KRISHI KALYAN

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: upto maximum 20% of the production 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:

Production Credit : No upper limit

Produce Marketing Loan : Max of Rs 10 lac per borrower.

Margin:
  • For Production Credit: 15-25%

  • For Produce Marketing loan:

    • sanctioned against goods stored in Farmers own godown 40%

    • Loans against warehouse receipt 20-35%(depending upon type of storage-Govt/Private)

SECURITY

Limit up to Rs 1 Lac:

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

Collateral : - NIL

Limit above Rs 1 Lac;
  • If the Production credit portion does not exceed Rs 1 lac and Produce Marketing Loan is against Warehouse receipt is below Rs.10 lacs

    • Hypothecation of standing crops and/or Pledge of stocks.

    • Warehouse Receipt (duly endorsed) and Letter from the Warehouse Authorities to the effect that the stocks covered by WHR will be released only on a written communication from the bank.

  • If production credit limit exceeds 1lac & produce loan is against warehouse receipt (below Rs 10 lac).

    • Hypothecation of standing crops and/ or Pledge of stocks.

    • Mortgage /charge over the land to the extent of Production credit limit

    • Declaration of Stocks from the farmer

INTEREST RATE

As applicable from time to time to crop loans. Interest subvention is limited to the crop period as in KCC and not during the period of storage.

REPAYMENT

Crop Loan (Production Credit) &} Loan amount will be liquidated from Produce Contingency credit Loan } Marketing loan sanctioned to the farmer

Produce Marketing Loan is to be repaid within a maximum period of 12 months, from the date of availment of the PML loan, depending on the produce.

Insurance : The stock stored under PML should be adequate by in owned.