Summer Training Report On

AGRICULTURAL CREDIT SCHEMES OF PNB

At PANJAB NATIONAL BANK

SUBMITTED TO DR. HARSH PUROHIT

SUBMITTED BY MONIKA MBA IInd SEMESTER WISDOM BANASTHALI VIDHYAPITH

Submitted in partial fulfillment of the requirement of MBA Program at WISDOM, Banasthali University

ACKNOWLEDGEMENT

At the very outset, I would like to put on records my gratitude towards the management of PUNJAB NATIONAL BANK, for giving me the opportunity to work on this project. It is in particular that I am acknowledging my sincere feeling towards my mentors.

They have provided me with the valuable guidance, sustained efforts and friendly approach. It would have been difficult to achieve the results in such a short span of time without their help.

I deem it my duty to record my gratitude towards the project guide Mr. Pavneet Kumar Anand who devoted his precious time to interact guide and gave me the right approach to accomplish the task and also helped me to enhance my knowledge and understanding of the project Last but not the least I would like to indebt to the corporation PNBs executives for sharing the project related information.

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TABLE OF CONTENT Sr. No.

1 2 3 4 5 6 Objectives of the project Company profile Companys corporate vision and mission Heritage Research methodology Agri business cell 7 8. SFAC Venture capital fund scheme for dairy / poultry sector. Scheme of infrastructure facilities for production and distribution of seeds. Capital investment scheme for commercial production unit. Scheme for development /strengthening of agriculture marketing. Scheme for financing farmers growing sugar cane corp. Scheme for financing micro- financing institutions (Mfis). Scheme for financing against pledge of warehouse receipts. 19 24

Chapters

Page No.
5 6 7 8 9 10

Procedural guidelines for agricultural credit Schemes under Punjab national bank Scheme under kisan credit card(KCC) PNB kisaan sampuran rin yojna PNB kisaan ichchha purti yojna Credit against national savings certificates, FD,& KVP to farmers. Credit against Gold ornaments/ jewellery to farmers. Produce (marketing) loan scheme Farm mechanization scheme. Scheme to purchase second hand tractors. Scheme for financing self propelled combine harvesters. Scheme for financing farmers for purchase of trucks and other transport vehicles. Scheme for financing minor irrigation. Scheme for financing development of horticulture & plantation crops. Scheme for financing forestry development programmes. Scheme for development of wasteland. Scheme for financing agricultural graduates for setting up of ACABC Scheme for financing farmers for purchase of land for agriculture purpose. Scheme for financial assistance to agriculture graduates for land Scheme for financing mushroom cultivation. Scheme for setting up biogas unit. Scheme for financing poultry farming. Scheme for financing dairy development program. Dairy vikas card scheme Scheme for financing inland fisheries development. Scheme for financing marine fisheries. Scheme for financing sheep/ goat/ breeding/ rearing. Scheme for financing piggery development. Scheme for financing purchase of animals. Scheme for financing apiculture (bee- keeping) Scheme for financing kitchen gardening

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Scheme for financing green house. PNB kalyani card scheme. NB general credit card. PNB krishak sathi scheme Scheme for financing solar energy lighting system.

9 10 11

Conclusion Observations Bibliography

44 45 46

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OBJECTIVES OF THE PROJECT

To study and gain knowledge about the various agricultural credit schemes presently prevailing in Indian market. To study the agricultural credit schemes provided by Punjab National Bank. Detailed study on new and innovative financial products being offered to give a distinct flavor to new as well as existing customers. Analysis of the working of the bank in providing agricultural credit schemes. To know about latest schemes introduced by the Punjab National Bank.

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COMPANY PROFILE

With its presence virtually in all the important centers of the country, Punjab National Bank offers a wide variety of banking services which include corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. Among the clients of the Bank are Indian conglomerates, medium and small industrial units, exporters, non-resident Indians and multinational companies. The large presence and vast resource base have helped the Bank to build strong links with trade and industry. Punjab National Bank is serving over 3.5 corer customers through 4540 Offices including 421 extension counters - largest amongst Nationalized Banks. Punjab National Bank with 112 year tradition of sound and prudent banking is one among 300 global companies and seven Indian companies which are expected to emerge as challengers to Worlds leading blue chip companies. While among top 1000 world banks, The Banker, the leading magazine in London, has placed PNB at the 248th position, the bank features at 1308th position among Forbes Global 2000 list of global giants and fast growing companies. At the same time, the bank has been conscious of its social responsibilities by financing agriculture and allied activities and small scale industries (SSI). Considering the importance of small scale industries bank has established 31 specialized branches to finance exclusively such industries. Strong correspondent banking relationship which Punjab National Bank maintains with over 200 leading international banks all over the world enhances its capabilities to handle transactions world-wide. Besides, bank has Rupee Drawing Arrangements with 15 exchange companies in the Gulf and one in Singapore. Bank is a member of the SWIFT and over 150 branches of the bank are connected through its computer-based terminal at Mumbai. With its state-of-art dealing rooms and well-trained dealers, the bank offers efficient forex dealing operations in India. The bank has been focusing on expanding its operations outside India and has identified some of the emerging economies which offer large business potential. Bank has set up representative offices at Almaty: Kazakhstan, Shanghai: China and in London. Besides, Bank has opened a full fledged Branch in Kabul, Afghanistan. Keeping in tune with changing times and to provide its customers more efficient and speedy service, the Bank has taken major initiative in the field of computerization. All the Branches of the Bank have been computerized. The Bank has also launched aggressively the concept of "Any Time, Any Where Banking" through the introduction of Centralized Banking Solution (CBS) and over 2409 offices have already been brought under its ambit. PNB also offers Internet Banking services in the country for Corporate as well as individuals. Internet Banking services are available through all Branches of the Bank networked under CBS. Providing 24 hours, 365 days banking right from the PC of the user, Internet Banking offers world class banking facilities like anytime, anywhere access to account, complete details of transactions, and statement of account, online information of deposits, loans overdraft account etc. PNB has recently introduced Online Payment Facility for railway reservation through IRCTC Payment Gateway Project and Online Utility Bill Payment Services which allows Internet Banking account holders to pay their telephone, mobile, electricity, insurance and other bills anytime from anywhere from their desktop. Another step taken by PNB in meeting the changing aspirations of its clientele is the launch of its Debit card, which is also an ATM card. It enables the card holder to buy goods and services at over 99270 merchant establishments across the country. Besides, the card can be used to withdraw cash at more than 25000 ATMs, where the 'Maestro' logo is displayed, apart from the PNB's over 1094 ATMs and tie up arrangements with other Banks.

