FUNDING SCHEMES

Punjab National Bank

Scheme for Production Credit to Farmers for Growing Crops (Crop Loans):

Purpose: Purchase of inputs for crop production.

Eligibility:

Farmers who are owner-cultivators, tenants, lessee or allottee-farmers with record occupancy rights or farmers with ancestral/perpetual rights of cultivation. Oral tenants can be eligible for loan only if land-owners agree to become co-borrowers.

Extent of Loan: Need based, depending upon scale of finance.

Nature of Facilities:

Cash credit facility

For meeting crop production requirements on an ongoing basis, crop loan in general is given as cash credit facility.

Short term loan:

For growing crops during a particular season, i.e. Kharif Season, Rabi Season, etc.

Repayment of Loan:

Due dates are fixed for recovery of crop loans synchronising with harvesting and marketing of crops.
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Scheme for Financing Under PNB Krishi Card (Kisan Credit Card):

Purpose:

Loan is provided to cover short term working capital for agriculture activities, other domestic requirements such as education, consumable items, medical expenses, etc., term credit needs of the farmers and credit against of debt from non-institutional lenders.

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. Oral tenants can be eligible for loan only if land owners agree to become co-borrowers.

Extent of Loan: Maximum Rs.10 lakh

Fixation of limit:

Limit is fixed for term loan and working capital requirement 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, repaying capacity.

Maximum limit of Rs 10 lakh is allowed as under:

Maximum Rs 5 lakh for cash credit limit for crop production, consumption needs & working capital for allied activities.
Need based term loan within overall ceiling of Rs 10 lakh including cash credit limit mentioned above & loan (maximum up to Rs.50,000) for relief against indebtedness from non-institutional money-lenders

Repayment of Loan:

Term loan including loan for relief against indebtedness from non-institutional lenders may be repayable in 5 years. However, in case of term loan where repayment period is more than 5 years, longer repayment period as prescribed under the respective scheme is allowed.
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Scheme for Composite Cash Credit Limit to Farmers:

Purpose :

Composite cash credit limit will be provided for purchase of farm inputs required for production Purposes on an on-going basis. Out of total requirements, consumption credit shall be restricted to 25 per cent or a maximum of Rs.25,000/-, whichever is less.

Eligibility : All farmers owning agricultural land.

Nature & Extent of Facilities: Need based Composite Cash Credit Limit with a maximum of Rs.5000/-

Repayment of Loan:

Period of limit will be 3 years with an annual review.
Sales proceeds of produce are to be routed through composite cash credit account. Customer should clear the debit balance under composite cash credit limit at least for a week, once in a year, excepting consumption loan portion which is to be adjusted within a period of 3 years.
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Scheme for Package Loan to Farmers (PNB Kisan Sampuran Rin Yojana):

Purpose: Bank will provide package loan to the farmers for undertaking various agricultural and allied activities for production as well as investment Purposes and to meet the consumption credit requirements of the farmers. Besides, loan is also provided for processing/storage/value addition activities post harvest technology.

Eligibility:

Farmers who are owner-cultivators, tenants, lessee or allottee-farmers with recorded occupancy rights or farmers with ancestral/perpetual rights of cultivation. Individual farmers or group of farmers having aptitude/adequate experience together with minimum land holding, if stipulated in the respective agriculture credit scheme, will be eligible for investment loan.

Extent of Loan:

Need based. The farmer shall draw out his plan encompassing all agricultural activities on the basis of which extent of loan is determined. Consumption loan is allowed upto Rs.50,000 or 25 per cent of the total limit, whichever is lower.
Farmers intending to avail both production as well as investment credit will be eligible to be covered under the scheme.

Nature of Loan:

Cash credit/ term loan/ overdraft/ composite loan depending upon the requirement of the farmers.

Repayment of Loan: The repayment period is fixed as per the individual scheme.
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PNB Kisan Ichchha Purti Yojana:

Purpose:

Loan is sanctioned for productive Purpose (production and investment credit) related to agriculture and allied activities, Rural Housing related activities, and Consumption.

Sub-Limit:

20% of the overall limit or Rs.2 lakh, whichever is lower is given for rural housing activities. However, loan for housing Purpose will be allowed only if the mortgage of agricultural land for non agriculture Purpose is permissible in the State. 30% of the overall limit or Rs 3 lakh which ever is lower (including 20% of the limit or Rs 2 lakh, whichever is lower, for rural housing activities) is given for consumption Purposes.

Eligibility:

Only existing good agricultural land owner borrowers who have been continuously availing of any farm advance against mortgage of agriculture land and having no NPA record for last THREE years as on the date of application will be eligible. If the land mortgaged is in the name of more than one farmer then all will be eligible jointly.

Extent of Loan:

Loan limit will be the lowest of : 5 times average annual (2 years) income from agriculture and allied activities of the borrower. or
50% of value of mortgage land.

