Punjab national bank scheme for agriculture

Bank introduction, type of bank, schemes for agriculture in pnb bank which are benefited to the farmers, the definition of a bank, agriculture bank.

1. AGRICULTURAL FINANCE PRESENTATION ON PUNJAB NATIONAL BANK

2. PRESENTED TO:- ANUP KUMAR SRIVASTAVA (Assistant professor) PRESENTED BY:- PRIYA PRIYADARSHINI BSC AGRICULTURE 2 ND YEAR

3. BANK A BANK IS A FINANCIAL INSTITUTION LICENSED TO RECEIVE DEPOSITE AND MAKE LOANS. TI MAY ALSO PROVIDE FINANCIAL SERVICES SUCH AS WEALTH MANAGEMENT CURRENCY EXCHANGE AND SAFE DEPOSIT BOXES . IN MOST COUNTRIES , BANK ARE REGULATED BY THE NATIONAL GOVERNMENT OR CENTRAL BANK .

4. TYPES OF BANK

5. A TYPE OF BANK THAT LENDS MONEY TO FARMERS FOR LONGER PERIODS OF TIME AND CHARGES THEM LESS INTEREST THAN OTHER TYPES OF BANK. HERE I WILL TALK ABOUT AGRICULTURAL BANKING IN PUNJAB NATIONAL BANK.

6. A NAME YOU CAN BANK UPON

7. Services

8. Agriculture Credit Schemes are: SHG COVID TATKAL SAHAYATA RIN PNB KISAN TATKAL RIN YOJANA LOAN APPLICATION FORM FOR AGRICULTURAL CREDIT FOR PM-KISAN BENEFICIARIES SCHEME FOR FINANCING FARM HOUSE CONSTRUCTION ESTATE/ ORCHARD PURCHASE LOANS SCHEME FOR FINANCING VEHICLE FOR FARMERS/ AGRICULTURISTS WATER, SANITATION AND HYGIENE (WASH) LOANS SCHEME FOR FINANCING DAIRY DEVELOPMENT PROGRAMMES DAIRY VIKAS CARD SCHEME CREDIT AGAINST NATIONAL SAVINGS CERTIFICATES, FIXED DEPOSIT RECEIPTS AND KISANVIKASPATRA TO FARMERS SCHEME FOR FINANCING PURCHASE OF ANIMAL DRAWN VEHICLES I.E. CARTS AND DRAFT ANIMALS SCHEME FOR FINANCING SETTING UP OF BIOGAS UNITS SCHEME FOR FINANCING DEVELOPMENT OF WASTELAND SCHEME FOR FINANCING FORESTRY DEVELOPMENT PROGRAMMES SCHEME FOR FINANCING MINOR IRRIGATION SCHEME FOR FINANCING PIGGERY DEVELOPMENT SCHEME FOR FINANCING SERICULTURE

9. AGRICULTURAL CREDIT SCHEMES IN PUNJAB NATIONAL BANK SHG COVID TATKAL SAHAYATA RIN SCHEME FOR PROVIDING FINANCIAL ASSISTANCE TO SHG MEMBERS TO MEET EMERGENT NEEDS IN THE WAKE OF COVID-19 OUTBREAK. PURPOSE : To meet emergent needs of SHG Members (already dealing with PNB) in the wake of COVID-19 outbreak. Margin/ Service Charges/ Collateral Security :Nil Loan amount :Rs.5000/- per SHG Member with Max Rs. 1 Lac repayble in 3 years

10. PNB KISAN TATKAL RIN YOJANA Scheme for providing financial assistance to farmers to meet the emergency requirements for Agriculture and Household Needs for tiding over temporary difficulties PURPOSE : Instant credit for farming community (existing borrowers) to meet all emergency requirements related to Agriculture and allied activities and also Household Needs. Margin/ Service Charges/ Collateral Security Nil Loan amount 25% of existing limit max. Upto Rs.50000/- repayable in 3years

