| Vijaya Krishi Vikas (VKV) Scheme |
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Objectives |
|
Salient features |
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Eligibility |
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Assessment of crop loan / short term limits |
|
Assessment of term loan limits |
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Lending norms |
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Validity |
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| Objectives
|
| To provide a simple, comprehensive and flexible credit package to
farmers |
| To meet entire agricultural credit requirements such as crop
production, investment credit, including consumption credit through single loan product. |
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| Salient features
|
| Both crop production and investment credit met |
| Consumption / house hold / miscellaneous agricultural expenditure /
working capital needs for allied activities also considered |
| Repetitive documentation avoided |
| Stamped receipts not needed for purchase of manure, fertilisers,
animal feeds and other inputs |
| Advances recoveries could be withdrawn to meet unforeseen
expenditure |
| Cardholders eligible for personal accident insurance scheme upto
Rs.50000; annual premium of Rs.15/= per cardholder is shared by the bank and the borrower at 2:1
ratio. |
| Built-in incentive for prompt repayers |
| On credit balance in the short term / crop loans, SB interest rates
paid |
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| Eligibility
|
| All farmers, such as owner / tenant cultivators and share croppers are
eligible |
| Farmers cultivating on authorized leased lands are also eligible |
| Should not be a defaulter to any financial institution |
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| Assessment of crop loan / short term limits
|
| Crop loan limits based on scale of finance and area under
cultivation |
| Consumption / household expenses, post harvest and miscellaneous
agricultural expenditure considered |
| Working capital requirement for dairy and poultry for one month’s feed
cost met |
| Total limits as mentioned above is the operational limit |
| 20% contingency is added on to the operational limit to fix the
overall card limit |
| Overall card limit is meant to avoid repetitive documentation and to
take care of increase in scale of finance in future. |
| |
| Assessment of term loan limits
|
| Term loan projects with a repayment period of upto 5 years only is
considered under VKV |
| Term loan limit is assessed based on Unit Cost and the Activity
undertaken based on viability of the project |
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| Lending norms
|
| Margin |
No margin for crop loans. For term loans and other short term loans, margin is as
follows |
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For loans upto Rs.50000 : No margin |
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For loans above Rs.50000 : 15 to 25% margin |
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Security
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For loans upto Rs.50000: only hypothecation of crops / assets purchased out of bank loan |
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For loans above Rs.50000: hypothecation of crops / assets created and mortgage of land / third
party guarantee at bank’s discretion |
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Interest rate
|
As applicable for agricultural loans from time to time |
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| Repayment |
Repayment for crop loans based on the crop period and reasonable period for harvesting /
marketing of produce |
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For term loans, as per the repayment period suggested by NABARD or on the basis of income
generation of the project; need based gestation period also considered |
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| Validity
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| Validity of the card is five years subject to annual review. |