Maximum limit: Rs.10 lakh

Nature of maximum limit of Rs 10 lakh may be as under:-

  • Maximum Rs 5 lakh for cash credit limit for crop production, consumption needs (other than housing) & working capital for allied activities;
  • Need based term loan within overall ceiling of Rs.10 lakh including cash credit limit mentioned above & loan maximum up to Rs.2 lakh for Rural Housing.

Rural Housing Loan:

If the land for which the house related loan is given is in the name of spouse then spouse will be co-borrower.

Maximum age limit at the time of sanction of loan is 60 years. Applicants above 60 years but maximum 65 years may be considered for sanction of loan if all the legal heir join as guarantors.

Required approval from competent authority for plan, etc., will have to be submitted.
Other requirements of Bank’s Housing Loan Scheme are to be fulfilled.

Repayment of Loan:

In case of Production Credit/Consumption Credit aggregate credit into the account during 12 months period should at least be equal to the maximum outstanding in the account.

For housing loan maximum repayment period is 9 years including gestation period of 12 months.

For Main Agricultural Activities the repayment period is allowed upto maximum of 9 years.
For allied agriculture activities repayment period is allowed upto maximum of 7 years.
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Credit Against Gold Ornaments/Jewellery, National Savings Certificates, Fixed Deposit Receipts and Kisan Vikas Patra to Farmers:

Purpose:

Bank accepts gold ornaments and jewellery, fixed deposits, National Savings Certificates and Kisan Vikas Patra as security for agricultural loans, so long as the quantum of loan required is in consonance with crops grown or the investment proposed and repaying capacity likely to be generated and not with reference to value of securities pledged.

Eligibility:Applicant should be an agriculturist.

Extent of Loan:

Amount of loan is fixed according to the prescribed scale of finance for agricultural loan/approved unit cost.

Repayment:

In case of credit facilities are required farmers for meeting credit requirements on an on-going basis, instead of observing seasonality, the limit is to be brought to credit once in a year for a week.
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Scheme for Financing Farmers Growing Potato/Fruits Against Pledge of Cold Storage Receipts:

Eligibility:

Farmers who have grown potato and fruit crops from their own resources or with financial assistance from our Bank.

Extent of Loan: Maximum Rs.25,000/-

Security:Pledge of Cold Storage Receipts duly discharged in favour of the Bank.
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Produce (Marketing) Loan Scheme:

Purpose:

To meet short term credit requirement to adjust/repay the outstanding crop loan/KCC limit availed by farmers from the bank and to procure better price by storing farm produce and selling it at favourable price within a specified period

Eligibility:

Loan will be available only to those farmers who have availed themselves of crop loan/KCC facility/composite cash credit limit from our Bank only for raising the concerned crops in that season which should not be overdue for repayment.

Nature & Extent of Facility:

Short term loan:

Maximum upto Rs.5 lakh. The loan would be twice the amount of crop loan taken by farmer or 75 per cent of the value of the produce calculated at the Government announced procurement prices, whichever is lower.

Repayment of Loan:

Produce (Marketing) Loan shall be repaid within a maximum period of twelve months from the date of its disbursement.
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Farm Mechanizations Scheme - Financing for Purchase of Farm Machinery and Repair/Renovation of Tractors and Powertillers:

Purpose :

Loan is sanctioned for Purchase of new tractors and matching implements/equipments, purchase of new power tillers, purchase of second hand tractors with matching implements, purchase of agricultural machinery, repair/renovation of tractors.

Eligibility:

For tractors

Farmer or a group of farmers holding land jointly should have a land holding either owned by them or held by them on perpetual leasehold rights of minimum 2.5 acres of perennially irrigated land or corresponding acreage. Economic viability of financing tractor in each case shall be worked out. Thus, financing of tractor shall be done after ensuring economic viability of the tractor loan proposal.

For Power tillers

Farmer or a group of farmers holding land jointly should have a land holding either owned by them or held by them on perpetual lease hold rights of minimum 1.5 acres of perennially irrigated land or corresponding acreage. Financing of power tiller shall be done after ensuring economic viability of the power tiller proposal.

For other farm machinery/equipments

No condition of minimum land holding has been stipulated. Farmer should have proper scope for utilization of assets and based on economics should be in a position to conveniently repay loan.

Extent of Loan: Need based loan .

Insurance:

The tractor borrowers who have opted for PNB Farmers’ Welfare Fund Scheme are required to get their tractor and matching implements insured against “Liability”(third party) under the Insurance Act to get insurance coverage.

Subscription will be recovered from the accounts of borrowers who give their consent to opt for PNB Farmers Welfare Fund Scheme. The structure of fee is as under :-

  • Rs.400/- : for 12 months of calendar year.
  • Rs.200/- : for less than 6 months in a calendar year.

