to be given to the groups should be related
to the credit needs of the enterprise and not to the quantum of saving.
7. JLG Models: Branches can finance JLGs by adopting any of two models:---
Model A -- Financing Individuals in the JLG. Model B – Financing the JLG as a Group.
8. Extent of Loan: Need based both under Model A & B.
9. Margin, Interest And Security Norms: Margin, Rate of Interest and Security norms shall be
as applicable to individual Agriculture scheme under which finance is extended.
Note: However, in case of KCC accounts/short term crop loan sanctioned to JLGs, for the
purpose of charging concessional interest of 7% and claiming interest subvention, per
member restriction of Rs. 3 lakh will be considered.
10. Incentive for promotion of JLGS: To facilitate promotion of JLGs, banks are eligible for
grant assistance from NABARD. Grant assistance will be extended to banks for formation,
nurturing and financing of JLGs over a period of 3 years @ Rs. 2000 per JLG. The first
installment of Rs. 1000 would be released to the Bank/other institutions after sanction of
loan by the bank. The 2nd and 3rd installment would be released, based on certification from
the banks about prompt repayment by all members of the group.

60. Financing of JLGS of Micro Entrepreneurs/Artisans/Individuals in Non-Farm Sector (PS: 69/04.08.2014)

1. Objectives: Same as above
2. General features of JLG: Same as above
3. Criteria for membership: Same as above
4. Group Approach: Same as above
5. Who can form JLGs: Same as above
6. Savings: Same as above
7. JLG Models: Same as above
8. Extent of Loan: Same as above
9. Margin, Interest And Security Norms:
Same as above
10. Incentive for promotion of JLGS:
(i) To facilitate promotion of JLGs, banks/other institutions as Joint Liability Group Promotion Institution (JLPIs) are eligible for grant
assistance from NABARD, Banks branches/other institutions are expected to formulate a plan for promotion of JLGs and sanction of credit
to JLGs. Each JLPI is expected to formulate a plan for a minimum size of 20 JLGS. Assistance will be extended to banks for formation,
nurturing and financing of JLGs over a period of 3 years @ Rs. 2000/- per JLG. Other institutions promoting JLGs will be eligible for grant
assistance of Rs 2000/- per JLG over a period of 3 years through banks.
(ii) The first installment of Rs. 1000/- would be released to the Bank/other institutions after sanction of loan by the bank. The 2nd
installment may be released after commencement of repayment. The 3rd installment may be released in 3rd year subject to certification
of bank with regard to satisfactory repayment.
(iii) With regard to payment of grant in respect of JLG Promoting Institutions, the grant would be routed through banks involved in JLG
financing and the rate and pattern of release of grant would be the same as applicable to the banks. However, the funds would be
released, based on the certification by the banks as indicated above.
(iv) The banks/Business Facilitators engaged by banks for promotion and linkage of JLGs may take steps to evolve/introduce simple books
of accounts and registers as in case of SHGs.

Page 53 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
61. Financing of Joint Farming Groups (JLG) of “Bhoomi Heen Kisan” (PS: 86/19.11.2014)
1. Enabling Joint Liability Groups (JLGs) within & outside SHGs: 4. Incentive for promotion of JLGs: NABARD will also provide grant assistance to Banks and other JLPIs for
A few members of SHGs may graduate faster to start or expand formation, nurturing and financing of new JLGs @ Rs. 2,000 per JLG.
economic activities requiring much higher levels of loans than Banks may consider the option of entering into a Tripartite Agreement with NABARD and other JLG promoting
other SHG members. In such cases, other members may not Institutes (JLPI). The incentive will be available to the bank even if they use their own staff or BC/ BF as their
like to stand mutual guarantee for large sized loans for these JLPI. The incentive shall be linked with the financing of the JLGs.
members. In such cases, a "Joint Liability Group (JLG)" may be
The incentive amount shall be released in three installments as indicated below: ---
created consisting of such members of one or more SHGs. The
i) First installment of Rs.1,000/- would be released after disbursement of loan by the bank.
members of JLG will continue to remain members of the SHGs
and continue to participate in the activities of SHGs as earlier. ii) Second installment of Rs.500/- would be released after one year from the date of loan disbursement
Banks may encourage creation of such enterprise/livelihood subject to the certification by the financing bank that the loan repayment is regular/without default by all the
based JLGs within SHGs. Banks may finance these JLGs in individual members of the JLG (in case of Model 'A' type JLG)/JLG as a group (in case of Model 'B' type JLG).
addition to the loan/credit limit extended to the SHGs. iii) Third installment of Rs.500/- would be released after the end of second year from the date of loan
2. Cluster approach in JLG promotion: Banks may undertake disbursement subject to similar certification from financing bank as above. In case of short term
efforts to promote and finance JLGs on a cluster basis for loans/KCC/GCC, it will be available if the facility has been renewed by the bank during the year and is regular.
agriculture as well as activities allied to agriculture and non- Note: The incentive for promotion of JLGs shall be available only in cases where prior approval has been taken
farm activities. from NABARD for promotion of JLGs.
3. Assessing Joint Liability Groups (JLGs) for Bank Finance: 5. Financing JLGs through BCs/BFs: Incentive to banks will now be available for using BCs/BFs also in
Many banks would have developed their own assessment promotion and financing of JLGs. By availing services of BCs/BFs in financing JLGs, the banks can not only
techniques for financing JLGs. increase the credit flow to the targeted population, but also improve their overall asset quality in JLG
financing.
62. Scheme For Financing WJLGS – Collateral Free Upto Rs. 10 Lakh (PS: 14/04.03.2016)
SCHEME FOR FINANCING WOMEN JOINT LIABILITY GROUPS (JLGS) – COLLATERAL FREE 5. Security:
UPTO Rs. 10 LAKH:--- i) Loan Upto Rs.10 lakh: - Hypothecation of crop/assets created out of Bank loan. and
1. Eligibility: Women JLGs who operate as one borrowing unit. - Group Guarantee.
2. Purpose: 1. Dairy/Poultry/Goat & Sheep rearing/Fishery/Piggery, ii) Loan Above Rs.10 lakh: - Hypothecation of crop/assets created out of Bank loan.
2. Custom Hiring Units, 3. Crop production, 4. Food & Agro Processing. - Group Guarantee and
- Additional collateral as per Agriculture guidelines.
3. Nature of facility: Term Loan and/or Working capital.
6. Margin: Upto Rs. 1 L: NIL, Above Rs. 1 L to Rs. 2 L: 5%, Above Rs. 2 L: 10%
4. Extent of Loan: i) Term Loan – Need based. ii) Working capital – Need based,
iii) For crop production – Need based as per KCC guidelines. Max. Rs. 50 lakh 7. Processing Fees and Documentation Charges: 50% concession in the applicable
rate.
63. Uniform Model Guidelines For Financing To Individual Sugarcane Farmers (PS: 45/25.11.2019)
1. The loans shall be sanctioned as per the usual guidelines under KCC scheme and end use of funds must be ensured.
2. KYC verification and due diligence of applicant farmers and business should be conducted before sanction of KCC.
3. Pre Sanction/Post Sanction procedure to be followed meticulously. Repayment should be in tune with the activity financed on the basis of Farm Credit/ Non-Farm Credit.
4. PM Kisan card issued by government and/or Aadhar Card to be collected.
5. Land extracts to be verified with Govt. website wherever online extracts are available and to be cross verified and the assessment should be done in tune with the cropping
pattern.
6. Necessary CICs report/CIBIL reports in respect of farmers is/ are to be generated and to be kept on Branch records along with comments.
7. Scale of Finance not to be exceeded 100% as precautionary measures.
Page 54 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
64. PM KUSUM SCHEME (Components ‘B’ & ‘C’) (PS: 47/06.06.2020)
Ministry of New and Renewable Energy, GOI has issued guidelines regarding Pradhan Mantri Kisan Urja Suraksha Evem 4. Component C: Solarisation of 10 Lakh Grid
Utthan Mahabhiyan (PM KUSUM) Scheme. The new Scheme has provision for the decentralised renewable energy Connected Agriculture Pumps: ---
plants, solar agriculture water pumps and solarisation of existing Grid connected Agriculture pumps. Under this Component, individual farmers having
The Government of India has launched New Scheme for Farmers with following components: --- grid connected agriculture pump will be supported
A. Component-A: Setting up of 10,000 MW of Decentralized Ground/Stilt Mounted Grid Connected Solar or other to solarise pumps.
Renewable Energy based Power Plants; The farmer will be able to use the generated solar
B. Component-B: Installation of 17.50 Lakh Stand-alone Solar Agriculture Pumps; and power to meet the irrigation needs and the excess
C. Component-C: Solarisation of 10 Lakh Grid Connected Agriculture Pumps. solar power will be sold to DISCOMs.
Component-A and Component-C will be implemented initially on pilot mode and Component-B will be implemented in CFA of 30% of the benchmark cost or the tender
full-fledged manner. cost, whichever is lower, of the solar PV component
After successful implementation of pilot project of Components, A and C, the same shall be scaled up with necessary will be provided. The State Government will give a
modifications based on the learning from the pilot phase. subsidy of 30%; and the remaining 40% will be
All three components of the scheme aim to add Solar capacity of 25,750 MW by 2022 with the total Central Financial provided by the farmer. Bank finance may be made
Support of 34,422 crores. available for farmer's contribution, so that farmer has
to initially pay only 10% of the cost and remaining up
Guidelines for Implementation of Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) to 30% of the cost as loan. In case the State
Scheme: --- Government provides subsidy more than 30%, the
1. Background: The new Scheme has provision for the decentralised renewable energy plants, Solar agriculture water beneficiary share will reduce accordingly.
pumps and solarisation of existing Grid connected Agriculture pumps.
2. Approval of the New Scheme for Farmers: The Government of India has launched New Scheme for Farmers with However, in North Eastern States, Sikkim, Jammu &
following components: Components A, B & C. Kashmir, Himachal Pradesh and Uttarakhand,
3. Component B: Installation of 17.50 Lakh Stand-alone Solar Pumps: --- Under this Component, individual farmers will Lakshadweep and A&N Islands, CFA of 50% of the
be supported to install standalone solar Agriculture pumps of capacity up to 7.5 HP for replacement of existing diesel benchmark cost or the tender cost, whichever is
Agriculture pumps/irrigation systems in off-grid areas, where grid supply is not available. Installation of new pumps shall lower, of the solar PV component will be provided.
also be permitted under this scheme except in dark zone areas. The State Government will give a subsidy of 30%;
and the remaining 20% will be provided by the
CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar Agriculture pump farmer. Bank finance may be made available for
will be provided. The State Government will give a subsidy of 30%; and the remaining 40% will be provided by the farmer's contribution, so that farmer has to initially
farmer. Bank finance may be made available for farmer's contribution, so that farmer has to initially pay only 10% of the pay only 10% of the cost and remaining up to 10% of
cost and remaining up to 30% of the cost as loan. In case the State Government provides subsidy more than 30%, the the cost as loan. In case the State Government
beneficiary share will reduce accordingly. provides subsidy more than 30%, the beneficiary
However, in North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and share will reduce accordingly.
A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar pump
will be provided. The State Government will give a subsidy of 30%; and the remaining 20% will be provided by the This component will be applicable to farmers already
farmer. Bank finance may be made available for farmer's contribution, so that farmer has to initially pay only 10% of connected to grid.
the cost and remaining up to 10% of the cost as loan. In case the State Government provides subsidy more than 30%,
the beneficiary share will reduce accordingly.
Strictly Confidential :: For Internal Circulation Only

