Production Line of Credit:
I. Production loans for raising various crops based on scale of finance.
ii. Other short term requirements like maintenance of tractor/farm implements, allied
Activities like dairy, poultry, annual repairs, fuel, cost of feed, etc. to the extent of 25% of the crop production expenses limit.
iii. The consumption needs to the extent of 25% / 35% of the Crop Production
expenses limit, depending upon the category of borrower subject to a maximum of
Rs.1, 00,000/- per card.
iv. Working capital for allied activities and non farm sector activities.
v. Finance against storage receipts/produce marketing loans (against his own farm produce only) subject to maximum of Rs.10/- lacs per farmer.
Investment Line of Credit :
i. Extending credit facilities for horticulture crops, investment on farm developments such as development of land/irrigation facility, purchase of tractor, farm machineries and equipments, farm structures & buildings, draught animals/carts, milch cattle, transport vehicles, pre/post harvesting processing equipments and practicing modern/hi-tech agriculture with need-based project/farm infrastructures, plantation activities etc.
ii. Extending facilities for setting up units of allied activities like dairy, poultry, fisheries, piggery, sericulture, etc. to supplement farm income/activities and also to ensure optimum utilization of available resources.
iii. Extending loans for off-farm activities/needs of the farmer like personal loans including purchase of consumer durables, housing, subject to a maximum of Rs.1/- lac.
iv. Loans for redemption of loan availed by farmers from non-institutional lenders
Line of Credit Under BKCC
The Farmers are sanctioned BKCC Limit considering the increase in Scale of Finance during next -5- years as line of credit. The farmers can avail the loan based on increased Scale of Finance without execution of Fresh Documents every year. The farmer is allowed to avail the amount based on actual Scale of Finance in particular year within the overall line of credit amount.