To provide adequate and timely credit to farmers under single window, with flexible and simplified procedure, adopting whole farm approach, including the short-term credit, medium term and long term credit needs of the borrowers for agriculture and allied activities and a reasonable component for consumption needs as indicated below:-
Short Term Credit Limit:
• To meet the short term credit requirements for cultivation of crops
• Post harvest expenses
• Produce marketing loan
• Consumption requirements of farmers household.
• Working capital for maintenance of farm assets and activities allied to agriculture, like dairy animals, inland fishery etc.
Long Term Credit:
• Investment credit requirement for agriculture and allied activities like pump sets, sprayers, tillers, agri implements, dairy animals, sheep, poultry etc.
KCC Scheme also includes the crop loans under Apple Advance Scheme
• All individual famers/Joint borrowers owning cultivated land/apple bearing orchids
• Tenant Farmers, Oral Lessees and Share Croppers
• SHG’s or Joint Liability Groups of farmers including tenant farmers, share croppers etc.
• All farmers in possession of land/ apple bearing orchids but are simultaneously employees of any State/Central Govt. /Autonomous Bodies.
Limit Processing Fee/Upfront
- Upto Rs.5.00 lacs Nil
- From Rs.5.00 lacs to Rs.10.00 lacs 0.10% of Limit
- Above Rs.10.00 lacs 0.25% of Limit
Interest rate structure for agriculture and allied activities under KCC Scheme shall be as under:-
Upto Rs.2.00 lacs Applicable MCLR +0.50% (floating)
Above Rs.2.00 lacs & upto Rs.5.00 lacs Applicable MCLR +1.00% (floating)
Above Rs.5.00 lacs & upto less than Rs.15.00 lacs Applicable MCLR +1.50% (floating)
Rs. 15.00lacs and above As per internal rating Short term crop loan up to Rs3.00lacs 7% p.a.
Government of India is providing 2% interest subvention on short term crop loan up to the limit of Rs3.00lacs subject to the condition that the rate of interest charged to the ultimate borrowers is 7% p.a. Till the time 2% interest subvention from GOI is available Business Units will continue to charge 7% interest rate on short term crop loan upto limit of Rs3.00lacs as per instructions in vogue.
1. Production Credit Loan
• The production line of credit is a revolving agriculture cash credit account subject to annual review, valid for five years. However the account need to be reviewed annually to ensure that crops and other sale proceeds are routed through the account and interest charged has been serviced.
• No need of bringing the debit balance in the account to zero at any point of time.
• The common repayment due date based on the crop season and cropping pattern (mono/double crops) has been fixed for bringing operational simplicity, follow up for review/renewal , arresting premature slippage into NPA, facilitating crop insurance and ensure correct claim of interest subvention, additional interest subvention for prompt payment, plugging income leakage etc. Payment due dates based on cropping pattern is given in annexure V
2. Term Loan
The maximum repayment period of the term loan shall be within five years depending on type of activity/investment. Longer repayment period may also be provided depending upon nature of investment/activity on case to case basis. The repayment of term loans shall be in monthly/quarterly/half yearly/yearly installments depending upon the nature of the activity/investment.