Agriculture Policy Section, Priority Credit Wing

Head Office, Bengaluru -560 002

Kisan all-purpose term loan

(Updated as on 29.08.2022)
Purpose  To create a convenient single shot term loan limit to farmers for all term loan
requirements like Farm Mechanization, Land Development, Minor Irrigation,
Water Conservation, Horticulture, Allied activities and other agri. related
activities etc.

 Development projects with a long gestation period shall not considered under
the scheme in view of the specific tenor of this credit product (e.g. Mango
plantation-requiring gestation of 6-7 years).

 Purchase of Tractors, Combine Harvesters, and Cars are out of the purview of
this Scheme for the reason that farm machinery loan requires independent
appraisal with regard to minimum viable land holdings, and the need for
controlled expansion of the portfolio.

 The purposes for which the limit is granted shall not be a part of the Kisan Credit
card limit /Canara Kisan OD Scheme /term loan already availed for the same
purpose and it shall be a separate Single transaction account.

Beneficiaries Individual, Joint/ Group of Farmers-owner cultivators and JLGs, SHGs etc. engaged
in Agriculture and related activities.

Applicant should be our existing Agriculture loan borrower (Other than Gold loan and
VSL) with 3 years satisfactory track record.

Quantum It shall be subject to 5 times of Annual farm income (current-pre development stage
as assessed by the branch based on crop pattern & allied activities undertaken) of
the farmer OR 50% of the value of land mortgaged whichever is lower, with a
maximum ₹20 Lakhs.

Margin 15-25% for loan above Rs. 1.60 lakhs

The entire margin need not be brought in upfront for the entire limit. The pro-rata
margin to be brought at the time of creation of asset only
RoI  Loans upto Rs. 3.00 lakh - MCLR+1.40
 Loans above Rs.3.00 lakh – MCLR+2.30

Note:- For loans repayable more than 1 year upto 5 years and more than 5 years,
the liquidity premium to be loaded to the Card rates additionally

Repayable > 1 year upto 5 years 0.40%

Repayable > 5 years 0.80%

Security  Upto Rs.1.60 Lakhs - Hypothecation of crops/assets created out of our finance.

 Above Rs.1.60 lakhs- Hypothecation of crops / assets created out of finance +

Mortgage of landed property (it shall be at least 200% of the limit sanctioned)
Repayment 9 Years. This may be a ballooning repayment and interest shall be paid along with
the installments.
Nature of Term loan
Facility &
Classification Priority sector- Agriculture – Farm Credit
Product
839
Code
Schedule 1012 – Agri Loans for 3 years
Code 1013 – Agri Loans above 3 years.

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