Kisan Samadhan Card scheme is based on ‘Line of Credit’ concept and each farmer is provided with a package of ‘Kisan Samadhan’ which would enable farmers to avail short term and long term credit for a period of maximum 5 years continuously with rollover arrangements.
Kisan Samadhan Card will replace Kisan Suvidha Card and Kisan Gold Card.
To meet/cover the entire credit needs of the farmer both of short term and long term nature for a period of maximum 5 years not only for farming alone but also for allied activities, repairs and maintenance of farm equipments, consumption needs, purchase of consumer durables, etc. This shall be in addition to the loans for housing and vehicles.
To bring about flexibility and operational freedom in credit utilisation.
All farmers eligible for Kisan Credit Card would be eligible for Kisan Samadhan Card.
Farmers seeking facilities under Kisan Samadhan Card must avail production credit and investment credit.
Production Line of Credit
Production of crops – Loan amount will depend upon type of crop, area under cultivation and scale of finance.
Short term requirements like maintenance of tractor/farm implements, allied activities like dairy, poultry, cost of feed, annual repairs, fuel, etc.
Short term credit for consumption/domestic needs to the extent of maximum 25% of gross estimated income of the farmer or 20% to 25% of scale of finance or maximum loan Rs.50,000/=, whichever is lower.
Finance against storage receipts/produce marketing – maximum upto 50% of the price of the produce prevailing at the time of storage/sanction of loan and maximum loan limit should not exceed Rs.10 lakhs per farmer.
Investment Line of Credit
Extending loan for investment on farm developments such as development of land/irrigation facility, purchase of machinery/equipments, draught animals/carts, transport vehicles, pre/post harvesting processing equipments and practicing modern/Hi-tech Agriculture with needbased project/farm infrastructure, plantation activities, etc.
Extending loan for allied activities like dairy, poultry, fisheries, piggery, sericulture, etc. to supplement farm income/activities and also to ensure optimum utilisation of available resources.
Extending loans for off-farm activities/needs of the farmer like personal loans including purchase of consumer durables – Maximum Rs.1 Lakh.
Project with large financial outlay is to be considered independently on its techno-economic viability and merits.
The quantum of loan limit will be computed based on income of the farmer and value of securities to be charged in the account as furnished below
10 times of anticipated net annual income from the farm (average for next five years) taking into consideration the type of crops, area under cultivation, scale of finance and including income from proposed new activities/allied activities. “OR”
100% of value of land mortgaged as collateral security and other securities like assignment of LIC Policy (Surrender value), pledge of NSCs/Bank’s TDRs/Gold ornaments (WHERE MOVABLE ASSETS ARE CREATED OUT OF BANK FINANCE). “OR”
70% of value of land mortgaged as collateral security and 100% value of other securities like assignment of LIC Policy (Surrender value), pledge of NSCs/Bank’s TDRs/Gold ornaments (WHERE MOVABLE ASSETS ARE NOT CREATED OUT OF BANK FINANCE).
- Either (a) or (b) whichever is lower, where movable assets are created.
- Either (a) or (c) whichever is lower, where movable assets are not created.
Sanctioning Authority can assess the value of agricultural land upto Rs.15 lakhs taking in to consideration the market rate prevailing in the locality and value as per the last sale deed available or the market value assessed by the office of the Registrar of Assurances for the area, or as per the valuation report obtained from the Revenue authority in the respective states or approved architect/engineer/surveyor/ valuer of agricultural land registered with Government/under Bank’s approved panel wherever available.
There is no maximum ceiling stipulated under the scheme, however, for administrative reasons, Branches should seek administrative clearance from the respective Zonal Offices for sanction of limit/s above Rs.15 lakhs, even if such proposals are within the delegated authority of the Branch.
Production Line of Credit
0 to 50% of the total limit will be reserved for meeting recurring expenses on the farm which are of short term nature in the form of Revolving Cash Credit Limit/s with sub limit/s if any (Crop cultivation, working capital needs for allied activities, consumption needs, etc.). It is visualised that the production line of credit limit will be enhanced by 10% every year to take care of the escalation in cost of inputs, expansion in area, change in cropping pattern, etc.
Investment Line of Credit
50 to 70% of the total limit will be earmarked for the purpose of investment credit in the form of Term Loan/s limit with reducing drawing limit every year.
Emergency loan for specific purpose, related to agricultural and allied activities
To the extent of 20% of the original limit (Production line of credit and Investment line of credit for agricultural purpose) maximum Rs.50,000/= after ascertaining the genuine need of the farmer, may be extended by obtaining appropriate documents upon getting the limit sanctioned at appropriate level.
After arriving at overall credit requirements under Kisan Samadhan Card, Branches should ensure that the total component towards Consumption Loan + Personal Loan + Emergency Loan should not exceed 25% to 30% of total credit facilities and same are to be considered/disbursed only if the borrower utilises the production credit and investment credit facilities.
The Personal Loan is to be considered on the basis of net surplus available for repayment.
For arriving at limits under production line of credit and investment line of credit, Branches should follow the unit cost norms approved by the District Level Technical Committee on crop loans or unit cost approved by NABARD / SLBC for investment purpose. Branches should take note that the unit costs are not fixed and they may vary 10% to 15% depending on level of proficiency of the farmers and infrastructure available in the farm.
Branches may consider additional 10% to 15% provisional costs towards inflation / cost escalation in a period of time.