The main objective of Star Bhoomiheen Kisan Card (Star BKC) is to provide easy access to short term production and consumption credit to meet genuine requirements of tenant farmers, share croppers and oral lessees to help increase their income from agriculture production activities.
Under the scheme, Branches may issue Star BKC to the tenant farmers, share croppers and oral lessees who are otherwise eligible for sanction of short term credit for crop production.
The applicant should come from the operational area of the Branch sponsored by an SHG or a Farmers’ Club or a reputed NGO who is on the approved list of NABARD.
Branch Manager to ascertain eligibility by calling meeting of SHG / Farmers’ Club / NGO in the village itself and the same should be incorporated in the pre-sanction inspection report.
Migratory tillers are not eligible under the scheme.
The applicant must come from the service area of the Branch and his identity should be verified through one or more of the following sources:
Purchase of improved seeds, manures and fertilisers, plant protection materials, payment of hire charges for tractors, irrigation charges, electricity charges etc. and also meeting part of consumption needs.
Based on land area taken on tenancy for share cropping or on oral lease and scale of finance, maximum Rs.24,000/=.
Additional Rs.1000/= for consumption needs.
Upon satisfactory conduct of the account for three years, the limit may be enhanced, if requested by the card holder.
The farmers under the scheme will be issued a credit card-cum-pass-book incorporating the name, address, borrowing limit/sub-limits, validity period, etc. to facilitate recording of the transactions on an on-going basis. The pass book, among others, would provide for a passport size photograph of the beneficiary.
The beneficiary farmer should produce the passbook while operating the account.
The card-cum-pass book in use for KCC is to be used for Star BKC. However, a seal inscribing ‘Star BKC’ is to be put on the face of the pass-book.
As per delegation of powers.
Revolving Cash Credit – Annual Review. The farmer should be allowed for any number of drawals and repayment within the limit.
The review may result in continuation of the facility, enhancement of the limit or cancellation of the limit / withdrawal of the facility, depending upon the performance of the borrower.
The aggregate credits into the account during the 12 months period should atleast be equal to the maximum outstanding in the account.
No drawal in the account should remain outstanding for more than 12 months in case of normal crops and 18 months in case of sugarcane and banana crops.
In case of reschedulement of the period of repayment on account of natural calamities affecting the farmer, the period for reckoning the status of operations as satisfactory or otherwise would get extended together with the extended amount of limit. When the proposed extension is beyond one crop season, the aggregate of debits for which extension is granted should be transferred to a separate term loan account with stipulation for repayment in instalments as per existing guidelines.
As a measure of incentive for card holders with good performance, the Branches may at the time of review, enhance the credit limit suitably to take care of increase in cost of inputs / labour, change in cropping pattern, etc. but upto the maximum limit of Rs.25,000/=.
On credit balance in the Cash Credit account, interest at the rate and rule of Savings Bank is to be paid to encourage the borrower to deposit the surplus funds at the time of harvest and marketing of produce.