Page 55 of 77
 65. PM KUSUM (Component A): Setting Up of 10,000 Mw of Decentralized Ground/Stilt Mounted Grid Connected Solar Or
Other Renewable Energy Based Power Plants (PS: 31/09.04.2021, AGRI: 14/23.03.2022)
Government of India has launched various schemes to encourage generation of solar power in the country. 8. Collateral Security:
The captioned scheme has been launched with an objective of increasing farmers’ income, providing reliable a) Advance shall be covered by collaterals covering at
energy source for irrigation and de-dieselizing the farm sector. least 30% of the exposure (FB+NFB).
PM KUSUM COMPONENTS: The scheme has the following three components: Component A, B & C. b) However, possibility should be explored to obtain
charge on moveable/immovable assets of the party/EM
Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan (PM KUSUM) Scheme (Component A): of IPs belonging to promoters/family members and
Setting Up of 10,000 MW of Decentralized Ground/Stilt Mounted Grid Connected Solar Or Other guarantors etc.
Renewable Energy Based Power Plants: --- The Government has also set an ambitious target of doubling of c) Similarly, Pledge of fixed deposits receipts, third-
farmers’ income by the year 2022. In the above backdrop, Pradhan Mantri Kisan Urja Suraksha evam party deposits and/or assignment of LIC policy of the
Utthaan Mahabhiyan (PM-KUSUM) scheme was initiated by Government of India to increase the income of individual/promoters, pledge of promoters’ share etc.
farmers as well as provide source for irrigation and de-dieselize the farm sector. may be considered. Corporate guarantee of other
1. Purpose and Extent of finance: promoter companies/personal guarantee of promoters
a) Need based facility for setting up of solar power plant/procuring necessary gadgets which are the main cost may be accepted.
involved may be considered. d) Particulars of charge be filed with the Registrar of
b) The amount of loan should be within the prudential/internal ceiling prescribed by RBI/bank for individual Companies within the stipulated period.
and group exposure. 9. Loaning Powers: Not below the level of ZOCAC-I
c) Nature of finance shall mainly be by way of term loan. However, working capital facility and non- fund within their vested loaning power.
based facility may be considered depending upon the genuine credit requirement of the borrower.
10. Bank Guarantees:
2. Project Capacity & location: a) Under Component A of PM KUSUM, solar or other renewable energy based a) The RPG shall provide the Bank Guarantees to
power plants (REPP) of capacity 500 kW to 2 MW will be setup by the eligible entities. DISCOM.
b) States/DISCOMs may allow setting-up of solar or other renewable energy based power plants of capacity
less than 500 kW in specific cases. NOTE: This Performance Bank Guarantees will be
considered as a part of project cost but will not be a
3. Eligibility: Individual farmers/group of farmers/cooperatives/panchayats/Farmer Producer Organizations part of Bank finance.
(FPO)/Water User associations (WUA) hereinafter called Renewable Power Generator (RPG).
11. Loan Tenure:
4. Margin (Term Loan): Standalone units/allied activity. Min. 30% a) Solar projects, once installed, provide a secure,
5. Nature of Facility: Term Loan. Non Fund Based Limits & Working Capital Facility (As Per the Requirement of reliable return on investment. This is due to the fact
Project). that the life of implements typically lasts for 25 to 40
years whereas payback ranges between 8 to 12 years.
6. Due Diligence: TEV study is required for cases with project cost above Rs.10 crores.
b) In order to provide desired impetus to the sector,
7. Security: a) Hypothecation of assets including book debts.
repayment period of 10 to 15 years including
b) Unconditional power purchase agreement should be in place.
moratorium of 6 to 9 months, depending upon the cash
c) An undertaking may be obtained from the agency which releases subsidies, to the effect that the amount of
generation capacity and the obsolescence of
subsidy shall be directly sent to Bank.
technology.
d) In case of the borrower being a Company, particulars of charge in respect of hypothecation of assets and
book debts be filed in time with Registrar of Companies. c) MC/HOCAC-III is empowered to consider sanction of
e) Charge on borrower’s bank accounts, including but not limited to Escrow account, where all cash flows Term Loan beyond 15 years.
from the project shall be deposited and all proceeds shall be utilized in a manner and priority as decided by
the lender(s).
Strictly Confidential :: For Internal Circulation Only
Page 56 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
66. Lead Bank Scheme (AGRI: 33/17.05.2022)
1. Introduction: i) The genesis of the Lead Bank Scheme (LBS) can be traced to the Study 2.2.3 Role of LDMs: As the effectiveness of the Lead Bank Scheme depends on the
Group headed by Prof. D. R. Gadgil (Gadgil Study Group), which submitted its report in dynamism of the District Collectors and the LDMs, with supportive role of the
October 1969. The Study Group drew attention to the fact that commercial banks did not Regional/Zonal Office.
have adequate presence in rural areas and also lacked the required rural orientation. The 2.2.4 District Level Review Committee (DLRC) Meetings: DLRC meetings are
Study Group, therefore, recommended the adoption of an 'Area Approach' to evolve Chaired by the District Collector and attended by members of the District
plans and programmes for the development of an adequate banking and credit structure Consultative Committee (DCC). Public Representatives i.e. Local MPs/MLAs/Zilla
in the rural areas. Parishad Chiefs are also invited to these meetings. The DLRC meetings should be
ii) A Committee of Bankers on Branch Expansion Programme of Public Sector Banks convened by the Lead Banks at least once in a quarter.
appointed by the RBI under the Chairmanship of Shri F. K. F. Nariman (Nariman
2.3 State Level Bankers’ Committee (SLBC):
Committee) endorsed the idea of an ‘Area Approach’ in its report (November 1969),
2.3.1 Constitution of SLBC: The SLBC was constituted in April 1977, as an apex
recommending that in order to enable the Public Sector Banks to discharge their social
inter-institutional forum to create adequate coordination machinery in all States,
responsibilities, each bank should concentrate on certain districts where it should act as a
on a uniform basis for development of the State. SLBC is chaired by the
'Lead Bank'.
Chairman/MD/ED of the Convenor Bank. It comprises representatives of
iii) Pursuant to the above recommendations, the Lead Bank Scheme was introduced by
commercial banks including Small Finance Banks, Wholly Owned Subsidiaries (WOS)
the RBI in December 1969.
of Foreign Banks, RRBs, Payments Banks, State Cooperative Banks, RBI, NABARD,
iv) In view of the several changes that had taken place in the financial sector, the Lead
heads of Government departments including representatives from National
Bank Scheme was last reviewed by the High Level Committee headed by Smt. Usha
Commission for Scheduled Castes/Tribes, National Horticulture Board, Khadi &
Thorat, the then Deputy Governor of the Reserve Bank of India in 2009.
Village Industries Commission etc. and representatives of financial institutions
v) Envisaging greater role for private sector banks, Lead Banks were advised to ensure that
operating in a State, who come together and sort out coordination problems at the
private sector banks are more closely involved in the implementation of the Lead Bank
policy implementation level.
Scheme.
2.3.2 Conduct of SLBC Meetings:
2. Fora under Lead Bank Scheme:
i) SLBC meetings are required to be held regularly at quarterly intervals. The
2.1 Block Level Bankers’ Committee (BLBC): BLBC is a forum for achieving coordination
meetings are chaired by the Chairman/MD/ED of the Convenor Bank and co-
between credit institutions and field level development agencies at the block level. The
chaired by the Additional Chief Secretary or Development Commissioner of the
forum prepares and reviews the implementation of the Block Credit Plan. The LDM of the
State concerned. In cases where the MD/CEO/ED of the SLBC Convenor Bank is
district is the Chairman of the BLBC.
unable to attend SLBC Meetings, the Regional Director of the RBI shall co-chair
All the banks operating in the block including the Small Finance Banks, Wholly Owned
the meetings along with the Additional Chief Secretary/Development
Subsidiaries (WOS) of Foreign Banks, RRBs, the District Central Co-operative Banks, Block
Commissioner of the State concerned.
Development Officer, technical officers in the block, such as extension officers for
agriculture, industries and co-operatives are members of the Committee. ii) The CM/Finance Minister and senior level officers of the State/RBI (of the rank
BLBC meetings are held at quarterly intervals. of Deputy Governor/ED) may be invited to attend the SLBC meetings. Further, the
State Chief Ministers are encouraged to attend at least one SLBC meeting in a year.
2.2 District Consultative Committee (DCC):
2.2.1 Constitution of DCC: The District Collector is the Chairman of the DCC meetings. 3. Implementation of Lead Bank Scheme:
RBI, NABARD, all the commercial banks including Small Finance Banks, Wholly Owned i) Preparation of credit plans:
Subsidiaries (WOS) of Foreign Banks, RRBs, Payments Banks, Co-operative banks including ii) Monitoring the Performance of Credit Plans:
the District Central Cooperative Bank (DCCB), various State Government departments and At Block Level: Block Level Bankers’ Committee (BLBC)
allied agencies are the members of the DCC. The Lead District Officer (LDO) represents At District Level: District Consultative Committee (DCC) & District Level Review
the Reserve Bank as a member of the DCC. The LDM convenes the DCC meetings. Committee (DLRC)
2.2.2 Conduct of DCC Meetings: DCC meetings should be convened by the Lead Banks at At State Level: State Level Bankers’ Committee (SLBC)
quarterly intervals.
Page 57 of 77
4. Assignment of Lead Bank Responsibility:
i) Lead Bank Scheme is administered by the RBI since 1969. The assignment of Lead Bank
responsibility to designated banks in every district is done by the RBI. As on March 31,
2021, 12 public sector banks and 1 private sector bank have been assigned Lead Bank
responsibility in 730 districts of the country.
ii) SLBC/Union Territory Level Bankers' Committee (UTLBC), as an apex level forum at the
State/Union Territory (UT) level, coordinates the activities of the financial institutions and
Government departments in the State/Union Territory under the Lead Bank Scheme.
SLBC/UTLBC Convenorship is assigned to banks for this purpose. As on March 31, 2021,
the SLBC/UTLBC convenorship of 28 States and 8 Union Territories has been assigned to
11 public sector banks and 1 private sector bank.
iii) The Lead Bank Scheme (LBS) has been extended to the districts in the metropolitan
areas, thus bringing the entire country under the fold of the Lead Bank Scheme.
5. Banking Penetration:
i) Over the years, the focus of the Lead Bank Scheme has shifted to inclusive growth and
financial inclusion. The use of IT and intermediaries has enabled banks to increase the
outreach, scale and depth of banking services at affordable cost.
ii) SLBC Convenor Banks/Lead Banks are advised to focus attention for achieving 100%
financial inclusion through penetration of banking services in the rural areas.
5.1 Roadmap for providing banking services in unbanked villages: In November 2009, a
roadmap to provide banking services in villages with population more than 2000 was
rolled out. All the identified villages have been provided with banking services through
branches, business correspondents or through other modes such as ATMs and mobile
vans. Later, in June 2012, a roadmap to provide banking services in unbanked villages
with less than 2,000 populations were rolled out. SLBC Convenor Banks and Lead Banks
were advised to complete the process of providing banking services in unbanked villages
with population below 2000 by August 14, 2015.
5.2 Roadmap for opening brick and mortar branches in villages with population more
than 5000 without a bank branch of a scheduled commercial bank: As brick & mortar
branches are an integral component of financial inclusion, it was decided to focus on
villages with population above 5000 without a bank branch of a scheduled commercial
bank.
5.3 Aligning roadmap for unbanked villages having population more than 5000 with
revised Guidelines on Branch Authorization Policy:
i) SLBC Convenor Banks have been advised to identify all unbanked rural centres (URCs) in
the State, compile and maintain an updated list of all such centres to facilitate banks to
choose/indicate the place/centre where they wish to open a ‘banking outlet’.
ii) Further, SLBC Convenor Banks have been advised that in order to comply with the
criteria of opening at least 25% of the total banking outlets in unbanked rural centres in iii) Banks are also advised to submit information/data to all Credit Information Companies
Tier 5 & 6 centres, banks should give priority to villages without a banking outlet having (CICs), as required in terms of extant instructions issued by RBI.
population more than 5000 (i.e. Tier 5 centres) and ensure that all such villages under
their jurisdiction are covered with a CBS-enabled Banking Outlet.
5.4 National Strategy for Financial Inclusion (NSFI): 2019-2024:
Universal Access to Financial Services Providing banking access to every village within a 5
KM radius/hamlet of 500 households in hilly areas has been one of the key objectives of
the National Strategy for Financial Inclusion (NSFI): 2019-2024. Page 58 of 77will endeavor to make the district 100% digitally enabled within one year.
6. Credit Deposit Ratio (CD Ratio):
6.1 CD Ratio of Banks in Rural and Semi-Urban Areas:
Banks have been advised to achieve a CD Ratio of 60% in respect of their rural & semi-urban
branches separately on an All-India basis. While it is not necessary that this ratio should be
achieved separately, branch-wise, district-wise or region-wise, the banks should,
nevertheless, ensure that wide disparity in the ratios between different States/Regions is
avoided in order to minimize regional imbalance in credit deployment.
7. Direct Benefit Transfer: DBT was rolled out by the Government of India in selected
districts in January 2013 and was expanded to other districts subsequently. SLBC Convenor
Banks were advised to co-ordinate with the Government authorities to implement DBT.
8. Service Area Approach (SAA):
i) The Service Area Approach (SAA), introduced in April 1989 for planned and orderly
development of rural and semi-urban areas was applicable to all scheduled commercial
banks including Regional Rural Banks. Under SAA, each bank branch in a rural or semi-urban
area was designated to serve an area of 15 to 25 villages and the branch was responsible for
meeting the needs of bank credit of its service area.
ii) The SAA scheme was reviewed in December 2004 and it was decided to dispense with
the restrictive provisions of the scheme while retaining the positive features of the SAA such
as credit planning and monitoring of the credit purveyance. Accordingly, under SAA, the
allocation of villages among the rural & semi-urban branches of banks were made not
applicable for lending except under Government Sponsored Schemes. Thus, while the
commercial banks & RRBs are free to lend in any rural & semi-urban area, the borrowers
have the choice of approaching any branch for their credit requirements.
8.1 Dispensing with ‘No Due Certificate’:
i) In order to ensure hassle free credit to all borrowers, especially in rural and semi-urban
areas and keeping in view the technological developments and the different ways available
with banks to avoid multiple financing, banks have been advised to dispense with obtaining
a ‘No Due Certificate’ from the individual borrowers (including SHGs & JLGs) in rural and
semi-urban areas for all types of loans including loans under Government Sponsored
Schemes, irrespective of the amount involved unless the Government Sponsored Scheme
itself provides for obtention of a ‘No Due Certificate’.
Further, it has been clarified that the policy of dispensing with a ‘No Due Certificate’ for
lending by banks is also applicable to urban areas including metropolitan cities.
ii) Banks are encouraged to use an alternative framework of due diligence as part of the
credit appraisal exercise other than the ‘No Due Certificate’:---
• Credit history check through Credit Information Companies (CICs)
• Self-declaration or an affidavit from the borrower, • CERSAI registration
• Peer monitoring, • Information sharing among lenders.
• Information search (writing to other lenders with an auto deadline)
9. Doubling of Farmers’ Income by 2022: The GOI, in the Union Budget 2016-17, had
announced its resolve to double the income of farmers by 2022.
10. Expanding and Deepening of Digital Payments Ecosystem:
With a view to expanding and deepening the digital payments ecosystem, the SLBCs/UTLBCs
were advised to identify one district in their respective States/UTs on a pilot basis in
consultation with banks and stakeholders and allocate it to a bank with significant footprint
which
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
67. PM Formalization of Micro Food Processing Enterprises Scheme (PM FME SCHEME)
(PS: 59/24.08.2020, AGRI: 05/01.02.2022, AGRI: 43/22.08.2022)
1. Introduction: Taking cognizance of the contribution and the
challenges that impede the unorganized sector of the Food
Processing Industry, the Ministry of Food Processing Industries
(MoFPI) has implemented “PM Formalization of Micro food
processing Enterprises Scheme (PM FME Scheme)”. The scheme
envisages an outlay of Rs. 10,000 crores over a period of 5 years
from 2020-21 to 2024-25. Scheme adopts One District One
Product (ODOP) approach. Under the scheme, 2 Lac micro food
processing units will be directly assisted with credit linked
subsidy.
PM Formalization of Micro food processing Enterprises Scheme
(PM FME Scheme):
1. Aims: To enhance the competitiveness of existing individual
micro enterprises in the unorganized segment of the food
processing industry and promote formalization of the sector;
2. Objective: To build capability of microenterprises to enable:
a. Increased access to credit by existing micro food processing
entrepreneurs, FPOs, Self Help Groups and Co-operatives;
b. Integration with organized supply chain by strengthening
branding & marketing;
c. Support for transition of existing 2 Lac enterprises into formal produce and testing laboratories.
framework;
3. Program Components: The program has 4 broad
components:
a. Support to individual and groups of micro enterprises; b.
Branding and Marketing support; c. Support for strengthening of
institutions; d. Setting up robust project management
framework.
4. One District One Product (ODOP): The Scheme adopts ODOP
approach to reap the benefit of scale in terms of procurement of
inputs, availing common services and marketing of products. The
States would identify the food product for a district, keeping in
perspective the focus of the scheme on perishables. The ODOP
product could be a perishable agri produce, cereal based
product or a food product widely produced in a district.
5. Support to individual micro enterprises: Individual micro food
processing units would be provided credit-linked capital subsidy
@35% of the eligible project cost with a maximum ceiling of
Rs.10 Lacs per unit. Beneficiary contribution should be minimum
10% of the project cost with balance being loan from Bank.
6. Rejection:
Sanctioning Authority Authority for Rejection
GBBs After taking prior permission from CO
RAM/iRAM/MCC After taking prior permission from ZO
Eligibility criteria for individual micro enterprises under the scheme:
a. Existing micro food processing units in operations;
b. Existing units should be those identified in the State Level Upgradation Plan (SLUP) for ODOP products.
c. The enterprise should be unincorporated and should employ less than 10 workers.
d. The enterprise should preferably be involved in the product identified in the ODOP of the district.
f. Ownership status of enterprise could be proprietary/partnership firm.
g. The individual applicant should be above 18 years of age. No minimum educational qualification is required.
h. Only one person from one family would be eligible for obtaining financial assistance. The “family” for this purpose would
include self, spouse and children.
i. Willingness to formalize and contribute 10% of project cost and obtain Bank loan.
j. Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental work shed
could be included in the project cost. Lease rental of work shed to be included in the project cost should be for a maximum
period of 3 years only.
k. Individual micro food processing units would be provided credit-linked capital subsidy @35% of the eligible project cost
with a maximum ceiling of Rs.10 Lakh per unit. Eligible project cost comprises cost of plant & machinery and technical civil
work, but excludes cost of land/ rental or lease work shed. However, technical civil work should not be more than 30% of the
eligible project cost.
L. Beneficiary contribution should be minimum of 10% of the project cost with balance required fund being loan from Bank.
Support to Group Category: The Scheme would support clusters and groups such as FPOs/SHGs/producer cooperatives along
their entire value chain for sorting, grading, assaying, storage, common processing, packaging, marketing, processing of agri-
a. Farmer Producer Organizations (FPOs)/Producer Cooperatives would get following support:
 Grant @35% with credit linkage;  Training support;
b. Self Help Groups (SHGs) undertaking food processing activities would be provided following support:
 Seed capital: (i) Seed capital @ Rs. 40,000/- per member of SHG for working capital and purchase of small tools would be
provided under the scheme. (ii) Priority would be given for SHGs involved in ODOP.
 Support to individual SHG member as a single unit of food processing industry with credit linked grant @35% with maximum
amount being Rs. 10 lakhs.
 Support for capital investment at federation of SHG level, with credit linked grant @35%.
Credit Linkage and Disbursement of loan:
a. The credit linked grant would be transferred to the lending bank after sanction of loan by the bank.
b. The bank sanctioning the loan would open a mirror account in the name of the beneficiary. The lending bank would report
the fact of sanction of loan to the Nodal Bank at the national level.
c. After receipt of this information, Central and State Government should respectively transfer 60% and 40% of its share of
grant to the Nodal Bank. The Nodal Bank would transfer 60% of the Central share of the grant and 40% of the State share of
the grant together to the concerned lending Bank branch.
d. If after a period of 3 years from the disbursement of last tranche of the loan, the beneficiary account is still standard, and the
unit is operational, this grant amount would be adjusted in the bank account of the beneficiary. e. If the a/c becomes NPA
prior to 3 years from the date of disbursement of the loan, the grant amount would be returned. f. If the grant amount is
adjusted after 3 years against the loan amt in case of standard account, no interest would be payable by the borrower on the
portion of the loan disbursed by the Bank equal to the grant amount from the date of receipt of the grant amount by the
lending bank.
Credit Guarantee & Interest Subvention: a. Benefit of credit guarantee coverage for loans offered under this Scheme should
be provided to the borrower under the CGTMSE through NCGTC. b. Interest subvention of 2% under the Interest Subvention
Scheme for incremental credit
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ofMSMEs
77 would also be available to the borrowers on the o/s balance.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
68. Central Sector Schemes of financing facility under Animal Husbandry Infrastructure Development Fund (AHIDF)
(PS: 60/24.08.2020, PS: 61/29.08.2020, PS: 68/17.09.2020)
1. Background: The Animal Husbandry Infrastructure Development Fund (AHIDF) is a Central Sector
Scheme, with budget allocation of Rs.15000 crores, under the Prime Minister’s Atma Nirbhar Bharat
Abhiyan stimulus package for incentivizing investments under: (i) Dairy processing and value addition
infrastructure, (ii) Meat processing and value addition infrastructure and (iii) Animal Feed Plant.
2. Activities eligible for availing benefits under AHIDF:
The list of eligible activities under the scheme are:
a. Dairy Processing, b. Value added dairy product manufacturing,
c. Meat processing and Value addition of facilities
d. Animal Feed manufacturing and strengthening of existing units/plant.
3. Objective: a. To help increasing of milk and meat processing capacity and product diversification
thereby providing greater access for unorganized rural milk and meat producers to organized milk
and meat market. b. To make available increased price realization for the producer. c. To make
available quality milk and meat products for the domestic consumer. d. To fulfill the objective of
protein enriched quality food requirement of the growing population of the country and prevent
malnutrition. e. Develop entrepreneurship and generate employment. f. To promote exports and
increase the export contribution in the milk and meat sector. g. To make available quality
concentrated animals feed to the cattle, buffalo, sheep, goat, pig and poultry to provide balanced
ration at affordable prices.
4. Eligible Beneficiaries: The following entities will be eligible under AHIDF: (i) Farmer Producer
Organization (FPO) (ii) Private companies (iii) Individual entrepreneurs (iv) Section 8 companies (v)
Micro Small and Medium Enterprises. Government entities and cooperatives are not eligible under
AHIDF.
5. Implementing Agency: Department of Animal Husbandry and Dairying, Ministry of Fisheries,
Animal Husbandry and Dairying, GOI.
6. Quantum of Loan: Need based as per the total financial outlay of the project. The project under
the AHIDF shall be eligible for maximum loan up to 90% of the estimated/ actual project cost from
the Scheduled Bank based on submission of viable projects by eligible beneficiaries.
7. Nature of loan: a. Term loan: Need Based, b. Working Capital: Need based.
8. Margin: Micro & Small Enterprises (as per MSME defined ceiling): 10%
Medium Enterprises (as per MSME defined ceiling): 15%, Others: 25%
9. Rate of Interest: a. Projects whose cost falls within MSME defined ceilings: RLLR+2%,
b. Other projects: as per ANNEXURE 1 of PS: Cir: 60/24.08.2020.
10. Servicing of Interest: Interest to be serviced as and when due. Repayment shall be
made as per terms of sanction.
11. Repayment: a. Maximum Repayment is period 8 years inclusive of moratorium of 2
years on principal amount. b. The repayment period may be decided depending on the
size and viability of project. c. Maximum repayment period will not exceed 10 years from
the date of first disbursement inclusive of moratorium of 2 years on repayment of
principal in cases where cost escalation has occurred and the same has been financed by
the bank.
12. Interest Subvention: 3% for all eligible entities (EEs). There is no ceiling of amount of
Interest Subvention. The subvention will be provided on total loan amount.
13. Credit Guarantee Fund: Credit guarantee will be made available by NABARD.
a. Credit Guarantee Fund of Rs. 750 Cr will be established and the same will be managed
by NABARD.
b. Credit guarantee will be provided only for those projects which are viable and are
covered under MSME defined ceilings.
c. The guarantee coverage would be up to 25% of the credit facility available to the
borrower.
14. Collateral Security: Collateral Security be obtained as per Bank’s extant guidelines.
15. Classification: Loans for Food and Agro-processing up to an aggregate sanctioned limit
of ₹100 crore per borrower from the banking system would form part of lending under
Agriculture.

