Punjab National Bank Kisan Credit Card 2024, Overview, Interest Rates & Eligibility

Overview

Punjab National Bank offers the Kisan Credit Card (KCC) with the name PNB Krishi Card. It is a unique Scheme that aims at providing adequate, hassle-free and timely credit support from the banking system under a single window to the farmers for their cultivation & other needs.

Objective

PNB Krishi Card provides credit assistance for the following purposes:

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

Eligibility

  • Progressive literate and illiterate farmers who are owner cultivators
  • Tenants, lessee or allottee farmers with recorded occupancy rights or farmers with ancestral/ perpetual rights of cultivation
  • Joint Liability Groups(JLGs)
  • Oral tenants can be eligible for loan only if land owners agree to become co-borrowers
  • In the accounts which are secured by liquid securities like FDR,NSC/KVP etc., the cards to oral tenants can be issued without stipulating the condition of land owners to be made co-borrowers
  • Landeless labourers, share croppers, tenant farmers and oral lessees can be issued PNB Krishi Card upto limit of Rs 50,000 on the basis of affidavit

Credit Limit

  • Short term limit for the first year: Scale of finance for the crops (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards postharvest / 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 investments towards land development, minor irrigation, purchase of farm equipments and allied agricultural activities for five years
  • 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
  • Extent of Loan: Maximum Rs. 50 lakhs

Margin

Nil

Security

  • For loan of up to Rs.1 Lakh: Crops or assets that the farmers create using the loan amount
  • For loan of more than Rs.1 Lakh then along with the crops and assets they have created using the loan money, they have to provide one of the following -
    1. Land charge according to the Agricultural Credit Operations and Miscellaneous (Provisions) Act of the State concerned or Mortgage or Equitable Mortgage of an agricultural land or any other property (suitable), the value of which is 100 percent of the loan amount for other farmers and 75 percent of the amount of loan for marginal or small farmers
    2. An alternate security such as lien or charge on liquid securities like NSCs or Term Deposits or KVPs, etc. (whichever is considered adequate)
    3. Guarantee from a third party

Interest Rate

  • For loans upto Rs. 3 lakhs: 7% p.a.
  • Loans above Rs. 3 lakhs to Rs. 20 lakhs: Base Rate + 2% i.e. 11.60% (presently)

Insurance

Insurance for the crops are available periodically based on government guidelines.

Validity

Valid for the period of 5 years.

Processing Fee

No processing fee up to a limit of Rs. 3 lakhs.

What is Personal Accident Insurance Scheme (PAIS) for KCC Holders?

Personal Accident Insurance Scheme (PAIS) is an accident insurance scheme especially designed for KCC holders. NABARD has, in consultation with the representatives of insurance companies, bankers and Govt. of India, finalised the Personal Accident Insurance Scheme for KCC holders, for uniform implementation by banks throughout the country. It was introduced on 14 June 2001.

It covers risk of KCC holders against:

  • Death (or)
  • Permanent Disability

Death (within 12 months of the accident) or permanent disability should be resulting from accidents caused by external, violent and visible means.

It gives following risk covers:

  1. Death due to accident (within 12 months of the accident) caused by outward, violent and visible means: Rs 50,000
  2. Permanent total disability: Rs.50,000
  3. Loss of two limbs or two eyes or one limb and one eye: Rs.50,000
  4. Loss of one limb or one eye: Rs.25,000

KCC holder has the option to take benefit of Accident Insurance (including PAIS) whose premium has to be paid by him through his KCC account. Premium payable Rs.15/- for a one year policy while Rs.45/- for a 3-year policy. Premium has to be borne by farmers/bank according to the terms of the Scheme. To avail this insurance cover, the applicant should not be over 70 years of age at the time of availing the Kisan Credit Card