Repayment of Loan: Repayment of loan is to be made in half yearly/yearly instalments as under: -

S.No. Particulars Repayment period (Years)
i. Tractors 7-9
ii. Second hand tractors 5
iii Power tillers 7
iv

Other farm machinery:a)

a) Small & marginal farmers

 7 (including repayment holiday of one year)
  b) Other farmers 5
v Repair/renovation of tractors 5

Note: Repayment period shall be fixed on a case by case basis depending on nature of repairs, category of farmer and his repayment capacity, etc.
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Scheme for Financing Farmers for Purchase of Second hand Tractors:

Purpose:To provide loan for purchase of second hand tractor to eligible farmers.

Eligibility:

Farmer or a group of farmers holding land jointly should have a land holding either owned by them or held by them on perpetual leasehold rights of minimum 2.5 acres of perennially irrigated land or corresponding acreage. Thus, financing of tractor shall be done after ensuring economic viability of the tractor loan proposal.

Extent of Loan:

Amount of loan will be 75% of depreciated value of tractor. Down payment of 25% at depreciated value of tractor to be financed is to be met by borrower from his own sources. Loan for second hand tractor and three implements including a trailer shall be restricted to Rs.1,50,000/- (Rupees one lakh fifty thousand only).
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Scheme for Financing Self-Propelled Combine Harvesters:

Prupose:Loan is given for financing purchase of combine harvester.

Eligibility:

In case of farmers: Applicant should be able to maintain and run combine harvester or should make suitable arrangements for the same. In case of persons other than farmers: Applicant should be technically qualified having adequate know-how, skill and managerial ability to run custom service units. In case of State Agriculture Farms/Corporations: State Agriculture Farms/ Corporations engaged in land development activities should have adequate resources and command area to run and maintain combine harvesters.

Extent of Loan: Need based.

Repayment of Loan: 5-7 years in half-yearly instalments.
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Scheme for Financing Farmers for Purchase of Trucks and other Transport Vehicles:
Purpose: Loan is given for purchase of New trucks, other new motorised light/medium vehicles.

Eligibility:

Owners, Tenants or lessees of land and engaged in farming or allied agricultural activity for transporting agricultural inputs and farm products. Loan for purchase of trucks shall be given to farmers whose land holding is 5 acres or more. Loans for purchase of light/ medium vehicles like jeeps, pick-up vans, mini-trucks, etc., to be used for transport of agricultural inputs and farm products shall also be made to farmers whose land holding is comparatively smaller, i.e. 3 acres or more.

Nature of Loan: Term Loan.

Repayment of Loan:

Loan with interest is repayable in maximum period of 48 months in suitable instalments.
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Scheme for Financing Minor Irrigation:

Purpose:

Purchase of Pump sets, construction of Dug wells, deepening of Wells/Repair to wells, Bore wells, Shallow Tubewells, Deep Tubewells, Installation of Persian Wheels/Rehats, Sprinkler Sets, Drip Irrigation, Solar Pumps, Wind Mills, Check Dams, Construction of pump house, water tanks, laying of field channels, pipe lines and water courses, Use of PVC and MS pipes and GI bends Standby Diesel Engines, Pump sets fitted on Trolleys, Bicycle along with Diesel pumpsets Replacement of pumping equipment, Generator sets for energisation of pumpsets used for agricultural Purposes, Lift Irrigation and related activities.

Eligibility::

  • A farmer intending to implement a minor irrigation project must have a holding of at least 2.5 acres of land. Project must be technically feasible and financially viable.
  • Group Financing – Community Projects: Small and marginal farmers in groups or community minor irrigation projects are also financed.

Nature of Loan: Medium term loan.

Extent of Loan: Need based

Repayment of Loan: Ranges from 5-15 years depending on individual activity.
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Scheme For Financing Development Of Horticulture (Fruits, Flowers & Vegetables) And Plantation Crops:

Purpose:

Financial assistance will be made available mainly for establishment and development of new orchards or groves of fruit crops, plantation crops, ornamental crops, medicinal plants, essential oil/aromatic plants etc, rejuvenation of existing orchards or plantation, raising vegetables ,raising flower crops, inter-cropping in horticultural crops, Marketing loan to meet picking, grading, crating, forwarding and transportation costs etc..

Eligibility:

Individual farmers or group of farmers with stipulated land holding , and Public Sector Undertakings or private firms desirous of seeking financial assistance for plantation of fruit trees or other economic plants on project basis.

Nature of Facility:

Short term loan or cash credit facility is provided for production Purposes and Medium term loan for development of orchards or vegetable/flower gardens.

Extent of Loan:

Need based. However, working Capital loan would depend upon scales of finance. In case marketing loan is also considered, it does not exceed 20 per cent of the estimated value of crop.

Gestation Period: Gestation period will vary with variety of plants/trees grown.

