FINANCING JLG OF TENANT FARMERS Objectives: To augment flow of credit to tenant farmers cultivating land either as oral lessees

ees or sharecroppers and small farmers, who do not have proper title to their land holding, through formation and financing of JLGs. To extend collateral free loans to target clients through JLG mechanism. To build mutual trust and confidence between the Bank and tenant farmers.

Purposes of credit The finance to JLG is a flexible credit product addressing the credit requirements of its members including crop production, consumption, marketing and other productive purposes. Who should constitute the JLG? Members should be of similar socio-economic status and background carrying out farming activities and who agree to function as a joint liability group. The group members should not be a defaulter to any other formal financial institution. JLG should not be formed with members of the same family and more than one person from the same family should not be included in the JLG.

Size of the JLG The group should be formed preferably with 4 to 10 members to enable the group members to offer mutual guarantee. While informal group of upto 20 members could also be considered, such large groups are found to be not effective in fulfilling mutual guarantee obligations in the case of farmers. JLG models: Model A: The group members are eligible for individual loans on executing an inter-se guarantee agreement. Model B: The group is eligible for accessing one loan, which could be combined credit requirement of all its members. Type of loan ACC or ATL depending upon the purpose of loan. Loan limit Maximum amount of loan available is Rs.50, 000/- per individual both under Models A and B Security Norms No collaterals are obtained. Only mutual guarantee is obtained. FINANCING FOR ORGANIC FARMING Purpose : Investment credit to develop a farm design and management under organic farming for initial two-year period. Investment credit to develop a farm design and management under organicfarming for initial two-year period.

Investment credit to develop a farm design and management under organic farming for initial two-year period.

Who are eligible? All farmers who own individually or collectively a minimum of 4 acres of irrigated land or 10 acres of dry (rain fed) land (or equivalent) are eligible JLGs engaged in crop production activity. Farmers applying for Organic Farming registration with Certified Agenciesmay also be considered, however,disbursements will be subject to completion of the registration formalities. The product is currently launched on pilot basis in Bangalore, Chennai, Delhi, Hyderabad and Mumbai Circles in select branches.

Quantum of Loan: ( unit cost) Total cost for 3 years: Cost of infrastructure required to produce Organic Inputs on own farm (Rainfed Crops 10 acres / Irrigated crops 4 acres / Commercial Irrigated Crops 2 acres.)*

Requirement

Domestic purpose

Export purpose RS. 40,000/1,05,000/1,45,000/-

Term loan for production 40,000/of organic input For Certification 60,000/Total Cost 1,00,000/Margin:

Minimum 20% - either contributed by the borrower or by subsidy. Bank Loan - 80% 80,000/1,16,000/-

FARMERS EASY EMPOWERED LOAN (FEEL): KRISHI KALYAN (Combo Product of ACC and PML) Purpose: To provide timely and adequate credit to farmers to meet production and consumption expenses. To offer credit against the stocks stored in farmers own premises / godowns/ warehouses/ cold storage, which help farmers avoid distress sale of the produce & promptly repay the loan dues. To reduce the multiple process of separate application, documentation & EM creation for availment of KCC and PML, thereby reduce the time for delivery of credit.

ELIGIBILITY All non-defaulter and credit worthy farmers owner cultivators, tenant farmers, and share croppers, having good track record and cultivating crops , like food grains( cereals), pulses, oilseeds etc., produce of which could be stored in godowns

/ware houses/cold storage etc., Farmers cultivating fruits and vegetables, in centers where cold storage facilities are available. Quantum of Loan: Total credit limit will be sanctioned, comprising of following components. Production credit: Annual Credit needs will be sanctioned, depending on the operational land holdings, cropping pattern, and scale of finance. Contingency credit: Contingency credit: Produce Marketing loan: Limit depends on the current market price or the MSP fixed by the Government (less Margin) multiplied by the quantum of stock to be stored. Maximum Limit: a. Production Credit : No upper limit b. Produce Marketing Loan : Max of Rs 10 lac per borrower. Margin: For Production Credit: 15-20% For Produce Marketing loan: 40%

