The Government of India introduced Kisan Credit Card (KCC)Scheme in 1998 for farmers to meet their short term working capital requirements for agricultural activities as well as domestic requirements.
Taking a cue from the above, PNB introduced PNB Krishi Card Scheme, in order to meet the short term credit needs of farmers. The farmers can now readily use the bank finance to purchase agricultural inputs such as seeds, fertilizers, pesticides etc.
The PNB Krishi Card Scheme is the presently the best product of its kind, available in the market under which farmers can withdraw cash for meeting short term production needs as well as domestic requirements. No bills/receipt is asked for financing upto Rs. 5 lacs. Interest is calculated on half yearly basis on the daily reducing balance in the account, when repayment falls due. Bank also pays interest on credit balance, if any.
Eligible farmers for the PNB Krishi Card include illiterates, tenant farmers and even oral tenants. So far PNB is the only bank which provides facility to the card holders for withdrawing money from any branch of the bank in the District.
PNB has clearly issued over 12 lacs Krishi Cards, and the number keeps growing. The bank is taking more innovative measures to extend the reach of the Krishi Card, to the more deprived sections of the rural population, so that they have means to a reasonably decent sustenance.
Punjab National Bank has contributed
significantly in the field of agriculture and other related
activities for accelerating the pace of rural development. It
has been providing loans to farmers under its various schemes
specially designed for the agricultural sector.
Krishi Card has been introduced for the purpose of
short-term working capital required for agricultural
activities as well as other rural household requirements such
as education, consumable items, medical expenses etc. The card
enables the farmers to draw cash from all branches of PNB
within the district.
Progressive, literate and illiterate farmers who are
owners cultivators, tenants, lessee or allotee farmers with
recorded occupancy rights or farmers with ancestral/perpetual
rights of cultivation, oral tenants can be eligible for loan
if land owners agree to become co-borrowers and also card can
be issued against some liquid securities like FDR/NSC/KVP etc
, to oral tenants without insisting the land owners to become
| Amount of Loan
To avail the advantage of this scheme, four different
categories of cards have been introduced. The limits for the
cards are fixed on the basis of the total income and the loan
requirement for each category of farmer.
Type of Card Size of Maximum eligible Land holding
upto 2.5 acres :Limit up to Rs.30,000/- (Blue Card)
Above 2.5 acres to 6 acres : Limit over Rs 30,000/- to
Above 6 acres to 8 acres : Limit over Rs 2,00,000/- to
3,00,000/- (Green Card)|
||Swarn Card :
Above 8 acres : Limit over Rs3,00,000/- to 5,00,000/-
Duration of the card is three years (renewable).
* A farmer owning
1.0 acre or equivalent land is allowed limit up to Rs.
15,000/- including consumption needs.
* Limit is to be fixed in
multiples of Rs. 1000/-.
* Nominal service
| Opening of Account
Opening of account in joint names of farmers has been
allowed. However, the card shall be issued to one borrower on
the basis of mandate given by other co-borrowers.
upto Rs 2,00,000/- - margin required is nil.
above Rs 2,00,000/- to Rs 4,00,000/-, margin required is
above Rs 4,00,000/- , margin required is 15%
||Hypothecation of crops/other movable assets for
cards up to Rs.25000/-.|
cards beyond Rs.25000/-, along with the charge under
(1), mortgage/charge on land for individual borrower or
charge/lien over liquid assets such as Term Deposits /
NSCs / KVPs etc. capable of providing full cover to the
limit granted or suitable third party
| Rate of interest
The rate of interest to be charged is as prescribed by
RBI/the bank from time to time. The present rate is as
Rate of Interest @percent p.a.
- Advances upto Rs.50,000/- for production credit
- Advances over Rs.50,000/- but upto Rs.2 lakh for
Production Credit and Advances upto 2 Lakh
- Advances over Rs.2 lakh but
Aggregate credits into the account during the 12/18
months period as the case may be, should at least be equal to
the maximum outstanding in the account. Consumption loan is to
be adjusted within a period of 3 years for which a separate
account is to be opened simultaneously.
| Personal Accident Insurance
All KCC holders (upto the age of 70 years) of our bank
are being covered under Personal Accident Insurance Master
Policy. The risk coverage is Rs 50,000/- in case of death due
to accident / permanent total disability / loss of two limbs
or two eyes or one limb and one eye. The risk coverage is Rs
25,000/- in case of loss of one limb or one eye. The claim
procedure under the scheme is simple.