General Guidelines for Agricultural Credit
1.TIME SCHEDULE FOR DISPOSAL OF LOAN APPLICATIONS:
|
Loan Amount
|
Time schedule (maximum)
|
|
Upto Rs. 2 lakh
|
2 weeks
|
|
Above Rs. 2 lakh & upto Rs. 50 lakh
|
4 weeks
|
|
Above Rs. 50 lakh & upto Rs. 100 lakh
|
5-6 weeks
|
|
Above Rs. 100 lakh & upto Rs. 100 crores
|
6-7 weeks
|
|
Above Rs. 100 crores
|
8-9 weeks
|
2.MARGIN NORMS:
(a) For production and/or Investment Credit:
|
Amount of loan
|
Margin
|
|
Upto Rs. 1,60,000/- (both for short term and medium term)
|
Nil
|
|
Above Rs.1,60,000/- to Rs. 10 lakh
|
10%
|
|
Above Rs. 10 lakh to Rs. 25 lakh
|
15%
|
|
Above Rs. 25 lakh
|
25%
|
(b) Under PNB Kisan Credit Card (KCC) Scheme: For production credit – NIL
(c) Under the Scheme of Agri-Clinics/Agri-Business Centers:
|
Amount of loan
|
Margin
|
|
Upto Rs.5 lakh
|
NIL
|
|
Above Rs.5 lakh
|
25%
|
(d) For tractor loan without mortgage of land: Minimum cash margin of 40%.
3.SECURITY NORMS:
|
A.
|
Production Credit/ Investment Credit
|
Security
|
|
i)
|
For loan upto Rs. 1.60 lakh
|
Hypothecation of crops and/or assets created out of Bank loan.
|
|
ii)
|
KCC (crop/ dairy/ fishery/ animal husbandry) loans upto Rs. 3.00 lakh under tie-up arrangement approved by HO: Agriculture Division
|
Hypothecation of crops and/or assets created out of Bank loan.
|
|
iii)
|
Above Rs. 1.60 lakh
|
a) Hypothecation of crops and/ or 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/ SARFAESI compliant immovable property valued at 75% of loan amount for other farmers and 50% of the loan amount for small and marginal farmers.
OR
Alternate security viz. charge/ lien over liquid securities such as term deposits/ NSC/ KVP, etc. which may be considered adequate
OR
Suitable third party guarantee
Note: If the Primary Security is in the shape of Land & Building, Residual Value over and above 100% of the loan amount shall be treated as collateral security.
|
|
B.
|
Under the Scheme of Agri-Clinics and Agri-Business Centres
|
|
|
i)
|
For loan upto Rs. 5.00 lakh
|
Hypothecation of assets created out of Bank loan.
|
|
ii)
|
Above Rs. 5.00 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 of agricultural land/ SARFAESI compliant immovable property valued at 75% of loan amount for other farmers and 50% of the loan amount for small and marginal farmers.
OR
Alternate security viz. charge/ lien over liquid securities such as term deposits/ NSC/ KVP, etc. which may be considered adequate
OR
Suitable third party guarantee
Note: If the Primary Security is in the shape of Land & Building, Residual Value over and above 100% of the loan amount shall be treated as collateral security.
|
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:
Branches, issues loan passbook on PNB 589 or Statement of Account, invariably, to all borrowers to furnish borrowers with a clear statement of credit facilities availed by them separately indicating various features of charges levied.
5. ONLINE APPLICATION FOR AGRICULTURE LOAN TO FARMERS:
A customer facing portal is available to enable the customer to fill the application/ record their interest for Agriculture loans. The loan application portal can be accessed through Corporate Website of the Bank i.e. www.pnbindia.com >> Online Services >> Online Loans Apply >> AGRICULTURE LOAN.
Loan Applicant will fill in the basic details like Name, Mobile No, Address, Type of loan required, Loan Amount & preferred Branch and Lead acknowledgement with the reference number will be generated. Reference no. may be used by the applicant in the future communication with the Bank. Branch will contact the applicant and disposal of loan application will be done by the Branch official as per Bank’s extant guidelines. Decision of sanction/rejection of the application will be conveyed to applicant through SMS on his/her mobile number.
Please CLICK HERE to apply for Agriculture Loan.