Frequently Asked Questions (FAQs)-Agriculture Loan Schemes Patiala Bank Kisan Card (PBKC) What is the eligibility criteria for Patiala Bank Kisan Card? All farmers-Individuals/ Joint borrowers in the age group of 18 to 70 years who are owner cultivators (i.e. Farmers cultivating crops in their own/ ancestral lands), Tenant farmers, Oral lessees (i.e. Rights on land belonging to others) and Share Cropers. Up to what extent of the loan amount, collateral security is obtained in Patiala Bank Kisan Card? 125% of loan amount. No collateral is required upto the total loan of Rs. 1.00 lac from bank for agriculture purpose as per RBI guidelines. What are the processing charges in Patiala Bank Kisan Card? Processing charges: (including service tax)  up to Rs.25000/-Nil  above Rs.25000/- and upto Rs. 2 lacs @ Rs.630/- p.a.  above Rs. 2 lacs @ 0.40% of the loan amount, Maximum Rs. 36.64 lacs. What is the validity period of Patiala Bank Kisan Card? 5 years As PBKC holder, am I covered under any insurance scheme? Yes, you are covered for accidental insurance scheme (Personal Accidental Insurance Scheme) between age limit of 18-70 years. What is the premium and who pays it for PAIS ? Premium is paid in the ratio of 1:2 by farmer and banker respectively and generally it is a very small amount. How the PBKC limit is calculated? The credit limit will be worked out on the basis of the prevailing Scale of Finance fixed on the recommendations of District Level Technical Committee (DLTC) by convener SLBC of State from time to time. In addition bank provide additional amount for consumption etc. Whether the bank provide PBKC limit to sugarcane growers? Yes, for this purpose bank has tie-up with sugar mills. What is the time of review of PBKC limit PBKC should be reviewed annually, well before the due dates, every year to continue the limit during the validity period of 5 years. Whether I can operate my PBKC limit through ATMs? The ATM/ Debit Card is issued to all eligible PBKC borrowers. At what rate this PBKC limit is available ? Upto three lacs it is available at 7% p.a. as per subvention policy of government of India. Beyond 3 lacs banks normal interest rate is applicable. What are the benefits of timely payment of PBKC limit ? As per Interest subvention policy of Government of India, 3% additional subvention is available to the farmers who pays their dues within stipulated date. Also it increases your creditworthiness.

Kisan Gold Card What is Kisan Gold Card ? It is a single term loan for all term loan requirements like Farm Mechanization, Land Development, Minor irrigation, Water Conservation, Horticulture, Allied activities and other agri related activities. What is the eligibility criteria for Kisan Gold Card? Individual, Joint/Group of farmers (owner cultivators) and JLGs, SHGs etc. engaged in Agriculture and allied agriculture activities. How much loan I can get under Kisan Gold Card? Maximum Rs. 20.00 lacs How much Collateral Security is required in Kisan Gold Card? Mortgage of land equivalent to 150% of the loan amount.

What is the repayment period in Kisan Gold Card scheme? Maximum period of 9 years in half yearly installments. The loan is said to be for different purposes. How the disbursement is made in this scheme ? A simple letter of undertaking stating the purpose of the drawl obtained from the borrower. The amount disbursed may be credited to the saving bank account of the borrower as per his convenience. Do we need to submit bills for the items purchased ? The submission of bills/invoices upto Rs.2.00 lacs has been waived except where the credit facility for the purchase of vehicles and farm equipments. The relative bills need to be submitted to the branches for the loan above Rs. 2.00 lacs within one month after the disbursement of the loan. What are the processing charges in Kisan Gold Card? Processing charges: ----Nil Upfront Fee(including service tax): (i) Up to Rs. 2.00 lac ----- Nil (ii) Above Rs. 2.00 lac ---- 1.489% of the loan amount. What are the inspection charges in Kisan Gold Card? Inspection charge (including service tax): Up to Rs. 25000/- --Nil Rs. 25000 & upto 2 lacs -- Rs. 687/- p.a. Rs. 2 lacs & upto Rs. 20 lacs- Rs. 315/- per lac with maxi. Rs. 17175/- p.a. Dairy Loan What is the eligibility criteria for Dairy loan? Farmers having two or more milch animals. New farmers trained in dairy farming by the Dairy Development Board/Agriculture Universities/Other Agencies. Agriculture graduates may also avail loan under Agri Business Scheme. What is extent of Collateral security in Dairy loan? Mortgage of land equivalent to 100% of loan amount What is upfront fee in Dairy loan? (i) Up to Rs. 2.00 lac ----- Nil (ii) Above Rs. 2.00 lac --- 1.489% of the loan amount (including service tax). What is processing/inspection fee in Dairy loan? Processing charges: (including service tax)  up to Rs.25000/-Nil  above Rs.25000/- and upto Rs. 2 lacs @ Rs.630/- p.a.  above Rs. 2 lacs @ 0.40% of the loan amount, Maximum Rs. 36.64 lacs. Inspection charge (including service tax): Up to Rs. 25000/- --Nil Rs. 25000 & upto 2 lacs -- Rs. 687/- p.a. Rs. 2 lacs & upto Rs. 20 lacs- Rs. 315/- per lac with maxi. Rs. 17175/- p.a. Is there any concession in rate of interest also? A concession of 1% p.a. on regular repayments shall be granted on Term Loan. What is the repayment schedule ? General repayment schedule: repayable within 7 years in 78 monthly installments with a moratorium period of 6 months. Working Capital to be sanctioned for one year & renewed thereafter. For commercial dairy units of 20 to 150 animals: In this case ,1st year-moratorium of both principal & interest 2nd & 3rd Year-only pay interest part 4th to 7th Year- repayment of both Principal & Interest