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PNBs VISION AND MISSION

CORPORATE VISION

To evolve and position the bank as a world class progressive, cost effective and customer friendly institution providing comprehensive financial and related services; integrating frontiers of technology and serving various segments of society especially the weaker sections; committed to excellence in serving the people and also excelling in corporate values.

CORPORATE MISSION

To provide excellent professional services and improve its position as leader in the field of financial and related services; build and maintain a team of motivated and committed workforce with high work ethos; use latest technology aimed at customer satisfaction and act as an effective catalyst for socio-economic development.

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HERITAGE

Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the distinction of being the first Indian bank to have been started solely with Indian capital. The bank was nationalized in July 1969 along with 13 other banks. From its modest beginning, the bank has grown in size and stature to become a front-line banking institution in India at present. A professionally managed bank with a successful track record of over 110 years having largest branch network in India - 4540 branches and 421 Extension Counters spread throughout the country. Strategic business area covers the large Indo-Gangetic belt and the metropolitan centers. Ranked as 323rd biggest bank in the world by Bankers Almanac (January 2006), London. Strong correspondent banking relationships with more than 217 international banks of the world having more than 50 renowned international banks maintain their Rupee Accounts with PNB. Rupee drawing arrangements with M/s UAE Exchange Center, UAE, M/s Al Fardan Exchange Co. Doha, Qatar, M/s Bahrain Exchange Co, Kuwait, M/s Bahrain Finance Co, Bahrain/s Thomas Cook Al Rostamani Exchange Co. Dubai,UAE, and M/s Macadam Exchange, Ruwi, Sultanate of Oman.

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RESEARCH METHEDOLOGY

TYPE OF RESEARCH The present study is based on the type of research that is descriptive research which includes main purpose to describe the main purpose of state of affairs as it exist now at present, the main characteristics of this report is the researcher has no control over the variables he can only report what has happened and what is happening.

DATA COLLECTED

Data is collected from primary as well as secondary sources. Primary data is collected from employees of the bank and secondary data is collected from bank reports and monthly reviews.

DATA COLLECTION METHOD

The data related to the project objectives was collected from the following:

1. Primary sources: o pnbindia.com o google .com o nsdl.com 2. Secondary sources: o An investor guide to depository o Brochures of PNB bank

INSTRUMENTS USED

MS word and paint were used to prepare the project report.

PROCEDURE

The procedure followed was collecting information on demat and charges for services of PNB bank covered by brochures, meetings their respective executives and visiting their respective websites.

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AGRI BUSINESS CELL

Agri-business Schemes

Agri-Business usually comprises of many organizations and enterprises which in some way contribute for value, market and supply chain elements such as production, marketing, processing, packaging, transportation and wholesale as well as retail trade. There is an urgent need to make Indian Agriculture demand driven, enhance value addition in agriculture products and leverage competitive advantages to maximize opportunities in the domestic as well as global markets. The production level of our farm has to further grow consistently to maintain food security for the ever-growing population.

National Agriculture Policy

Our National Agriculture Policy seeks to actualize the vast untapped growth potential of agriculture, strengthen rural infrastructure to support faster agricultural development, promote value addition, accelerate growth of agri-business and create employment in rural areas.

Growth Projections for 11th Five Year Plan

Overall growth in Agriculture Gross capital formation in Agriculture Production of cereals Milk Production Processing of fruit and vegetables Share of agriculture in exports

From 2% to 4% 12% to 16% From 2% to 2.5-3% (to increase by 20 mt by 2012 From 91.3mT to 130 mt by 2015 From 6% to 20% From 1.5% to 3%

Annual Demand Growth Projections For Next Five Years

Milk/Milk products Other livestock Poultry Horticulture Fisheries Medicinal plants Consumption of process foods

6% 5% 10% 6% 6% 15% 10%

Govt. of India Initiatives

The Central Government as also some of the State Governments have formulated several subsidies linked schemes for rapid development of infrastructure, which will provide a base for promotion of agri-business. Important Central Sector Schemes are appended. Scheme for development/strengthening of agricultural marketing infrastructure, grading and standardization.