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 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
69. Agriculture Infrastructure Fund (AIF) (AGRI: 37/27.06.2022)
1. Background: GOI has launched a new Central Sector Scheme titled “Financing Facility 9. Credit Guarantee:
under Agriculture Infrastructure Fund” on pan India basis. Agriculture and allied activities ✓ Credit guarantee coverage will be available for eligible borrowers from this financing facility
are the primary source of income for approx 58% of total population of the country. under CGTMSE scheme for a loan up to ₹ 2 crores.
✓ The fee for this coverage will be paid by the Govt.
2. Implementation Period: The Scheme will be operational from 2020-21 to 2032-33.
✓ In case of FPOs the credit guarantee may be availed from the facility created under FPO
3. Objective of Scheme: To mobilize a medium-long term debt finances facility for post- promotion scheme of DA&FW. However, FPOs are also eligible for reimbursement of credit
harvest management infrastructure and community farming assets through incentives and guarantee fee under AIF.
financial support in order to improve agriculture infrastructure in the country.
10. Public Financial Management System (PFMS):
3. Eligible Beneficiaries: PACS, Marketing Cooperative Societies, Farmer Producers i. Interest subvention and credit guarantee support will be released to Banks and lending
Organizations (FPOs), SHGs, JLGs, Farmers, Multi-Purpose Cooperative Societies, Agri- institutions through PFMS.
entrepreneurs, Start-Ups and central/state agency or local body sponsored Public Private ii. Disbursal of funds by lending entities to beneficiaries under this scheme shall be in Aadhaar
Partnership Projects; APMC, State Agencies, National & State Federations of Cooperatives, linked bank account.
Federations of FPO, Federations of SHGs.
11. Repayment period: The loan is to be repaid within a maximum period of 8-10 years inclusive of
4. Extent of Loan: Need based. Limit will be decided on the basis of project cost and total moratorium period of 6 months to 2 years, depending upon the total financial outlay of the project.
financial outlay of the project.
12. Security: Collateral Security:
5. Nature of facility: Term Loan. 1. Availability of CGTMSE Coverage:
6. Rate of Interest: a. Upto a limit of Rs. 2 Cr: MCLR (6 Months) + 1% (Max. 9%), b. More a. Loan amount up to Rs. 2 Crore:
than Rs. 2 Cr: Linked to ERR & IRR ✓ Loans up to Rs. 2 Crore which are eligible for coverage under Credit Guarantee Scheme of
CGTMSE are to be considered on merits without accepting any collateral security/third party
7. Interest Subvention: guarantee and for all such cases coverage under guarantee scheme of CGTMSE must be
✓ All loans under this financing facility will have interest subvention of 3% per annum obtained.
up to a limit of ₹ 2 crores. ✓ For loans up to Rs. 2 Cr, which are not eligible for coverage under CGTMSE, Collateral is to be
✓ This subvention will be available for a maximum period of 7 years. obtained in terms of Bank’s extant guidelines.
✓ In case of loans beyond ₹ 2 crores, then interest subvention will be limited up to ₹ 2 b. Loan amount above Rs. 2 Crore: Collateral security is to be obtained as per Bank’s extant
crore. guidelines.
8. Number of Projects per entity eligible under the scheme: 13. Margin Norms: Limit upto {Margin (% of Project cost)}
i. Interest subvention for a loan upto₹ 2 crores in one location is eligible under the scheme. Up to Rs. 2.00 Cr: 10%, >2 Cr to 10 Cr: 15%, >10 Cr: 25%
Multiple projects in one location are also eligible with an overall cap of Rs. 2 crores. ln case,
one eligible entity puts up projects in different locations then all such projects will be eligible 14. Sector Specific Focus:
under the scheme for loan upto ₹ 2 crore. ✓ 24% of total grants-in-aid under the scheme should be utilized for SC/ST entrepreneurs (16%
for SC and 8% for ST).
However, for a private sector entity, such as farmer, agri entrepreneur, start-up there will be
✓ Besides this, lending institutions would ensure adequate coverage of entrepreneurs belonging
a limit of maximum of 25 such projects. This limitation of 25 projects will not be applicable
to women and other weaker segments of society may be provided loan on priority basis.
to state agencies, cooperatives, national and state federations of cooperatives, FPOs,
federations of FPOs, SHGs and federation of SHGs. Location will mean physical boundary of 15. Classification:
a village or town having a distinct LGD (Local Government Directory) code. Each of such ✓ Loans for construction of storage facilities (warehouse, market yards, godowns and silos)
project should be in a location having a separate LGD (Local Government Directory) Code. including cold storage units/cold storage chains designed to store agriculture
produce/products, irrespective of their location with an aggregate sanctioned limit of ₹100
ii. For APMCS, multiple projects of different infrastructure types can be sanctioned in its
crores per borrower from the banking system shall be eligible for classification under
designated market area. ln such cases, interest subvention for a loan upto₹ 2 Crore will be
Agriculture: Agriculture Infrastructure.
provided for each project of different infrastructure types e.g. cold storage, sorting, grading
✓ Other advances will be classified in MSME in terms of the Reserve Bank of India guidelines.
and assaying units, silos, etc. within the designated market area of the APMC.

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 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
70. Project for Digitization of SHGS – ESHAKTI (PS: 71/28.12.2018, PS: 02/01.02.2019)
1. Introduction: Eshakti, launched by NABARD in the Year 2015, is a strategic 3. Secured digital data of SHGs: The USP of the EShakti project is ‘one-click’ availability of
step towards leveraging SHGs for easy access to affordable credit by the Poor the social and financial information of the Self Help Groups maintaining Saving Bank
through the medium of technology. It has proved to be an important digitization accounts with the banks. The project has a dedicated website https://eshakti.nabard.org, in
initiative and mechanism in bridging the gap between the saving linked and credit which information of the SHGs is uploaded monthly through an ‘App’, loaded on android
linked SHGs. EShakti or Digitization of SHGs is an initiative of Micro Credit and based Mobile/Tablet by the animators engaged by implementing agencies viz. NGOs and
Innovations Department of NABARD. Digital India is to "transform India into select SRLMs.
digital empowered society and knowledge economy". Keeping in view the 4. Salient features of Eshakti: Some of the salient features of EShakti are as under:
Government of India's mission for creating a digital India, NABARD launched a i) SHGs: a. Credit history of SHG members, b. E-book keeping of financial transactions
project for digitization of all SHG in the country. The project is being implemented and non-financial operations for the SHGs, c. Transparency on working of SHGs
in 100 districts across the country. d. SMS alerts to all SHG members on transactions, e. Generation of monthly balance
2. Access and use by banks: As you are aware, EShakti, pilot project for sheets for each SHG and providing a printed copy to them.
digitisation of SHGs was launched by NABARD in the year 2015 in two districts and ii) Banks and others: a. Access control by User ID and Password for Banks, b. Customized
later expanded to 100 districts across the country during 2016 and 2017. It aims Menu depending on User Access, c. Dynamic grading of SHGs, d. System generated Loan
at digitisation of data of all SHGs for enhancing the ease of doing business with Applications for the bankers, e. Credit history of SHG members, f. SHG Savings reports,
SHGs. This is also in line with Government of India’s “Digital India” mission. g. Branch wise list of non-credit linked SHGs for easy monitoring by controlling offices.