1. sanctioned against goods stored in Farmers own godown 2. Loans against warehouse receipt 20-35%

FARMERS EASY EMPOWERED LOAN (FEEL): KRISHI KALYAN (Combo Product of ACC and PML) Purpose: To provide timely and adequate credit to farmers to meet production and consumption expenses. To offer credit against the stocks stored in farmers own premises / godowns/ warehouses/ cold storage, which help farmers avoid distress sale of the produce & promptly repay the loan dues. To reduce the multiple process of separate application, documentation & EM creation for availment of KCC and PML, thereby reduce the time for delivery of credit.

ELIGIBILITY All non-defaulter and credit worthy farmers owner cultivators, tenant farmers, and share croppers, having good track record and cultivating crops , like food grains( cereals), pulses, oilseeds etc., produce of which could be stored in godowns /ware houses/cold storage etc., Farmers cultivating fruits and vegetables, in centers where cold storage facilities are available. Quantum of Loan: Total credit limit will be sanctioned, comprising of following components.

Production credit: Annual Credit needs will be sanctioned, depending on the operational land holdings, cropping pattern, and scale of finance. Contingency credit: Contingency credit: Produce Marketing loan: Limit depends on the current market price or the MSP fixed by the Government (less Margin) multiplied by the quantum of stock to be stored. Maximum Limit: a. Production Credit : No upper limit b. Produce Marketing Loan : Max of Rs 10 lac per borrower. Margin: For Production Credit: 15-20% For Produce Marketing loan: 40%

1. sanctioned against goods stored in Farmers own godown 2. Loans against warehouse receipt 20-35% SECURITY Limit up to Rs 1 Lac:

Primary: - Hypothecation of standing crops and / or stocks Stored under produce Marketing Loan Collateral : - NIL

SANJEEVANI
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SANJEEVANI (FINANCE FOR REPAIRS, MAINTENANCE AND ADDITION OF NEW IMPLEMENTS ETC. TO TRACTORS) Purpose: To assist the farmers, who are regular in their repayments for repairs / maintenance of tractor and for purchase of additional implements. Eligibility: Borrowers who have already availed the tractor / power tiller / combined harvester loan facility from our Bank before three years or more and whose accounts are closed / or regular/standard (IRAC) and who have paid a minimum of 2 yearly installments or 4 half yearly installments after moratorium period are considered eligible for the loan. The borrower should not have availed the benefit of a compromise scheme earlier.

Facility: Agricultural Term Loan. Quantum of Loan: Repairs: Up to a Maximum of Rs. 50,000/Addition of new implements: Up to a Maximum of Rs. 1, 00,000/Margin: Up to Rs.50, 000 - NIL Above Rs.50, 000 - 15-25% of invoice price Security: A. For borrowers who had already repaid / closed the Tractor loans: a. Upto Rs. 50,000/Primary: - Hypothecation of tractor (value to be assessed based on the age and condition of the vehicle) and new implements. (Noting of Banks Charge with Road Transport Authority on tractor is a must) Collateral : - NIL

b. Above Rs. 50,000/Primary: - Hypothecation of tractor (value to be assessed based on the age and condition of the vehicle) and new implements. (Noting of Banks Charge with Road Transport Authority on tractor) Collateral : - Mortgage / Charge over the Land

B. For borrowers having existing Tractor Loan A/cs: a. Upto Rs. 50,000/Primary: - Hypothecation of existing tractor / new implements Collateral : - Extension of Mortgage / Charge over the Land Repayment:Maximum 5 years or up to the last installment of the existing tractor whichever is earlier in half yearly installments Insurance: Tractor to be insured till the advance is repaid in full. Interest Rate: As per the card rate applicable on aggregate limits for the facility and periodicity. (Interest rate Effective from 29.06.2009) Up to Rs. 50,000. - 10.50 % p.a. Above Rs.50, 000/- and up to Rs. 2 lacs - 11.50 % p.a) SCHEME FOR FINANCING