Agri Gold Loan What is this scheme ? Demand loan/Cash Credit/Overdraft/Term Loan against the security (pledge) of Gold ornaments may be granted to farmers to enable them to meet their short and long-term agricultural credit needs i.e. both for

meeting crop production and investment needs. Who can avail Agri Gold Loan? Any person engaged in agriculture or allied activities. What are Inspection Charges, Prepayment Penalty and Technical Report in Agri Gold loan? All are waived Whether landless farmers can also take this Agri Gold Loan ? Yes, Loan to landless farmers can be granted for allied agri. activities, against the security of gold ornaments on the basis of self declaration from them without insisting on copies of land records. Whether copies of land record required for Agri Gold Loan? Yes, If Agri. Gold loan is granted for KCC/ Production credit against gold ornaments. Whether interest subvention is available under this scheme? Yes, up to Rs. 3 lacs for KCC/ Production credit against gold ornaments as per scheme of Govt. of India. Loans upto this amount is granted at 7% p.a. (Total Production credit upto 3.00 lacs). 3% Subvention for prompt payment is also available as per government guidelines

Kisan Tatkal Scheme What is this scheme? An instant credit for farming community to meet the emergency requirements for Agriculture and Domestic purposes for tiding over temporary difficulties. What is the eligibility criteria for Kisan Tatkal scheme? Individual farmers/ joint borrowers (not exceeding 4 farmers) who are existing Patiala Bank Kisan Card(PBKC) / Kisan Credit Card(KCC) holders having satisfactory track record of atleast two years. How much amount is available under Tatkal Scheme? Rs.1000/- minimum and Rs. 50000/- is the maximum loan limit under this scheme. What is the loan repayment period under Kisan Tatkal scheme? 3-5 years in half yearly/ yearly installments. What is the rate of interest on loan under Kisan Tatkal scheme? 1.85% spread over MCLR. What are the other charges under this scheme ? Inspection charge (including service tax): Up to Rs. 25000/- --Nil Rs. 25000 & upto Rs. 50000/- -- Rs. 687/- p.a. Upfront Charges: NIL What collateral security required for the scheme ? Existing security(ies) obtained for KCC/ ATL to be continued.

Estate Purchase Loan For what purpose loan is available under this scheme ? To purchase estates growing traditional plantation crops viz. citrus, apple, guava, pomegranate, peach, pear, litchi, grape, ber, coffee, tea, rubber, cardamom, cashew, pepper, coconut and other perennial orchard crops. What is the eligibility criteria for Estate Purchase Scheme? The purchaser should have, yielding estates and should be in a position to rejuvenate the Estate proposed. The intending borrowers should have satisfactory past dealings with the Bank How much loan one can avail under Estate Purchase Loan? 50% of the value of estate to be purchased. Maximum Rs. 10 lac. How much collateral security is required in this scheme? Mortgage of land equivalent to 200% of the loan amount. What is the loan repayment period under Estate Purchase scheme? Repayable within 7 to 9 years in half yearly instalments.