71. Farmer’s Club Programme (PS: 10/23.01.2009)

Highlights of the New NABARD Policy for extending support for Farmers’ Club 8. Sustainability of Farmers’ Clubs may be ensured through creation of a corpus at the club
Programme: level through measures such as the following: ---
1. The new policy will cover all existing and new clubs and become operative -- Token membership fee (to be decided by club members)
from 01.07.2008. It will also supersede all previous instructions on the -- Monthly savings (to be decided by club members)
programme. -- Service charges for SHG/JLG loans recommended to banks @ 0.5% and 1%.
2. All institutional agencies (Commercial Banks, Cooperative Banks and Regional -- Commission for selling insurance products.
Rural Banks) and all grass root level organizations (NGOs, -- Incentive/commission for acting as “Business Facilitators” for banks.
PRIs, State Agricultural Universities, KVKs, ATMA, Post Offices, etc.) are eligible to -- Any other charges for services provided to other agencies like Govt, corporate bodies, etc.
form Farmers’ Clubs. Such steps/measures will make the Farmers’ Clubs self-sustaining over a period of 3-5 years,
when funding support by institutional agencies is withdrawn.
3. NABARD assistance to all agencies will uniformly be @Rs. 10,000/- per club
per annum for a period of 3 years irrespective of whether they are institutional In view of the utility of Farmers’ Clubs to our Bank, the Circe Heads have been
or other agencies and also the region concerned. empowered to permit branches to incur the expenses, as under: ---
4. Assistance exceeding Rs. 10,000/- may be met by the bank with maximum of i) Upto maximum of Rs.5000/- per farmer club per annum during the first 3 years of the
Rs 5000/- per annum during the first three years. formation of the Club. This will be over and above the Rs. 10,000/- per farmer club per
annum to be provided by NABARD as assistance.
5. Bank will provide assistance to the Farmers’ Clubs upto maximum of Rs
10000/- per year during 4th & 5th year of formation of the club. ii) Upto maximum of Rs 10,000/- per Farmer Club per annum for the 4th & 5th year of their
formation when no assistance from NABARD will be available. After 5th year, the funding
6. NABARD will release the assistance of Rs. 10,000/- in two instalments (50% by support from the Bank will be withdrawn and all the expenses will be borne by the Club
way of release in advance and the remaining 50% by way of reimbursement). itself.
7. There is no restriction on number of clubs to be formed by various agencies.
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 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
72. Job Chart and Roles & Responsibilities of AOs (PS: 64/30.08.2021)
1. The primary responsibility of Agriculture The roles and responsibilities of Agriculture Officers are outlined as under:
Officers is to boost the agriculture credit 1) Identification of borrowers, canvassing and procurement of agriculture loan applications along with collaborating with
portfolio of bank by generating quality leads other agricultural developmental agencies for joint identification of agricultural borrowers under project lending.
for branches as well as PLPs/MCCs and to 2) Convening the Kisan Gosthies, Agriculture Credit Camp/Mela, formation of Farmers club to make our Bank the most
facilitate the banking finance to farming preferred bank among farming community as well as promote the digital platform for Agriculture loan products through
community at large. various channels.
As per existing guidelines, KCC including 3) To drive the various schemes launched by the State and Central government under Agriculture and to generate fresh
working capital for animal husbandry & business from various tie ups and execution of tie ups by liaison with representative of agencies.
Fisheries, Kisan Gold Scheme and Self Help 4) To maintain close contact with the organizations of Government Departments in the area connected with Agriculture,
Group loans upto Rs. 10 Lac & loans upto Animal Husbandry, Poultry, Fisheries, Sericulture, Soil Conservation, Horticulture Extension, Irrigation, etc. to update the
Rs. 5 Lac under Agriculture advances technical know-how and the latest developments in the field for advance planning.
including Investment Credit may be 5) To promote and finance Self Help Groups (SHGs) & Joint Liability Groups (JLGs) on cluster basis for agriculture as well
considered as routine type of loans and as activities allied to agriculture and non-farm activities, FPO promotion & Credit linkage.
should be processed without the help of 6) To emphasize the Investment Credit portfolio which should be minimum 30% of total Priority Sector (Agriculture) by
Agriculture Officers. boosting finance under various Agri based Industries and Schemes.
7) To assist Branch Head in timely review and renewal of the KCC/KGS by inculcating the habit of timely repayment
2. Services of agriculture officers can be amongst the farmers.
utilized for processing of Agriculture loan 8) Pre sanction appraisal and post sanction follow up of agriculture loans falling under Agriculture (Priority Sector)
applications irrespective of loan amount guidelines and assist branches in end use verification, security checking periodically at intervals prescribed by HO and
wherever available. However the branches providing technical guidance to the borrowers for maintenance and utilization of the assets as per the scheme.
shall not keep routine type agriculture
proposals as mentioned above pending for All Agriculture Officers should submit their daily progress in the AOPMP portal w.r.t the Agriculture Lead Generated,
the want of appraisal by Agriculture Officers, Sanctioned and KCC Review/Renewal. Circle & Zonal Offices shall analyze & review the performance of AOs on daily and
where Agriculture Officers are not posted. cumulative basis.

73. Portal and Mobile App For Monitoring of Agriculture Officers (PS: 95/18.12.2020)
1. Background: Regular monitoring and mentoring of these officers is of paramount 3. Further, in order to capture the details of recommending officer, the
importance so as to improve their performance and to bring substantial improvement in PF no. of Recommending/Appraising/Agriculture Officer is to be
Agriculture portfolio. Earlier, Agriculture Officers Monthly Progress Report (AOMPR) portal entered in “Account Label Information” in “V Details” while opening
was being utilized to monitor the progress of Agriculture Officers on monthly basis. fresh agriculture loan account in CBS. Also, at the time of
However, facility to submit daily progress by AO was not available in this portal and hence aRenewal/Enhancement of loan (i.e., during HACLHM), PF no. of
new portal has been developed i.e., Agriculture Officers Progress Monitoring Portal Recommending/Appraising/Agriculture Officer is to be entered in
(AOPMP). Consequently, the AOMPR portal stands discontinued. “Sanction Ref.” field. It is also to be ensured that P.F. No. of
2. All Agriculture Officers (including AOs posted as Field Officers, Assessment Officers and Sanctioning Authority should come first followed by P.F. No. of the
Segment Heads in PLPs) should submit their daily progress in the AOPMP portal w.r.t the Recommending/Appraising/Agriculture Officer.
Agriculture Lead Generated, Sanctioned and KCC Review/Renewal. Circle & Zonal Offices shall 4. AO can login into the AOPMP portal using their PF no. as User ID and
analyze & review the performance of AOs on daily and cumulative basis. default password as pnb123*.

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 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
74. Master Circular – Credit Facilities To Minority Communities (AGRI: 46/22.08.2022)
1. Definition of Minority Communities: The following communities have been 4. Creation of Special Cell and Designating an Exclusive Officer:
notified as minority communities by the Government of India, Ministry of Minority a. Bank already has a cell in place to ensure smooth flow of credit to minority communities.
Affairs: Sikhs, Muslims, Christians, Zoroastrians, Buddhists, Jains. b. The Lead Bank in each of the minority concentration districts should have an officer who shall
b. In the case of a partnership firm, if the majority of the partners belong to one exclusively look after the problems regarding the credit flow to minority communities.
or the other of the specified minority communities, advances granted to such c. The designated officer should exclusively look after aspects relating to credit assistance to
partnership firms may be treated as advances granted to minority communities. minority communities in the concerned districts.
Further, if the majority beneficial ownership in a partnership firm belongs to the 5. Advances Under DRI Scheme: Loans under the DRI scheme may be routed through State
minority community, then such lending can be classified as advances to the Minority Finance/Development Corporation on the same terms & conditions as are applicable to
specified communities. loans routed through SC/ST Development Corporations, subject to the beneficiaries of the
c. A company has a separate legal entity and hence advances granted to it cannot Corporations meeting the eligibility criteria and other terms & conditions prescribed under the
be classified as advances to the specified minority communities. scheme. Proper maintenance of the register be ensured to evolve timely sanction and disbursement
of loan applications.
2. Government of India has also forwarded a list of 121 minority concentration
6. Monitoring: With a view to monitoring the performance of banks in providing credit to the
districts having at least 25% minority population, excluding those States/UTs
specified minority communities, data on credit assistance provided to members of minority
where minorities are in majority (J&K, Punjab, Meghalaya, Mizoram, Nagaland &
communities is furnished to RBI and to the GOI, Ministry of Finance and Ministry of Minority Affairs,
Lakshadweep). Accordingly, RBI has advised to specially monitor the credit flow to
on half yearly basis as at the end of March and September every year.
minorities in these 121 districts, ensuring that the minority communities receive a
fair and equitable portion of the credit within the overall target of the priority 7. Prime Minister’s 15 Point Programme For The Welfare Of Minorities:
sector. ✓ An important objective of the above Program is to ensure that an appropriate percentage of the
priority sector lending is targeted for the minority communities and that the benefits of various
3. Targets Under Minority Communities-Weaker Section: government sponsored schemes reach the under-privileged, which includes the disadvantaged
In terms of RBI’s extant guidelines on lending to priority sector, a target of 40% of sections of the minority communities.
Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance ✓ The New Program is implemented by the Central Ministries/Departments concerned through
Sheet Exposures (OBE), whichever is higher, as on March 31 of the previous year, State Governments/Union Territories and envisages location of certain proportion of
has been mandated for lending to the priority sector. Within this, a sub-target of development projects in minority concentration districts.
11.5% of ANBC or Credit Equivalent amount of OBE, whichever is higher, as on ✓ Accordingly, Bank is required to ensure that within the overall target for priority sector lending
March 31 of the previous year, has been mandated for FY: 2022-23 for lending to and the sub-target of 11.5% for the weaker sections for FY 2022-23, sufficient care is taken to
weaker sections which includes, among others, persons from minority ensure that minority communities also receive an equitable portion of the credit. LDM Offices
communities. to keep this requirement in view while preparing District Credit Plans.

