KRISHAK UNNATTI YOJANA

  • 1. Purpose
    • a. Crop Production loan in the form of Kisan Credit Card.
    • b. Krishak Unnatti Component in the form of Cash Credit for the purpose of development of Agriculture and Allied Activities which includes land development activities like fencing, bunding, trenching, land levelling, clearance, formation of disposal drains etc., farm mechanization and loans for animal husbandry and fishery activities.
  • 2. Eligibility
    • a. Only existing good agricultural land owner borrowers who have been continuously availing any loan from our Bank for last two years and whose none of the loan accounts are NPA in the last two years as on the date of application are eligible.
    • Applicants with evidence of satisfactory dealing with other Scheduled Commercial Banks for a minimum period of 2 years are also considered eligible provided that none of the loan accounts of the applicant were NPA in the last two years.
    • Note: In case of customers of other banks, Bank Statements of all loan accounts for last 12 months will be obtained invariably and perused.
  • 3. Quantum and Nature of Finance
    • a. Extent of Loan : Maximum Rs. 10.00 Lakh
    • b. The umbrella Limit will have following two components:
      • I. KCC Component: KCC Component shall be utilized for crop production purposes as per Kisan Credit Card scheme.
      • II. Krishak Unnatti Component: This component shall be utilized by the farmer for the purpose of development of Agriculture and Allied Activities which includes land development activities like fencing, bunding, trenching, land levelling, clearance, formation of disposal drains etc., farm mechanization and loans for animal husbandry and fishery activities.
    • c. The umbrella limit i.e. Overall Sanction Limit will be lowest of:
      • i. 2 times of KCC limit assessed for the proposed cropping pattern (2 times of KCC Sanction Limit).
      • ii. 50% of value of agriculture land on the basis of which overall limit is calculated.
      • iii. Maximum of Rs. 10.00 lakh.
    • d. Features of the two components will be as under:
      • I. KCC Component – Cash Credit
      • II. Krishak Unnatti Component – Cash Credit Limit = Remainder from Umbrella Limit after deducting KCC Component.
    • e. End use declaration/Simple undertaking will be obtained from customer, detailing the purpose for which the Krishak Unnatti Component funds will be utilized.
  • 4. Margin
    • NIL
  • 5. Repayment, Renewal and Review
    • a. KCC Component – The KCC account will be valid for a period of 5 years, subject to annual review.
    • b. Krishak Unnatti Component – This component will be valid for a period of 5 years, subject to annual review.
    • c. The Short Term Cash Credit limit will be reviewed annually to ensure that crop and other sales proceeds are routed through limit account.
  • 6. Other Guidelines
    • a) The benefit of interest subvention/incentive for prompt repayment as given by Government of India and/or State Governments will be provided to eligible accounts under KCC component.
    • b) Besides crop insurance, the borrower would have the option to avail the benefit of any type of asset insurance, accident insurance, health insurance (wherever product is available) and have premium paid through his/her loan account.
    • Premium has to be borne by the farmer according to the terms of the scheme.