Venture capital fund scheme for dairy/poultry sector. Venture Capital Assistance Scheme of Small Farmers Agri-Business Consortium (SFAC). Scheme for development/strengthening of infrastructure facilities for production and distribution of seeds. Page | 10

Scheme for? Development of Commercial Horticulture through Production and Post Harvest Management? Of National Horticulture Board (NHB).

Capital Investment Subsidy Scheme for cold storages. Capital Investment Subsidy Scheme for commercial production units of organic inputs under National Project on Organic Farming.

PNB INITIATIVES:-

ABC For Agribusiness Cell

In order to maintain competitive edge and by focusing on the emerging avenues for Agri business PNB Bank has established Agri-Business Cell ( ABC ) in Priority Sector & Lead Bank Division, at Head Office.

Bonds of Synergy
For increasing Banks outreach to farmers across the country, PNB is forging tie ups with Sugar Mills, Dairy Development Corporations , Collateral Managers etc. for financing farmers under Business Facilitator Model and Management and Collection Agent Model. ABC in PNB is instrumental in scripting such tie ups.

OBJECTIVES & FUNCTIONS OF AGRI BUSINESS CELL:-

To facilitate financing hi-tech and Export-oriented Agriculture and allied activity projects. To co-ordinate area development programs with Research Organization sharing their technical expertise and guidance and disseminate knowledge to our field functionaries.

To conceive and formulate innovative schemes based on the latest technology in Agriculture. To search strategies for sustainable rural development where our bank's credit inputs may be utilized most efficiently. To liaison with various Chambers of Commerce and Industry, Business Associations, Non-Government Organizations, Corporate bodies, Export Houses, Marketing Organizations and other stake holders for development of agri-business.

To generate new knowledge and skill for Human Resources Development in the field of Rural Credit. To keep the Top Management informed of the latest developments in rural finance by conducting monitoring/evaluation/impact studies. AGRIBUSINESS CELL cherishes Handholding agri-preneurs, farmers. Providing dedicated support system to field functionaries in the area of Agribusiness financing. Acting as catalyst for promoting technology driven solutions for the benefit and utility of rural clients.

EMERGING AVENUES AND BLOOMING OPPORTUNITIES IN AGRI-BUSINESS

India is a land of opportunities for Agri business. The diverse land, soil, climate combinations obtaining across the country offer immense scope and seamless flexibility for multifarious agribusiness activities and ventures. There is a silver lining in the recent economic global downturn. It has opened up a stream of opportunities for Indian agri-exports across the World. ABC in PNB has clear focus on helping entrepreneurs and other stake holders in translating the available opportunities into agribusiness reality in the following areas.

Agri Clinics / Agri-Business Agri-processing Bio-fuels Contract Farming

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Corporate Farming Hi-tech Agriculture Medicinal and Aromatic Plants Organic Farming Plantation s and Horticultural Crops Rural Godowns and Cold Storages Financing in Dairy and Poultry

Expanding The Horizons Of Agribusiness Financing

PNB has inked MOU in the area of Collateral Management with National Bulk Handling Corporation for financing against Ware House Receipts. Similar tie ups are on the anvil with other important players in the area of Warehousing and Collateral Management. PNB has MOU with M/s International Tractors Limited for Channel Financing of Tractors. PNB entered into tie up with M/s D1 Williamson Magor Biofuel Limited for financing Jatropha Cultivation in North East and Jharkhand.

AGRI-BUSINESS SCHEMES:-

1. Scheme for Financing Agri-Business Projects with venture capital assistance from Small Farmers' Agri-Business Consortium (SFAC). 2. Venture Capital Fund Scheme for Dairy / Poultry Sector. 3. Scheme for providing credit for projects for development and strengthening of infrastructure facilities for production and distribution of seeds. 4. Capital Investment Subsidy Scheme for commercial production units of organic inputs under National Project on Organic Farming. 5. Scheme for development / strengthening of agriculture marketing infrastructure, grading and standardization. 6. Scheme For Financing Farmers Growing Sugar Cane Crop In Tie Up Arrangement With Sugar Mill Acting As Business Facilitator. 7. Scheme For Financing Micro-Financing Institutions (Mfis) For On-Lending To Individual Members Or their SHGS/JLGS. 8. Scheme for Financing against Pledge of Warehouse Receipts issued by National Bulk Handling Corporation Ltd. (NBHC)

1. Scheme for Financing Agri-Business Projects with venture capital assistance from Small Farmers' Agri-Business Consortium (SFAC)

PURPOSE :
To provide Venture Capital Assistance to agri-business projects and to set up a Project Development Facility to assist producer groups/organizations in formulation of economically viable agri-business projects.

ELIGIBILITY:
SFAC will provide Venture Capital Assistance for qualifying projects of individuals/ producer groups / organizations which meet the following criteria: 1. Projects are dependent upon agricultural or allied produce,

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2. Projects provide direct access to producers as assured market, 3. Projects encourage farmers to diversify into high value crops aimed to increase farm incomes, 4. The Bank has accepted the project for grant of term loans after satisfactory techno-commercial feasibility, 5. The intending project must be over Rs.50 lakh in size (Rs. 25 lakh in case of North-Eastern States and other Hilly Areas). Projects recommended by State SFACs can be considered for higher assistance under the Project Development Facility (PDF).

NATURE OF LOAN :
Term Loan, Cash Credit and Composite loan.

EXTENT OF LOAN :
Need based.