11. SCHEME FOR FINANCING FARM HOUSE CONSTRUCTION PURPOSE : Construction of farm structures on agriculture land to facilitate the agriculturist/farmer to meet the requirement of utility unit for covering the requirement like livestock shed, drying yard, grading/ sorting yard, processing shed, storage unit for farm produce, farm machinery and implements/ equipments etc. as well as dwellin • For repair of existing farmhouse structure. ELIGIBILITY : Fresh as well as existing borrowers who are owner cultivators are eligible. Existing borrower shall have satisfactory track record of 3 years with the bank. In case of fresh borrower, KCC should also be sanctioned along with Farmhouse loan and entire land be mortgaged in favor of Bank. The proposed plot/ land portion should have independent approach/ access. In case of existing borrower no overdue in any loan should exist. The applicant should have adequate utility for the proposed construction. • Applicant should have sufficient disposable income from agricultural activities and other sources. Net income can be arrived at by sanctioning authority based on their land holding, cropping pattern, yield etc • Existing/ future/ allied agricultureactivity should not be hindered by the constructed structure. NATURE OF FACILITY: Term Loan EXTENT OF LOAN : For construction of farmhouse: Need based loan subject to maximum ceiling of Rs. 15.00 Lacs . For repair of existing farmhouse structure: Need based loan subject to maximum ceiling of Rs. 5.00 Lacs . REPAYMENT : For construction of farmhouse: Maximum 20 years or 70 years of age of the borrower, whichever is lower. For repair of existing farmhouse structure: Maximum for a period of 5 years or 70 years of age of borrower, whichever is lower.

12. ESTATE/ ORCHARD PURCHASE LOANS PURPOSE: • To purchase estates/ orchards growing traditional plantation crops viz. coffee, tea, rubber, cardamom and Areca garden. • To purchase estates/ orchards growing high value crops like cashew, pepper, coconut, and other perennial orchard crops. ELIGIBILITY: • Only individuals/ joint borrowers and proprietorship firms will be financed. • The purchaser should qualify the respective State Government norms for being an agriculturist/ satisfy any criteria stipulated by State Government. • The purchaser should have good track record and have existing yielding estates/ orchards. • Non estate/ orchard owners may also be financed provided that they will be able to develop the estate/ orchards on the desired lines (subject to State Laws permitting such purchase). • The purchaser should be experienced in the line and financially sound • The total land holding including the land to be acquired should be within the land ceiling norms of the respective state. NATURE OF FACILITY : Term Loan EXTENT OF LOAN: Maximum up to Rs. 2.00 Cr. Repayment : within 7 to 10 years

13. PNB GRAM UDAY - FINANCING FOR LAND RECLAMATION OBJECTIVE To increase productivity of land and convert degraded land to arable land. PURPOSE Loan may be given for the following purposes: ( i ) Reclamation of soil i.e. removal of salinity/alkalinity, water logging, etc. (ii) Soil conservation measures to prevent wind erosion and water erosion like levelling , bunding , contouring, terracing, etc. (iii) Conditioning of land by raising seasonal crops in reclaimed area. (iv) Purchase of inputs like seeds, bio-fertilizers, bio-pesticides, vermi compost, Farm Yard Manure (FYM), fruit & vegetable waste, compost, etc. for organic farming ELIGIBILITY ( i ) Owner cultivators and their SHGs/ Joint Liability Groups. (ii) Applicant should have soil health card. NATURE OF FACILITY Term Loan EXTENT OF LOAN Need based, Maximum upto Rs.100000/- MARGIN NIL SECURITY Hypothecation of crops/ assets created out of bank loan . REPAYMENT Maximum 5 years, including moratorium period of maximum upto 1year E

14. TRACTOR FINANCING WITHOUT MORTGAGE OF LAND Eligibility : Individual farmers who own at least 2.5 acres of irrigated land MARGIN : MINIMUM 40%CASH MARGIN REPAYMENT :MAXIMUM 5YEARS SCHEME ON ORGANIC FARMING For providing T/L and/ or working capital to farmers (Individuals / Joint borrowers who are Owner cultivators, Tenant Farmers, Oral Lessees & Share Croppers, SHGs or Joint Liability Groups of Farmers) engaged in organic farming or wanting to enter organic farming. EXTENT OF LOAN : Need based T/L and/ or working capital. REPAYMENT: For T/L as per purpose of advance. SCHEME FOR FINANCING SERICULTURE PURPOSE: For cultivation of mulberry, rearing of silkworm and non-farm activities related to sericulture. ELIGIBILITY: Individual farmers, SHG’s, Firms, Companies engaged in sericulture activity. EXTENT OF LOAN: Need based. REPAYMENT: 4 - 9 Years depending upon the nature of acti