Crop Loan:

Loan disbursed for raising vegetable crops, flower crops or other inter-cropping shall be recovered within 6-8 weeks of harvest of crop unless loans are given as composite loans taking into account both production and investment credit needs. In such cases, loan would be recovered in 4-5 years.

Marketing Loan: Repayment within 4 months from date of loan.

Medium Term Loan:

Repayment period (inclusive of gestation) in respect of medium term loans shall be in the range of 4-15 years.
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Scheme for Financing Forestry Development Programmes:

Purpose:

Term Loan shall be provided for the development of nurseries, Plantation and raising forestry trees upto harvesting , Loan for inter-cropping is also considered depending upon the crops to be grown.

Eligibility:

Farmers, Companies, State Undertakings having ownership/ lease-hold/ perpetual tenancy rights over land in their name shall be eligible for availing loan under the scheme.

Extent of Loan: Need based.

Repayment of Loan:

  • Forest Plantation:Loan for scheme where trees are grown should be repaid within a maximum period of 15 years inclusive of grace period.
  • Nursery:Since nursery starts yielding income within short period, repayment of entire term loan shall be fixed within 5 years.

Scheme for Financing Development of Wasteland (including Tree Patta Scheme):

Purpose:

Loan is given for Reclamation of soil ,Soil conservation measures ,Conditioning of land by raising seasonal crops in reclaimed area for initial one/two years, raising of forest tree/pastures in existing wasteland or reclaimed land, creating irrigation potential in wasteland, Schematic afforestation of wasteland, tree patta holders under Tree Patta Scheme.

Eligibility:

Farmers having land holdings ,Panchayats/other bodies having such community land.

Extent of Loan: Need-based loan.
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Margin Money Assistance Scheme for Development of Wasteland:

Eligibility:

State Government Corporations, Urban Development Authorities, Public Undertakings and Semi-Governments Organisations.

Extent of Margin Money Assistance: Quantum of margin money will be decided on the basis of individual project and its cash flow. National Wasteland Development Board (NWDB), will give an amount upto 25 per cent of project cost of bankable projects.

Development of Non-Forest Wasteland Under Investment Promotion Scheme:

Eligibility:

Projects promoted by Individual entrepreneurs and Individual/group of farmers,Central and State Governments Undertakings,Co-operative Institutions,Public Trusts and Societies registered under the Societies Registration Act, Corporate Bodies registered under the Companies Act.

Area Coverage of Scheme:

Scheme will primarily be restricted to non-forest wasteland owned by Central and State Governments.
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<Scheme for Financing Agricultural Graduates for Setting Up of Agri-Clinics and Agri-Business Centres (ACABC):

Objectives:

  • To supplement the efforts of Government Extension System.
  • To make available supplementary sources of input supply and services to needy farmers.
  • To provide gainful employment to Agricultural Graduates in new merging areas in agricultural sector.

Concept:

  • Agri-clinics: Agri-clinics are envisaged to provide expert services and advice to farmers on cropping practices, technology, dissemination, crop protection from pests and diseases, market trends and prices of various crops in the markets and also clinical services for animal health, etc., which would enhance productivity of crops/animals.
  • Agri-business Centres: Agri-Business Centres are envisaged to provide input supply, farm equipments on hire and other services.

Purpose:

Financial assistance is provided to the eligible persons for any economically viable activity selected by the Graduates acceptable to the Bank: -

  • Soil and water quality-cum-inputs testing laboratories (with Atomic Absorption Spectrophotometers).
  • Pest surveillance, diagnostic and control services.
  • Maintenance, repairs and custom hiring of agricultural implements and machinery including micro-irrigation (sprinkler and drip) systems.
  • Agri-service centres including the three activities mentioned above (Group activity).
  • Seed processing units.
  • Micro-propagation through Plant Tissue Culture Labs and Hardening Units.
  • Setting up of vermiculture units, production of bio-fertilizers, bio- pesticides, bio-control agents.
  • Setting up of Apiaries (bee keeping) and honey & bee products processing units.
  • Provision of Extension Consultancy Services.
  • Facilitation and agency of agricultural/insurance services.
  • Hatcheries and production of fish finger-lings for aquaculture.
  • Provision of livestock health cover, setting up veterinary dispensaries and services including frozen semen banks and liquid nitrogen supply.
  • Setting up of Information Technology Kiosks in rural areas for access to various agriculture related portals.
  • Feed Processing and Testing Units.
  • Value Addition Centres.
  • Setting up of Cool-Chain from the farm level onwards (Group Activity).
  • Post Harvest Management Centres for sorting, grading, standardization, storage and packaging.
  • Setting up of Metallic/Non-Metallic Storage Structures (Group Activity).
  • Retail marketing outlets for processed Agri-products.
  • Rural marketing dealerships of farm inputs and outputs.
  • Internet kiosks either separately or in combination of any of the eligible project activities selected by the entrepreneurs.

