The scheme provides security to the farmers against distress sales soon after harvest when the prices of the commodities tend to be low.
Eligibility
Loans can be sanctioned to all farmers. Both loanee and Non- loanee farmers can be financed. Loanee Farmers who have availed crop production loans from the Bank, which should not be overdue.
Eligible crops to be covered
Paddy , Wheat
Ground nut, Rape seed/Mustard
Bengal Gram (Chana), Arhar/tur
Turmeric
Dry Chillies
Maize
Millets (Jowar/Ragi/Bajra)
Yam
Green gram, Black gram
Jaggery
Loan amount
75% of the value of the produce at government announced procurement prices subject to a maximum of Rs.10.00 lakh.
Repayment
Loan shall be repaid within a maximum period of 12 months from the date of disbursement.
Security
PRIMARY.
Hypothecation of the produce stored with the cultivator or by pledge of approved ware house receipts
COLLATERAL :
Produce stored with the Cultivator : No collateral security is required up to Rs.2.00 lacs, if the produce is stored with the cultivator and personal guarantee of the borrower. Above Rs.2.00 lacs, if the produce is stored with the cultivator, collateral security with value not less than 100% of the bank loan component.
Produce stored at CWC/ SWC/ FCI, no collateral security upto a loan amount of Rs.10 lacs but by obtaining personal guarantee of two persons and by pledge of ware house receipts issued by NCMSML/CWC / SWC/FCI .
Others :
Financing against the produce stored in "PURI" can be allowed subject to getting insurance cover.
Granting of fresh crop production loans a s per usual norms may be considered while loans under the scheme is outstanding provided the account is not overdue and hypothecated stocks are held with the farmer.
At the time of grant of loan relative crop production loan should be recovered or adjusted out of kisan sampathi loan.
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