EXTENT OF VENTURE CAPITAL ASSISTANCE :

The amount of Venture Capital Assistance shall be the lowest of 1. 10 per cent of the project cost assessed by the bank OR 2. 26 per cent of project equity OR 3. Rs.75.00 lakh.

REPAYMENT OF LOAN :
Repayment of loan shall be 5-6 years excluding gestation period.

2. Venture Capital Fund Scheme for Dairy / Poultry Sector

PURPOSE :
To provide financial assistance to individuals, NGOs, Public and Private Sector Undertakings, Cooperatives, etc for the following purposes. 1. To promote setting up of modern dairy farms for production of clean milk. 2. To bring structural changes in the unorganized sector processing and marketing of pasteurized milk at village level. 3. To bring about up gradation of quality and traditional technology to handle milk on a commercial scale. 4. To boost the unorganized poultry sector in states where development is in primitive state and also to give incentive and create infrastructure facilities for export of poultry products by organized sector from advanced states. 5. Establishment of poultry and breeding farms with low input technology and also for other poultry species. 6. Setting up of poultry feed plant/ laboratory. 7. Setting up of egg grading, packing and storing facility for export. 8. Marketing of poultry products (specialized transport vehicles, cold storage, etc.).

ELIGIBILITY:
1. Farmers/individual entrepreneurs and groups of all sections of unorganized as well as organized sector will be eligible under the Scheme. 2. Preference may be given to traditional sweet makers (Halwais) to improve quality and hygiene of their products. In poultry, preference will be given to Pheriwalas (Hawkers), which will generate self-employment for urban poor. 3. Veterinary Science Graduates alone will be considered for providing loan under the component of Veterinary Clinics.

NATURE OF LOAN:

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Term Loan & Cash Credit

EXTENT OF LOAN :
The fund will be distributed among dairy and poultry activities with an overall ratio of 2:1. The extent of loan will be ranging from Rs.1.5 to 25 lakh for Dairy sector and Rs. 0.10 to 80 lakh for poultry sector based on activities undertaken. The loan amount will be 40 per cent of the project cost.

VENTURE CAPITAL ASSISTANCE :

50 per cent of the project cost/proposal.

REPAYMENT OF LOAN :
Repayment period of loan will be up to maximum of 9 years including grace period of two years.

3. Scheme for providing credit for projects for development and strengthening of infrastructure facilities for

production and distribution of seeds

PURPOSE :
The Scheme aims at providing credit for projects for development creation of infrastructure for seed production, i.e, seed cleaning / grading / processing / treating / packaging, seed storage units, seed testing labs, etc.

ELIGIBILITY :
Individuals, Private Companies, Corporate, Self Help Groups (SHGs) and Seed Cooperatives.

NATURE OF LOAN :
Term loan, Cash Credit and Composite Loan

EXTENT OF LOAN:
Need based.

REPAYMENT PERIOD :
Repayment period is upto 11 years including a grace period of one year.

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4. Capital Investment Subsidy Scheme for commercial production units of organic inputs under National Project on Organic Farming

PURPOSE :
To provide financial assistance for setting up of the commercial production units as well as expansion/renovation of existing units of organic inputs like vermin-compost, bio-fertilizers, fruit & vegetable waste compost, etc.

ELIGIBILITY :
Individuals, Group of farmers/growers, Partnership/Proprietary firms, NGOs, Self Help Groups (SHGs), Companies, Corporations, Cooperatives, Seed industry, Fertilizer industry, Private entrepreneurs, etc. in the entire country.

NATURE OF LOAN :
Term loan and Working capital. SUBSIDY: Each unit will be provided with a subsidy @ 25% of the capital cost of the project subject to the ceiling of: 1. Rs 20 lakh for biofertilisers; 2. Rs 1.5 lakh for sericulture hatcheries; 3. Rs 40 lakh for fruit & vegetable waste compost production units.

REPAYMENT PERIOD :
The loan shall be repayable in 8-10 years depending upon the activity.

IMPLEMENTING AGENCY :
The scheme will be implemented by National Centre of Organic Farming, Ghaziabad and its six Regional Offices in collaboration with Agriculture & Co-operation Departments of the State Governments concerned.

5. Scheme for development / strengthening of agriculture marketing infrastructure, grading and standardization

PURPOSE :
To provide financial assistance to develop/strengthen marketing infrastructure in agriculture and allied sectors.

ELIGIBILITY :
Individuals, Group of farmers/growers/consumers, Partnership/Proprietary firms, NGOs, Self Help Groups (SHGs), Companies, Corporations, Co-operatives, Co-operative Marketing Federations, Local Bodies, Agriculture Produce Market Committee and Marketing Boards in the entire country.

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NATURE OF LOAN :
Term loan and Working capital. SUBSIDY : 1. The credit-linked back-ended subsidy shall be provided on the capital cost of the project. 2. Subsidy at the rate of 25% with an upper ceiling of Rs.50 lakh in all areas for all categories of promoters. 3. In case of North Eastern States, Hilly and Tribal areas and for entrepreneurs belonging to SC/STs and their Cooperatives at 33.33% subject to ceiling at Rs.60 lakh.

REPAYMENT OF LOAN :
The repayment period shall be upto 11 years including the grace period of 2 years.

IMPLEMENTING AGENCY :
Directorate of Marketing and Inspection (DMI), Ministry of Agriculture, Government of India is the nodal agency to operate the scheme.