Debt Swap Scheme What is this scheme ? Credit facility to farmers for paying off loans taken from non-institutional lenders (e.g. money lenders etc.) to come out of the debt trap and also to meet their crop production needs. What is the extent of maximum loan amount under Debt Swap? Maximum Rs. 1.00 lac What is the loan repayment period under Debt Swap? 3 to 5 years with moratorium of one crop season. What are the processing charges & Upfront fee in Debt Swap scheme? Both are waived in this scheme. What are the security requirements ? Waived up to Rs. 1.00 lac, where total exposure to a borrower including Debt Swap limit exceeds Rs.1.00 lac, collateral to be obtained for new loan by way of fresh/ supplementary registered mortgage of agri. Land. How this loan is disbursed ? On the basis of affidavit obtained from the farmer.

Kinnow Plantation For what purpose the loan is sanctioned under this scheme ? To provide hassle free loans (Term loan and Working Capital) to the farmers for plantation of Kinnow orchard. What is the eligibility criteria for financing Kinnow plantation? Farmers already engaged in agri. activities, well experienced with good track record having more than 1 hectare of agriculture land (2.5 acre). How much loan one can get under the scheme ? Minimum Rs. 3.50 lacs and Maximum need based. What is extent of Collateral security in this scheme? Mortgage of land equivalent to 125% of loan amount. What is extent of margin in this loan scheme? Minimum 10% of the project cost. How the disbursement of loan is made under the scheme ? The first installment will be released one month prior to plantation i.e. November/December and July/August to meet the first year’s expenses. The subsequent installments will be released in the second year and onwards twice in a year in the month of February/ March and July/August. What is the repayment period in scheme? Repayable in 10 years with initial 5 years moratorium period for both principal and interest repayment. What are the charges, fee etc for this scheme ?  Upfront fee (including service tax) – Above Rs. 2 lacs @ 1.489% of loan amount.  Processing charges(including service tax) – > Rs.2 lacs -0.40% of loan amount with maximum of Rs.36.64 lacs.  Inspection Charges(including service tax) – Above Rs.25000/- & upto Rs.2 lacs-Rs.687/- p.a. > Rs. 2 lacs & upto Rs. 5 Cr.-Rs.315/-per lac p.a. Maxi. Rs.17175/-p.a. Whether Intt subvention is available under this scheme ? Yes, up to Rs. 3.00 lac, subject to subvention scheme of GOI from time to time. Apple Plantation For what purpose the loan is sanctioned under this scheme ? To provide hassle free loans (Term loan and Working Capital) to the farmers for plantation and maintenance of Apple orchard. What is the eligibility criteria for financing Apple plantation? Farmers already engaged in agri. activities, well experienced with good track record having minimum ½

acre of land are eligible under the scheme. How much loan one can get under the scheme ? Minimum Rs. 2.10 lac and Maximum Rs.100.00 lac. How the disbursement of loan is made under the scheme ? The first installment will be released one month prior to plantation to meet the first year’s expenses. The subsequent installments which will be released in the second year and onwards twice in a year in the month of February/ March and July/August. What is extent of Collateral security in Apple financing? 125% of loan amount. What is extent of margin in Apple financing loan scheme? Minimum 10% of the project cost. What is the repayment period in Apple Financing loan scheme? Repayable in 12 years with initial 7 years moratorium period for both principal and interest repayment. What are the charges, fee etc for this scheme ?  Upfront fee (including service tax) – Above Rs. 2 lacs @ 1.489% of loan amount.  Processing charges(including service tax) – > Rs.2 lacs -0.40% of loan amount with maximum of Rs.36.64 lacs.  Inspection Charges(including service tax) – Above Rs.25000/- & upto Rs.2 lacs-Rs.687/- p.a. > Rs. 2 lacs & upto Rs. 5 Cr.-Rs.315/-per lac p.a. Maxi. Rs.17175/-p.a. Whether Intt subvention is available under this scheme ? Yes, up to Rs. 3.00 lac, subject to subvention scheme of GOI from time to time. Polyhouse Financing What is this scheme all about ? To give a boost to horticulture financing by extending loans to farmers / Firms / Companies for growing horticultural crops under polyhouse adopting suitable technology under protective environment. What are the advantage of such type of farming ? 1. Requires less area to get maximum yield and benefits. 2. Usage of insecticides or pesticides is minimum as insects fail to enter into the polyhouse. 3. Easy to operate, maintain & control. 4. Higher efficiency of water & fertilizer use. 5. Uniform and better quality of produce. What is the eligibility criteria for financing Polyhouse/Green house/Net House? Individual / Firms / Companies/ Institutions having experience in modern agricultural technologies engaged in this activity and having minimum of 1/2 acre owned or leased agriculture land holding. What is extent of Collateral security in Polyhouse financing? Mortgage of land equivalent to 125% of loan amount. How much loan is available under this scheme ? Minimum - Rs. 3.00 lacs & maximum Rs. 200 lacs What is extent of margin in Polyhouse financing loan scheme? 20% of the project cost. What is the repayment period in Polyhouse Financing loan scheme? The principal and interest will be repayable in half yearly installments in seven years, including moratorium period of 1 year. What are other charges/fees etc. ?  Inspection Charges- Upto Rs.25000/---Nil Above Rs.25000/ & upto Rs.2 lacs-Rs.687/- p.a. > Rs. 2 lacs & upto Rs.1 Cr.-Rs.315/-per lac p.a. Maxi.Rs.17175/-p.a.  Upfront Fee- Upto Rs.2.00 lac---Nil Above Rs.2.00 lac & upto Rs.5 crores- 1.489% of loan amount. What about the subsidy available under the scheme ?  In the state of Haryana- 65%, 90% and 50% subsidy on the cost of polyhouse, irrigation system and planting material respectively from the Deptt. Of Horticulture.

