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CREDIT CARD SCHEMES

Syndicate Bank

Rural Bank

Canara Bank

Kisan Credit Cards

Bob Rural Schemes

Syndicate Bank, which has been the foremost bank in the country in providing financial assistance to farmers, is proud to introduce the Syndicate Kisan Credit Card Scheme. The objective of the new scheme is to meet the credit needs of the farmers for cultivation of crops and other requirements in a very convenient manner.

Farmers, belonging to villages served by Syndicate Bank, who are not defaulters in respect of earlier loans and who have crop loan requirement, are eligible to avail the facility.

Syndicate Kisan Credit Card (S.K.C.C)

Syndicate Bank, which has been the foremost bank in the country in providing financial assistance to farmers, is proud to introduce the Syndicate Kisan Credit Card Scheme. The objective of the new scheme is to meet the credit needs of the farmers for cultivation of crops and other requirements in a very convenient manner.

Farmers, belonging to villages served by Syndicate Bank, who are not defaulters in respect of earlier loans and who have crop loan requirement, are eligible to avail the facility.

This facility is provided to the farmers for meeting expenditure connected with cultivation of various crops, maintenance of small dairy/poultry units, non farm activity and consumption needs to some extent.

The farmers having this facility can deposit money in the account when they realise their income and withdraw it whenever needed.

Farmers have to pay money into the account after harvest season and have to operate the account regularly.

The facility is valid for 3 years. However, Bank will review the operation in the account annually and decide about continuation of the facility.

Minimum credit balance of Rs.500/- and above in the account between 10th and last date of the month will earn interest at Savings Bank rate.

Rate of interest on the facility will be as fixed by the Bank from time to time.

The facility is to be secured by hypothecation of crops/other assets and mortgage of land or charge on land wherever required.

A hassle free production credit scheme for farmers

v Entire range of crop & production credit requirements are met.
v Provision for meeting maintenance expenses of small nature for Dairy, Poultry and other Allied activities.
v Requirements of Non-farm activities and Small Consumption Expenses met upto Rs.5,000/-.
v Simplified documentation and card valid for 3 years.
v Absolute flexibility in operation of the limit.
v No restrictions on number of withdrawals and credits into the account.
v Minimum credit balance of over Rs.500/- between 10th and last day will earn Savings Bank interest.
v Withdraw when necessary and Repay when Farm income is generated.
v Personal Accident risk insurance cover available

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The SBI offers the Kisan Credit Card for farmers under short-term credit introduced as per RBI/NABARD guidelines, providing a running account facility to farmers to meet their production credit need and contingency needs. The Kisan Credit card scheme follows simplified procedures to enable the borrowers to avail the crop loans as and when they need.
Eligibility
Margin
Collateral

Eligibility

All agricultural clients having good track record for the last two years are eligible for the Kisan Credit Card. Minimum credit limit: Rs.3000/- New borrowers requiring crop loans can also avail this product.
Credit limit is based on operational land holding, cropping pattern and scale of finance. Withdrawals can be made using easy and convenient withdrawal slips. The Kisan Credit Card is valid for 3 years, subject to annual review.

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Margin

Loan amount upto Rs.10,000 NIL
Over Rs.25,000 15% to 25%


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Collateral

Loan Amount
Security to be furnished

Upto Rs.10000 DPN/loan agreement only

Rs.10000 and
upto Rs.25000 Hypothecation of crops.
Above Rs.25,000 Hypothecation of crops and mortgage of land (or) third party guarantee


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Kisan Credit Card

Canara Bank is the pioneer in implementing Kisan Credit Card Scheme .

Purpose:
For meeting the cultivation needs of farmers.

Who all are eligible?
Individual Farmers / Joint Borrowers / Partnership Firms / Private & Public Ltd. Companies who are owner cultivators / engaged in allied activities.

What will be Your Share (Margin)?
For limits Upto Rs. 25,000 Nil
For limits Above Rs. 25,000 15-25% or as per Scale of Finance.


Security:
For limits upto Rs. 25,000 : Hypothecation of crops and/or Movable assets. For limits above Rs. 25,000 : 1. Hypothecation of crops and/or Movable assets 2. Mortgage of Landed Property.

