Kisan Credit Card, Agricultural Loan from United Bank of India

The scheme aims at providing adequate and timely credit for the comprehensive credit requirements of farmers for taking up agriculture and allied activities under single window, with flexible and simplified procedure, adopting whole farm approach, including the short-term credit needs and a reasonable component for consumption needs, through Kisan Credit Card including repayment of farmer's dues to non-institutional lenders.

i.	Short term crop loans to farmers those who are owner cultivators/share-croppers/bargadars.
ii.	KCC can also be issued for meeting the short term production need/working capital needs in respect of the allied activities like poultry, dairy, pisciculture, floriculture, horticulture etc.
iii.	KCC schemes also covers the term credits for agriculture and allied activities.
iv.	KCC is issued to individual borrower only on merit and not to corporate body society, association, club, group etc.
v.	Illiterate and blind persons intending to avail of this facility may be allowed after taking proper safeguard against misuse and tampering.

It is intended that both term as well as short term/working capital credit facilities will be provided through single Kisan Credit Card. The passbook provided to KCC holders are to be divided into three separate portions for maintaining the records of :-

a) short term credit / crop loans, b) working capital credit for activities allied to agriculture and c) term credit (repayable beyond 12 months)

However, it is to be ensured that transaction records of different loan facilities are kept distinct.

i.	Minimum credit limit should be Rs.25000/- and maximum Rs.10.00 lac in the form of working capital and term loan. However, in deserving cases the upper limit may be enhanced above Rs.10.00 lac which has to be disposed of under the D.P. of the General Manager in charge of Priority Sector Lending.
ii.	Working capital will be in the form of revolving cash credit and any number of withdrawals and repayments in the account is allowed with a view to provide flexibility to the borrower in deciding the appropriate time for withdrawal of the sanctioned limit and reducing his loan and interest burden.(For ST Crop Loan, Consumption Loan and repayment of non-institutional loans)
iii.	Term Loan to be sanctioned for purchase of agricultural implements , plant and machinery and land developing including construction of different types of storage facilities.
iv.	While fixing the limit and sub-limits, entire year's production credit requirement is reckoned, including those of ancillary activities such as storing, marketing, electric expenses etc.
v.	Credit limit is fixed on the basis of land holding under cultivation, cropping pattern and the scale of finance recommended by District/State level technical committee. In the absence of such recommendation, the branch may fix appropriate scale of finance for the crop after getting permission from the concerned Regional Office.
vi.	The branch should also fix season-wise sub-limits within the overall credit limit.
vii.	Contingency expenses, including consumption loan should not exceed 10% of the ST loan sub-limit subject to maximum Rs.10,000/- till harvesting the benefit of production linking with family need.
viii.	Repayment of loan availed from non-institutional lenders by the farmer borrowers in addition to consumption/contingency credit limit should not exceed 25% of the ST loan sub-limit subject to maximum Rs.25,000/-.

It should be in conformity with the guidelines issued by RBI/NABARD/BANK from time to time in respect of agricultural advances. As per extant guideline there is no margin or additional security required upto a loan limit of Rs.50,000/-.

As per directive of RBI/Bank issued from time to time. The rate of interest is subject to change from time to time as per H.O. Instruction. The current rate of interest for different scheme given in separate chapter of the Manual of Instruction.

Interest as applicable for S.B. Account, is payable in the Revolving Cash Credit account on the minimum credit balance, if any, between 10th and the last day of each calendar month.

In addition to KCC application form, separate application form for each purpose is to be obtained. But, while fixing the limit, the sub-limit is to be earmarked for each purpose separately.

i.	D.P. Note for the sanctioned limit
ii.	Loan Agreement
iii.	Letter of continuity
iv.	Hypothecation of crop / assets to be created out of bank loan
v.	If the sanctioned limit is more than Rs.50,000/- mortgage of land/or third party guarantee acceptable to the Bank.

The short term credit / crop loan as well as working capital for agriculture and allied activities would continue to be provided as revolving cash credit repayable within 12 months. However, the term loan component will be repayable within a maximum period of 5 to 7 years depending upon the type of activity / investment as per existing guidelines.

All Crop loans under KCC are to be covered under National Agricultural Insurance Scheme (NAIS) in respect of the notified crops. It is implemented with the approval/consent of State Government concerned, which is monitored and followed up by SLBC of that State.

All farmers both loanee and non-loanee farmers growing the above notified crops in the notified areas are eligible for insurance coverage.

In each district there is a Nodal Branch for receiving premium for insurance coverage and remitting the premium to the Agricultural Insurance Corporation of India. Subsidy on premium is allowed in respect of small and marginal farmers.

The coverage under PAIS is also compulsory for all KCC holders. The premium payable under the scheme is to be shared by the issuing Branch and the KCC holder in the ratio of 2:1.

The premium payable for a one-year policy is Rs.15/- while the same for a three year policy will be Rs.45/- only. The insurance coverage will be from the date of receipt of premium by the Insurance Co.

Priority Sector

Kisan Credit Card