Strictly Confidential :: For Internal Circulation Only

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 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
75. Master Circular – Credit Facilities to Scheduled Castes (SCs)/Scheduled Tribes (STs)
1. Planning Process:
➢ The District Level Consultative Committees formed under the Lead Bank Scheme should
continue to be the principal mechanism of co-ordination between banks and development
agencies in this regard.
➢ Liaison with the District Industries Centres, which have been set up in different districts for
promoting self-employment.
➢ At the block level, a certain weightage is to be given to SCs/STs in the planning process.
➢ Branches/PLPs/MCCs etc. should ensure that loans are sanctioned in time, are adequate and
production-oriented and that they generate incremental income to make them self-
liquidating.
➢ While 'adopting' villages for intensive lending, villages with sizeable population of SC/ST
communities may be specially chosen.
2. Role of Banks:
i) Branches should not insist on deposits while considering loan applications under Government
sponsored poverty alleviation schemes/self-employment programmes from borrowers
belonging to SCs/STs. It should also be ensured that applicable subsidy is not held back while
releasing the loan component till the full repayment of bank dues. Non-release of subsidy
upfront amounts to under-financing and hampers asset creation/income generation.
ii) The National Scheduled Tribes Finance & Development Corporation and National Scheduled
Castes Finance & Development Corporation have been set up under the administrative control of
Ministry of Tribal Affairs and Ministry of Social Justice & Empowerment, respectively.
iii) Loans sanctioned to State Sponsored Organizations for Scheduled Castes/ Scheduled Tribes
for the specific purpose of purchase and supply of inputs and/or the marketing of the outputs of
the beneficiaries of these organizations are eligible for priority sector classification.
iv) Rejection of SC/STs’ loan applications under government programmes should be done at the
next higher level instead of at the branch level and reasons of rejection should be clearly
indicated.
3. Role of SC/ST Development Corporations: The GOI has advised all State Govts that the SC/ST
Development Corporations can consider bankable schemes/proposals for bank finance.
4. Reservations for SC/ST Beneficiaries under Major Centrally Sponsored Schemes:
There are several major centrally sponsored schemes under which credit is provided by bank and
subsidy is received through Government Agencies. Under each of these, there is a significant
reservation/relaxation for the members of the SC/ST communities.
a. Deendayal Antyodaya Yojana - National Rural Livelihoods Mission: National Rural Livelihoods
Mission (DAY-NRLM) DAY-NRLM (previously known as NRLM) was launched by the Ministry of
Rural Development, GOI by restructuring the erstwhile Swarnajayanti Gram Swarozgar Yojana
(SGSY), effective from April 1, 2013. DAY-NRLM would ensure adequate coverage of vulnerable
sections of the society such that 50% of these beneficiaries are SC/STs.
b. Deendayal Antyodaya Yojana - National Urban Livelihoods Mission: The Ministry of Housing
and Urban Affairs (MoHUA), GOI, launched the DAY-NULM (previously known as NULM) by
restructuring the erstwhile Swarna Jayanti Shahari Rozgar Yojana (SJSRY), effective from
September 24, 2013. Under DAY-NULM, advances should be extended to SCs/STs to the extent of
their strength in the local population.
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(AGRI: 45/22.08.2022)
c. Differential Rate of Interest Scheme:
➢ Under the DRI Scheme, finance up to ₹15,000/- at a concessional rate of
interest of 4% p.a. to the weaker sections of the community for engaging in
productive and gainful activities.
➢ In order to ensure that persons belonging to SCs/STs also derive adequate
benefit under the DRI Scheme, RBI has advised to grant eligible borrowers
belonging to SCs/STs such advances to the extent of not less than 2/5th (40%)
of total DRI advances.
➢ Further, the eligibility criteria under DRI, viz. size of land holding should not
exceed 1 acre of irrigated land and 2.5 acres of unirrigated land, are not
applicable to SCs/STs.
➢ Members of SCs/STs satisfying the income criteria of the scheme can also avail
of housing loan up to ₹20,000/- per beneficiary over & above the individual
loan of ₹15,000/- available under the scheme.
d. Credit Enhancement Guarantee Scheme for Scheduled Castes (CEGSSC):
➢ The CEGSSC was launched by Ministry of Social Justice & Empowerment on May 6,
2015 with the objective of promoting entrepreneurship amongst the Scheduled
Castes (SCs), by providing credit enhancement guarantee to Member Lending
Institutions (MLIs), which extend financial assistance to these entrepreneurs. IFCI
Ltd. has been designated as the Nodal Agency under the scheme, to issue the
guarantee cover in favour of MLIs for financing SC entrepreneurs.
➢ Individual SC entrepreneurs/Registered Companies and Societies/ Registered
Partnership Firms/Sole Proprietorship firms having more than 51% shareholding and
management control for the previous 6 months by SC entrepreneurs/ promoters/
members are eligible for guarantee from IFCI Ltd. against the loans extended by
MLIs.
➢ Amount of Guarantee cover under CEGSSC: Min ₹ 0.15 Cr. & Max. ₹ 5 Cr
➢ Tenure of Guarantee: Max. 7 years or repayment period whichever is earlier.
5. Monitoring and Review:
a. A special cell is already in place for monitoring the flow of credit to SC/ST
beneficiaries. Apart from ensuring the implementation of the RBI guidelines, it is
responsible for collection of relevant information/data from the branches,
consolidation thereof and submission of the requisite returns to RBI and
Government.
b. SLBCs should invite the representative of National Commission for SCs/STs to
attend SLBC meetings. Besides, representatives from the National Scheduled Castes
and Scheduled Tribes Finance and Development Corporation (NSFDC) and State
Scheduled Castes and Scheduled Tribes Finance and Development Corporation
(SCDC) may also be invited to attend SLBC meetings.
c. A periodic review is made at Head Office level of the credit extended to SCs/STs
on the basis of returns and other data received from the branches.
d. Bank reviews the measures taken to enhance the flow of credit to SC/ST
borrowers on a quarterly basis.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
76. Agreement with National Handicapped Finance & Development Corporation (NHFDC) For Financing To Person With Disability (PS: 07/08.03.2019)
1. NHFDC has been set up by the Ministry of Social Justice 4. KEY FEATURES OF MoA AND SCHEMES OF NHFDC:
& Empowerment, GOI. It is wholly owned by GOI. NHFDC i) Bank shall act as Channelizing Agency (CA) for the purpose of granting loans to target group as per the eligibility criteria
functions as an Apex institution for channelizing the specified by NHFDC.
funds to persons with disabilities through the State ii) NHFDC will provide 100% refinance on balance outstanding on loans sanctioned by the Bank to eligible disabled persons.
Channelizing Agencies (SCAs) nominated by the State iii) Bank may get the refinance from NHFDC at 2%-5%, which will be repaid in quarterly installments within a period of 5
Government(s). years.
2. NHFDC is providing financial assistance to eligible iv) Any Individual with more than 40% disabilities having age above 18 years (14 years in case of persons with mental
candidates through Scheduled Commercial Banks retardation) is eligible for financial assistance.
(SCBs)/Regional Rural Banks (RRBs) after executing v) After obtaining refinance, Bank has to change ROI in the borrower’s account after adding Bank’s margin of 3%.
Refinance/Finance Agreement with SCB/RRB. vi) In this scheme, Pre-condition of coverage of account under CGTMSE has been relaxed by NHFDC.
3. Our Bank has already entered into MoU with NHFDC for 5. As per the Memorandum of Agreement (MoA) the criteria of refinance is as under: ---
financing to eligible beneficiaries at a concessional rate of a) Loan with O/S of upto Rs. 25 lakhs per account are covered and 100% refinance is available, under the scheme.
interest/taking refinance. MoA was applicable only for Maximum project cost should be Rs.25 Lacs per unit.
the activities which are covered under Credit Guarantee b) All regular loan accounts of persons with disabilities are covered under the scheme of NHFDC, are eligible for refinance.
Fund Trust for Micro & Small Enterprises (CGTMSE) and 6. The corporation will provide refinance at lower ROI against the financial assistance extended by the Bank. Details of rate
education loan for higher education/vocational training. of interest to be charged from customers and refinance to be provided by NHFDC to Bank is as given in the circular.
Now, NHFDC has entered into new Memorandum of 7. Refinance will be obtained from NHFDC in the accounts which have already been sanctioned/disbursed to the persons
Agreement on 05.03.2019, for refinance of their schemes with Disabilities. Bank will not have any compulsion of file sourced by NHFDC and the loan sanctioned by bank will be as per
through our Bank on all loans sanctioned for employment Bank’s guidelines.
generation activities to eligible disabled persons.

77. Agreement with National Scheduled Caste Finance & Development Corporation (NSFDC) for Financing to SC Category
1. Introduction: National Scheduled Caste Finance & Development Corporation.
NSFDC is a fully owned Govt. of India Undertaking under the aegis of Ministry of Social
Justice and Empowerment. The objective of Corporation is to provide financial
assistance to Scheduled Caste (SC) family members for their economic empowerment
and skill development.
Our Bank has entered into Memorandum of Agreement, on 03.01.2018, for availing
refinance from NSFDC for extending concessional loans under NSFDC schemes for
income generating activities to Scheduled Caste Families living below Double Poverty
Line (DPL).
2. Key Features of MoA and schemes of NSFDC:
i) Bank shall act as Channelizing Agency (CA) for the purpose of granting loans to
target group as per the eligibility criteria specified by NSFDC.
ii) Target group definition: Members of Scheduled Caste community (as notified by
Govt. from time to time) who are living below DPL. At present persons with family
income below Rs. 98,000/- per annum in Rural Areas and Rs.1,20,000/- per annum
in Urban Areas falls under DPL. The income and caste certificate by the competent
authority of State Governments shall be taken as proof.
(PS: 04/12.01.2018)
3. Under the said agreement, the corporation will provide refinance at lower ROI against the
financial assistance extended by the Bank.
4. Under the agreement, only rate of interest, activities and target group have been specified.
Therefore, financing to these target groups may be done under Bank’s existing schemes.
5. At present Banks is providing need based finance to customer/borrower for their
requirements by way of Kisan Credit Card (KCC), Term Loan facility and Working Capital Term
Loan (WCTL) facility. Refinance facility from NSFDC is available on Term Loan, WCTL and
Overdraft with reducing Drawing Power (DP).
6. In case of default/delay in repayment of installment, normal ROI as applicable from time to
time along with penal interest will be levied in the account for the period of delay/default and
normal rate of interest will be levied in case of refinance is not made available by NSFDC. In case
funds for refinance are not made available/parked upfront with the Bank, normal ROI will be
charged from the borrower, for which an undertaking from the borrower will be held on
records.
7. After full repayment of finance amount to NSFDC by the Bank, normal rate of interest will be
charged from the borrower, if credit facility is still outstanding, due to various reasons.