15. PNB KRISHI BHU- SWAMI YOJANA PURPOSE : The objective of the Scheme is to finance the farmers to purchase, develop and cultivate agricultural as well as fallow and wasteland. ELIGIBILITY : Small and marginal farmers and Share croppers/Tenant farmers/ entrepreneurs with agricultural background. The total land holding of the borrowers after the purchase of the land under the scheme should not exceed 2.5 acres of irrigated land or 5 acres of non irrigated land or equivalent. EXTENT OF LOAN : The Extent of loan will depend upon ( i ) valuation as assessed by the Branch (ii) Guidance value/Circle rate fixed by the State or (iii) the Registration Value whichever is lower, plus value of stamp duty, registration charges for sale / mortgage deed. However, maximum extent of loan under the Scheme shall be restricted to Rs. 20 lakh . REPAYMENT OF LOAN : Loan is to be repaid in 7-12 years in half-yearly/ yearly instalments including maximum moratorium period of 24 months

16. PNB DAIRY VIKAS CARD SCHEME PURPOSE: Purchase of good quality high milk yielding cows/buffaloes or exotic cross bred cows; Construction of shed for keeping the animals; Purchase of feed and fodder, medicines, dairy machinery or other equipments, etc. ELIGIBILITY: Landless agricultural labourers or farmers/individuals having experience in maintaining milch animals. The applicant should have shed/ accommodation for keeping the animals or should have adequate space for constructing the shed for keeping the animals as also arrangements for supply of adequate quantity of fodder. MARGIN: Nil. TYPE OF CARD : PNB Dairy Vikas Card. VALIDITY OF CARD: 5 Years. EXTENT OF LOAN : Rs.1,00,000/- DISBURSEMENT OF LOAN: Loan shall be disbursed in cash in stages as per requirement of the farmer. The limit shall be availed from the Card Issuing Branch only. REPAYMENT OF LOAN : Investment credit will be repayable in 5 years with reducing composite cash credit limit on yearly basis.

17. SCHEME FOR FINANCING APICULTURE (BEE-KEEPING ) PURPOSE : Financial assistance is made available for meeting: Fixed cost such as Construction of honey houses; purchase of colonies; purchase of equipments like bee-boxes, honey extractors, smokers & bee veil, bee knife, hive tool, queen gate, feeder, solar wax extractor, plastic drums for storing honey, sting proof rubber gloves, etc. Recurring Costs such as purchase of foundation sheets, sugar, medicines, gloves, etc. ELIGIBILITY : Small and marginal farmer(s)/ agricultural labourer (s) who are trained in bee keeping and individuals/Association of persons/Companies who possess adequate experience in bee-keeping and are desirous of taking up bee-keeping activity on commercial basis. EXTENT & NATURE OF LOAN : Need based term loan. Provision for initial recurring costs also forms an integral part of term loan only. REPAYMENT OF LOAN: Maximum 5 years including gestation period

18. SCHEME FOR FINANCING SHEEP/GOAT BREEDING/REARING ACTIVITIES PURPOSE: Financial assistance is considered for Purchase of sheep/goat of recognized breed for the purpose of breeding and/or rearing them for wool, meat and milk production, construction of sheds for sheep/goat, if considered necessary, and also for purchase of equipments/tools, purchase of concentrate feed, if considered necessary. ELIGIBILITY : Small and marginal farmer(s) and agricultural labourer (s) desirous of undertaking sheep/goat breeding/rearing as subsidiary activity or trained persons desirous of taking up the venture on commercial lines are eligible for financial assistance. EXTENT OF LOAN: Need based. REPAYMENT OF LOAN : Medium Term Loan: Activity Minimum & maximum repayment period, including gestation period Mode of repayment ( instalments ) Sheep Breeding 5-6 years Quarterly/ Half-yearly/ Yearly Goat Rearing 5-6 years Quarterly/ Half-yearly/ Yearly Working Capital: Working capital loan is to be repaid within maximum period of 1.5 years from the date of advance. If given as cash credit limit, the facilities shall be renewable every year.

19. PNB KISAN TATKAL CARD YOJANA An instant credit for farming community to meet the emergency requirements for Agriculture and Domestic purposes for tiding over temporary difficulties. • Individual farmers /joint borrowers (not exceeding four farmers) who are existing Kisan Credit Card (KCC) holders having satisfactory track record of at least two years are eligible. • Credit facility may be provided as a reducing Cash Credit Limit. Limit upto Rs 25,000/- may be repayable in 3 years and the limit above Rs.25,000/- may be repayable in 5 years. • Quantum of loan/Ceiling: Minimum limit: Rs. 1000/Maximum limit: Rs.50000/- (Subject to ceiling at 50% of KCC limit/ 25% of annual income) Security: Existing security/ ies obtained for KCC to be continued. No additional securities to be obtained even if the combined exposure (KCC plus proposed Kisan Tatkal Scheme) exceeds the present cut-off ceiling of Rs.1 lakh .