 

In the State of Punjab-50% subsidy on the cost of ployhouse and on planting material from the Deptt. Of Horticulture. In the State of Himachal Pradesh-50% subsidy on the cost of ployhouse.

Poultry Financing For what purpose loan is given under the scheme ? Loan for rearing of layers, broilers, quail, duck, turkey etc. for production of eggs, meat and hatchery for chick production. What is the eligibility criteria for financing Poultry farming? Individuals, farmers, group of farmers, Self Help Groups, Joint Liability Groups, firms, co-operative societies, companies. How much loan is available under the scheme ? Need-based in respect of the projects What is extent of Collateral security in Poultry financing scheme? Mortgage of land equivalent to 125% of loan amount. What is extent of margin in Poultry financing scheme? 15% for Term loan 25% for working capital How the disbursement of the loan is made ? Loan amount for construction of building, poultry shed and equipment shall be released at least 4-5 months before adding the birds. The second loan installment should be released for the purchase of chicks and concentrate feed about 15 days before the actual purchase. The payments shall have to be made directly to the suppliers on obtaining bills/cash memos under the written authority of the borrower. What is the repayment period in Poultry Financing scheme? Loan with interest will be repaid in six years on monthly basis including moratorium period of one year at the initial stage. Can the loan be repaid before due date? Yes What are the charges/fees etc..? Inspection Charges- (including service tax)  Upto Rs.25000/----Nil  Above Rs. 25000/ & upto Rs. 2 lacs-Rs. 687/- p.a.  > Rs. 2 lacs & upto Rs.1 Cr.-Rs.315/- per lac p.a. maxi. Rs. 171750/-p.a. Upfront fee Upto Rs.2.00 lac---Nil  Above Rs.2.00 lac & upto Rs. 5 crores- 1.489% of loan amount. Processing Charges > Rs.25000/-& upto Rs.2 lacs- Rs.630/- p.a.  > Rs.2 lacs-0.40% of loan amount with maximum of Rs. 36.64 lacs. From where I can avail this loan ? From our branch which is near to your residence.

Agriculture Marketing Infrastructure (AMI) Scheme What is this scheme all about ? It is subsumed of two schemes i.e. Gramin Bhandaran Yojana (GBY) and Scheme for Development/ Strengthening of Agriculture Marketing Infrastructure, Grading and Standardization (AMIGS). Who is eligible criteria for loan under Agriculture Marketing Infrastructure (AMI) Scheme? Individuals, Partnership/ Proprietorship firms, Group of farmers/growers, Regd. FPOs, Companies, Corporations, NGOs, SHGs, Cooperatives, Cooperative Marketing Federations, Autonomous Bodies of the Govt., Panchayats, Local Bodies (Excluding Municipal Corpns. For storage infrastructure projects),