6. Scheme For Financing Farmers Growing Sugar Cane Crop In Tie Up Arrangement With Sugar Mill Acting As Business Facilitator

PURPOSE :
To provide Crop Loans for cultivation of sugar Cane under tie up arrangement with Sugar Mills acting as Business Facilitator.

ELIGIBILITY:
Farmers growing and supplying Sugar Cane.

NATURE OF LOAN :
Cash Credit

EXTENT OF LOAN :
Need based Maximum Rs.3.00 Lakh

REPAYMENT OF LOAN :
12/18 months. To be synchronized with harvesting of crop.

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7. Scheme For Financing Micro-Financing Institutions (Mfis) For On-Lending To Individual Members Or their SHGS/JLGS.

PURPOSE :
a. Project Based Lending: Bank finance may be extended to MFIs as Project based lending. Project Based Lending: If the MFI clients desire to set up entrepreneurial activity either at Village/Cluster/Federation level, the project cost of an individual unit may be prepared and all such individual unit costs be aggregated into a comprehensive project cost and based on the viability of the project and number of units proposed to be set up in a particular area, the Bank may consider financing the activity through the MFI. Example: Setting up of Milk Chilling units by SHGs in areas nearer to Dairy /Milk processing units. b. Client Based Lending: The client base of MFI is built up over a period of time and they are continuously serviced, nurtured and monitored by the MFIs. Based on the past performance and future projections we may finance the MFIs. The MFI should furnish the particulars of Groups proposed to be assisted in the format suggested below

Eligible intermediaries engaged in Micro finance activities:

i) Not for profit MFIs: a) Societies registered under Societies Registration Act,1860 or similar State Acts. b) Public Trusts registered under the Indian Trusts Act 1882 c) Non Profit companies registered under Section 25 of the Companies Act,1956. (ii) Mutual Benefit MFIs: a) State Cooperative Societies (incorporated under State Co-operative Acts) b) National Credit Cooperatives(Central Multi State Co-operative Act) c) Mutually Aided Cooperative Societies (MACS)-only in Andhra Pradesh so far incorporated under Andhra Pradesh Mutually Aided Co-op. Societies Act 1995) (iii) For Profit MFIs: Non Banking Financial Companies(NBFCs) registered under the companies Act, 1956 (NBFCs which are accepting deposits are required to be registered with RBI)

NATURE OF FACILITY:
Term Loan, Short Term Loan and Working Capital Requirements.

EXTENT OF LOAN:
Maximum Rs.100 Corer

REPAYMENT:
Term Loan is repayable over a period of 3 to 7 years. Page | 17

8. Scheme for Financing against Pledge of Warehouse Receipts issued by National Bulk Handling Corporation Ltd. (NBHC)

PURPOSE:
The purpose of the scheme is to provide liquidity to the borrowers.

ELIGIBILITY:
Farmers (including Associations of Farmers like Primary Agricultural Co-Op. Societies, Farmers Societies including Marketing Societies provided their bye laws permit availing such loans). Traders and Processors/ Exporters/ Importers who are original depositors of the receipts issued by NBHC covering non? perishable agricultural commodities and excluding all perishable agricultural commodities

NATURE OF FACILITY:
Demand Loan or Cash Credit Running Account Facility against pledge of warehouse receipts.

EXTENT OF LOAN:
Need based with Min. of Rs.50000/- (Fifty thousand only) and maximum Rs.10.00 lakh per Individual Farmers, including SHG/JLG. Rs.25.00 corer to Sole Proprietor ship concerns and Partnership Firms, Rs.50.00 corer to Other Borrowers.

MARGIN:
20% to 40% on various specified non-perishable agriculture commodities. On other non-perishable agriculture commodities, minimum 25%.

REPAYMENT:
i) Demand Loan shall be sanctioned for a period not exceeding twelve months from the date of receipt. ii) Cash Credit Running Account Facility shall be valid for one year and renewable thereafter. However, the period of advance against individual warehouse receipts shall not exceed twelve months.

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PROCEDURAL GUIDELINES FOR AGRICULTURAL CREDIT

1. Technical feasibility and economic viability in each case should be assessed by agriculture officer/ officer having agriculture background to the extent possible. 2. Where incumbent incharge of branch offices are confident about their capability to appraise loan proposal appropriately, they may make such appraisals independent of any agriculture officer; keeping in view the soil type, cropping pattern, available irrigation potential, scope of custom hire service and his report should be kept on banks record. In addition, he should also examine the generation of income to pay the interest and installments as and when they become due and ensure due recovery promptly. 3. However, branch managers are advised to record the facts in the loan proposal itself while sanctioning the loan so that unnecessary objectives are not raised by the inspectors subsequently. Further they should ensure that income stream of farmer should be calculated on the basis of income/expenditure of the farmer and limit be fixed accordingly. 4. Investment credit availed by the farmers can be put to maximum use only if it is supplemented with crop production credit for maximizing crop production which will, ultimately , increase the repaying capacity of the farmers. So, Endeavour should be made to provide crops in particular and carrying out other allied agricultural activities in general be also taken into account and sanctioned on merits. In case the Production Credit facility is not being sanctioned, the incumbents in charge should mention specific reasons on the file therefore.

BROAD PARAMETERS FOR EXPENDITURE/ INCOME CALULATION ARE AS UNDER:-

EXPENDITURE TO BE DETERMINED ON FOLLOWING FACTORS: Expenditure on productive activities like crop production, purchase of seeds, fertilizers, pesticides, expenditure on irrigation charges, etc. Expenditure on allied activities like dairy/ poultry, etc. Consumption needs.

