KISAN CREDIT CARD (ANIMAL HUSBANDRY AND FISHERY)

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KISAN CREDIT CARD (ANIMAL HUSBANDRY & FISHERY)

DETAILS OF KISAN CREDIT CARD (ANIMAL HUSBANDRY & FISHERY) SCHEME CODE: CCAHF (Ref: Master Circular no: 1953 dated 20-03-2020 on Agri Products)

Purpose

The KCC facility will meet the short term credit requirements of rearing of animals, birds, fish, shrimp, other aquatic organisms, capture of fish.

Revised guidelines

In case of CCAHF, A Standalone separate KCC for allied activities may be issued exclusively for animal husbandry, Dairy, fisheries and other allied activities.

Eligibility

The criteria for eligible beneficiaries under KCC for Animal Husbandry

and Fisheries will be as under: Fishery:-

A. Inland Fisheries and Aquaculture

· Fishers, Fish Farmers (individual & groups/ partners/ share croppers/ tenant farmers), Self Help Groups, Joint Liability Groups and women groups.

· The beneficiaries must have owned or should be a lessee any of the fisheries related activities such as pond, tank, open water bodies, raceway, hatchery, rearing unit, possess necessary license for fish farming and fishing related activities, and any other State specific fisheries and allied activities.

B. Marine Fisheries:-

Beneficiaries listed at above (A), who own or lease registered

fishing vessel/boat, possess necessary fishing license/permission for fishing in estuary and sea, fish farming/marine culture activities in estuaries and open sea and any other State specific fisheries and allied activities.

Poultry and small ruminant :-

Farmers, poultry farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant Farmer having sheep/goats/pigs/ poultry I birds/ rabbit and having owned/rented/leased sheds.

Dairy:-

Farmers and Dairy farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant farmers having owned /rented/leased sheds.

Scale of

Finance

Revised guidelines

v The scale of finance will be fixed by the District Level Technical Committee (DLTC) based on local cost worked out on the basis of per acre/per unit/per animal/per bird etc.

v The working capital components in fisheries, under the scale of finance, may include recurring cost towards seed, feed, organic and inorganic fertilizers, lime/ other soil conditioners, harvesting and marketing charges, fuel/electricity charges, labor, lease rent (if lease water area) etc. For capture fisheries, working capital may include the cost of fuel, ice, laboring charges, mooring/landing charges etc. may form part of the scale of finance.

v The working capital components in Animal Husbandry, under the scale of finance, may include recurring cost towards feeding, veterinary aid, labour, water and electricity supply.

v The maximum period for assessment of working capital requirement may be based on the cash flow statement or completion of one production cycle.

v Fisheries and Animal Husbandry experts of the Govt. may be made members of the DLTC for giving technical inputs for assessing the cash credit requirement.

v Progressive entrepreneurs of livestock/fisheries sector may also be included in the DLTC for providing field level inputs while assessing the working capital requirements.

Insurance of the milch animals is added as working capital component.

Drawing power

The drawing power will be worked on the basis of the latest valuation of stocks, receivables and/or cash flows as per terms of sanction.

Repayment:

The loan will be in the nature of a revolving cash credit limit. Repayment will be fixed as per the cash flow/income generation pattern of the activity undertaken by the borrower.

Interest subvention benefit will be available to those farmers who are repaying loan in stipulated time i.e. from the date of disbursement of the working capital loan upto the actual date of repayment by farmers or upto the due date fixed by the banks for repayment of loan, whichever is earlier, subject to a maximum period of one year from the date of disbursement/withdrawals.

Monitoring of

End use

The account/ smart card for the loan issued under the scheme is to be maintained separately from the existing KCC loan to monitor the utilization limit. The monitoring of end use of funds will be in line with other loans (KCC on crop loans included) viz., field visits to the site of unit/project to be carried out by the branch officials for checking the progress of the unit. Banks will periodically review the facility and continue/withdraw/scale down the facility based on the performance of the borrower.

Prudential norms

The extant prudential norms on income recognition, asset classification and provisioning on allied activities will be applicable.

Rate of

Interest

The applicable rate of interest under the scheme is as under:
Loans up to Rs 50000/-		MCLR + 0.10%
Loans above Rs 50000/- up to Rs 2.00 lakh		MCLR + 0.65%
Loans above Rs 2.00 lakh to Rs 5.00 lakh		MCLR + 1. 90%
Loans above Rs 5.00 lakh to Rs 25.00 lakh		MCLR + 2.65%
Loans above Rs 25.00 lakh to Rs 1 crore		MCLR + 2. 90%
Loans above Rs. 1 crore		As per Master Tables A & B
Instruction Circular No.:1398-2018 Dt 15th November2018 Loans up to Credit limit of Rs. 2.00 lakh for meeting cost of seasonal operations will be eligible for rate of interest of 7% p.a. for 12 months with interest subvention to be claimed by the branch as per prevailing rule of Government of India.

Service

Charges

~ Processing, Inspection and Documentation charges are Nil for limit up to Rs 3.00 lakh.

~ For limit above Rs.3.00 lakh Processing. Documentation and inspection charges will be applicable for entire limit.