MICRO FINANCE INSTITUTIONS (MFIs) / NON GOVERNMENT ORGANISATIONS (NGOs)

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Purpose Routing micro credit through NGOs / MFIs functioning as financial intermediaries. With the ultimate aim of increasing the outreach by financing large number of Self Help Groups. Who are eligible? The NGO / MFI, to be eligible for finance under the scheme, will have to be of any one of the following: (i) Societies registered under Societies Registration Act, 1960 or similar State Act. (ii) Trusts registered under Public Trust Act, 1920 or similar Act. (iii) Companies registered under Companies Act, 1956 including Section 25 companies. (iv) Non Banking Financial Companies providing financial services to SHGs which satisfy the following criteria as laid down by RBI may only be taken up for financing: Engaged in micro financing activities. Licensed under section 25 of the Companies Act, 1956, which are not accepting public deposits from the purview of sections 45-IA(Registration), 45-IB (maintenance of liquid assets) and 45-IC (transfer of profits to Reserve Fund) of the RBI Act, 1934. (v) Specialist and other Co-operatives such as Mutually Aided Co-operative Societies,etc. (vi) Any other type of institution that offer micro finance and related services may be considered on merits. Track record (i) The NGO / MFI has been in existence for at least 12 months and/or it has a track record of running a successful micro credit programme at least for the last 6 months. (ii) The NGO / MFI has partnership with a minimum of 200 SHGs. (iii) Its activities should be secular in nature. (iv) It maintains a satisfactory and transparent accounting system, MIS and internal audit system. (v) The NGO / MFI should be continuously profit making, where they are in existence for 2 years or more. In case of existence of less than 2 years, the Sanctioning Authority will ensure that the projected profit of the NGO / MFI should be sufficient to meet the repayment obligation of the loan. (vi) The NGO / MFI should not be a defaulter to any Bank / Financial Institution. (vii) Portfolio at risk of the NGO / MFI should be less than 5%. (Ratio of the amount overdue for 60 days or more to the total loans on a given date) 56 (viii) In case of takeover of NGO / MFI loan from other banks, all the terms and conditions for taking over of the loan will be applicable.

(ix) NGO / MFI must exhibit transparency in dealing with its borrowers like levying of service and other charges, etc. (x) NGO / MFI will not borrow from other sources for the same project for which loan from our Bank is being availed. (xi) Loans below Rs 200 lacs -The NGO/MFI should score minimum scores in the scoring model of the bank. For the loan of above Rs 200 lacs they should have valid credit rating from any of the Micro Credit rating agencies, MCRIL, CRISIL, CARE, ICRA and Planet Finance. Loan amount (i) Need-based repeat finance. (ii) Requirement of finance to be worked out based on the health of the NGO / MFI and the business plan as per the appraisal format

FINANCE TO HORICULTURE
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Purpose Loans for development of fruit orchards like mango, chikoo, Grapes, pomegranate, apple, etc., as well as short term crops like banana, pineapple, Flowers in open and green houses and vegetable crops are financed. Who are eligible? All farmers having cultivable lands. Loan amount Upto Rs 50000/ Above Rs 50000/ 100 % of the cost of the asset / project cost upto 85 % of the asset / project is given as loan.

For Short term loans, loans are given under our crop loan / Kisan Credit Card schemes. Documents you need to provide For Orchard development you need to submit the following: i) Water and soil testing report ii) A feasibility certificate from the local Horticulture department iii) Land records iv) Quotation /estimates for the costs to be incurred v) Project Report, if the project is large Disbursement of the loan

Generally disbursements are made directly to the suppliers. Cultivation expenses are released in stages as per the schedule set in your proposal. Security Loan amount upto Rs 50000/ Above Rs 50000/ upto Rs 100000 Hypothecation of assets created (1) Hypothecation of assets created (2) Mortgage of land or third party guarantee (1)Hypothecation of assets created (2) Mortgage of lands

Above Rs 100000/