Direct loans to Agriculture and allied activities include loans to individual farmers or SHGs / JLGs of Farmers for the following purposes:

1. Short term loans for raising crops
2. Short term loans to traditional Plantation and Horticulture.
3. Pledge loans upto Rs. 10.00lakhs repayable in 12 mths irrespective of whether farmers have availed crop loans or not.
4. Working capital and term loans for financing production and investment requirements for agriculture and allied activities.
5. Loans to small and marginal farmers for purchase of land for agricultural purposes.
6. loans to distressed farmers indebted to Non-Institutional lenders against appropriate collateral or group security.
7. loans granted for Pre-Harvest or Post- harvest activities such as spraying , weeding, harvesting, grading, sorting, processing and transporting undertaken by individuals , SHGs and Co-operative in rural areas.
8. Short term loans for allied activities such as dairying, Fishery, Piggery, Poultry, Bee Keeping etc.
9. Purchase of agricultural implements and machinery – Iron ploughs, harrows, hose, land - levellers, bund formers, hand tools, sprayers, dusters, hay-press, sugarcane crushers, thresher machines etc.
10. Purchase of farm Machinery - Tractors, trailers, power tillers, tractor accessories viz Disc ploughs etc.
11. Purchase of trucks, mini-trucks, jeeps, pick up vans, bullock carts and other transport equipments etc., for agricultural purpose i.e., transportation of farm inputs / outputs.
12. Purchase of plough animals
13. Construction of shallow and deep tube wells, tanks, etc.
14. Constructing, deepening, clearing of surface wells, boring of wells, electrification of well, purchase of oil engines and installation of pumpsets, etc.
15. Purchase and installation of turbine pumps, construction of field chanelles .etc.
16. Lift irrigation projects
17. Installation of sprinkler / drip  irrigation system (Mocro Irrigation)
18. Purchase of generator sets for agricultural purpose
19. Bunding of farm lands, levelling of land, terracing of dry paddy lands into wet irrigable paddy lands, development of farm drainage, reclamation of soil lands and prevention of salinisation, reclamation of ravine lands, purchase bulldozers etc.
20. Construction of Bullock sheds, implement sheds, tractor and tractor sheds, vehicle sheds, farm stores etc.
21. Construction and running of warehouses, godowns, silos and cold storages.
22. Production and processing of hybrid seeds of crops
23. Development of dairying and animal husbandry in all its aspects
24. Development of Fisheries
25. Development of poultry, piggery, beekeeping / sheep, goat etc
26. Development of sericulture
27. Bio gas plants.

Direct Loans to Agriculture & Allied activities to Corporates, Partnership Firms & Institutions

1. Loans up to Rs.1.00 crore comes under Direct Agriculture.
2. Loans in excess of Rs.1.00 crore, to the extend of only one third portion over and above Rs.1.00 crore also come under direct agriculture

Indirect loans to Agriculture 

1. Loans in excess of Rs.1.00 crore to Corporates, Partnership Firms & Institutions, two thirds portion over and above Rs.1.00 crore come under indirect agriculture
2. Loans to Foor & Agro based processing units with investment cost on plant and macheinery upto Rs.10.00 crore undertaken by those other than individuals, SHGs and Co-Operatives in rural areas
3. Credit for purchase & distribution of fertilizers, pesticides, seeds etc.
4. Credit upto Rs.40.00 lakhs for purchase &  distribution of inputs for teh allied activities such as cattle feed, poultry feed etc
5. Finance for hire purchase schemes for distribution of agricultural machinery and implements.
6. Loans for construction and running of storage facilities -warehouse, market yards, godowns, silos, and cold storages designed to store agriculture produce / products irrespective of the location.
7. Advances to custom service units managed by individuals institutions or organisations  who maintain a fleet of tractors, bulldozers, well boring equipment, threshers, combines etc. and undertake work for farmers on contract basis.
8. Finance for setting up of Agri Clinic and Agri Business Centers
9. Loans to farments through primary agricultural credit societies  (PACS), Farmers Service Socities (FSS), and Large Sized Adivasi Multipurpose Societies (LAMPS)
10. Loans to Co-operative Societies of farmers for disposing off the produce of members.
11. Financing farmers indirectly through the Co-operative system.
12. Loans upto Rs.30.00 lakhs for dealers in Drip irregation / Sprinkler Irregation / Agricultural Mechaniery irrespective of the location.
13. Loans to NBFCs for on lending to individual farments or their SHGs public JLGs.
14. Loans granted to NGOs / MFIs for on lending to individual farmmers of through SHGs / JLGs