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 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
78. Agreement with National Scheduled Tribes Finance & Development Corporation (NSTFDC) for Financing to ST Category (PS: 15/15.02.2018)
1. NSTFDC is a fully owned Govt. of India Undertaking under the aegis of Ministry of Tribal 4. Under the said agreement, the corporation will provide refinance at lower ROI against
Affairs. The objective of Corporation is to provide financial assistance to ST family members the financial assistance extended by the Bank.
for their economic empowerment & skill development. 5. At present Banks is providing need based finance to customer/borrower for their
2. Our Bank has entered into Memorandum of Agreement on 07.02.2018, for availing requirements by way of KCC, TL and Working Capital Term Loan (WCTL) facility. Refinance
refinance from NSTFDC for extending concessional loans under NSTFDC schemes for income facility from NSTFDC is available on Term Loan, WCTL and OD with reducing DP.
generating activities to ST Families living below Double Poverty Line (DPL). 6. In case of default/delay in repayment of installment, normal ROI as applicable from
3. KEY FEATURES OF MoA AND SCHEMES OF NSTFDC: time to time along with penal interest will be levied in the account for the period of
3.1 Bank shall act as Channelizing Agency (CA) for the purpose of granting loans to target delay/default and normal rate of interest will be levied in case of refinance is not made
group as per the eligibility criteria specified by NSTFDC. available by NSTFDC. In case funds for refinance are not made available/parked upfront
3.2 Target group definition: Members of Scheduled Tribe community (as notified by Govt. with the Bank, normal ROI will be charged from the borrower, for which an undertaking
from time to time) who are living below DPL. At present persons with family income upto Rs. from the borrower will be held on records.
98,000/- per annum in Rural Areas and Rs.1, 20,000/- per annum in Urban Areas falls under 7. After full repayment of finance amount to NSTFDC by the Bank, normal rate of interest
DPL. The income and caste certificate by the competent authority of State Governments will be charged from the borrower, if credit facility is still outstanding, due to various
shall be taken as proof. reasons.
79. Financial Literacy Centres (FLCS) (PS: 93/26.12.2017)
1. Financial Literacy Centres–Objective: The broad objective of the FLCs will (vi) These centres are not to be perceived as recovery or marketing agents of the bank concerned. The
be to provide free financial literacy/education and credit counselling. general public/banks’ constituents should feel comfortable in voluntarily approaching the centres.
The specific objectives of the FLCs are given as under: --- (vii) The independence of the counselling centres has to be ensured so that non-partisan and objective
(i) To provide financial counselling services through face-to-face interaction as guidance to the customers. (viii) FLCs may not take up cases of willful defaulters.
well as through other available media like e-mail, fax, mobile, etc. (ix) The activities of the Rural Development and Self Employed Training Institutes (RUDSETI)/Rural Self
(ii) To educate the people in rural & urban areas with regard to various financial Employment Training Institutes (RSETIs) towards skill development/capacity building could be dovetailed
products and services available from the formal financial sector; with FLCs initiatives, for increasing the earnings/debt repaying ability of the distressed borrowers’
(iii) To make the people aware of the advantages of being connected with the families.
formal financial sector; 3. Coverage of FLCs: Credit counselling services may be provided in rural, semi urban, urban &
(iv) To formulate debt restructuring plans for borrowers in distress and metropolitan areas.
recommend the same to formal financial institutions, including cooperatives, for 4. Functions/Activities to be undertaken by FLCs: i. Credit Counselling, ii. Debt Settlement.
consideration;
(v) To take up any such activity that promotes financial literacy, awareness of the 5. Eligibility of FLC Counsellor:
banking services, financial planning and amelioration of debt-related distress of (i) Preferably individual retired as Bank officer with experience of handling credit and having worked in
an individual. rural/semi-urban area.
2. Financial Literacy Centres–Conditionalities: (ii) He should have been Honorably retired from the Bank. He should be able to work independently and
(i) FLCs should not, however, act as investment advice centres/marketing centres should have computer knowledge, especially of programme like MS Word, Power Point, Excel and should
for products of any particular bank/banks. be able to operate internet.
(ii) Counsellors are to refrain from marketing/providing advice regarding (iii) His age on the date of engagement should not be more than 62 years.
investment in insurance policies, investment in securities, value of securities, (iv) Initial engagement of the Counsellor shall be for 3 years’ subject to review on yearly basis with one-
purchase/sale of securities, etc., or promoting investments only in bank’s own year extension subject to production of medical certificate of good health from CMO. The extension will
products. be subject to upper limit of 65 years.
(iii) The counselling centres are to maintain arm's length relationship with the
The existing and revised remuneration of FLC Counsellor is given here under:---
parent bank and, preferably not be located in the bank's premises. This is to
avoid any impression that such centres are a part of the bank itself. Location of FLC Existing Remuneration Revised Remuneration w.e.f. 01.01.2016
(iv) The centres are not to promote the products of their parent banks. Metro 20000 20000
(v) Initially, if the branch premises are used to minimize cost, the FLC should be Urban 15000 20000
kept completely separated with a separate entrance and different look and feel Semi Urban 15000 15000
from that of the bank's branch so as to maintain a distinct identity. Rural 10000 15000
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 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
80. PNB Farmers’ Welfare Fund Scheme (PS: 20/16.03.2018)
1. Purpose: All acceptable expenses on repair on account of substantial loss shall be 6. Borrower’s contribution: A letter of undertaking shall be obtained from the tractor
reimbursed under the Scheme to the extent as decided by the Trustees. borrower for opting/not opting for the Scheme. Subscription will be recovered from the
2. Eligibility: All the members to the fund who have opted for the Scheme are eligible accounts of borrowers who give their consent to opt for it. The structure of fee for existing as
and are required to get their tractor and matching implements insured against third well as new tractor accounts will be Rs 1200/- (inclusive of GST).
party under the Insurance Act to get insurance coverage. This Scheme is optional for a) Rs. 1200/- (inclusive of GST) for 12 months of calendar year
the farmers. The Scheme applies to all categories of Tractor Accounts. b) Rs. 600/- (inclusive of GST) for less than 6 months in a calendar year
Subscription will be recovered upto 31st January every year.
3. Objectives of the Scheme: The objectives of the scheme are as under: ---
a. To reduce the avoidable expenditure. 7. Empanelment of Surveyors: The Surveyor shall be empanelled by the respective Circle
b. To bring mass awareness among farmers for better up-keep and maintenance of Heads. The Surveyor should be on the panel of the various insurance companies of GIC. The
their tractors acquainting them through literature. surveyor charges will be restricted as follows: ---
c. To give feedback on problems of farmers and their remedial measures for 1. Professional Charges Rs. 750/-
improvement in the Scheme at Head Office level. 2. Travelling allowance Rs. 4.80 per km. (Maximum 200 kms.)
d. To establish liaison cell at the places where Agricultural Universities are located. 3. Photographs (Maximum 12/-) Rs. 15/- per photograph
e. To provide financial assistance/help only in case of substantial losses duly assessed 8. Procedure for reimbursement of substantial loss at Head Office:
by approved Surveyor. The request applications received from Circle Offices shall be scrutinized and will be put up for
4. Creation of Trust: Funds of this Welfare Scheme will be managed by a Trust already approval. The Managing Trustee, PNB Farmers’ Welfare Fund Trust is empowered to sanction
created at Head Office level namely PNB Farmers’ Welfare Trust. cases upto Rs. 2 Lacs. The request applications exceeding Rs. 2 Lacs and upto Rs. 4 Lacs will
be sanctioned by the Executive Trustee. The applications above Rs. 4 Lacs will be sanctioned
5. Management of Trust: by the Trust Executive Committee (TEC) comprising of three General Managers at Head Office.
Chairman of the Trust: MD & CEO of the Bank. Trustees: ED of the Bank and the GMs
at HO level and some eminent persons from outside. 9. Extent of reimbursement of expenditure: The extent of reimbursement of loss shall be
Managing Trustee: DGM (PSFI Division) Heading Agriculture Cell/Priority Sector cell. restricted to 90% of total acceptable losses after deducting depreciation and charges of
surveyor debited to the borrower account.
81. Mahila Kaushal Vikas Yojana (PS: 94/26.12.2017)
“Mahila Kaushal Vikas Yojana” for creating women entrepreneurship by PNB 5. Duration of Skill Development Training: The duration of training for women in farm sector
Farmers’ Welfare Trust (PNBFWT) & PNB Centenary Rural Development Trust and non-farm sector activities shall be minimum 6 days with a maximum of 30 days.
(PNBCRDT): --- Handholding services will be made available for 2 years after the training.
1. Name of the Scheme: Mahila Kaushal Vikas Yojana. 6. Budget outlay of Financial Assistance: During a period of 3 years, 10000 women trained
2. Purpose: To promote skill development and provide credit linkage for self-employment for skill development shall be provided tool kit (equipments/machines/tools) required for
of the rural women through our existing PNB Farmers’ Training Centres (PNB FTCs) and undertaking the economic activities of skill development with a maximum of Rs.3000/- per
PNB Rural Self Employment Training Institutes (PNBRSETIs) located in different directions trainee. Thus, the total budget outlay shall be Rs.3 crores for 3 years.
of the country. 7. Procedure for implementation of the scheme:
3. Eligibility: All women in the age group of 18 to 45 shall be eligible for skill development (i) The scheme shall be prominently displayed in all PNBFTCs/PNBRSETIs and the adjoining
training in the areas of their preference in agriculture and non-agriculture activities. Both bank branches in vernacular language for popularizing the scheme.
literate as well as illiterate women shall be covered for skill development by these (ii) The concerned Circle Heads shall be advised to implement the scheme with active
training institutes. Preference will be given to the rural women. However, the women involvement of the Directors of FTCs and RSETIs. All FLC Counselors shall be advised to
dwelling in semi-urban and urban areas shall also be eligible for skill development and organize exclusive awareness programmes for mobilizing women especially in rural areas for
credit linkage under the Scheme. skill development.
4. Target of Women Beneficiaries: 10000 women shall be covered under skill (iii) All trainees will be mapped with PNB branches and recommendation letter for loan will
development and credit linkage over a period of 3 years by having a batch size of 25-35 be issued by concerned Director of FTC/RSETI.
by FTCs and RSETIs which shall conduct training programmes exclusively for them for (iv) The Circle Heads shall ensure that the required tools, etc., are provided to the trainees
farm/non-farm sector activities. on the day of completion of the training.
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 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
82. Scheme For Tea Financing
1. Background: India is producing about 30% of the world tea production annually. The other leading
producers are China, Kenya, Sri Lanka, Turkey and Vietnam. Major tea growing states are Assam, West
Bengal, Tripura, Tamil Nadu, Kerala and Karnataka. Himachal Pradesh and Uttaranchal are also
traditional tea growing states. Tea plantation has come up recently in states like Arunachal Pradesh,
Manipur, Sikkim, Nagaland, Meghalaya, Bihar, Orissa, Mizoram, etc.
2. Introduction: Following three areas of tea cultivation are identified according to their importance as
tea producers and their location: ---
a. North-Eastern India: It is more or less a triangular area mainly in Assam and West Bengal. This is the
most important tea producing region of India accounting for about three-fourth production and about
the same percentage of area under tea production. Tea plantations are small in number but fairly large
in size, generally more than 200 hectares. Assam is the largest producer followed by West Bengal.
b. South India: This region accounts for 25% production and about 24% of area under tea in India. The
tea estates are quite large in number but small in size. The temperatures are uniformally high and the
annual rainfall exceeds 400 cm. There is no fear of frost in south India and weather conditions are quite
congenial. Therefore, the productivity is higher, generally 15-25 quintals/hectare, although the quality
of tea is not at par with north eastern india. In this region, Tamil Nadu is the largest producer of tea.
c. North West India: This region includes Dehra Dun, Almora and Garhwal districts of Uttarakhand and
Kangra Valley and Mandi district of Himachal Pradesh. Tea in small quantity is also produced in Ranchi
and Hazaribagh districts of Chota Nagpur plateau in Jharkhand. This region accounts for a very small
contribution of around 1-2% in tea production.
3. Type of borrowers: In terms of RBI guidelines the borrowers are to be classified as under: ---
a. Large borrowers: All tea units which have their own processing factories, irrespective of the size of
their holdings, and those who do not have processing factories but whose holdings are above 100
hectares (or 250 acres).
b. Small borrowers: All the units with holding upto 100 hectares and who do not have processing
factories of their own.
c. Bought-leaf factories: All such units which buy green leaves from planters for processing.
d. Mini tea factory: Tea factory owned by a small grower, an association of small tea growers or a
Producer Company and which sources all the required tea leaf from its own plantation for the purpose
of manufacture of tea and having capacity to produce not more than five hundred kilograms of made
tea per day.
4. Purpose: The loan under the scheme may be provided for following purposes:
a. TL for acquisition of tea estate, establishment/ modernization of factory etc. wherever felt necessary
subject to viability of such proposal and by ensuring that the Company has required repayment
capacity.
b. Term loan for construction/renovation/repair of Staff Quarter/ Workers’ Quarter.
c. Term loan for new plantation, re-plantation/rejuvenation in the tea estate.
d. Term loan for setting up of mini tea factories.
e. Working capital to large borrowers and bought leaf factories for production of tea leaves.
f. Working capital to small borrowers for production of tea leaves.
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(PS: 25/30.03.2021, AGRI: 57/07.10.2022)
5. Nature of Facility and Method of Assessment:
a. Term loan for acquisition of tea estate may be provided in terms of “Scheme
for Financing Estate/Orchard Purchase”. The loans for establishment/
modernization of factory may be assessed as per PNB Udyog guidelines.
b. Term loan for construction/renovation/repair of Staff Quarter/Workers’
Quarter may be provided at the rate of Rs.3 Lakh per unit depending on the
repayment capacity and the owner agreeing to provide such other additional
security as may be decided by the sanctioning authority on a case to case basis.
However, a maximum loan limit of ₹1 crore per borrower may be provided for
the purpose.
c. Term loan for new plantation, re-plantation/rejuvenation in the tea estate
may be provided.
d. Term loan based on merit may be extended for setting up Mini Tea Factory
as per PNB Udyog guidelines.
e. Assessment of working capital limit to large borrowers and bought leaf
factories for production of tea leaves and/or running factory is to be done as
per Annexure I.
f. Working capital to small borrowers for production of tea leaves can be done
in terms of KCC guidelines.
g. Export credit limit, Non-fund based working capital limit and Bank
Guarantee may be provided as per extant guidelines of the bank.
6. Security:
a. The total exposure in respect of various credit facilities granted to the Tea
Companies should not normally exceed 75% of the value of their tea
estate(s).
b. The tea estate(s) should be mortgaged to the Bank, unless specifically
exempted.
c. Considering the track record of the Company, the Sanctioning Authority may
decide to obtain additional collateral securities in the existing tea borrowal
account.
d. Collateral securities to the extent of 25% of the exposure is to be obtained
in case of new tea borrowal accounts apart from mortgage of tea estate.
Condition of Collateral Security to the extent of 25% of exposure apart from
mortgage of Tea Estate can be waived provided: a) Credit Risk Rating of