INCOME OF FARMERS SHALL BE DETERMINED BASED ON: Land availability and cropping pattern. Expected income from allied agriculture/ non-farm activities. Any other income.

Circle heads may identify model schemes for financing agricultural activities which suit their respective areas.

TIME SCHEDULE FOR DISPOSAL OF LOAN APPLICATIONS:

EXTENT OF LOAN (maximum) i. ii. iii. Upto Rs.25,000/Above Rs.25,000/- and upto Rs 5 lakh Above Rs. 5 lakh (a) To be sanctioned at branch level (b) To be sanctioned at controlling office,i.e., Regional/ Zonal/ Head Office level

TIME SCHEDULE

: :

2 weeks 3 weeks

4 weeks

6-7 weeks

PRE-SANCTION APPRAISAL:
During the pre-sanction visit, the following aspects should be looked into: i. That the applicant resides at the place given in the application; Page | 19

ii. iii. iv. v. vi. vii. viii.

Integrity/ experience of the applicant should be judged; Local enquiries should be made about the assets and liabilities/ previous business credibility and related aspects; Spot verification should be conducted to know the correctness and suitability of the project; Other important facts and figures given in the application should also be verified; Confidential report should reflect the creditworthiness of the applicant and the guarantor; As far as possible, cluster approach should be adopted; Technical assistance may also be sought (if required) from departments of agriculture , Horticulture , soil conservation, forestry, fisheries, animal husbandry, sericulture, concerned departments of Agriculture universities and NABARD.

ix.

While undertaking pre-sanction appraisal of the proposals, branches shall focus on income stream of applicant(s) besides the credibility, capability for taking up the activity proposed and techno-economic viability of the proposal.

x.

Defaulter members of Primary Agriculture Co-operative societies and farmers who have already availed short term loans from other banks or financial institutions will not be eligible for short term loan.

VERIFICATION OF LAND RECORDS:

The existing practice of verification of land records by paying visit to the field should be followed meticulously.

There exists a scope for bringing more awareness about terms and conditions of the financial assistance among the rural borrowers in particular and others in general. So, Endeavour should be made to increase awareness among the borrowers in this regard.

MARGIN NORMS:

For production and/or investment credit:

AMOUNT OF LOAN

MARGIN

i.

Upto Rs. 50,000/(both for short term and medium term)

Nil

ii. iii. iv.

Above Rs. 50,000/- to Rs. 2 lakh Above Rs. 2 lakh to Rs. 5 lakh Above Rs. 5 lakh

5% 10% 25%

Under PNB krishi Card Scheme:

AMOUNT OF LOAN

MARGIN

i. ii. iii.

Upto Rs.2 lakh Above Rs.2 lakh to Rs. 5 lakh Above Rs.5 lakh to Rs. 10 lakh

Nil 10% 25%

Under the scheme of Agri-clinics/Agri-Business Centres :

AMOUNT OF LOAN

MARGIN

i.

Upto Rs. 5 lakh

Nil

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ii.

Above Rs. 5 lakh

25%

SECURITY NORMS: (A)

RATE OF INTEREST : i) AGRICULTURE: a) Advanced upto Rs. 50,000/Rate of Interest

i)

agriculture production credit including KCC advances.

BPLR minus 0.75

ii) iii)

Aglr . term loans PNB kalyani card

BPLR BPLR minus 1.00 BPLR

b) Advances over Rs. 50,000/- but upto Rs. 20 lakh

c) Advances over Rs. 20 lakh

As per credit risk rating

CREDIT RISK RATING AAA AA A BB B C D

RATE OF INTEREST BPLR BPLR + 0.50 BPLR + 1.00 BPLR + 1.50 # BPLR + 2.00 # BPLR + 2.00 # BPLR + 2.00 #

Term premier of 0.50 is to be added for arriving at interest rate in respect of loan repayable in 3 years and above. # Financing under capital investment subsidy scheme of National Horticulture Board for construction/ expansion/ modernization of cold storages and storages for horticulture produce , will continue @ BPLR + 1.00. Interest is 7% p.a in the regular crop loan/ KCC accounts on running balance outstanding upto Rs. 3 lakh , normal rate of interest is to be charged. The above guidelines are applicable for the year 2009-10 and are linked to the subvention of 2% as per GOI/RBI guidelines (please also refer PS&LB Divn., HO circular in this regard). ii) Tractor Loans : BPLR

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iii)

Financing under capital investment subsidy scheme for construction/renovation/expansion of rural godowns :- BPLR

NOTE: Both working capital and term loans are to be clubbed together to determine the size of the loan for the purpose of fixing the rate of interest for all agriculture borrowers. Payment of interest should be insisted upon only at the time of repayment of loan installments as fixed. Interest on current dues should not be compounded.

LOANING POWERS:
Loaning powers for agriculture advances have been aligned with general loaning powers and should be exercised as per loans & advances circulars issued from time to time.

LETTER OF SANCTION:
As soon as loan is sanctioned, letter of sanction shall be issued to borrower.

DISBURSMENT OF LOAN:
Time factor is very important for disbursement of crop loans. Adequate and timely disbursement of crop loan is beneficial to the farmers as well as the bank. Specimen of letter to be taken from borrower authorizing the bank to make payment to the dealer on his/her (the borrowers) behalf.

