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.

Eligibility

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 co-borrowers.

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 limit

	Vikas Card: upto 2.5 acres :Limit up to Rs.30,000/- (Blue Card)
	Bhagyawan: Above 2.5 acres to 6 acres : Limit over Rs 30,000/- to 2,00,000/- (Red Card)
	Sarvottam: 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/- (Brown Card)

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 charges.

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.

Margin

For limits upto Rs 2,00,000/- - margin required is nil.

For limits above Rs 2,00,000/- to Rs 4,00,000/-, margin required is 10%

For limits above Rs 4,00,000/- , margin required is 15%

Security

	Hypothecation of crops/other movable assets for cards up to Rs.25000/-.
	For 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 guarantee.

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 under:

Rate of Interest @percent p.a. w.e.f. 1.06.2003

1. Advances upto Rs.50,000/- for production credit         : PLRminus 2%
   (Crop Loans/KCCs)
2. Advances over Rs.50,000/- but upto Rs.2 lakh for        :PLR minus 1%
   Production Credit and Advances upto 2 Lakh for
   Investment purposes
   
3. Advances over Rs.2 lakh but upto                               :   PLR/PTLR
   Rs.5 lakh                                    

Repayment

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.