borrower is PNB B1 & above and b) Value of Tea estate is at least 133% of
loan amount i.e. LTV of 75% is to be maintained.
e. In case of bought leaf tea factories advance may be allowed on merit with
creation of mortgage on the factory land, building, fixtures and structures and
other collaterals, the aggregate value of which must not be less than 133% of
the proposed credit facilities if the project is found to be technically feasible
and commercially viable.
7. Credit Risk Rating: As per extant guidelines of the Bank. However, rating is
to be done on the basis of balance sheet as at March for the entire country.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
83. Co-Lending by Banks & NBFCs (including HFCs) To Priority Sector
1. Background: RBI introduced Co-origination of loans by Banks and Non-
Banking Financial Companies-Non-Deposit Taking-Systemically Important
(NBFCs-ND-SIs) for lending to the priority sector, to provide the competitive
edge for credit to the priority sector.
Now, RBI has rechristened the scheme as “Co- Lending Model” (CLM) and has
revised the scheme to improve the flow of credit to the unserved and
underserved sectors of the economy and make available funds to the
ultimate beneficiary at an alternative cost, considering the lower cost of
funds from banks and greater reach of NBFCs.
2. Eligibility Criteria:
1. Bank is permitted to co-lend with all registered NBFCs (including HFCs)
based on a prior agreement.
2. Only NBFCs (including HFCs) having minimum external rating of ‘A’ (by
Banks approved Rating Agencies) and having gross NPA (as per the latest ABS)
as given below: --
i. Less than 3% Gross NPA ---- For Housing Loans Portfolio
ii. Less than 4% Gross NPA --- For other than Housing Loans Portfolio
3. NBFC should be at least 3 years in operation to be eligible for entering into
Co- lending agreement with banks.
4. Wherever defined, Bank would enter into co-lending arrangement with
NBFCs having CRAR equal to RBI defined CRAR + 1%. Where the same is not
defined, Bank may accept proposals from NBFCs having CRAR of 15%.
5. MFIs with minimum MFI Rating of up to MFR 3 will be considered eligible,
subject to a maximum limit of Rs. 500 Crores.
NOTE: The NBFC shall give an undertaking to the bank that its contribution
towards the loan amount is not funded out of borrowing from the co-
originating bank or any other group company of the partner bank.
3. Segments Eligible: for financing under CLM Arrangement: ---
1. Housing and other retail which are eligible under PS Definitions
2. Secured and unsecured MSME
3. Agriculture Equipments and Agriculture Investment.
4. Origination and Acceptance of Loans:
1. Loan will be originated by the NBFC (incl. HFC).
2. Bank shall either mandatorily take the share of individual loans originated
by the NBFCs in its books as per the terms of the agreement or retain the
discretion to reject certain loans after its due diligence prior to taking in its
books, subject to the conditions specified in the Master Agreement.
5. Max. Loan Outlay Per NBFC (Incl. HFC):
NBFC (incl. HFC) Rating Max. Outlay allowed per NBFC (incl HFC)
AAA/AA Rated Rs. 2000 Cr
A Rated Rs. 1000 Cr
BBB Rated (for Agriculture) Rs. 500 Cr
MFI Rating-- MFR 3 Max. Outlay allowed --- Rs. 500 Cr
(AGRI: 34/06.06.2022)
6. Ticket Size Per Loan:
1. Minimum Ticket Size per loan: No minimum Limit. (Previously was Minimum Rs. 5 Lakhs)
2. Max. Ticket Size per loan: i. HFCs: As per RBI prescribed regulatory limits, ii. Secured MSMEs: Rs. 10 Cr
iii. Unsecured MSMEs, Agriculture & Others (segments eligible for classification under PS): Rs. 50 Lakhs.
7. Rate of Interest:
1. Based on the respective interest rates and proportion of risk sharing, a single blended interest rate should be
offered to the ultimate borrower in case of fixed rate loans.
2. In the scenario of floating interest rates, a weighted average of the benchmark interest rates in proportion to
the respective loan contribution, should be offered.
3. Bank may permit relaxation in Rate of Interest up to RLLR/MCLR as the case may be.
4. Blended rate will vary between RLLR+2% to RLLR+6%.
5. NBFC will not charge to the customer, rate more than the regulatory prescribed rate.
8. Loaning Powers: Loaning powers shall be exercised on the basis of extant guidelines of the bank.
9. Nature of Loans: Term loans.
10. Product Parameters:
1. Since the scheme has to be framed for specific co lending arrangement between Bank & NBFC, guidelines
related to the nature of industry, margin norms, specific restrictions in advances etc. as defined in the Bank
Guidelines shall not be applicable and separate products will be designed for financing under the CLM
Arrangement.
2. Product parameters like eligibility criteria, margin requirement, financial parameters etc. will be decided on the
basis of the scope of the master agreement executed between the Bank and NBFCs as per the purpose of the loan.
11. Documentation: 1. NBFC shall be the single point of interface for the customers and shall enter into a loan
agreement with the borrower, which shall clearly contain the features of the arrangement and the roles and
responsibilities of NBFCs and banks as decided in the Master Agreement/SOP.
12. Security Creation: The NBFC will create hypothecation charge with the appropriate authority, register charge
with Registrar of Companies, CERSAI etc. in the cases approved by bank, on full loan value in favour of NBFC/HFC.
In lieu of same, the NBFC shall agree for transfer of rights with regard to underlying security.
13. Loan Tenure: Max. loan tenure will be decided as per the activity under taken in terms of extant guidelines of
the bank. However, the same shall be incorporated in the Master Agreement/ SOP so that the NBFC sources such
borrowers as per our requirements.
14. Disbursement:
1. On fulfillment of post- sanction/pre-disbursement formalities, the Nodal branch and the NBFC will remit their
share of the co- participation amount by debiting Borrower’s Loan Account to Escrow (Disbursement) Account.
2. Payment will be released to the supplier/manufacturer/vendor, as per the request of the customer and invoice/
bills etc. shall be obtained and kept on record.
15. Recovery In Case of Default: In case of persisting default NBFC will undertake, in consultation with Bank, all
possible recovery options available on case to case basis on behalf of both Bank and NBFC for the entire amount.
16. Customer Related Issues: The NBFC shall be the single point of interface for the customers and shall enter into
a loan agreement with the borrower, which shall clearly contain the features of the arrangement and the roles
and responsibilities of NBFCs and bank.
17. Comprehensive insurance policy on full value of primary security to be obtained by the NBFC. However, the
Master agreement shall contain that insurance claim proceeds will be shared between both the lenders in terms
of their outstanding ratio through escrow account.
Page 70 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
84. Revision of Loaning Powers of General Banking Branches for Agriculture Loans
1. In terms of the new credit delivery system, PNB Loan Points (PLPs) are focused lending
centers engaged in Pre-sanction activities, appraisal and sanction. All core agriculture loans
including KCC/KGS loans above Rs. 3 Lac and up-to Rs. 1 Crore are dealt by PNB Loan Point
(Agriculture Segment) for Fresh & Enhancement; however, renewals & review of all core
agriculture loans including KCC/KGS up-to Rs. 10 Lac already existing or sanctioned by PNB
Loan Point shall be done by branches.
2. Based on the references received from field regarding reviewing of the credit delivery
system, Board in its meeting dated 29.01.2021 has approved the following modifications: --
i) The GBBs may sanction loans upto Rs. 10 L under KCC Scheme including Working Capital for
Animal Husbandry & Fisheries, Kisan Gold Scheme & SHG and loans upto Rs. 5 L under other
Agriculture advances including investment credit, within their discretionary loaning powers.
85. Met Loan & Life Suraksha (MLLS) to Borrowers availing Agriculture Loans
1. Bank has in place a scheme ‘Met Loan & Life Suraksha’ (MLLS) – a PNB MetLife Product
for extending Group Life Insurance Coverage to borrowers availing Housing, Education,
Vehicle, Personal Loan and loans against mortgage of immovable property. The scheme
was extended to cover MSME Loans from 14.01.2020.
2. Now, it has been decided to extend the Met Loan & Life Surakhsha insurance cover to
borrowers availing Agriculture Loans as well.
3. The key advantages of the scheme are as under:
3.1 It provides protection to borrowers in case of uncertain death events and helps secure the
loan exposure.
3.2 It leads to building a safe book/portfolio by absorbing the default risk due to customer’s
death.
3.3 It provides value added proposition to borrowers and creates significant lifetime value out
of a client relationship.
4. The salient features of the proposed scheme are as under: ---
1. Scope of Coverage: Cover available to all the new borrowers. Existing borrowers who did
not avail the facility on date of sanction will be eligible for coverage upto 6 months from date
of sanction.
2. Optional or Compulsory: Optional.
3. Nature of Product: Level cover or reducing cover as opted by borrower.
4. Sum Assured: Minimum Sum Assured – INR 10,000
Maximum Sum Assured – No Limit (Subject to underwriting)
In case of Level Cover - Sum assured shall be equal to the loan amount sanctioned. Extent
of insurance cover will be equal to the amount borrowed at the time of inception of cover.
In case of Reducing Cover – Sum assured shall be equal to the balance O/S (under normal
condition) at the time of death of the borrower.
86. Migration of Post-Dated Cheques (PDC) Equated Monthly Installment (EMI) Cheques To Electronic Clearing Service (Debit) (PS: 05/16.01.2021)
The RBI vide circular dated March 18, 2013 has advised the banks not to accept any fresh
PDC/EMI cheques in locations where the facility of ECS/RECS (Debit) is available and convert
existing cheques in such locations into ECS/RECS (Debit) by obtaining fresh mandates.
Guidelines in this regard, have been circulated vide PSFID Cir No. 03/2018, dtd 08.01.2018.
Now, NPCI vide Cir dtd 30.06.2020 has informed that migration of ECS to NACH has been
completed for all locations across India.
Page 71 of 77
(PS: 11/08.02.2021)
ii) For cases above Rs. 10 lac pertaining to KCC/KGS/SHG and above Rs. 5 lac under other
Agriculture Advances including investment credit, the branches should send the proposal to PLP.
iii) The Services of Agriculture Officers posted in Branches will not be utilized for processing of
loans up to the limit specified in Point (i). AOs posted in branches shall be utilized for effective
Marketing of strategically important schemes, organizing Kisan Goshthies in the command area of
mapped branches, generating quality leads under High Value Agriculture, post sanction follow-up
and supporting in renewal/resolution of Agricultural advances to check slippage to NPA.
iv) The Zonal Head will be empowered to reassess the requirement of Agriculture Officer posted
in PLP as Assessment Officer/Segment Head and surplus may be posted in Branches as per
requirement. AOs may be posted in one headquarter branch and should be allocated 3-4
branches (rural/ semi-urban only), as was being done earlier.
(PS: 09/28.01.2021)
5. Premium Payment option: Single Pay/5 Pay
6. Term: Minimum Term: Single Pay: 2 years; 5 Pay: 5 years,
Max Term: 25 years and is linked with repayment.
7. Claim in case of suicide: No suicidal claim will be given during the 1st year of policy. However, the
party will be eligible for refund of premium as under: If an insured member commits suicide, whether
sane or not at that time, within one year from Effective date of coverage then liability of company
shall be limited to refund of 80% of premium(s) provided for such insured member in-force. If an
insured member commits suicide, whether sane or not at that time, within one year from date of last
reinstatement of his coverage then liability of company shall be limited to refunding the higher of
80% of the unexpired premium or the surrender value at time of death.
8. Age of Insurer: 18 to 65 years at the time of entry. (Coverage will cease on attainment of age of 70 yrs.)
9. Waiting period: The company shall not be liable to make any payment under the Group Policy on
occurrence of the insured event during waiting period of 30 days, unless the Insured event occurs due
to an accident.
10. Increase in coverage: If an existing member requests for an increase in coverage on account of
enhancing the existing loan amount and/or taking a fresh loan, the commencement of any such
coverage shall be subject to fresh risk underwriting and as per then prevailing coverage terms,
conditions and premium rates. In case of multiple loans, the underwriting requirement for that
member will be based on the aggregate loan amount.
11. Free-look provision: The insured member may cancel its coverage under the Group Policy by
giving the Company a written notice within 15 days of receiving the Certificate of Insurance (Within
30 days in case of solicitation over distance mode) stating the reasons for objection and the company
shall refund the Premium received in respect of such Insured Member after deducting Stamp duty
charges and expenses towards medical examination, if any.
In view of the above, all branches are advised to accept NACH (Debit) Mandates instead of
PDC/Security PDCs from the customers and convert all existing PDC/Security PDCs into NACH
(Debit) Mandates at the earliest. It is further clarified that Section 25 of Payment and
Settlement Act, 2007 accords same rights and remedies to the payee (beneficiary) against
dishonor of electronic fund transfer instructions under insufficiency of funds as are available
under Section 138 of Negotiable Instruments Act, 1981.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
87. SCHEME FOR FINANCING SEED PRODUCERS/PROCESSORS (AGRI: 03/03.01.2022, 13/23.03.2022)
1. Eligible Entities: Individuals, Private Companies, Corporates, SHGs/JLGs and other legal entities. 8. Primary Security:
2. Nature of Loan: 1. Term Loan: Charge on assets created out of Bank finance
1. Term loan - The same may be provided for setting up of processing unit which will include packers, cleaners, (present and future),
graders, separator, godown etc. 2. Working Capital for seed processing: Hypothecation of
2. Working Capital for seed processing. stock/book debts,
3. Working Capital Demand Loan for credit extended to outsourced farmers for seed multiplication. 3. Working Capital demand loan for extending credit to outsourced
3. Quantum of Loan: Need based as per the total financial outlay of the project. farmers for seed multiplication: Hypothecation of book debts.
4. Margin: 1. Term Loan- (i) Purchase of Land - Minimum 25% (ii) Others - Minimum 15% 9. Collateral Security:
2. Working Capital - Minimum 25%, 3. Working Capital Demand Loan - Minimum 25% 1. Term Loan & 2. Working Capital for seed processing: Collateral
5. Interest Rate: The activity relates to Food & Agro Processing Segment and the interest rates under the segment security as prescribed in PNB Udyog Scheme. Presently, collateral
shall be as applicable to MSME advances revised from time to time. Further, since the activity is seasonal, the valued at, at least 30% of the exposure (FB+NFB).
Interest may be demanded on half-yearly basis. 3. Working Capital demand loan for extending credit to outsourced
Note: The concessional rate of interest available under Swagat and Sankalp scheme shall also be available to this farmers for seed multiplication: collaterals covering at least 100%
scheme. of the exposure.
6. Calculation of MPBF: Note:
MPBF calculation for working capital: 1. In cases where CGTMSE coverage is available the same may be
✓ The seed industry has two cycles, one for Rabi another for Kharif. availed in terms of extant Bank guidelines.
✓ The seed is produced in the previous season and sold only in the ensuing season. 2. In cases where land and/or building is financed by the bank then
✓ Therefore, the seed is required to be stored during the intervening period for each season (Rabi and Kharif). the surplus value over & above 133% of the Term Loan o/s shall
✓ Therefore, the “turnover basis” for calculation of MPBF cannot be applied to this industry. be considered towards building up of collateral.
✓ The best alternative is to assess their limit on inventory basis. 10. Classification:
7. Repayment: Loans for processing will form part of Food & Agro Processing
Term Loan: Segment wherein exposure up to Rs. 100 crores per borrower
✓ Repayment period will depend upon the cash flow and will be up to 7 years including a grace period of from the banking system is to be classified under Agriculture-
maximum upto 1 year. Ancillary.
✓ The instalment will be on half-yearly interval after an initial moratorium of 6 to 12 months. 11. Credit Risk Rating/Score:
✓ However, extension in repayment period beyond 7 years may be allowed by next higher sanctioning ✓ Seed processing is an activity related to food and agro
authority on the merit of the proposal. processing segment. In view of same for loans upto Rs. 50
Working Capital for seed processing: Lakh the scoring is to be done on PNB SME Score.
✓ The tenure of CC would be 1 year. CC limit would be renewed every year. ✓ For loans above Rs. 50 lakh rating to be done on PNB
Working Capital Demand Loan for extending credit to farmers: Maximum upto 12 months or commencement of Trac in terms of extant bank guidelines.
cash generation whichever is earlier.