REPAYMENT PERIOD:
I. SHORT TERM CREDIT:

i)

Due dates fixed for recovery of crop loans towards adjustment of loan and interest should synchronize with harvesting and marketing of crops. A suitable marketing period after the actual harvest is allowed to borrower for marketing of produce and receiving sale proceeds so that he/she may conveniently repay Bank loan.

II.

INVESTMENT CREDIT:

Repayment period for investment activities shall be fixed as prescribed in the respective agriculture credit scheme.

ISSUE OF LOAN PASS BOOK:

In order to introduce an element of transparency, banks have been advised by RBI to furnish borrowers with a clear statement of credit facilities availed by them separately indicating various features of charges levied. Branches shall, therefore, issue loan passbook or statement of Account, invariably, to all borrowers.

SERVICE AREA APPROACH- REMOVAL OF RESTRICTIVE PROVISIONS AND DISTANCE CRITERIA FOR RURAL LENDING:
It has been decided to remove the restriction of financing within the service area in other than Government sponsored programmes as under:i) Rural lending shall be restricted within a radius of 25 Kms. From the branch but within the state boundary to have effective supervision and follow-up. ii) When the service area is already allocated beyond 25 kms., the branches will continue to finance within the allocated service area. Page | 22

iii)

In the circles where the inter-branch distances are far below 25 kms., the circles Head may broadly demarcate the area of operation for each rural/semi urban branch under the control of the circle to obviate unhealthy competition among our banks branches.

iv)

Circle head have been given full powers to enlarge area of operation depending upon potential, infrastructure and capability of the branch.

However, for Government sponsored programmes, financing within the allocated service area shall be done irrespective of the distance criteria.

OBTAINING OF NO DUES CERTIFICATE :No dues certificate/ Affidavit is not to be obtained for agriculture loans upto Rs 1,00,000/- however, for loans above Rs. 1,00,000/- , obtaining of Affidavit in lieu of No Dues Certificate is allowed.

OBTAINING OF NO OBJECTION CERTIFICATE FROM THE CO-SHARERS OF AGRICULTURAL LAND:

It has been decided to dispense with obtaining of No objection certificate from the co-share(s) of agriculture land. It means that there is no family dispute about title of the agriculture land to be mortgaged/charge created in favour of the Bank for securing the loan.

RENEWAL OF SHORT TERM LIMIT:i) ii) Fresh application for Agriculture Credit and copies of Revenue Records are not required. In case of enhancement of limit, fresh documents shall be obtained.

SUPERVISION AND FOLLOW-UP:i) The branch officials should have good rapport with the borrowers. Inspection should be conducted periodically as per schedule to ensure that the borrower is getting maximum benefit from the investment financed by the Bank. Wherever required, technical guidance should be provided to the beneficiary. ii) iii) iv) It should be ensure that the borrower has complied with the terms and conditions of the Bank. It should be ensure that the Banks name has been prominently displayed, wherever required. Besides others, description like Chassis/ Engine/ Oil- Engine/ Electric Motor number, etc, mentioned in the bills/ receipts should be verified as early as possible. v) Branches should adhere to the other guidelines relating to agriculture advances issued by HO from time to time.

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SCHEME FOR FINANCING UNDER PNB KRISHI CARD (KISAAN CREDIT CARD)

PURPOSE: Loan is provided to cover short term working capital for agriculture activities, other domestic requirements such as education, consumable items, medical expenses, etc., term credit needs of the farmers and credit against debt from non-institutional lenders. ELIGIBILITY: Progressive literate and illiterate farmers who are owner cultivators, tenants, lessee or allottee farmers with recorded occupancy rights or farmers with ancestral/perpetual rights of cultivation/Joint Liability Groups(JLGs). Oral tenants can be eligible for loan only if land owners agree to become co-borrowers. In the accounts which are secured by liquid securities like FDR,NSC/KVP etc., the cards to oral tenants can be issued without stipulating the condition of land owners to be made co-borrowers. Landless laborers, share croppers, tenant farmers and oral lessees can be issued PNB Krishi Card upto limit of Rs 50,000 on the basis of affidavit. EXTENT OF LOAN: Maximum Rs.10 lakh FIXATION OF LIMIT: Limit is fixed for term loan and working capital requirement limit for agricultural and allied activities, etc., based on the unit cost of the assets proposed to be acquired by the farmer, the allied activities already being undertaken on the farm repaying capacity. Maximum limit of Rs 10 lakh is allowed as under: Maximum Rs 5 lakh for cash credit limit for crop production, consumption needs & working capital for allied activities. Entire cash credit limit under the scheme may be disbursed in cash. For consumption needs, loan may be sanctioned upto 25% of the limit or Rs 50000/-, whichever is lower. Need based term loan within overall ceiling of Rs 10 lakh including cash credit limit mentioned above & loan (maximum up to Rs.50,000) for relief against indebtedness from non-institutional money-lenders REPAYMENT OF LOAN: Term loan including loan for relief against indebtedness from non-institutional lenders may be repayable in 5 years. However, in case of term loan where repayment period is more than 5 years, longer repayment period as prescribed under the respective scheme is allowed.

