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The Burdwan Central Co-Operative Bank Ltd.
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Kishan Credit Card Scheme
IntroductionGiven the enormity of the credit requirements on one hand and the vagaries of the nature on the other, financing agriculture has been a gigantic task for banks in India. Ensuring timeliness and adequacy of credit to farmers have posed the most serious challenges to banks engaged in financing agriculture. Financial sector reforms, ushered in as a part of the liberalization of the Indian economy in the beginning of nineties, has infused a spirit of competitiveness and enterprise among the banks in their endeavor for serving their customers in the best possible manner. NABARD has been playing a proactive and catalytic role in guiding the banks to meet the emerging challenges. Towards this end, several innovative strategies have been evolved by NABARD. The instrument of Kishan Credit Card (KCC) is one of the key products developed to improve the farmer’s accessibility to bank credit, simplify credit delivery mechanism and provide more flexibility in use of credit. Model scheme of Kishan Credit Card formulated by NABARD in 1998-99 is being implemented in all the States and Union territories. About 1.94 crore Kishan Credit Cards have been issued upto 31 October 2001 by the banks throughout the country. It is envisaged that every eligible agricultural farmer would be provided with a Kishan Credit Card by 31stMarch, 2004. In accordance with the announcement in the GOI budget 2001-02, Personal Accident Insurance Scheme (PAIS) has been introduced as a ‘add-on benefit’ and all the Kishan Credit Card holders would be insured for Rs. 50,000 at a nominal premium of Rs. 15/- per annum as agreed to by General Insurance (Public Sector) Association. As a pioneering credit delivery innovation, Kishan Credit Card Scheme aims at providing adequate and timely credit support from the banking system to the farmers for their cultivation needs including purchase of inputs in a flexible, hassle free and cost effective manner. Kishan Credit Card Scheme – Salient features Eligible farmer will be provided a Kishan Credit Card and a Pass Book or a Card-cum-Passbook. Revolving cash credit facility allowing any number of drawals and repayments within the limit. Entire production credit needs for full year plus ancillary activities related to crop production to be considered while fixing limit. In due course, allied activities and non farm short term credit needs may also be covered. Limit to be fixed on the basis of operational land holding, cropping pattern and scales of finance. Seasonal sub limits may be fixed at the discretion of banks. PurposeTo extend adequate and timely support to farmers for their short term credit needs. Who are eligible for the loanFarmers with excellent repayment record for 2 years. New farmers with sizeable deposits with our branches for 3 to 4 years are also eligible. Borrowers with good track record in other Banks are also eligible. Farmers who have defaulted in repayment but have liquidated the outstandings are also eligible. Loan AmountLoan amount is decided based on the cropping pattern, ancillary and contingency needs of the farmer for the full year. 90 % of the cost of cultivation (Scale of Finance) is given as loan per acre. 100 % of the cost is available as loan upto Rs. 50,000/- and 85 % of the cost is available as loan above Rs. 1,00,000/- Documents you need to provideLand records to ascertain cultivation rights. Acreage under different crops Sources of other borrowings eg. Co-operative Societies and Banks. Disbursement of the loanAs per the cultivation requirements of the crop the loan amount is disbursed in cash and kind (for ferlizers, pesticides etc) |