Eligibility:

  • The applicant should be Agricultural Graduates/Graduates in subjects allied to agriculture like horticulture, animal husbandry, forestry, dairy, veterinary, poultry farming, pisciculture and other allied agricultural activities.
  • Individuals or in group of not exceeding 5 persons; of which one could be a Management Graduate with qualification or experience in business development and management.

Extent of Loan: Need-based; subject to the following :-

  • Project by Individual : Rs.10 lakh
  • Project in Group : Rs.50 lakh

Repayment of Loan:

Loan shall be repayable in monthly/ quarterly/ half-yearly/ yearly schedule depending upon the income generation from the project or as prescribed in the respective Credit Schemes of the bank.
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Scheme for Financing Farmers for Purchase of Land for Agricultural Purpose:

Purpose:

The objective of the Scheme is to finance the farmers to purchase, develop and cultivate agricultural as well as fallow and wasteland.

Eligibility: Small and marginal farmers and Share croppers/Tenant farmers.

Extent of Loan:

It will depend on the area of the land to be purchased and its valuation and also development cost. However, maximum extent of loan under the Scheme shall be restricted to Rs.5 lakh.

Repayment of Loan:

Loan is to be repaid in 7-10 years in half-yearly/ yearly instalments including maximum moratorium period of 24 months.
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Scheme for Financial Assistance to Agricultural Graduates for Purchase of Land and Undertaking Agricultural Activities:

Purpose:

Purchase of land,Development of land,Crop loan/loan for any allied agricultural activity.

Eligibility:

The applicant must belong to farming families which have no land holding. And must be Graduates in Agriculture, Veterinary Sciences, or Agriculture Engineering and must be presently unemployed.

Amount of Loan:

Extent of loan will be need-based depending upon area of land to be purchased for a defined project to be undertaken by borrower; subject to limitations.

Repayment of Loan:

Loans given for purchase of land should be repaid in a period not exceeding 8 years including gestation period.
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Scheme for Financing Mushroom Cultivation:

Purpose: Loan is considered for Investment Credit and Working Capital (For initial one crop only).

Eligibility:

Loan is considered for individuals as well as for large sized units possessing adequate experience of mushroom cultivation.

Extent of Loan: Need based.

Repayment of Loan:

Maximum 7 years including gestation period depending upon repaying capacity of borrower.
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Scheme for Financing Mushroom Spawn Production:

Purpose:

Financial assistance for spawn production is considered for the Purpose of investment as well as recurring expenditure.

Eligibility:

Individuals as well as large sized units possessing qualification in plant pathology or having proper background and training for spawn production.

Extent of Loan: Need Based.

Repayment of Loan: Maximum 7 years
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Scheme for Financing Setting Up of Biogas Units:

Eligibility:

Intending borrower should have adequate number of cattle commensurate with size of plant proposed to be set up.

Extent of Loan: Need based depending upon models and capacities of biogas plant

Repayment of Loan: 5-7years.
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Scheme for Financing Commission Agents/Arhtiyas/Dealers, Commission Agents/Arhtiyas & Dealers Engaged In Distribution of Cattle Feed, Poultry Feed, Dairy Feed, etc., Against Their Paid-Up Stock:

Details of the scheme for financing Commission Agents/Arhtiyas/Dealers for distribution of farm inputs are given in two parts, i.e., Part-I and Part-II .

Part-I:

Finance to Arhtiyas/Commission Agents/Dealers Engaged In Distribution of Agriculture Inputs Such As Seeds, Pesticides, Fertilisers, etc., Against Their Paid-Up Stock and Book-Debts and Commission Agents/Arhtiyas Who are Extending Credit toFarmers for Purchase of Agriculture Inputs But are not Exclusive Dealers of These Inputs:

Eligibility:

Individual/firm/private or public limited company/corporate body or co-operative society registered under any law relating to Co-operative Societies working as Arhtiyas/ Commission Agents/Dealers ,enjoying good reputation in the area,having sound financial position,having sufficient experience in distribution of agriculture inputs to agriculturists and having satisfactory turn-over.

Nature of Facility:

  • Cash Credit (Hypothecation)
  • Cash Credit (Pledge)
  • Cash Credit (Book-debts)

Extent of Loan: Need-based.

Period of Loan:

Period of loan should coincide with marketing of produce ofcurrent crops (Kharif/Rabi). Account to be brought into credit balance at least once in a year. Account to be renewed annually.

Part-II:

Financing Dealers Engaged in Distribution of Cattle Feed, Poultry Feed, Dairy Feed, Fishery Feed, etc., Upto Maximum Amount of Rs.40 Lakhs Against Their Paid-Up Stock:

Eligibility:

Individual/firm/private or public limited company/corporate body or co-operative society registered under any law relating to co-operative societies working as Arhtiyas/ Commission Agents/Dealers enjoying good reputation in the area,having sound financial position, having sufficient experience in distribution of cattle feeds, etc., and having satisfactory turn-over.

