General Guidelines for Agricultural Credit
1.TIME SCHEDULE FOR DISPOSAL OF LOAN APPLICATIONS:
|
Credit Limit
|
Time schedule (maximum)
|
|
Upto Rs. 2 lakh
|
2 weeks
|
|
Above Rs. 2 lakh & upto Rs. 50 lakh
|
4 weeks
|
|
Above Rs. 50 lakh & upto Rs. 100 lakh
|
5-6 weeks
|
|
Above Rs. 100 lakh & upto Rs. 100 crores
|
6-7 weeks
|
|
Above Rs. 100 crores
|
8-9 weeks
|
2.MARGIN NORMS:
Margin is prescribed separately for specific schemes and scheme guidelines to be
referred to.
(i) Production Credit/ Investment Credit*:
|
Amount of loan
|
Prescribed Margin
|
|
Up to Rs. 2.00 lakh
|
Nil
|
|
Above Rs. 2.00 lakh upto Rs. 10.00 lakh
|
10%
|
|
Above Rs. 10.00 lakh upto Rs. 25.00 lakh
|
15%
|
|
Above Rs. 25.00 lakh
|
25%
|
|
Under Kisan Credit Card, Kisan Samriddhi Yojana and Krishak
Unnatti Yojana: For Production Credit Only
|
NIL
|
(ii) Under the Scheme for Agri-Clinics/ Agri-Business Centres::
|
Amount of loan
|
Margin
|
|
Upto Rs. 5 lakh
|
Nil
|
|
Above Rs. 5 lakh
|
25%
|
NOTE:
- (i) Labour and materials, etc., contributed by farmer should be treated towards
building up of margin.
- (ii) Where the scheme has been approved by NABARD or any other Govt. agency
the terms and conditions stipulated by NABARD or Govt. agency in respect of
margin shall be followed.
- (iii) In respect of Govt. sponsored schemes, the margin/security norms shall be as per
the respective govt. schemes or the above mentioned margin, whichever is lower.
- (iv) In case of front ended subsidy i.e. when subsidy is disbursed with loan:-
- a) In this case, the subsidy amount is to be treated as margin and no further
margin money should be stipulated unless subsidy falls short of requisite
margin for the loan.
- b) If the subsidy is back-ended i.e. the benefit is to be passed to the applicant
after a lapse of time, then the applicant has to contribute margin as per
government/Bank guidelines.
3.SECURITY NORMS:
Security norms are prescribed separately for specific schemes and scheme guidelines
to be referred to.
|
Amount of Agriculture Loan
|
Prescribed Security**
|
|
Up to Rs. 2.00 lakh
|
Primary: Hypothecation of crops and/or assets
created out of Bank loan.
|
|
KCC (crop/ dairy/ fishery/
animal husbandry) loans upto
Rs. 3.00 lakh under tie-up
arrangement approved by HO:
Agriculture Division
|
Primary: Hypothecation of crops and/or assets
created out of Bank loan.
|
|
Above Rs. 2.00 lakh
|
Primary: Hypothecation of crops and/or assets
created out of bank loan
AND
Collateral:
Charge/Mortgage on land as per Agricultural
Credit Operations and Miscellaneous Provisions
Act of the concerned State valued at:
? 75% of loan amount for other farmers
? 50% of the loan amount for small and marginal
farmers.
OR
Mortgage of SARFAESI compliant immovable
property valued at
? 75% of loan amount for other farmers
? 50% of the loan amount for small and marginal
farmers.
OR
Alternate security viz. charge/ lien over liquid
securities such as term deposits/ NSC/ KVP, etc.
which may be considered adequate
OR
Suitable third party guarantee
|
Scheme of Agri-Clinics and Agri-Business Centres
As most of the eligible activities pertain to agricultural input supply and services and
the cost of investment will be less than Rs. 25 lakh in most cases, the security norms
applicable to tiny industries as prescribed by RBI shall be applicable to these units.
In terms of RBI guidelines, up to a loan amount of Rs. 10 lakh, the loans can be secured
against hypothecation of assets created and no further security would be necessary.
Farm Mechanisation Scheme : Purchase of Tractor without Mortgage of Land
i. Primary: Hypothecation of assets created out of bank loan.
ii. Collateral: Nil
Further, 4 PDCs (CTS-2010) are to be procured/ maintained by the branches to
keep remedy alive under Section-138 of Negotiable Instruments Act or NACH
Mandate to be obtained from borrower.
Security Norms for other than core agriculture schemes shall be in terms of HO:
IRMD and HO: MSME and MCC Division issued from time to time.