20. SCHEME FOR FINANCING GREEN HOUSES PURPOSE: Construction of green houses, purchase of equipments/machinery/inputs and other requirements including post harvest operations and marketing. ELIGIBILITY: Progressive farmers who own required agricultural land, having some experience/training in green houses and are following modern Agricultural technologies. NATURE & EXTENT OF LOAN : Need based. Medium term loan for construction of green house, purchase of equipments, machineries etc. Short term loan for purchase of inputs, labor and post harvest operations may be given under bank's KCC scheme . REPAYMENT OF LOAN : 5-7 years. For short term credit, repayment period may be of one year or as per KCC scheme.

21. Kisan Gold Scheme PURPOSE : • Production & investment credit for agriculture & allied activities • Rural housing related activities • Consumption needs (i.e. for marriage, education, religious/family functions

22. PNB SONA KRISHI RIN YOJANA (PNB Gold Agri - Loan Scheme) To enable farmers to quickly meet their short-term agricultural credit needs and Investment needs. ELIGIBILITY : Any person engaged in agriculture or allied activities as well as persons engaged in activities permitted by GOI / RBI to be classified under agriculture. Loan will be given based on declaration. Additionally, proof, of pursuing the activity to be given for loans above Rs. 1 lakh . NATURE OF LOAN: a. Short term Production Credit: The same may be granted as a Cash Credit / Overdraft or single transaction-Demand Loan with one year tenor Where the KCC facility has been allowed, the guidelines applicable for KCC Scheme are to be followed. b. Term loan- Upto 36-60 months depending on the purpose. MARGIN: CC/Short Term Loan - 5%, Term Loan - 20% REPAYMENT OF LOAN : Cash Credit / Overdraft - An operative limit/ cash credit account for a period of 5 years (on the lines of revised KCC Scheme) subject t

23. SCHEME FOR FINANCING MUSHROOM CULTIVATION AND SPAWN PRODUCTION SCHEME FOR FINANCING MUSHROOM CULTIVATION P URPOSE: Loan is considered for Investment Credit and Working Capital (For initial one crop only). ELIGIBILITY: Loan is considered for individuals as well as for large sized units possessing adequate experience of mushroom cultivation. EXTENT OF LOAN: Need based. REPAYMENT OF LOAN: Maximum 7 years including gestation period depending upon repaying capacity of borrower. SCHEME FOR FINANCING MUSHROOM SPAWN PRODUCTION PURPOSE: Financial assistance for spawn production is considered for the purpose of investment cost as well as recurring expenditure. ELIGIBILITY: Individuals as well as large sized units possessing qualification in plant pathology

24. SCHEME FOR FINANCING DEVELOPMENT OF HORTICULTURE (FRUITS, FLOWERS & VEGETABLES) AND PLANTATION CROPS PURPOSE: • Establishment & development of new orchards or grove of fruit crops, plantation crops, spices crops, ornamental crops, medicinal plants, essential oils/ aromatic plants etc., • Rejuvenation of existing orchards or plantation • Raising vegetables, raising flower crops, • Intercropping in horticulture crops, • Marketing Loan (to meet picking, grading, crating forwarding or transportation costs). • Construction of Green House & Purchase of equipments for Green House . ELIGIBILITY: • Individual farmer or group of farmers having aptitude/ adequate experience together with stipulated land holding (either as owner or tenant /lessee on long term basis (at least three years more than economic life of projects )

25. PRODUCE (MARKETING) LOAN SCHEME PURPOSE : To meet short term credit requirement to adjust /repay the outstanding KCC limit availed by farmers from the branch and to procure better price by storing farm produce and selling it at favorable price within a specified period . ELIGIBILITY : All the farmers irrespective of whether they were given crop loans for raising the produce or not will be eligible for advances. However where the farmers have availed KCC facility for crop production /composite cash credit limit from our bank for raising the crops, the same should not be overdue for repayment and this limit should be recovered/adjusted out of the Produce (Marketing) Loan.

