1. Time Schedule for Disposal of Loan Applications
| Credit Limit | Maximum Time Schedule |
|---|---|
| Up to Rs. 2 lakh | 2 weeks |
| Above Rs. 2 lakh and up to Rs. 50 lakh | 4 weeks |
| Above Rs. 50 lakh and up to Rs. 100 lakh | 5–6 weeks |
| Above Rs. 100 lakh and up to Rs. 100 crore | 6–7 weeks |
| Above Rs. 100 crore | 8–9 weeks |
2. Margin Norms – Production Credit / Investment Credit
| Amount of Loan | Prescribed Margin |
|---|---|
| Up to Rs. 2 lakh | Nil |
| Above Rs. 2 lakh and up to Rs. 10 lakh | 10% |
| Above Rs. 10 lakh and up to Rs. 25 lakh | 15% |
| Above Rs. 25 lakh | 25% |
| Kisan Credit Card, Kisan Samriddhi Yojana and Krishak Unnatti Yojana – Production Credit Only | Nil |
3. Margin Norms – Agri-Clinics / Agri-Business Centres
| Amount of Loan | Margin |
|---|---|
| Up to Rs. 5 lakh | Nil |
| Above Rs. 5 lakh | 25% |
4. Important Guidelines Regarding Margin
| Particulars | Guidelines |
|---|---|
| Farmer’s Contribution | Labour, materials, etc. contributed by the farmer should be treated towards building up the margin. |
| NABARD / Government Approved Schemes | Where a scheme has been approved by NABARD or another Government agency, the margin-related terms and conditions prescribed by NABARD/Government agency shall be followed. |
| Government-Sponsored Schemes | Margin/security norms shall be as per the respective Government scheme or the Bank’s prescribed margin, whichever is lower. |
| Front-Ended Subsidy | When subsidy is disbursed along with the loan, the subsidy amount is treated as margin. No additional margin is required unless the subsidy falls short of the required margin. |
| Back-Ended Subsidy | When subsidy benefit is passed to the applicant after a period of time, the applicant has to contribute margin according to Government/Bank guidelines. |
5. Security Norms
| Agriculture Loan | Primary Security | Collateral / Additional Security |
|---|---|---|
| Up to Rs. 2 lakh | Hypothecation of crops and/or assets created out of Bank loan | Nil |
| KCC (Crop/Dairy/Fishery/Animal Husbandry) loans up to Rs. 3 lakh under tie-up arrangement approved by HO: Agriculture Division | Hypothecation of crops and/or assets created out of Bank loan | Nil |
| Above Rs. 2 lakh | Hypothecation of crops and/or assets created out of Bank loan | Collateral security as prescribed below |
6. Collateral Security for Agriculture Loans Above Rs. 2 Lakh
| Type of Collateral / Security | Requirement |
|---|---|
| Charge/Mortgage on Agricultural Land | Land as per Agricultural Credit Operations and Miscellaneous Provisions Act of the concerned State, valued at 75% of loan amount for other farmers and 50% for small & marginal farmers |
| OR – SARFAESI-Compliant Immovable Property | Property valued at 75% of loan amount for other farmers and 50% for small & marginal farmers |
| OR – Liquid Securities | Charge/lien over liquid securities such as Term Deposits, NSC, KVP, etc., considered adequate |
| OR – Third-Party Guarantee | Suitable third-party guarantee |
7. Agri-Clinics and Agri-Business Centres – Security
| Particulars | Security Norms |
|---|---|
| Nature of Activities | Most eligible activities relate to agricultural input supply and services. |
| Typical Investment | Cost of investment is generally less than Rs. 25 lakh. |
| Applicable Security Norms | Security norms applicable to tiny industries as prescribed by RBI shall apply. |
| Loans up to Rs. 10 lakh | Loan can be secured through hypothecation of assets created. No further security is necessary. |
8. Farm Mechanisation – Purchase of Tractor Without Mortgage of Land
| Particulars | Requirement |
|---|---|
| Primary Security | Hypothecation of assets created out of Bank loan |
| Collateral Security | Nil |
| PDC Requirement | 4 PDCs (CTS-2010) to be procured/maintained by branches to keep remedy alive under Section 138 of the Negotiable Instruments Act |
| Alternative to PDCs | NACH Mandate may be obtained from the borrower |
9. Other Agriculture Schemes
| Particulars | Guidelines |
|---|---|
| Specific Agriculture Schemes | Security norms prescribed separately under the respective scheme guidelines should be followed. |
| Other than Core Agriculture Schemes | Security norms shall be in terms of guidelines issued by HO: IRMD and HO: MSME & MCC Division from time to time. |