State Agencies including State Govt. Deptt. and autonomous organizations/State owned Corpn such as Agri- produce Market Committees and Marketing Boards, State Warehousing Corpn. etc. What is the available loan amount under this scheme ? The full project cost including the subsidy amount, but excluding the margin money contribution from the promoter. How much subsidy available under Agriculture Marketing Infrastructure (AMI) Scheme? From 25% to 33.33% of the project cost. What is the minimum contribution of promoter in project of AMI Scheme? 20% of project cost What is the loan repayment period in loan under AMI Scheme? 7 to 10 years including moratorium period of 1 to 2 years. What are the other charges/fee etc. under the scheme ? Inspection Charges (including Service tax) Upto Rs.25000/----Nil  Above Rs. 25000/ & upto Rs. 2 lacs-Rs. 687/- p.a.  > Rs. 2 lacs & upto Rs.1 Cr.-Rs.315/- per lac p.a. maxi. Rs. 17175/-p.a. Upfront fee (including Service tax) Upto Rs.2.00 lac---Nil  Above Rs.2.00 lac & upto Rs. 5 crores- 1.489% of loan amount.  > Rs. 5 cr & upto Rs. 25 cr.-1.26% of loan amount.

Producer Marketing Loan (PML) For what purpose loan is granted under this scheme ? For farmers to provide them liquidity and also to enable them to avoid distress sale of their farm produce at the time of harvest. Farmers storing their produce in their own godowns/ premises as well as in Cold Storages/ Warehouses (CS/WH). What is the maximum loan limit under Producer Marketing Loan Scheme? Rs. 10.00 lacs What is the repayment period in loan under Producer Marketing Loan Scheme? Maximum 6 -12 months Which Crops are covered to finance under Producer Marketing Loan Scheme? Paddy, Rice, Wheat, Groundnut, Rapeseed/Mustard, Bengal grams (Chana), Arhar/Tur, Cotton Seed, Potatoes and other storable vegetables & fruits. What is processing fee in Producer Marketing Loan Scheme? Nil. What is the margin to be kept in Producer Marketing Loan Scheme? 40% for our existing borrowers if the produce is stored in the farmers own godown. What are the collateral security requirements ? Storing their produce in their own godowns/ premises- 150% of the loan amount. Cold Storages/ Warehouses (CS/WH)-waived upto Rs.10.00 lacs. Rural Infrastructure Scheme What is this scheme ? For creating the infrastructure like construction of shed for keeping the animals, godown, rooms etc. for storage of animal feed, insecticide, pesticide, fertilizers, agri produce and for parking of agriculture machinery, tractor, trolly and other implements etc. including the construction of room for the residence of the farmer for looking after the allied activity undertaken. Who is eligible for loan under this scheme? All farmers including SHGs who undertake the agricultural and allied activities. What is the loan limit under this scheme? Maximum loan upto Rs.20.00 lacs What is extent of margin in this scheme?

15% of the project cost. What is the repayment period of loan under this scheme? Maximum period of 10 years excluding a moratorium period upto 18 months. What is extent of Collateral security in this scheme? 115% of the loan amount. What is the Upfront fee applicable in this scheme? Upto Rs. 2 lacs-Nil Above Rs. 2 lacs & upto Rs. 20 lacs-1.489% of loan amount. Can I avail loan for residence purpose also under this scheme ? Yes, but the loan for the residential purpose should not be more than 40% of the total loan sanctioned. General What is the Quantum of agriculture loan without Collateral security? Rs. 1.00 lacs. What are the time of interest application on Agriculture loans? Half Yearly in the month of May and November. What is the method for valuation of property to be mortgaged by borrower? Valuation of Agricultural land shall be made on the basis of current sale price (Govt. Price) i.e. minimum price fixed at which the sale deeds are executed. From which branch I take the agriculture loan? From our branches which are located in 20-35Km radius from your locality. From which branch a borrower take finance, if borrower’s residence is at a place different to that where he owns his agriculture land (to be kept as collateral security)? He will be entertained by the branch located at/ near to the place of his residence for financing of agriculture advances. Which branch give loan to borrower where borrower owns agriculture land in the adjoining state but is residing in the town/ village situated in other adjoining state? The branch located at/ near to the place of his residence for financing of agriculture advances. What are the No Due certificate issuing charges for agriculture loans? Nil What are the minimum no. of members of a Self Help Group (SHG)? 5 members What are the service charges applicable in SHGs? All charges are waived.