Banking & Credit ::State Bank of India
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16. Krishi Kalyan
Purpose
• To provide timely and adequate credit to farmers to meet production and consumption expenses.
• To offer credit against the stocks stored in farmers own premises / godowns/ warehouses/ cold storage, which help farmers avoid distress sale of the produce & promptly repay the loan dues.
• To reduce the multiple process of separate application, documentation & EM creation for availment of KCC and PML, thereby reduce the time for delivery of credit.
Eligibility: All non-defaulter and credit worthy farmers – owner cultivators, tenant farmers, and share croppers, having good track record and cultivating crops , like food grains( cereals), pulses, oilseeds etc., produce of which could be stored in godowns /ware houses/cold storage etc., Farmers cultivating fruits and vegetables, in centers where cold storage facilities are available.
Quantum of Loan: Total credit limit will be sanctioned, comprising of following components.
Production credit: Annual Credit needs will be sanctioned, depending on the operational land holdings, cropping pattern, and scale of finance.
Produce Marketing loan: Limit depends on the current market price or the MSP fixed by the Government multiplied by the quantum of stock to be stored.
Maximum Limit:
a. Production Credit : No upper limit
b. Produce Marketing Loan : Max of Rs 10 lac per borrower.
Margin:
• For Production Credit: 15-20%
• For Produce Marketing loan: sanctioned against goods stored in Farmers own godown 40% and Loans against warehouse receipt 20-35%
Security
Limit up to Rs 1 Lakh
Primary: - Hypothecation of standing crops and / or stocks Stored under produce Marketing Loan
Collateral : - NIL
Limit above Rs 1 Lakh;
I) If the Production credit portion does not exceed Rs 1 lac and Produce Marketing Loan is against Warehouse receipt (Max Limit Rs 10 lacs)
a) Hypothecation of standing crops and/or Pledge of stocks.
b) Warehouse Receipt & Letter from Warehouse Authorities to the effect that the stocks covered by WHR will be released only on a written communication from bank
II) If production credit limit exceeds 1lac & produce loan is against warehouse receipt (below Rs 10 lac)
a) Hypothecation of standing crops and/ or Pledge of stocks.
b) Mortgage /charge over the land to the extent of Production credit limit.
III) If production credit limit exceeds 1lac & produce stored in Farmers own go-down
a) Hypothecation of standing crops and stocks
b) Mortgage/charge over land
c) Declaration of Stocks from the farmer
Interest rate: As applicable from time to time to crop loans.
Repayment
Crop Loan (Production Credit): Loan amount will be liquidated from Produce
Contingency credit Loan : Marketing loan sanctioned to the farmer
| Source:http://www.statebankofindia.com/portal/agri |
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