Extent of Loan: Need-based.
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Scheme For Financing Poultry Farming:

Scheme for financing poultry farming provides for investment credit for construction of sheds and purchase of equipments on the one hand and production credit for purchase of day old chicks, feed, medicines, etc., on the other hand. Financial assistance shall be made available to the intending borrowers as under: -

Purpose:

For subsidiary activity:
Investment credit will be provided in the shape of medium term loan for acquiring fixed assets whereas production credit will be given to meet the working capital requirements in the shape of Short Term Loan.

For main activity:

Investment credit will be provided as medium term loan whereas production credit will be given either in the shape of cash credit limit or as an integral component of investment credit.

Eligibility:

For subsidiary activity

Small farmers, landless agricultural labourers or any other persons who are under-employed and intend to supplement income through poultry. He should be having adequate land/shed where he/she proposes to establish poultry farm.

For main activity

The applicant should be well experienced in running poultry unit and should be engaged/desirous of engaging himself in such an activity on commercial basis as his main vocation. He should be having required land/shed where he intends to establish or enlarge a poultry farm.

Unit size:

Minimum size of the poultry unit to be financed as subsidiary activity should be 500 birds.

Extent of Loan: Extent of loan will be need-based.

Repayment of Loan:

Production credit, if given as short term loan, would be recovered in maximum period of 18/12 months providing gestation period of 6/3 months in the case of layers and broilers, respectively.

Repayment of investment loan shall start after adequate gestation period (upto 12 months in the case of layers and upto 3 months in the case of broilers) in suitable monthly/quarterly/half-yearly instalments over a period of 6-7 years in the case of small farmers depending upon their repaying capacity.
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Scheme for Financing Dairy Development Programmes:

Dairy projects are financed for the following activities:

  • Financing individuals for purchase of good quality high yielding milch animals, viz., cows/buffaloes or cross bred cows for milk production.
  • Financing individuals for purchase and rearing of calves upto the stage of first lactation.
  • Financing for other innovative animal husbandry activities, namely, cattle breeding, salvaging of dry pregnant cattle, milk-processing facilities, construction of milk houses, etc.
  • Financing for Milk Production Activity I.E. Purchase and Maintenance of Milch Animals (Lactating Cows/Buffaloes) for Milk Production:

Purpose:

Bank provides loan for following Purposes:

  • Purchase of good quality high milk cows/buffaloes.
  • Construction of shed(s) for keeping the animals.
  • Purchase of dairy machinery or other equipments of dairy business.
  • Providing fodder for the animals.
  • Cost of transportation of animal from cattle market.
  • Composite loans are also given for purchase of milch cattle and one month concentrate feed requirements as also for cultivation of fodder crops in integrated manner.

Eligibility:

  • Individuals undertaking dairying as subsidiary activity.
  • Individuals undertaking commercial dairy as main activity.

Extent of Loan:

Need-based loan is provided. A unit of 2 milch animals is considered viable minimum size for such an activity for continuous production of milk.
Repayment of Loan: Loans for purchase of milch animals should be repaid as under: -

S.No. Type of Investment Repayment period (including gestation period) Loan Instalment period Gestation period
1 Cross bred cow(s) 5 years Monthly/ Quarterly Repayment to be linked with lactation period.
2 Buffaloes 4-5 years -do- -do -
3. 2 Graded Murrah buffaloes 4-5 years -do- -do-
4. Cross bred calf rearing 5-6 years -do- 30 months
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Scheme for Financing Rearing of Good Quality Female Calves:

Purpose:

Rearing of female calves of about 4 months of age born of healthy parents upto the age of first calving.

Eligibility:

Cattle breeders/ progressive farmers having female calves undertaking to retain them for milk production or sell them on first calving. Farmer should have land for raising adequate fodder.

Extent of Loan:

Amount of loan shall depend upon the number of calves the borrower(s) intends to rear.

Reayment of Loan:

If the calf is retained as lactating cow, loan and interest shall be recovered in maximum four years after first calving in suitable instalments. If the calf is sold as fresh calve, principal and interest should be recovered in lump sum from the sale proceeds of the animal. Accordingly, maximum repayment period shall be 5-6 years in the former case while it shall be 2 years and 6 months in the latter case.

Financing for Other Innovative Animal Husbandry Activities:

Purpose:

Cattle Breeding through Artificial Insemination; Salvaging of dry pregnant cattle; Financing for milk processing facilities; Financing for construction of milk houses (Dudhghar) by Village Milk Cooperative Societies; Financing for development of pasture, etc.

Extent of Loan: Need based.
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Dairy Vikas Card Scheme (Implemented in select States):

Purpose:

Purchase of good quality high milk yielding cows/buffaloes or exotic cross bred cows; Construction of shed for keeping the animals; Purchase of working capital items like, dairy feeds, veterinary medicines, fodder, dairy machinery or other equipments, etc.

