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Potato Growers Credit Card Scheme

    Purpose :
  • A unique Scheme to provide adequate and timely credit support under a single window to the farmers for their cultivation and other needs.
  • All Farmers – Individuals/ Joint borrowers who are owner cultivators.
  • Owner cultivator cultivating leased land along with self cultivated land.
  • Tenant Farmers, Oral Lessees & Share Croppers.
  • SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc
Crop Loan Component :

Calculation of Production Credit requirement is based on DLTC approved Scale of finance. The loan amount shall be arrived at by further adding the following:

  • Contingencies: 30% of production credit.
  • Domestic purpose expenses: 30% of production credit.
  • Another separate limit for working capital for allied activities: 30% of production credit, wherever the applicant is pursuing other activities under allied agriculture.
Term Loan :
  • For purchase of Farm equipment, transport vehicles, pick up van/ truck. The limit will be assessed on case to case basis. Maximum Term Loan limit under the scheme will be limited to Rs.20.00 lac
Margin :
  • 15%
Interest :
  • On Debit balances: As applicable to agricultural advances. Interest subvention announced by Central Government and/or State Government from time to time is also available to crop loan borrowers. (click here for Rate of Interest)
  • On Credit Balances in AKCC a/cs : The interest as applicable to S/B account (presently 4%) shall be paid on Credit balance on daily basis.
Other Charges:
  • 50% of usual charges under processing fee, documentation charges & upfront fee.
  • For loans up to Rs. 1,00,000.00 – Hypothecation of crops/movable assets.
  • For loans above Rs. 1,00,000.00 – Hypothecation of crops/movable assets
    AND
    Mortgage/Charge Creation of land as per Agricultural Credit Operation Act of the states concerned.
    OR
    Charge/lien over liquid securities in the form of Fixed Deposit/NSC/KVP etc. and gold, providing full cover to the limit granted.
    OR
    Guarantee from two persons of adequate means and repute – acceptable to the Bank.
  • Above Rs.4 Lac – (depending on the Course / Institutes) security varies from third party guarantee, co-obligation of parents, full collateral security
Insurance :
  • Specified crops grown in notified areas will be covered under Rashtriya Krishi Bima Yojna / Modified National Crop Insurance Scheme/ Weather Based Crop Insurance Scheme as operated by concerned State Government.
  • Personal Accident Insurance Scheme (PAIS) is also available.
  • Optional Health Insurance for famer customers is available.
  • Crop loan limit is sanctioned for a period of 5 years, subject to renewal of the limit each year.
  • The Term loan component under the scheme is designed to meet the capital expenditure where the asset life is such that repayment is ensured within 9 years.