Loan is provided to cover short term working capital for agriculture activities, other domestic requirements such as education, consumable items, medical expenses, etc., term credit needs of the farmers and credit against debt from non-institutional lenders.

ELIGIBILITY:

Progressive literate and illiterate farmers who are owner cultivators, tenants, lessee or allottee farmers with recorded occupancy rights or farmers with ancestral/perpetual rights of cultivation/Joint Liability Groups(JLGs). Oral tenants can be eligible for loan only if land owners agree to become co-borrowers. In the accounts which are secured by liquid securities like FDR,NSC/KVP etc., the cards to oral tenants can be issued without stipulating the condition of land owners to be made co-borrowers. Landeless labourers, share croppers, tenant farmers and oral lessees can be issued PNB Krishi Card upto limit of Rs 50,000 on the basis of affidavit.

EXTENT OF LOAN:

Maximum Rs.10 lakh. Maximum limit will be Rs.20 lakh for our existing farmers having satisfactory track record of minimum 2 years.

FIXATION OF LOAN:

Limit is fixed for term loan and working capital requirement limit for agricultural and allied activities, etc., based on the unit cost of the assets proposed to be acquired by the farmer, the allied activities already being undertaken on the farm repaying capacity.

Maximum limit of Rs 10 lakh is allowed as under:
Maximum Rs 5 lakh for cash credit limit for crop production, consumption needs & working capital for allied activities.Entire cash credit limit under the scheme may be disbursed in cash. For consumption needs, loan may be sanctioned upto 25% of the limit or Rs 50000/-, whichever is lower.
Need based term loan within overall ceiling of Rs 10 lakh including cash credit limit mentioned above & loan (maximum up to Rs.50,000) for relief against indebtedness from non-institutional money-lenders.
In case where the maximum limit is Rs.20 lakh, the same is allowed as under :-

• The production credit limit including consumption loan will be restricted upto Rs.10 lakh.
• Need based investment credit within the overall ceiling of Rs.20 lakh.

REPAYMENT OF LOAN:

Term loan including loan for relief against indebtedness from non-institutional lenders may be repayable in 5 years. However, in case of term loan where repayment period is more than 5 years, longer repayment period as prescribed under the respective scheme is allowed.