banks in agricultural sector

8/2/2019 Banks in Agricultural Sector

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A SPOKEN TUTORIAL

SPONSERED BY

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National Mission On Education

Through ICT

MHRD

www.sakshat.ac.in


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SCORE PROJECT

SBI BANK LOAN FACILITIES FORAGRICULTURAL SECTOR

BATCH NO: TEAM MEMBERS

119 G. Bhaskara Rao

G. Pavani

G. Shiva kumar

Gokul


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State Bank of India (www.statebankofindia.com)

State Bank of India Caters to the needs of agriculturists and landless agriculturallabourers through a network of8750 rural and semi-urban branches. Apart from thebranches, there are 428 Agricultural Development Branches (ADBs) which also cater toagriculturists.

It covers the complete range of agricultural activities like crop production ,plantation crops, farm mechanization, digging of wells, tube wells and irrigation projects,

forestry, construction of cold storages and godowns, processing of agri-products, financeto agri-input dealers, allied activities like dairy , fisheries, poultry

Agricultural gold loans

Kisan Credit Card Scheme (KCC)

Kisan Gold Card Scheme

Land Development Schemes Setting up of Agri-clinic & Agri Business Centers

Scoring Model for Tractor Loans

Minor Irrigation Schemes

Broiler Plus Scheme Broiler farming


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KISAN CREDIT CARD (KCC)

Purpose: To provide timely and adequate credit to farmers to meet their production credit needs (cultivation expenses)

besides meeting contingency expenses, and expenses related to ancillary activities through simplified procedure facilitating

availment of the loans as and when needed.

Who are eligible for the loan? Owner cultivators, tenant cultivators and Share croppers.

Agricultural borrowers having good track record for the last 2 years (i.e., Maintaining standard loan accounts).

Creditworthy new borrowers can also be financed.

Loan amount

100% of the cultivation cost available as loan upto Rs 50000/ and

85 % of the cost as loan above Rs 50000/. Expenses to meet important ancillary activities to production can also befinanced in addition to the above The total limit is inclusive of 20% of production credit, which includes crop production

expenses and working capital for allied agricultural activity, as contingency credit /consumption loan.

Disbursement of the Loan

As per the cultivation requirements of the crop, the loan will be disbursed in cash .

Security


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KISAN GOLD CARD SCHEME (KGC)

KGCis a general-purpose loan meant for meeting credit needs of farmers for productive and consumption purposes.

Consumption loans to meet domestic expenses like Childrens education, marriage, medical expenses etc will be

included to the extent of 20% of the limit. Who are eligible?

Farmers with excellent repayment record for at least past 2 years, new farmers with sizeable deposits with our

branches for 2 years, .good borrowers with other banks,Farmers who have closed accounts are eligible for this loan.

Loan amount

Loan amount is fixed on the basis of Five times the annual farm income or 50% of the value of land (to be) mortgaged

as collateral security, whichever is less, with a maximum of Rs. 10 lacs

Documents you need to provideLand records, other than that is already given to the bank

Security

How do you repay

Repayment will be in Quarterly/Half yearly/Yearly installments depending on the harvest of the crops or the

liquidity created by the agriculture activity undertaken with a maximum of 6 -7 years


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AGRICULTURAL GOLD LOANS

Purpose

Bank extends hassle free finance to farmers / agriculturists against GoldOrnaments / gold wares to increase their liquidity to meet crop

production expenses, Investment expenses related to agriculture and / or

allied agricultural activities.

Eligibility

Any person engaged in agriculture or allied activities as well as personsengaged in activities permitted to be classified under agriculture.

Quantum of Loan

Upto 70% of the value of the ornaments .Value will be as advised by the

bank to the branches periodically.

SecurityPledge of gold ornaments.

How do you repay

Credit / Overdraft: it is a running account for a period of 3 years.


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SETTING UP OF AGRI-CLINIC & AGRI BUSINESS CENTRES

PurposeThe scheme is to provide self employment opportunities to technically trained persons

Who are eligible for this loan?

Agricultural graduates / graduates in subjects allied to agriculture

Loan amount

Individual ActivityRs.10 lacsGroup ActivityRs.50 lacs (maximum).

In case of group projects, if the group consists of >= 5persons, atleast one of them would have to be agriculture

graduate trained under the scheme and the remaining could be non-agri graduate with experience in business

development and management.

loans upto Rs 5.00 lacs 100%

Loans above Rs 5 lacs upto 85 % of the cost

SOFT LOAN ASSISTANCE:

50 % of margin to be contributed by the applicant is provided by NABARD as Soft loan without any interest..


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LIST OF VENTURES:

Soil and water quality cum inputs testing laboratories.

Post surveillance, diagnostic and control services.

Maintenance, repairs and custom-hiring of agricultural implements & machinery of Micro irrigation system.

Agri service centers including the above 3 activities (group activities).

Seed processing units.

Micro propagation through plant tissue culture lab & hardening units.

Setting up of vermiculture units, production of Bio-Fertilisers, Bio-Pesticides (Bio control agents)

Setting up apiary (bee keeping) & Honey, Bee Products, processing of units.