Eligibility:

Landless agricultural labourers or farmers/ individuals having experience in maintaining milch animals.

Margin:Nil.

Type of Card: PNB Dairy Vikas Card.

Validity of Card:5 Years.

Extent of Loan:Rs.50,000/-

Fixation of Limit:

  • Production Credit:Maximum 25% of the limit.
  • Investment Credit:Minimum 75% of the limit.

Disbursement of Loan:

Loan shall be disbursed in cash in stages as per requirement of the farmer. The limit shall be availed from the Card Issuing Branch only.

*Repayment of Loan:

Investment credit will be repayable in 5 years with reducing composite cash credit limit on yearly basis. Installments in the account shall be repaid on monthly/quarterly basis.
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Purchase of New Buffalo/Replacement of Existing Buffalo

Purpose:

Applicants are allowed to purchase new buffalo/replacement of existing buffalo to the extent of reduction in limit provided the conduct of account is observed satisfactory for one year. Such a facility will be allowed upto third year.

Area of Operation:

Initially the scheme is implemented in the States of Punjab, Haryana, Rajasthan, Uttar Pradesh, Madhya Pradesh, Gujarat & Maharashtra.
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Scheme for Financing Fisheries Development:
Scheme for Financing Inland Fisheries Development and Brackish Water Fish and Prawn Culture:

Purpose:

Financial assistance is extended for Construction/renovation of ponds/tanks., construction of sluices, purchase of fish prawn, fry and fingerlings/ fish seed/ prawn seed, purchase of inputs like oil cake, fertilizers, organic fertilizers and other feed materials upto the first harvest, purchase of nets, boxes, baskets, ropes, shovels, hooks and other accessories etc.

Eligibility:

Loan assistance is extended to farmers, individuals, co-operative societies, companies, association of persons who have adequate know-how and necessary infrastructural facilities for implementation of the scheme
Extent of Loan: Need based.

Repayment of Loan: Loans need to be repaid within the period specified as under: -

Pond fish culture :

5-8 years including gestation period with yearly mode of repayment.
Brackish water fish/prawn culture: 5-10 years including gestation period with half-yearly mode of repayment.
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Scheme for Financing Marine Fisheries

Purpose:

Loan can be considered for purchase of mechanized/non-mechanized boats/deep sea fishing vessels/trawlers, purchase of nets - travel net/purse-seine/grill nets, purchase of other deck equipments like travel, winch, wire rope, gallows, net-handler, navigational lights, life jackets, life boats, anchors, direction finders, fish finders, etc. purchase of marine engine. etc.

Eligibility:

Loan is extended to individual(s)/partnership firm(s), co-operative society(ies), limited company(ies) who are technically qualified and having adequate experience to undertake such venture.

Extent of Loan:

Amount of loan will be according to the requirements of project report submitted by intending borrower(s).

Repayment of Loan:

Medium Term Loan:

  • Non-mechanized boats/vessels : 6-7 years.
  • Mechanized boats : 8-12 years.

Cash Credit Limit:

Cash Credit Limit for working capital requirements are renewed every year.
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Scheme for Financing Sheep/Goat Breeding/Rearing Activities

Purpose:

Financial assistance is considered for Purchase of sheep/goat of recognized breed for the Purpose of breeding and/or rearing them for wool, meat and milk production, construction of sheds for sheep/goat, if considered necessary, and also for purchase of equipments/tools, purchase of concentrate feed, if considered necessary.

Eligibility:

Small and marginal farmer(s) and agricultural labourer(s) desirous of undertaking sheep/goat breeding/rearing as subsidiary activity or trained persons desirous of taking up the venture on commercial lines are eligible for financial assistance.

Extent of Loan: Need based.

Repayment of Loan: Medium Term Loan, Activity Minimum & maximum repayment period, including gestation period Mode of repayment (instalments)

  • Sheep Breeding 5-6 years Quarterly/ Half-yearly/ Yearly
  • Goat Rearing 5-6 years Quarterly/ Half-yearly/ Yearly

Working Capital:

Working capital loan is to be repaid within maximum period of 1.5 years from the date of advance. If given as cash credit limit, the facilities shall be renewable every year.
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Scheme for Financing Piggery Development

Purpose: For breeding and/or rearing of pigs.

Eligibility:

Farmers/agricultural labourers and individuals desirous of undertaking piggery as subsidiary activity and the persons undertaking such activity on commercial lines as main activity.

Extent of Loan: Need based.

Production Credit:

Working capital loan is to be repaid in a maximum period of one and half years from the date of advance.

Investment Credit:

Repayment of the medium term loan is to be made in yearly instalments within a period of 5-6 years including gestation period.
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Scheme for Financing Purchase of Animal Drawn Vehicles I.E. Carts and Draft Animals:

Purpose:

Loan is given for purchase of draft animals, animal drawn carts for transport of agriculture inputs & farm produce and other such Purposes.

