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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
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
Loan amount upto Rs.10,000 NIL
Canara Bank is the pioneer in implementing Kisan Credit Card Scheme .
Who all are eligible?
What will be Your Share (Margin)?
When you have to repay?
The features of the scheme at a glance are: -
Type of revolving cash credit facility with unlimited
withdrawals and repayments.
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.
Existing/new borrowers requiring short-term crop loans.
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.
Loan amount upto Rs. 10,000 NIL
Loan Amount security to be furnished
Subject to change
Upto Rs. 25,000 11 % 11 %
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.
• 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.
• 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
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
• Farm maintenance, family expenses and farmer's non-farm activity.
• Working capital for horticulture, Plantation,
Diary, Poultry and Inland Fisheries.
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