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

Overview

Punjab Gramin Bank offers the Kisan Credit Card (KCC) with the name Punjab Gramin Bank Kisan Credit 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

Punjab Gramin Bank Kisan Credit 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

The credit offered will be based on individual farming needs and requirements. There is no maximum 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

• For Production Credit: No margin
• For Term Loan: Presently for loan up to Rs. 1 lakh margin requirement is NIL and for loan above Rs. 1 lakh: 5%-25%

Security

For cards issued upto Rs.1 lakh: Hypothecation of crops/assets created out of bank loan.
For cards issued above Rs.1 lakh: (i) Hypothecation of crops/assets created out of bank loan.
AND
(ii) Charge on land as per Agricultural credit Operations and Miscellaneous (Provisions) Act of the State concerned/Mortgage of agricultural land valued at 150% of amount of loan for other farmers, 100% of the loan amount for small farmers /marginal farmers.
OR
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.
OR
Suitable third party guarantee with sufficient net means.

Documentation

• Proof of Identity (anyone): Passport / Voters ID card/ Driving License/PAN Card
• Duly filled Application Form with 2 recent passport size photographs
• Address Proof (anyone): Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/ Trade license / Sales Tax certificate
• Documents of land holdings ownership
• Proof of Income as required by the bank
• Documents pertaining to collateral and primary security, as required by the bank

Interest Rate

Interest rate, prevaling from time to time, will be applicable for the loans financed under the scheme.

Insurance

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.

Validity

The Kisan Credit Card is valid for 5 years, subject to annual review.

Repayment

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.

Disbursement

Disbursement through various channels, including ICT driven channels like ATM/PoS/Mobile handsets.

Processing Fee

• Upto Rs. 25000/-: NIL
• Above Rs.25000/- & upto Rs. 2 lakhs: Rs.500
• Above Rs.2 lakhs: Rs225 per lakh

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