Eligibility:

Farmers owning minimum 2 acres of land; farmers having perpetual right of cultivation of minimum 2 acres of land.
Persons belonging to category of `Landless agriculture labour’ are also financed for purchase of animals and carts for providing self-employment.

Extent of Loan: Need based.

Repayment of Loan :

Repayment period is fixed through Monthly/ Quarterly/ Half-yearly intervals as under:

  • Assets Created Repayment Period
  • Bullocks only 4 years
  • He buffaloes & drawn carts (Jhota Buggies) 4-5 years
  • Camels only 5 years
  • Bullocks & carts 5-7 years
  • Animal drawn carts only 5-7 years
  • Camels & carts 5-7 years
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Scheme for Financing Apiculture (Bee-Keeping)

Purpose:

Financial assistance is made available for meeting:
Fixed cost such as Construction of honey houses; purchase of colonies; purchase of equipments like bee-boxes, honey extractors, smokers & bee veil, bee knife, hive tool, queen gate, feeder, solar wax extractor, plastic drums for storing honey, sting proof rubber gloves, etc.
Recurring Costs such as purchase of foundation sheets, sugar, medicines, gloves, etc.

Eligibility:

Small and marginal farmer(s)/ agricultural labourer(s) who are trained in bee keeping and individuals/Association of persons/Companies who possess adequate experience in bee-keeping and are desirous of taking up bee-keeping activity on commercial basis.

Extent & Nature of Loan :

Need based term loan. Provision for initial recurring costs also forms an integral part of term loan only.

Repayment of Laon:Maximum 5 years including gestation period.
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Scheme for Financing Kitchen Gardening

Purpose:

Loan is given for initial expenditure on fencing, purchase of inputs like seeds, fertilizers, plant protection chemicals, Land development, Small gardening equipments.

Eligibility :

Applicant be employed in a Government/Semi-Government unit or in a Co-operative/ Private Sector Organization of repute. However, he/she should not be working as an ad-hoc employee; Professional and self-employed person having previous dealings with the financing branch; Pensioner of Central/State Government or other Government Undertakings and should be having pension account with financing branch; Wives of employees of Government/Semi Government bodies and other organizations as aforesaid are also eligible provided loan for the Purpose has not been raised by their husbands; Staff members are also eligible provided they have sufficient space to undertake such activities; Applicant must have vacant land in/around residential house with right to use such land; He/she should have a deposit account with bank for at least six months; The applicant should have adequate income for repayment of loan.

Nature & Extent of Loan: Short term loan upto Rs.5000/-.

Repayment of Loan: One year.
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Krishi Card Scheme

Empowering Farmers

Punjab National Bankhas contributed significantly in the field of agriculture and other related activities for accelerating the pace of rural development. It has been providing loans to farmers under its various schemes specially designed for the agricultural sector.
Krishi Card has been introduced for the Purpose of short-term working capital required for agricultural activities as well as other rural household requirements such as education, consumable items, medical expenses etc. The card enables the farmers to draw cash from all branches of PNB within the district.

Eligibility :

Progressive, literate and illiterate farmers who are owners cultivators, tenants, lessee or allotee farmers with recorded occupancy rights or farmers with ancestral/perpetual rights of cultivation, oral tenants can be eligible for loan if land owners agree to become co-borrowers and also card can be issued against some liquid securities like FDR/NSC/KVP etc , to oral tenants without insisting the land owners to become co-borrowers.

Amount of Loan :

To avail the advantage of this scheme, four different categories of cards have been introduced. The limits for the cards are fixed on the basis of the total income and the loan requirement for each category of farmer.
Type of Card Size of Maximum eligible Land holding limit

  • Vikas Card: upto 2.5 acres :Limit up to Rs.30,000/- (Blue Card)
  • Bhagyawan: Above 2.5 acres to 6 acres : Limit over Rs 30,000/- to 2,00,000/- (Red Card)
  • Sarvottam: Above 6 acres to 8 acres : Limit over Rs 2,00,000/- to 3,00,000/- (Green Card)
  • Swarn Card : Above 8 acres : Limit over Rs3,00,000/- to 5,00,000/- (Brown Card)

Duration of the card is three years (renewable).

  • A farmer owning 1.0 acre or equivalent land is allowed limit up to Rs. 15,000/- including consumption needs.
  • Limit is to be fixed in multiples of Rs. 1000/-.
  • Nominal service charges.

Opening of Account :

Opening of account in joint names of farmers has been allowed. However, the card shall be issued to one borrower on the basis of mandate given by other co-borrowers.

Margin :

For limits upto Rs 2,00,000/- margin required is nil
For limits above Rs 2,00,000/- to Rs 4,00,000/- margin required is 10%
For limits above Rs 4,00,000/- margin required is 15%