Procedural Guidelines for Agricultural Credit

1.TIME SCHEDULE FOR DISPOSAL OF LOAN APPLICATIONS:

2.MARGIN NORMS:

(a) For production and/or Investment Credit:

(b) Under PNB Krishi Card Scheme: For Crop Loan: NIL

(c) Under the Scheme of Agri-Clinics/Agri-Business Centres:

3.SECURITY NORMS:

Production Credit/Investment Credit:

(i) Upto Rs.1, 00,000/-

Hypothecation of crops/assets created out of bank loan;

(ii) Above Rs.1, 00,000/-

(a) Hypothecation of crops/assets created out of bank loan;

AND

(b) Charge on land as per Agricultural Credit Operations and Miscellaneous (Provisions) Act of the State concerned/Mortgage of agricultural land valued at 100% of amount of loan for other farmers and 75% of the loan amount for small farmers/marginal farmer

OR

Alternate security, viz., charge/lien over liquid securities such as term deposits/NSCs/KVPs, etc.,

which may be considered adequate

OR

Suitable third party guarantee.

(a) Under the Scheme of Agri-Clinics and Agri-Business Centres:

(i) Upto Rs.5 lakh:

Hypothecation of assets created out of bank loan;

(ii) Above Rs.5 lakh:

(a) Hypothecation of assets created out of bank loan;

AND

(b) Charge on land as per Agricultural Credit Operations and Miscellaneous (Provisions) Act of the State concerned/ Mortgage/Equitable Mortgage of agricultural land/any other suitable property valued at 150% of amount of loan for other farmers and 100% of the loan amount for small farmers/marginal farmers;

OR

Alternate security, viz., charge/lien over liquid securities such as term deposits/NSCs/KVPs, etc., which may be considered adequate.

OR

Suitable third party guarantee.

4. REPAYMENT PERIOD:

Short term credit:

Due dates fixed for recovery of crop loans towards adjustment of loan and interest should synchronise with harvesting and marketing of crops. A suitable marketing period after the actual harvest be allowed to borrower for marketing of produce and receiving sale proceeds so that he/she may conveniently repay Bank loan.

Investment credit:

Repayment period for investment activities shall be fixed as prescribed in the respective agriculture credit scheme.

ISSUE OF LOAN PASS BOOK:

In order to introduce an element of transparency, banks have been advised by the RBI to furnish borrowers with a clear statement of credit facilities availed by them separately indicating various features of charges levied. Branches shall, therefore, issue loan passbook on PNB 589 or Statement of Account, invariably, to all borrowers.

5. On line application for agriculture credit to farmers:

It has been decided to introduce on line application facility for agricultural loan.

The work flow of On-Line Agricultural Loan Application System will be as under:-

The applicant will apply through the site (www.pnbnet.org.in) and after submission of application; applicant will receive an acknowledgement containing the serial number so as to track the status of application later on. An acknowledgement is automatically sent to the applicant on e-mail I.D.

The application then will go to the branch.