Facilitation and agency of Agri. Insurance Services.

Provision of extension, consultancy services.

Hatcheries and production of Fish-Fingerlings for Aquaculture.

Provision of livestock health cover, setting up veterinary dispensaries & services including frozen, Semen Banks

& Liquid Nitrogen supply.

Setting up of information technology kiosks in rural areas for access to various agriculture related portals.

Feed processing and testing units.

Value addition units.

Setting up of cool chain from the farm level onwards (group activity).


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Post harvest management centers for sorting, grading, standardization, storage and

Packaging.

Setting up of metallic / non-metallic storage structure (Group Act).

Retail marketing outlets for processed Agri products.

Rural marketing dealership of farm inputs and outputs.Any combination of 2 or more

above viable activities along with any other economically viable activities selected bythe graduates, which is acceptable to the bank

Security

How to repay the loan

The loan should be repaid in 5-10 years with grace period of maximum 2 years.


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SCORING MODEL FOR TRACTOR LOANS

Purpose

for purchase of new tractors, accessories and implements

Who are eligible for tractor loan?Agriculturists and Persons offering security like the Banks Fixed Deposits, LIC policy, gold ornaments etc.

The applicants should score minimum score of 40 under the Scoring model of the bank.

Loan amount

Upto 95 % of the cost of the Tractor, trailer and accessories. Additional loan equal to 10% of tractor loan forrepairs may be provided for at the time of sanction. Bank will finance only for those models of tractors whichhave completed the commercial test from organizations .

Security1. Hypothecation of the tractor, accessories and implements. Noting of Banks hypothecation charge in the RCBook of the tractor is compulsory in all the cases.

2. Collateral Security like NSCs, KVPs, Banks Fixed Deposits ,Surrender value of LIC policy etc OR Mortgage of

agricultural lands . If the score is >= 70 then no collateral security is required.

How to repay the loanWithin a maximum period of 9 years, including a grace period not exceeding 12 months. The installments shallbe payable half-yearly / yearly, coinciding with the harvesting and marketing period of the crops proposed to begrown by you


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BROILER PLUS

Purpose provides loans for both existing farmers and new farmers having Contract Broiler Farmingarrangements for enabling them to construct poultry shed and feed room and for purchase of equipments

Who are eligible for Broiler plus loan?Those who have experience or undergone training in poultry farming They should have entered a contract withthe companies undertaking broiler production through contract farming.

ii. The farmers should possess adequate land for construction of poultry shed which should be at least 500meters away from any existing poultry farm. Potable water source should also be available .

ECONOMIC FLOCK SIZE:The minimum flock size should be 5000 birds. However, financing can be done for 10,000 and 15, 000 birds orpart thereof.

Loan amountUpto 75 % of the cost.Upto Rs 3 lacs for every 5000 bird planned to be rearedMaximum loan amount under the scheme will be Rs 9.00 lacs per farmer

Security:Hypothecation of assets created out of Bank finance and Mortgage of land on which the poultry shed and otherinfrastructure is available

How do you repayThe entire loan should be repaid within 5 years inclusive of a grace period of 6 months, with installments at bimonthly intervals


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LAND PURCHASE SCHEME

Purpose: To assist Small & Marginal farmers and landless agricultural labourers for purchase of Land, who are our

existing borrowers to consolidate land holdings & development of Wasteland & fallow lands.

Who are eligible?

Small & Marginal Farmers owning less than 5 acres of unirrigated / 2.5 acres of irrigated land in their own names ,

landless agricultural labourers.

The borrowers should have a record of prompt repayment of the loan for at least two years.

Good borrowers of other Banks are also eligible provided they liquidate their Outstandings to other banks.

Loan amount:

Loan may be considered for:

1. Cost of land

2. Provision of irrigation facilities & land development (shall not exceed 50% of the cost of the land).

3. Purchase of farm equipments.

4. Registration charges & stamp duty. Loan amount will be 85 % of the cost of the land, as assessed by the bank, subject to the maximum of Rs 5

lakhsSecurity

Mortgage of land to be purchased


Max. 9-10 years beginning after the expiry of gestation period, with half-yearly instalments.. .Gestation period will be

maximum of 1 year for the developed land and 2 years for the land to be developed..


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MINOR IRRIGATION SCHEMES

Purpose Loan covers various activities like digging of new wells (open / bore wells), deepening of

existing wells, energisation of wells (oil engine/electrical pump set ),laying of pipelines, installing

drip / sprinkler system and lift irrigation system.

Who are eligible?

All farmers having a known source of water available for irrigation purpose are eligible for the

loan.

Loan amount

What are documents you need to provide?

(1) Land records

(2) Quotation for the assets to be purchased

(3) An estimate for the civil works to be undertaken

(4) Geologist certificate wherever applicable

(5) Feasibility certificate from the EB Dept


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MINOR IRRIGATION SCHEMES

Security


Repayment will be in Quarterly / half yearly / yearlyinstallments over a period of 5 to 7 years depending on the crops

or the liquidity created by the agriculture activity undertaken.