Ø      Eligibility :

à  All Farmers

Ø      Purpose :

à  To meet the short-term credit requirements for cultivation of seasonal, annual and perennial crops.

à  The district wise scale of finance will be taken as indicatory cost. In case of high yielding varieties of irrigated crops, limit will be fixed upto 120% of scale of finance where there is tie-up arrangement with reputed companies when there is need to incur additional cost towards quality inputs.

à  Besides the above, KCC limit will be arrived at as given below:

 o Post-harvest / Household requirements of the farmer at 10% of the limit fixed subject to a maximum of Rs.25000/- per farmer.

  o 10% towards maintenance of farm assets subject to a maximum of Rs.25000/- per farmer.

  o Provision for escalation in the cost of cultivation at 20% towards increase in scale of finance at 10% per year.

Ø      Interest Rate :

                Crop Loan :

Upto 3 lakhs -                     @ 7 %(Under 2% interest subvention from Govt of India)

Rs.3.00 to Rs.5.00 lakhs -    @ BPLR + 0.50 = 13.00%

Rs.5.00 lakhs    -                  @ BPLR + 1.00 = 13.50%

Ø      Other Features of the Scheme :

à The card is valid for three years and is renewable thereafter depending upon the satisfactory conduct of the account.

à The limit sanctioned will be in the form of revolving credit. Hence, any number of debits / credits will be allowed subject to the seasonal drawing limit.

à Drawals in the account will be restricted to the seasonal sub-limit fixed for the respective season. Drawals / repayment schedule will be arrived at factoring in the nature of the crop cultivated.

à The loan amount released for one season should be adjusted within 2 months from the date of harvest of the crop.

à Renewal will be permitted only for satisfactorily operated accounts both in terms of drawal and adherence to seasonal sub-limits.

à Chitta, adangal and other farm documents will be obtained once in 3 years.

à All eligible IBKC farmers are will be covered under PAIS(Personal Accident Insurance Scheme).

à Insurance coverage will be made for notified crops in notified areas under National Agri. Insurance scheme as per guidelines.

This scheme additionally caters to the needs of Agri Medium term loan requirement of the farmers also in the KCC scheme as "KCC Plus". The eligible loan amount is arrived as below.

à 20% of the Maximum Permissible Limit (MPL) will be built as a term loan to enable the farmer to purchase farm assets based on his/her requirements including Agri/Allied activities subject to:

a. a maximum of Rs 50000 where activities do not generate any direct additional income like fencing, reclamation of problematic soils, steining of wells etc.

                                                        OR

b. Maximum of Rs.2.00 lakhs where activities generate direct additional income like dairy, goat rearing, Sheep rearing, purchase of farm equipments like power sprayers, seed drill, etc.