Type of Loans: Term loan Working capital, term loans or mix of both
Eligible borrowers: Farmers including landless, share croppers, tenant farmers, oral lessees, SHGs, SHG Federation, JLGs, individuals
Eligible activities: (i) Working capital requirement for activities supporting the agri-value chain including:
a) Short term credit requirements for cultivation of crops
b) Post harvest expenses
c) Produce Marketing Loan
d) Working capital requirement for maintenance of farm assets
e) Any other activity supporting the agri-value chain.
(ii) Term Loan requirement for activities supporting the agri-value chain including investment credit requirement for agriculture and allied activities etc.
Eligibility Criteria (i) Any eligible borrower scoring equal or above 600 out of 1000 per NABKISAN’s rating framework approved by MD&CEO would be eligible subject to fulfilling other mentioned criteria. The rating tool includes parameters such as Credit bureau score, bank statement analysis, farm risk report, field officer assessment etc.
(ii) If the primary applicant is over 60, they must include a co-borrower on the application. Co-borrower Relationship- The co-borrower must be a legal heir or an immediate family member.
Loan Quantum: Based on Scale of Finance of the activity as decided DLTC for the district/Unit Cost of the activity as decided by SLUCC / based on the conditions prevailing in their area of operation, technical feasibility, financial viability and bankability of the project.
(a) Maximum Short-term Credit for Crop to be arrived as: Scale of finance of the crop based on loan requirement is applied (as decided by District Level Technical Committee) x Extent of area cultivated. Within the maximum limit, specific sub-limits for input credit will be fixed for each specific crop, which will be guiding tool for credit limit to the farmer.
(b) Term loan for investment in agriculture: The quantum of credit for term loan for agricultural and allied activities etc., is to be arrived at based on the unit cost (fixed by SLUCC) of the asset/s proposed to be acquired by the farmer, the allied activities already being undertaken on the farm, repayment capacity vis-a-vis total loan burden devolving on the farmer, including existing loan obligations. The Term Loan limit should be based on the proposed investment(s) and repaying capacity of the farmer.
Interest Rate: (i) Rate of interest would be decided by ALCO of NABKISAN and as per the rate of interest policy of NABKISAN applicable from time to time.
(ii) The borrower will be advised at the time of sanction the applicable rate of interest.
(iii) Penal charges will be charged for delayed payments as per rate of interest policy of NABKISAN.
Repayment Period: (i) Production credit- The repayment period would be as per the anticipated harvesting and marketing period for the crops for which the loan has been granted.
(ii) The term loan repayment period would range from 18 months to 7 years generally, depending on the type of activity/investment and would be decided on case to case basis
Security: (i) Security will be applicable as per RBI guidelines prescribed from time to time.
(ii) For loan upto Rs 2.00 lakhs- Hypothecation of crops/assets created out of NABKISAN’s financial assistance.
For loan above Rs 2.00 lakhs- Collateral Security - Hypothecation of crops/assets created out of NABKISAN’s financial assistane + Pledge of Jewels or Deposit receipts / LIC/NSC assignments / or collateral security by way of MOD / charge creation.
(iii) In cases of coverage under any credit guarantee scheme , the collateral security requirement would be waived to the extent of credit guarantee coverage.
(iv) For loans extended under any scheme of central or state governments, security requirements would be based on the provisions of the scheme.
