Punjab National Bank has 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.

Purpose
(i) Short term working capital for agricultural activities, domestic requirements such as education, consumable items, medical expenses, etc., (ii) 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 are eligible only if land owners agree to become co-borrowers, Self Help Groups (SHGs) of such tenants may also be given Kisan Credit Cards.

Extent of Limit : Maximum Rs. 10 Lakh.

Fixation of Limit

Limit is fixed for term loan and annual working capital requirement for agricultural and allied activities, etc., Maximum Rs.5 lakh for crop production, consumption needs and working capital for allied activities. Need based term loan within the overall ceiling of Rs. 10 lakh including and maximum of Rs.50,000 for relief against indebtedness from non-institutional money-lenders. Limit for various cards are as under:

Limit is to be fixed in multiple of Rs. 1000/-.

 MARGIN

Security

(i) Upto Rs.50,000/- Hypothecation of crops/assets.

(ii) Above Rs.50,000/- Hypothecation of crops/assets and Mortgage/ Charge on land (or) Charge/lien over liquid securities such as term deposits/NSCs/KVPs, etc., (or) Suitable third party guarantee.

RATE OF INTEREST : The rate of interest is charged as prescribed by the RBI/Bank from time to time.

ISSUE OF CARDS: After fixation of the limit and completion of documentation formalities, the farmer will be issued a Krishi Card valid for five years along with Pass Book for record of the limit and transactions.

USAGE OF THE CARDS: Besides the card issuing branch, our other branches located in the specified district also accept the card and the payments on the cards upto Rs.3,00,000/- (Limit sanctioned for crop loans/consumption loans).

SERVICE CHARGES FOR ISSUE OF CARDS: Service charges for issue of the cards as well as replacement of the card will be Rs 50/- irrespective of the size of the limit.

OPENING OF ACCOUNT: Opening of account in the 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.

DISBURSEMENT: Entire cash credit limit is disbursed in cash.

(i) Cash credit limit for crop production and consumption loan is repayable in 12/18 months depending upon harvesting/marketing period of crops grown.

(ii) Working capital limit for allied agriculture activities is repayable in 12 months.

(iii) Term loan is repayable in 5 years. It could be more than 5 years where longer repayment has been prescribed.

All KCC holders upto the age of 70 years are covered under Personal Accident Insurance Master Policy. The risk coverage is Rs.50,000/- in case of death due to accident/permanent total disability/loss of two limbs or two eyes or one limb and one eye. The risk coverage is Rs.25,000/- in case of one limb or one eye. The annual premium is Rs.15 (net) per card holder and the claim procedure under the scheme is simple.