When you have to repay?
No drawal in the account should remain outstanding for more than 12 months.

NOTE :
Conditions Apply. The information provided above are only illustrative and not exhaustive.
For more details, please contact your nearest Canara Bank Branch or mail to
hocw@canarabank.co.in

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Provision of timely and adequate credit has been one of the major challenges for banks in India in dispensation of agricultural and rural credit to the farmers. Constant innovation is required in order to achieve the aim. Agricultural credit cards are not a new concept in the field of agricultural banking in India. A number of Public sector banks in a few states had already introduced the scheme much earlier. These schemes were niche-market and were exclusively preserved for the privileged class of farmers and the small and marginal farmers did not have much access to them. Similarly several PSB's and cooperative banks have already been extending cash credit facilities to farmers with the view to improving the their access to credit. Again this scheme was used only selectively. The KCC scheme was started by the GOI in consultation with the RBI and NABARD 1998-99 to join the features of both these schemes and to overcome their shortcomings.

The features of the scheme at a glance are: -

Type of revolving cash credit facility with unlimited withdrawals and repayments.
Meet the production credit need, cultivation expenses, and contingency expenses of the farmers.
Limits based on the basis of operational land holding, cropping pattern and scale of finance. Limit is inclusive of 20% of production credit.
Each withdrawal to be paid within 12 months.
Card valid for 3 years subject to annual renewals.
Credit limits can be enhanced depending on performance and needs.
Reschedulement is also possible depending upon the situation. If for example the crops fail due to a natural calamity and the farmer is not able to pay back the credit, then he can get an extension of upto 4 years. Not only will he pay
Cash withdrawals through slips accompanied by card and passbook.
A credit cum passbook will be issued.
All branches engaged in agricultural lending can issue Kissan Credit Cards.
Eligibility

Borrowers with good track record over the past 2 years. New borrowers can also be included if they get proof of operational land holding from the Patwari.

Target Group

Existing/new borrowers requiring short-term crop loans.

Selection Methodology

The bank evaluates the farmer both financially by looking at his past track record with the bank, and personally by looking at his reputation in the village.

Fixation of credit limit

The credit limit under the card may be fixed on the basis of the operational land holding, cropping pattern and the scale of finance by the District Level Technical Committee (DLTC) and SLTC. If the DLTC/SLTC have not fixed the limit or the limit in the opinion of the bank is low, then the bank may fix appropriate scale of finance for the crop.

Validity and Repayment Schedule

The card once issued is valid for a period of 3 years. After this period the facility may result in continuation of the facility, enhancement of the limit or cancellation of the limit, depending on the performance of the farmer. The repayment is to be made within 12 months of taking the credit.

Margin

Loan amount upto Rs. 10,000 NIL
Over Rs. 25,000 15% to 25%
Collateral

Loan Amount security to be furnished
Upto Rs. 10000/- DPN (demand promissory note) / loan agreement only
Rs. 10000 and upto Rs. 25000 Hypothecation of crops.
Above Rs. 25,000 Hypothecation of crops and mortgage of land (or) third party guarantee
Interest

Subject to change
Amount of Interest for Repayment period
Upto one year Exceeding one year

Upto Rs. 25,000 11 % 11 %
Above Rs. 25,000- Rs. 2,00,000 12 % 12 %
Above Rs. 2,00,000 - Rs. 25,00,000 13.5 % 13.5 %
Rs. 25,00,000 and above
(Depending on Credit Risk Rating) 13.25% to 15.5% 13.25% to 15.5%

By 20th March 2001 agencies all over the country had issued around 13244397 cards with the amount sanctioned close to 24615.17 Crores. Out of all the cards been issued so far cooperative Banks have issued 67.35, RRB'S have issued 5.7% and Commercial Banks have issued 27%.

What we feel

Theoretically the scheme looks to well thought of and full of good intentions. It not only makes the availability of credit easier but also is simple to get and operate. The farmers get enough freedom in the way they use their credit and at the same time a set repayment schedule. One is for sure, for this scheme to be successful the government will have to educate not only the farmers but also the bank official about the scheme. moreover there is doubt that this scheme might be a window dressing of bad loans made earlier, this though cannot be proved empirically as the scheme is young and data is not easily available. This I believe would be interesting to look into at a later stage.