26. PNB RUPAY KISAN CARDS [Facility available in KISAN CREDIT CARD (KCC) accounts] Benefits: • No need of going to Branch for withdrawal of cash from KCC accounts. • The card can be used at ATMs/ micro ATMs for withdrawal of cash and also at POS machines for purchase of farm inputs etc. Salient Features of PNB Rupay Kisan Card: • Enhanced security features through use of EMV chip based technology and PIN based transactions. • The limit for Daily cash withdrawal through ATMs is ` 25000/- with per transaction limit of ` 10000/- • The limit for POS transaction per day is ` 60000/- • The card can be issued as a Non Personalized Card or Personalized Card • Accidental Insurance cover of ` 100000/-. The benefit of insurance will be available to the card holders who have performed minimum one successful financial or non-financial transaction at any channel both intra and inter-bank within 90 days prior to date of accident including accident date

27. PRADHAN MANTRI FASAL BIMA YOJANA Objective:- To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases. To stabilise the income of farmers to ensure their continuance in farming. Premium:- 2% for Kharif crops 1.5% for all Rabi crops 5 % for annual commercial and horticultural crops Coverage: - Compulsory ( Loanee Farmers), Voluntary (Non- loanee farmers) Risks covered - Yield Losses (standing crops, on notified area basis) Prevented Sowing(on notified area basis) Post-harvest losses (individual farm basis) Localized Calamities(individual farm basis) Important Cut-off date:- Activity Kharif Rabi Loaning Period (loans sanctioned /renewed) for loanee farmers April to July Oct to Dec Cut-off date for collection of premium 31st July 31st December Credit of claim proceeds to Farmer Within 7 days after receiving claims from insurance company

28. INTEREST SUBVENTION FOR CROP LOANS • Brief Overview :Govt. Of India provides an additional Interest Subvention of 3% p.a. on Crop loans upto the date of repayment or upto the due date , whichever is earlier subject to a maximum period of 1 year. “An additional interest subvention of 3% per annum is available to the prompt payee farmers from the date of disbursement of the crop loan upto the actual date of repayment by farmers or upto the due date fixed by the bank for repayment of crop loan, whichever is earlier, subject to a maximum period of one year from the date of disbursement. This also implies that the farmers paying promptly would get short term crop loans @ 4% per annum during the year. This benefit would not accrue to those farmers who repay after one year of availing such loans.” • Eligibility : All those farmers who repay their short term crop loans within one year of disbursement /drawl of such loans. • Applicable Up to :Rs.3,00,000 irrespective of the loan amou

29. Central sector schemes Capital Investment Subsidy Scheme for construction/ expansion/ modernization of Cold Storages and Storages for Horticultural Produce. Agriculture Marketing Infrastructure Scheme (AMI) Scheme for setting up of Agri clinics/ Agri Business Centres . Scheme For Financing Agri -Business Projects With Venture Capital Assistance From Small Farmers' Agri -Business Consortium (SFAC) Dairy Entrepreneur-ship Development Scheme (DEDS) Central Sector Scheme on Pig Development Scheme for integrated Development of Small Ruminants and Rabbits

30. Extent of Loan Time Schedule(Maximum) 1 Upto Rs.2 lakh 2 weeks 2 Above Rs. 2 lakh & upto Rs. 50 lakh 4 weeks 3 Above Rs. 50 lakh & upto Rs. 100 lakh 5-6 weeks 4 Above Rs. 100 lakh & upto Rs. 100 crores 6-7 weeks 5 Above Rs. 100 crores 8-9 weeks Procedural Guidelines for Agricultural Credit 1.TIME SCHEDULE FOR DISPOSAL OF LOAN APPLICATIONS:

31. S.No . Amount of Loan Margin 1 Upto Rs.1,60,000/- (both for short term and medium term) Nil 2 Above Rs.1,60,000/- to Rs.2 lakh 5% 3 Above Rs.2 lakh to Rs.5 lakh 10% 4 Above Rs.5 lakh 25% 2.MARGIN NORMS: (a) For production and/or Investment Credit: (b) Under PNB Krishi Card Scheme: For Crop Loan: NIL (c) Under the Scheme of Agri -Clinics/ Agri -Business Centres :

32. Referance :- https://www.pnbindia.in/central-sector-schemes.html https://www.pnbindia.in/agriculture-credit-schemes.html https://www.pnbindia.in

33. THANK YOU