Strictly Confidential :: For Internal Circulation Only

Page 72 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
88. National Livestock Mission (NLM) - EDEG Component -- Centrally Sponsored Scheme (AGRI: 24/08.04.2022, PS: 81/23.12.2021)
1. Introduction:
✓ Department of Animal Husbandry & Dairying (DAHD), GOI is implementing the
scheme of National Livestock Mission (NLM) since financial year 2014-15.
✓ NLM scheme has been revised and realigned from FY 2021-22.
✓ The revised scheme of NLM aims towards employment generation,
entrepreneurship development, increase in per animal productivity and thus
targeting increased production of meat, goat milk, egg and wool under the umbrella
scheme development programme.
2. Mission Objectives:
i) Employment generation through entrepreneurship development in small ruminant,
poultry, piggery sector & Fodder sector.
ii) Increase of per animal productivity through breed improvement.
iii) Increase in production of meat, egg, goat milk, wool and fodder.
iv) Increasing availability of fodder and feed to substantially reduce the demand through
strengthening the fodder seed supply chain and availability of certified fodder seeds.
v) Encouraging establishment of fodder processing units to reduce the demand-supply
gap.
vi) Promoting risk management measures including livestock insurance for farmers.
4. Mission Design: The realigned National Livestock Mission will have following 3 Sub-
Missions:
(i) Sub-mission on Breed Development of Livestock and Poultry,
(ii) Sub-mission on Feed and Fodder Development,
(iii) Sub Mission on Innovation and Extension.
5. Implementing Agency: The National Livestock mission will be implemented through the
State Implementing Agency established under the State Animal Husbandry Department.
6. Sub-mission on Breed Development of Livestock and Poultry:
Under this submission the following activities will be undertaken:
A) Activity-I: Name of Component: Establishment of Units for breed development of
Rural Poultry:
i) Objective: Bringing unorganized rural poultry farming sector into organized sector.
ii) The Entrepreneurship will be developed by inviting the individuals, SHGs/JLGs/Farmers
Producer Organizations (FPO)/Farmers Cooperatives (FCOs) and Section 8 companies for
establishment of Parent Farm, Rural Hatchery, brooder cum mother unit for production
of hatching eggs, and chicks and rearing of the said chick upto four week in the mother
unit. Emphasis will be given to those entrepreneurs who are able to establish forward and
backward linkage (Hub and Spoke).
iii) The Central Govt will provide 50% capital subsidy for the cost of the project for
establishment of Parent Farm, Rural hatchery and Mother Unit with minimum 1000
parent layers.
iv) Subsidy: One Time capital subsidy @ 50% of the total project cost subject to
maximum up to Rs. 25 Lakh for each unit. No subsidy will be provided for working capital,
personal vehicle, purchase of land, cost for rent and lease of land.
v) Implementing Agency: State Implementing Agency and DAHD of GOI
vi) Follow up of the project: State Implementing agency will follow up the project for the
period of 2 years after completion with regards to its operation.
Page 73 of 77
B) Activity II: Establishment of Units for breed development in small ruminant sector (sheep and
goat farming):
i) Creation of entrepreneurs through one-time capital subsidy to Individuals/ SHG/Farmers Producer
organizations (FPO)/Farmers Cooperatives (FCOs)/JLGs and Section 8 companies.
ii) The Entrepreneurs/Eligible Entities can establish sheep and goat breeding unit with minimum 500
females and 25 males. The sheep and goat unit to be established with the High Genetic Variety used
for producing Goat milk, meat and fine wool quality.
iii) The Central Govt will provide upto 50% back ended subsidy for the capital cost of the project.
iv) The Entrepreneurs/Eligible Entities need to arrange the remaining amount through bank loan or
from the financial institution or self-financing.
v) Pattern of Assistance: 50% capital subsidy maximum up to Rs. 50 Lakh which will be provided in
two equal instalments. No subsidy will be provided for working capital, personal vehicle, purchase of
land, cost for rent and lease of land.
vi) Eligible Entities: FPOs/FCOs/SHG/JLG/Individuals/Section 8 companies.
vii) Implementing Agencies: State Implementing Agency of State Animal Husbandry Department,
DAHD, MoFAHD, GOI.
C) Activity III: Promotion of Piggery Entrepreneur:
i) Eligible Entities: FPOs/SHG/ FCOs/JLG/section 8 companies/Individuals.
ii) Implementing Agencies: State Implementing Agency of the State Animal Husbandry Dept,
MoFAHD, GOI.
iii) Pattern of Assistance: One-time capital subsidy @50% of the total project cost will be provided
with a maximum up to Rs. 30 Lakh for each unit.
iv) The entrepreneur will be provided assistance from the establishment of a breeder farm with
minimum 100 sow and 25 boars breeding animals from the Central or State Government/university
farms or local farmers with high genetic merit.
v) The Central Government will provide capital subsidy @50% maximum up to Rs. 30 Lakh towards
the capital cost of the project. The funding will be provided for the cost of housing, breeding animals
along with transportation & insurance cost, equipment/ machines.
vi) The Entrepreneurs/Eligible Entities need to arrange the remaining amount through bank loan or
loan from the financial institution or self-financing
vii) No subsidy will be provided for purchase of land, rent and lease cost for land, working capital,
personal vehicle.
7. Sub-Mission on feed and fodder development: The sub-mission on the feed and fodder will have
the following activity:
A) Activity-I: Entrepreneurship activities in feed and fodder:
i) Pattern of Assistance: 50% of the total project cost with maximum up to Rs. 50 Lakh will be
provided to the beneficiaries through State Implementing Agencies in two equal instalments as per
scheme guidelines.
ii) No subsidy will be provided for working capital, purchase of personal car, land, leasing and hire of
land and office accommodation.
iii) Eligible Entity: Private entrepreneurs, SHG, FCOs, JLG, FPOs, Dairy Cooperative societies, section 8
companies.
iv) Implementing Agencies: DAHD, GoI State Animal Husbandry Department State Livestock
Agencies/ State Livestock Boards.
Note: The loan should be disbursed only after approval of the subsidy amount by the Department of
Animal Husbandry and Dairying, Ministry of Fisheries, Animal Husbandry and Dairying.
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
89. Guidelines for Engaging Corporate BCs/BC Agents for Marketing/Sourcing of Agriculture, Retail & MSME Advances
(AGRI: 23/07.04.2022)
1. Objective: Engaging Corporate BCs/BC Agents for marketing/sourcing of Agriculture, 4. Commission payable:
Retail and MSME Advances to supplement branch efforts for sourcing of the same. i) Commission is payable @ 0.50% of sanction amount per lead converted subject to
2. Eligible individuals/entities: CBCs/BCs who have entered into Service Level agreement for minimum Rs.100/- and maximum Rs.2000/- per case. The converted lead means the
other activities with the bank are eligible. leads sanctioned and disbursed.
3. Scope of activities: ii) The above-mentioned rates are subject to Goods & Services Tax (GST). While making
i) Identification of prospective borrowers for Agriculture, Retail and MSME Advances; payment to CBC, the guidelines issued from Finance Division w.r.t. Implementation of
ii) Collection and filling of loan applications including verification of primary information/data; Goods & Services Tax (GST) should be taken care of.
iii) The documents submitted by the BC agent to the branch shall include duly filled loan iii) The commission payable is all inclusive and no operational expenses would be
application form in prescribed format under the scheme applied by the applicant, self- reimbursed to the Corporate BC/BC agent. The commission will be paid to the CBCs at
attested KYC of the applicant, details of land records/collateral security offered etc. monthly intervals covering all a/cs sourced by the CBCs and converted into business.
90. Revision in Threshold Limit of Credit Score Models for Farm Sector: PNB FARM SCORE (AGRI: 27/09.05.2022)
1. Farm Score Applicability: Threshold limit for PNB Farm Score has 3. The revised threshold limits shall be applicable for the ratings/scoring being conducted on the basis of Audited Balance
been revised from Rs. 50 Lakhs to Rs. 100 Lakhs. Accordingly, the Sheet (ABS) for the year ended 31.03.2022 onwards. Ratings/scoring based on ABS 2021 or before shall continue to be
applicability of Farm Score Model (Model I, II, III and IV) will be as rated as per the existing threshold limits. Accordingly, below tabulated scenarios will emerge and credit risk rating/scoring
under: --- will be done as under: ---
i. Agriculture loans up to Rs. 100 Lakhs Sr Scenarios PNB TRAC /Farm Score Applicability
ii. Agriculture loans above Rs. 100 Lakh for those Individuals only, 1. Applicant don’t prepare any book of accounts
who don’t prepare any book of accounts and don’t have credible and don’t have credible financial statements Farm Score will be applicable irrespective of the loan amount.
financial statements.
2. Rating/scoring based on ABS 2021 or before Loan Amt upto Rs. 50 lakhs: PNB Farm Score will be applicable.
2. Risk Rating/Scoring: Risk Rating/Scoring shall be done through Loan Amount above Rs. 50 Lakhs: PNB TRAC will be applicable.
Credit Risk Rating Model-PNB TRAC under the following cases: --- 3. Rating/scoring based on ABS 2022 and Loan Amt upto Rs. 100 Lakhs: PNB Farm Score will be applicable
✓ For all Agriculture loans above Rs. 100 Lakhs (except point no. onwards Loan Amount above Rs. 100 Lakhs: PNB TRAC will be applicable.
ii above)
4. Scoring models under Farm Score for scoring agriculture schemes loan proposals are mentioned below: -
✓ Agriculture loans above Rs. 100 Lakhs for Individuals having
I) Model I: Farm Credit-Agriculture with limit above Rs. 1 lakh.
audited book of accounts and financial statements shall be
II) Model II: Farm Credit- Allied Agriculture with limit above Rs. 1 lakh.
rated through Small Loans Rating Model.
III) Model III: Farm Credit- Agriculture with limit above Rs. 1 lakh (Renewal/Enhancement).
✓ Agriculture loans above Rs. 100 Lakhs for Individuals setting
IV) Model IV: Farm Credit-Allied Agriculture with limit above Rs. 1 lakh (Renewal/Enhancement).
up new business having projected balance sheet and financials
shall be rated through Entrepreneur New Business Model.

Strictly Confidential :: For Internal Circulation Only

Page 74 of 77
 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
91. National Portal for Credit Linked Government Schemes: Jansamarth Portal
1. Government of India has conceptualized development of a unique National Portal
for all credit Linked Government schemes, which would connect various
stakeholders such as applicants, Banks/FIs, Central Govt Dept & Agencies, State
Governments and implementing Nodal Agencies such as NABARD and SIDBI etc. on a
common platform. The same is envisaged to streamline the delivery process and
thereby exponentially improve the uptake and outreach of the schemes. The project
is being implemented with technical support from OPL (Online PSB loans) Ltd.
2. Initially 15 schemes were undertaken for end-to-end (e2e) digitalization including
the subsidy calculation, claim, disbursement and adjustment. However, with the
sunset of PMAY there are presently 14 schemes which have been customized in the
portal.
3. The development of the National Portal has been completed and the same is
ready to be launched as “Jansamarth Portal”.
4. The portal will facilitate financing under following schemes:
Business Segment: (i) Mudra, (ii) PMEGP (Prime Minister Employment Generation
Programme), (iii) PM Svanidhi, (iv) Stand Up India, (v) SRMS (Self Employment
Scheme for Rehabilitation of Manual Scavengers), (vi) Weaver Mudra.
Agriculture Segment: (vii) AMI (Agriculture Marketing Infrastructure)
(viii) ACABC (Agri-Clinic Agribusiness Centre Scheme), (ix) AIF (Agriculture
Infrastructure Fund)
Livelihood Segment:
(x) NULM (National Urban Livelihood Mission), (xi) NRLM (National Rural Livelihood
Mission)
Education Segment: (xii) CSIS (Central Sector Interest Subsidy Scheme), (xiii) Padho
Pardesh, (xiv) Dr. Ambedkar Central Sector Scheme.
(AGRI: 31/27.05.2022)
5. The functionality to claim subsidy through the portal is under development phase and relevant
guidelines will be issued once the same is made operational.
The beneficiary can apply through www.jansamarth.in, however a separate URL
“www.jansamarth.in/apply/pnb’’ has also been created for our Bank to enable applicants to directly apply
for loans under the above schemes.
All offices are advised to utilize the portal for increasing finance under the said Govt. sponsored schemes
and make full publicity of the portal among the staff as well as public.
6. Salient features of the Jansamarth Portal are as under:
(i) It is a single interface to apply for credit facilities under credit linked government schemes (presently
14) and for various Bank users to receive and process loan applications.
(ii) The interface provides in-principal approval to the applicants and has the functionality to track the
same.
(iii) API integration has been done with Bank’s loan processing system (PNB LeNS) for fast processing of
loan applications.
(iv) The portal generates real time MIS reports.
(v) Digital interfaces for various Nodal Agencies based on the requirements have been created in the portal
(vi) The following Nodal Agencies, which are already digital are also integrated with the portal to serve the
purposes defined hereunder: ---
➢ UIDAI: Aadhaar validation and fetching of customer details.
➢ NSDL: PAN verification
➢ CBDT: Income verification through ITR
➢ Credit Bureau: Credit history verification
➢ Udyam Portal: Verification of Udyam Registration Certificate
➢ NeSL: Digital document execution through e-sign and e-stamping

92. Capturing of Operative Account and Other details to Improve Collection Efficiency
(AGRI: 38/24.06.2022)
1. Introduction: Under the checks implemented at the 2. Exception to above mandatory requirement is as under:
time of disbursement of Term Loans in CBS while i. Contact details is not mandatory in accounts with sanctioned limit of Rs.50000/- & below.
invoking HLADISB menu: --- ii. Mail ID and PAN is not mandatory in accounts with sanctioned limit of below Rs. 25 lacs (to avoid
i. Capturing of any one of operative account Number, SI inconvenience to farmers and small borrowers).
or NACH details is made mandatory. iii. Term Loans with the sanctioned limit over Rs.10.00 crore are exempted from requirement of mandatory
ii. Capturing of mobile no., e-mail ID & PAN is made feeding of operative account, SI &/ or NACH details. However, branch may capture wherever feasible.
mandatory. iv. Items at 1 are not required where Check- off facility from the employer is available.

Strictly Confidential :: For Internal Circulation Only

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 GIST OF AGRICULTURE LENDING SCHEMES (AS ON 24.12.2022)
(COMPILED BY R. C. JHA, AGM, HO: CRMD)
93. Monitoring of Irregular Accounts – Crop Based Advances (CBR) (AGRI: 44/21.08.2022)
1. Background:
✓ RBI has clarified certain aspects of the extant regulatory guidelines with a view to ensure uniformity in the implementation of IRACP norms across all lending
institutions. It has been clarified that the instructions on SMA classification of borrower accounts are applicable to all loans, including retail loans, irrespective of
size of exposure of the lending institution.
✓ However agricultural advances governed by crop season-based asset classification norms shall be exempted from this instruction (advances whose repayment
period is fixed on the basis of cropping cycle).
2. In order to comply with RBI’s guidelines for exclusion of Agricultural advances governed by crop season-based asset classification from SMA classification, a revised
approach of monitoring of irregular crop-based agriculture advances has been formulated so that these accounts do not slip to NPA all of a sudden. Details of revised
monitoring system is tabulated as under:
For Crop based CC/OD:
Irregularities Crop period Basis for Classification
Sub-Categories (Overdue period)
Short Term Crop
CBR-0 1-364 days
CBR-1 365-546 days
CBR-2 547-729 days
Long Term Crop
CBR-0 1-364 days
CBR-1 365-546 days
CBR-2 547-729 days
For Crop based TL/DL:
Irregularities Crop period Basis for Classification
Sub-Categories (Overdue period from the date of
Instalment/ Interest due date)
Short Term Crop
CBR-0 1-364 days
CBR-1 365-546 days
CBR-2 547-729 days
Long Term Crop
CBR-0 1-182 days
CBR-1 183-364 days
CBR-2 365-547 days

3. EDW REPORT: Separate reports for monitoring of crop-based irregular accounts have been customized in Amalgamated EDW for follow up of borrowal accounts.
Following reports are available in Amalgamated EDW: --
a) PSFID-050 CBR Summary (Crop based irregularity): Crop based agriculture loans sub-classified as CBR-0, CBR-1 & CBR-2 depending on days of irregularity.
b) PSFID-051 CBR Account wise detail (Crop based irregularity): Crop based agriculture loans sub-classified as CBR-0, CBR-1 & CBR-2 depending on days of irregularity.

Strictly Confidential :: For Internal Circulation Only

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 IMPORTANT RATES
SR. RATIOS PERCENT w.e.f.
1. SAVINGS FUND DEPOSIT A/C (P.A.) --- Balance below Rs. 10 Lac 2.70 % 04.04.2022
SAVINGS FUND DEPOSIT A/C (P.A.) --- Balance Rs. 10 Lac & above 2.75 % 04.04.2022
2. 1 YEAR MCLR 8.10 % 01.12.2022
3. RLLR (REPO RATE + MARKUP + BSP = 6.25 + 2.50 + 0.25 = 9.00) 9.00 % 08.12.2022 #
4. REPO RATE* 6.25 % 07.12.2022
5. REVERSE REPO RATE* 3.35 % 22.05.2020
6. BANK RATE * 6.50 % 07.12.2022
7. MARGINAL STANDING FACILITY (MSF) RATE* 6.50 % 07.12.2022
8. STANDING DEPOSIT FACILITY (SDF) RATE* 6.00 % 07.12.2022
9. CASH RESERVE RATIO (CRR)** 4.50 % 21.05.2022
10. STATUTORY LIQUIDITY RATIO (SLR) ** 18.00 % 11.04.2020
* Policy Rates ** Reserve Ratios
# For all loans linked with RLLR (for all existing & new customers), in case of change in Repo Rate by RBI, the RLLR will be
changed from the next working day.

Disclaimer
The objective of this Booklet is to provide an Overview of “Gist of Agriculture Lending Schemes”. Contents of this Booklet shall not form
the basis of any reference and bank circular will be the only referral document. This booklet has been compiled with utmost care
however some omissions cannot be ruled out. The intent of compiling this booklet is to provide a support only to the field functionaries
working at PLP (RAM), MCC & Branches. It must not be construed as a substitute of any circulars/guidelines. In case of any doubts/
confusion/queries, the referred circulars of bank only will prevail.

Strictly Confidential :: For Internal Circulation Only

R. C. JHA
AGM, HO: CRMD

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