PGB KCC Scheme



Kisan Credit Card Scheme aims at providing adequate and timely credit support from the banking system under a single window to the farmers for their cultivation & other needs as indicated below:


a.         To meet the short term credit requirements for cultivation of crops
b.         Post harvest expenses
c.         Produce Marketing loan
d.         Consumption requirements of farmer household
e.         Working  capital for  maintenance  of  farm  assets  and  activities  allied  to agriculture, like dairy animals, inland fishery etc.
f.          Investment credit requirement for agriculture and allied activities like pumpsets, sprayers, dairy animals etc.



All Farmers – Individuals/ Joint borrowers who are owner cultivators,
Tenant Farmers, Oral Lessees, Share Croppers, SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc.


Extent of Loan

Need based. No Upper Limit


Fixation of Limit


The short term limit to be arrived for the first year: For farmers raising single crop in a year : Scale of finance  for the crop (as decided by District Level Technical Committee) x Extent  of  area cultivated + 10% of limit towards post- harvest / household / consumption requirements (the premium for health insurance cover may also be covered with a maximum coverage of upto Rs. 3 lakh) + 20% of limit towards repairs and maintenance expenses of farm assets + crop  insurance, PAIS & asset insurance.

Limit for second & subsequent year :First year limit for crop cultivation purpose arrived at as above plus 10% of the limit towards cost escalation / increase in scale of finance for every successive year ( 2nd , 3rd, 4th and 5th year) and estimated Term  loan  component  for  the  tenure  of  Kisan  Credit  Card,  i.e.,  five  years.

For farmers raising more than one crop in a year, the limit is to be fixed as above depending upon the crops cultivated as per proposed cropping pattern for the first year and an additional 10% of the limit towards cost escalation / increase in scale of finance for every  successive  year (2nd, 3rd, 4th and 5th year).

It is assumed that the farmer adopts the same cropping pattern for the remaining four years also. In case the cropping pattern adopted by the farmer is changed in the subsequent year, the limit may be reworked.

Term loans for investments towards land development, minor irrigation, purchase of farm  equipments and allied agricultural activities. The branches may fix the quantum of credit for  term and working capital limit for agricultural and allied activities, etc., based on the unit cost of the asset/s proposed to be acquired by the farmer,  the  allied  activities  already  being  undertaken  on  the  farm,  the  bank’s judgment on repayment capacity vis-a-vis total loan burden devolving on the farmer, including existing loan obligations.

The long term loan limit is based on the proposed investments during the five year period and the bank’s perception on the repaying capacity of the farmer.

Maximum Permissible Limit: The short term loan limit arrived for the 5th year plus the estimated long term loan requirement will be the Maximum Permissible Limit (MPL) and treated as the Kisan Credit Card Limit.



Production Credit: Nil

Term Loan:
            Amount of loan                          Margin
        (i) Upto Rs.1 lakh                            Nil
        (ii) Above Rs.1 lakh to Rs.2 lakh           5%
        (iii) Above Rs.2 lakh to Rs.5 lakh        10%
        (iv) Above Rs.5 lakh                               25%


C/C Crop Loan Limit Including Consumption Needs may be repayable in 12/18 months. (12 Months in case of short duration crops and 18 months for long duration crops. Reducing Term Loan Limit may be repayable with in a period of 5 years depending on the type of activity/ investment as per the existing guidelines applicable for investment credit. However, in case of term loan for tractor, etc., where repayment period is more than 5 years, the facility may be allowed separately.



I.          For Cards issued upto Rs.1,00,000/-

Hypothecation of crops/assets created out of bank loan.

II.         For cards issued above Rs.1,00,000/-

(i) Hypothecation of crops/assets created out of bank loan.
(ii) 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, 75% of the loan amount for small farmers /marginal farmers
Alternate  Security,  viz.,  charge/lien  over  liquid  securities  such  as  term deposits/NSC/KVP, land and building situated outside village, etc., which may be considered adequate.
Suitable third party guarantee.


Takeover of KCC Accounts

The accounts of those farmers can be taken over wherein there was no default in payment of interest/instalment during the last previous one year with the previous banker.


Personal Accident

Insurance Scheme (PAIS)

All the KCC holders are covered under PAIS and the annual premium of Rs.15/- per KCC holder payable to the concerned Insurance Company under the said Scheme shall be shared by the bank and KCC holder in the ratio of 2:1


Service Charges

  1. Service charges for issue of the cards as well as replacement of the card will be Rs 50/- irrespective of the size of the limit.
  2. However, processing charges/ folio charges/ incidental charges, etc. are to be levied as under

PROCESSING FEE-Upto Rs. 25000/-.  =    NIL
Above Rs.25000/-&upto Rs. 2 lakh    .= Rs.500/-
Above  Rs.2  lakh                                  = Rs225/ per Lac or part the
Documentation Fee = Rs. 400/- per lac or part thereof


For more detail, please contact to our nearest branch.