Security

Primary	Hypothecation of Standing crop, livestock, Feed, Medicine and asset created out of bank finance etc.
Collateral Revised guidelines	Up to Rs.1.60 lakh:- Nil
	Above Rs 1.60 lakh:- Mortgage of land and/or third party guarantee in addition to hypothecated crops/ assets. For Tie Up KCC : A) Up to Rs. 3.00 lakh : NIL B) Above Rs. 3.00 lakh: Mortgage of land and /or third party guarantee in addition to hypothecated crops/assets. v In case of farmers whose milk is procured by milk unions falls under tie up arrangements between the producers and processing units without any intermediaries by crediting the payment directly to their bank account, such credit limits up to Rs.3 lakh can be extended without collateral security by obtaining undertaking from the milk union. v Milk union have to enter into general tripartite agreement with Bank and Farmer (if farmers are agreeable) and assure payment of KCC dues to the bank, in case of default. v The Milk union can also enter into a no cost service arrangement with the banks to pay the bank dues timely so that the farmers can avail the additional interest subvention of 3% p.a for prompt repayment and the enhanced collateral free credit limit.

Interest

Subvention

Ø It has also been decided to extend KCC facilities to Animal husbandry and fisheries farmers with benefit of interest subvention (2%) to bank and prompt repayment incentives (@3%) to such of the farmers to meet their working capital needs under Kisan Credit Card scheme.

Ø Accordingly, the farmers already possessing KCCs and involved in activities related to animal husbandry and fisheries can avail additional sub limit within an overall limit of Rs 3.00lakh with benefit of interest subvention and prompt repayment incentive.

Ø In so far as new KCC holder farmers of animal husbandry and fisheries are concerned, the benefit of interest subvention and prompt repayment incentive will be allowed up to the credit limit of Rs.2 lakh per annum.

Ø The limit for crop loan component will take priority for interest subvention and prompt repayment incentive benefits and the residual amount will be considered towards animal husbandry and/or fisheries subject to cap.

Others

Revised guidelines

Ø All other guidelines laid down in Kisan credit card scheme for short term crop loan will be applicable.

Ø The short term component of the KCC limit is in the nature of revolving cash credit facility. There should be no restriction in number of debits and credits.

Ø The maximum period to be considered for assessment of working capital requirement will be based on the cash flow or completion of one production cycle.

Ø Comprehensive insurance of livestock, wherever applicable is Comprehensive insurance of livestock, wherever applicable is obtained and renewed every year along with Bank’s hypothecation clause and policy should be held on record.

For poultry activity:

Ø Insurance of Birds must/to be obtained by the applicant and if required can be considered for financing. (Waiver of bird insurance with the condition that the borrower undertakes to create one time risk fund @ Rs. 5.00 per bird per year. The corpus will be linked to full (maximum no. of layer) capacity of the bird in the poultry farm.)

Ø All others terms and conditions stipulated as per circular issued from time to time for the activities finance shall be compiled with.

Documentation

Revised guidelines

No specific guidelines regarding Letter of undertaking from the borrower stating that, animals/birds will not be disposed off and in case there is need animal/bird will be replaced with other animal/bird.

Letter of undertaking from the borrower stating that, animals/birds will not be disposed off and in case there is need animal/bird will be replaced with other animal/bird.

Guidelines

Kisan Credit Card Scheme (CCAHF):

Eligibility: The Criteria for eligible beneficiaries under KCC for Animal Husbandry and Fisheries will be as under:

Inland Fisheries and Aquaculture

Fishers, Fish Farmers (individual & groups/partners/sharecroppers/tenant farmers), Self Help Groups, joint Liability Groups and women groups.

The beneficiaries must own or lease any fisheries related assets such as ponds, tanks, open water bodies, raceways, hatcheries, rearing units, boats, nets and such other fishing gear as the case may be and possess necessary authorisation/certification as may be applicable in respective statesfor fish farming and fishing related activities and for any other state specific fisheries and allied activities.

Kisan Credit Card Scheme (CCAHF):

Collateral security:

For Non-Tie Up KCC:

A) Up to 1.60 lakh: NIL

B) Above Rs. 1.60 lakhs: Mortgage of land and /or third-party guarantee in addition to hypothecated crops/assets.

For Tie Up KCC:

A) Up to Rs. 3.00 lakh: NIL

B) Above Rs. 3.00 lakh: Mortgage of land and /or third-party guarantee in addition to hypothecated crops/assets.

In the case of farmers whose milk is procured by milk unions falls under tie up arrangements between the producers and processing units without any intermediaries by crediting the payment directly to their bank account, such credit limits up to Rs.3 lakh can be extended without collateral security by obtaining undertaking from the milk union.

Milk union have to enter into general tripartite agreement with Bank and Farmer (if farmers are agreeable) and assure payment of KCC dues to the bank, in case of default.

The Milk union can also enter into a no cost service arrangement with the banks to pay the bank dues timely so that the farmers can avail the additional interest subvention of 3% p.a for prompt repayment and the enhanced collateral free credit limit.

In the case of Fisheries farmers whose produces are procured by Fisheries Federation falls under tie up arrangements between the producers and processing units without any intermediaries by crediting the payment directly to their bank account, such credit limits up to Rs.3 lakh can be extended without collateral security by obtaining undertaking from the fisheries Associations.

Fisheries Federations have to enter into general tripartite agreement with Bank and Farmer (if farmers are agreeable) and assure payment of KCC dues to the bank, in case of default.

The Fisheries Federations can also enter into a no cost service arrangement with the banks to pay the bank dues timely so that the farmers can avail the additional interest subvention of 3% p.a for prompt repayment and the enhanced collateral free credit limit.

Rate of Interest - Please click here to know our latest interest rates

Conditions apply.

For more details please contact our nearest branch