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BOB'S AGRICULTURAL FINANCE SCHEMES
• Purchase of agricultural implements including indigenous improved being utilised for field operations including harvesting/sorting/grading, for not only to Farmers, but also for land less labourers.

• Purchase of heavy agricultural machinaries like tractors, powertilers, etc. either by farmers having larger holdings with irrigation facilities or group of farmers with irrigation facilities.

• Production credit for raising various crops from the point of preparatory tillage till harvesting, for land owners or permanent tenants or lease holders or share croppers. Baroda Kisan Credit Card Scheme for this purpose is detailed separately.

• Development of irrigation facilities, covering sinking of wells/borewells, lifting of water by installation of pumpsets, transporting of water through field chanals, water saving system like drip irrigation/sprinkler irrigation etc. for farmers. Energilisation of pumpsets through Non-conventional Energy Resources Like wind mill, solar energy etc. or installation of generation set also covered.

• Extending working capital needs to dealers of dealers/distributors/traders of agri inputs like seeds, fertilizers etc. live stock inputs like cattle feed, medicine etc. and supply of agriculture machineries/irrigation system.

• Extending Custom Services to farmers by way of machineries like tractor thresher etc. equipment on rental basis and maintenance of cold storage/godowns for hiring, by individuals, institutions/organisations.

• Raising farm building/structures like cattle shed, tractor shed, thrashing yards, fencing etc. by individual farmer or firms engaged in agricultural activity and is of long term nature.

• Development of horticulture including production, processing and marketing of various fruits, vegetables, plantation and flowers, which cover from nursery to the point of market, by individual farmers, firms, organisation like cooperative societies etc. and which covers both long term and short term requirement.

• Development of land like bunding, terracing, leveling etc. and reclamation of saline, alkaline, ravine soils by farmer or organisation like cooperative societies etc.

• Development of allied activities to agriculture like dairy, poultry, fisheries, sericulture, mushrooms, apiculture etc. by production , processing and marketing by farmer, land less labourers, firms, organisations, like cooperative societies etc. finance by way of long term nature and short term nature is being extended.


SPECIAL SCHEMES
• Installation of Biogas plants for recycling the animal/agricultural waste for production of Biogas.

• A scheme especially for farm graduates diploma holders in agriculture/allied science to undertake any of the agricultural activities.

• Schemes for land less labourers and liberalisation of bonded labourers who intend to take any one of the agricultural activities.

• Liquidation of rural indebtedness of small and marginal farmers, rural artisans, land less labourer's etc. by way of consumption needs.



BARODA KISAN CREDIT CARD (BKCC)- EMPOWERING THE FARMER
Time has come to rely on farmers' own wisdom to make the best use of funds. Hence, Bank of Baroda introduced Baroda Kisan Credit Card (BKCC) exclusive credit card for farmers of India, with effect from 27th November 1998.

Baroda Kisan Credit Card (BKCC) aims adequate and timely support to farmers for their cultivation needs including purchase of quality inputs in flexible cost effective manner. Farmer's expenses towards Form Maintenance, unforeseen Family expenses (consumption) and maintenance of his Non-Farm activities are also taken care of by Baroda Kisan Credit Card.



ELIGIBLE FARMERS
All eligible farmers including illiterate and firms engaged in Agriculture/allied activities/Agro processing are eligible.



PURPOSE
• Crop cultivation in entire area of the farmer's holding in all season.

• Farm maintenance, family expenses and farmer's non-farm activity.

• Working capital for horticulture, Plantation, Diary, Poultry and Inland Fisheries.



CREDIT LIMIT
Credit limit is being fixed comprehensively on Composite Cash fCredit basis covering Farmer's needs during all seasons and all his needs, with Floor limit of Rs. 1,000/-



BENEFITS OF BARODA KISAN CREDIT CARD
Credit limit is being fixed comprehensively on Composite Cash fCredit basis covering Farmer's needs during all seasons and all his needs, with Floor limit of Rs. 1,000/-



FARMER-UNDER CREDIT CARD SYSTEM
Credit limit is being fixed comprehensively on Composite Cash fCredit basis covering Farmer's needs during all seasons and all his needs, with Floor limit of Rs. 1,000/-

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