Click here to get  interest rates on farm loans

Salient features of lending to Micro, Small & Medium Enterprises(MSMEs):  

A) DIRECT FINANCE

Are Enterprises engaged in the manufacture, production , processing, preservation of goods and whose investment cost in Plant & machinery does not exceed Rs.5.00 Crores *.

* original Cost excluding Land and Building and the items specified by the Ministry of Small Scale Industries vide their notification no. SO.1722(E) dated 05.10.2006

Enterprises engaged in providing / rendering of services,  whose investent in equipment does not exceed Rs. 2.00 Crores **

** original Cost excluding Land and Building and furniture fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act.2006. 

Enterprises engaged in providing / rendering of services,  whose investent in equipment is above Rs. 2.00 Crores and upto Rs.5.00 crore **

** original Cost excluding Land and Building and furniture fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act.2006. 

B) INDIRECT FINANCE

1. Persons involved in assisting the decentralised sector in the supply of inputs to and marketing of outputs of artisans, village and cottage industries. 
2. Advances to co-operatives of producers in teh decentralised sector viz. artisans, village and cottage industries.
3. Loans granted by Banks to NBFCs for onlending to Small and Micro Enterprises.

• Loans upto Rs.5 lakh are collateral free
• Loans above Rs.5 lakh and upto Rs.25 lakh are also collateral free subject to good track record and financials of the unit
• Above Rs.25 lakh, collateral security and or third party guarantee

Bank is adopting a multidimensional risk-rating model for SME advances to rationalise the cost of loans to MSME sector. There are three risk-rating models adopted at present.

1. Model for exposures ranging from Rs.2 lacs to below Rs.1 crore

2. Model for exposures ranging from Rs.1 crore to below Rs.3 crore

3. Model with segmented approach for exposure of Rs.3 crore and above.

Bank also encourages rating of MSME units by approved rating agencies. The bank has signed a Memorandum of Understanding with Small and Medium Rating Agency (SMERA), CRISIL & ICRA to enable independent third-party assessment of the MSME units.

The rating fee payable to various agencies for getting the MSME units rated is based on the size of the enterprise. SMERA, CRISIL, & ICRA have been empanelled as agencies  eligible for subsidy towards the rating fee charged from Micro & Small Enterprises units operated through the National Small Industries Corporation Ltd (NSIC) by the Government of India, Ministry of Small Scale Industries. Under the scheme, 75% of the rating fee payable by eligible Micro & Small Enterprises units is subsidized and the units are required to pay only the balance 25%.

The Bank is a member lending institution of the Credit Guarantee Fund Trust for Small Industries and is extending coverage to all eligible loans under Credit guarantee Fund Scheme. Under this scheme, One time guarantee fee is charged at –

• 1.50% for all loans.
• Annual service fee of 0.75% of the credit facility.

The bank is also implementing the Rural Employment Generation Scheme (KVIC-Margin Money Scheme), National Equity Fund Scheme and Credit linked Capital Subsidy Scheme, Technology Up gradation Fund Scheme.

1. SME Branch, 409/410,G.N.R.Layout, Kittaganahalli Gate, Bommasandra, Industrial Layout, Bangalore , Karnatka-560158
2. SME Branch, Shop No.1,2,3 &4, Ward No.38, Akshy Complex, Gokul Road, Hubli, Karnataka-580030
3. SME Branch, KSIA Building , Industrial Area, Baikampady, Mangalore, Karnataka, 575011
4. SME Branch, 490, Avinashi Road , Peelamedu, Coimbatore , Tamil Nadu-641004
5. SME Branch, Ground Floor, Balakrishna Appt, Ground Floor, Gogatewadi Road , off. Aaray Road , Goregaon-East, Mumbai-400063
6. SME Branch, B/12, Sector-60, Prayag Industries, Gautam Buddha Nagar, Noida, Uttar Pradesh-247001
7. SME Branch, MKP Complex, west CAR street , Thiruchengode, Namakkal District, Tamil Nadu- 637211
8. SME Branch, Basti Sheikh Road , Basti Sheikh, Jalandhar, Punjab - 144002.
9. SME Branch, 354, Industrial Area 'A', R K machine Tool Road, Ludhiana, Punjab - 141008
10. SME Branch, Kanth Road, Sonakpur, Moradabad - 244001

Approved list of manufacturers / suppliers of SWH Systems: MNES has communicated a list of 83 BIS approved manufacturers / suppliers of Flat Tube Collector based solar water heating systems and 10 MNES approved manufacturers / suppliers of Evacuated Tube Collector based solar water heating systems. Systems should be purchase and installed only form the approved list of manufacturers / suppliers.

Apportioning the interest subsidy received: Since the interest subsidy released by IREDA for the entire repayment period of 5 years upfront, the entire interest subsidy amount would be credited to the loan account of the borrowers in one-go so that the ultimate interest on borrowers would work out to 2% (for domestic users), 3% (for institutional users) and 5% (for commercial / industrial users).

1. Retail traders dealing in essential commodities (Fair Price shops)  consumer co-operative stores.
2. Advances granted to Private Retail Traders with credit limits not exceeding Rs.20.00 lakh

1. Loans of very small amount not exceeding Rs.50,000.00 per borrower provided either directly of indirectly through SHGs / JLG mechanisum or to NBFC / MFIs for onlending upto Rs. 50,000.00 per borrower.
2. Loans to distressed persons (other than farmers ) to pre-pay their debt to non- institutional lenders against approprate collateral or group security

1. Educational loans granted to individuals for educational purposes upto Rs.10.00 lakh for studies in India and Rs.20.00 lakh for studies abroad.
2. Loans to NBFCs for on lending to individuals for educational purposes upto Rs.10.00lakh for studies in India and Rs.20.00 lakh for studies abroad.

1. Loans upto Rs.20.00 lakhs irrespective of location to individuals for purchase / construction of dwelling unit per family.
2. Loans for repairs to damaged dwelling units upto Rs. 1.00 lakh in Rural & Semi Urban areas and upto Rs.2.00 lakh in Urban & Metropolitan areas.
3. Assistance given to any Governmental agencies for construction of dewelling units or for slum clearence and rehabilitation of slum dewellers, subject ot a ceiling of Rs.5.00 lakh of loan per dewelling unit.
4. Assistance given to a Non-Governmental agency approved by NHB for the purpose of re-finance for construction / reconstruction of dewlling units or for slum clearence and rehabliation of slum dewellers subject to a ceiling of Rs.5.00 lakh per dewelling unit

Weaker section under priority sector shall include the following

1. Small and marginal farmers with landholdings of 5 acres and less, landless labourers, tenant farmers and share croppers
2. Artisans, village and cottage industries wher individual credit limits do not exceed Rs.50,000.00
3. SJSRY/SLRS/DRI/SGSY/ SC & ST/SHGs 
4. Loans to distressed poor to prepay their debt to informal sector, against appropriate collateral or group security
5. Loans granted under (1) to (4) above, persons from Minority comminuties as may be notified by the Govt. Of India from time to time, &  in States where one of the Miniority comminuties notified is in fact, in majority, item (5) will cover only the other notified minorities. These states / Union Terrritories are jammu & kashmir , Punjab, Sikkim, Mizoram, Nagaland & Lakshadweep.

1. For further details, please refer HOCs on scheme guidelines.
2. For any relaxations in terms and conditions, clarifications on the issue, reference should be made to the General Manager – Credit Operations.