SCHEME FOR PACKAGE LOAN TO FARMERS (PNB KISAAN SAMPURAN RIN YOJNA)

PURPOSE: Bank will provide package loan to the farmers for undertaking various agricultural and allied activities for production as well as investment purposes and to meet the consumption credit requirements of the farmers. Besides, loan is also provided for processing/storage/value addition activities post harvest technology. ELIGIBILITY: Farmers who are owner-cultivators, tenants, lessee or allottee-farmers with recorded occupancy rights or farmers with ancestral/perpetual rights of cultivation. Individual farmers or group of farmers having aptitude/adequate experience together with minimum land holding, if stipulated in

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the respective agriculture credit scheme, will be eligible for investment loan. EXTENT OF LOAN: Need based. The farmer shall draw out his plan encompassing all agricultural activities on the basis of which extent of loan is determined. Consumption loan is allowed upto Rs.50,000 or 25 per cent of the total limit, whichever is lower. Farmers intending to avail both production as well as investment credit will be eligible to be covered under the scheme. NATURE OF LOAN: Cash credit/ term loan/ overdraft/ composite loan depending upon the requirement of the farmers. REPAYMENT OF LOAN: The repayment period is fixed as per the individual scheme.

PNB KISAAN ICHCHHA PURTI YOJNA

PURPOSE: Loan is sanctioned for productive purpose (production and investment credit) related to agriculture and allied activities, Rural Housing related activities, and Consumption. SUB-LIMIT: 20% of the overall limit or Rs.2 lakh, whichever is lower is given for rural housing activities. However, loan for housing purpose will be allowed only if the mortgage of agricultural land for non agriculture purpose is permissible in the State. 30% of the overall limit or Rs 3 lakh whichever is lower (including 20% of the limit or Rs 2 lakh, whichever is lower, for rural housing activities) is given for consumption purposes. ELIGIBILITY: Only existing good agricultural land owner borrowers who have been continuously availing of any farm advance against mortgage of agriculture land and having no NPA record for last THREE years as on the date of application will be eligible. If the land mortgaged is in the name of more than one farmer then all will be eligible jointly. The condition of three years may be relaxed in case of new farmers having a good amount of deposit for the last three years provided the same is secured by 100% liquid collateral security or loan is secured by 50% liquid collateral security and 50% by mortgage of land ( valued at 50%of bank loan for small/marginal farmers & 75 % of bank loan for others) EXTENT OF LOAN:

Loan limit will be the lowest of : 5 times average annual (2 years) income from agriculture and allied activities of the borrower. or 50% of value of mortgage land.

Maximum limit: Rs.10 lakh Nature of maximum limit of Rs 10 lakh may be as under:

Maximum Rs 5 lakh for cash credit limit for crop production, consumption needs (other than housing) & working capital for allied activities; Page | 25

Need based term loan within overall ceiling of Rs.10 lakh including cash credit limit mentioned above & loan maximum up to Rs.2 lakh for Rural Housing.

RURAL HOUSING LOAN: If the land for which the house related loan is given is in the name of spouse then spouse will be co-borrower. Maximum age limit at the time of sanction of loan is 60 years. Applicants above 60 years but maximum 65 years may be considered for sanction of loan if all the legal heir join as guarantors. Required approval from competent authority for plan, etc., will have to be submitted. Other requirements of Banks Housing Loan Scheme are to be fulfilled.

REPAYMENT OF LOAN: In case of Production Credit/Consumption Credit aggregate credit into the account during 12 months period should at least be equal to the maximum outstanding in the account. For housing loan maximum repayment period is 9 years including gestation period of 12 months. For Main Agricultural Activities the repayment period is allowed upto maximum of 9 years. For allied agriculture activities repayment period is allowed upto maximum of 7 years.

CREDIT AGAINST NATIONAL SAVINGS CERTIFICATES, FIXED DEPOSIT RECEIPTS AND KISAN VIKAS PATRA TO FARMERS

PURPOSE: Bank accepts gold ornaments and jewellery, fixed deposits, National Savings Certificates and Kisan Vikas Patra as security for agricultural loans, so long as the quantum of loan required is in consonance with crops grown or the investment proposed and repaying capacity likely to be generated and not with reference to value of securities pledged. ELIGIBILITY: Applicant should be an agriculturist. EXTENT OF LOAN: Amount of loan is fixed according to the prescribed scale of finance for agricultural loan/approved unit cost. REPAYMENT: In case of credit facilities are required farmers for meeting credit requirements on an on-going basis, instead of observing seasonality, the limit is to be brought to credit once in a year for a week.

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CREDIT AGAINST GOLD ORNAMENTS/JEWELLERY TO FARMERS

PURPOSE: Need based loan may be given for productive purposes, i.e, agriculture and allied activities. ELIGIBILITY : Individual Farmer

EXTENT OF LOAN: Need based depending upon the requirement of the activity proposed to be undertaken. REPAYMENT : Within 12 months

Margin: Gold 5% , Silver 15%

PRODUCE (MARKETING) LOAN SCHEME

PURPOSE: To meet short term credit requirement to adjust/repay the outstanding crop loan/KCC limit availed by farmers from the bank 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 the 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. NATURE & EXTENT OF FACILITY: Short term loan. Maximum upto Rs.5 lakh. The loan would be twice the amount of crop loan taken by farmer or 75 per cent of the value of the produce calculated at the Government announced procurement prices, whichever is lower. REPAYMENT OF LOAN: Produce (Marketing) Loan shall be repaid within a maximum period of twelve months from the date of its disbursement.

FARM MECANISATION SCHEME

- Financing For Purchase Of Farm Machinery And Repair/Renovation Of Tractors And Power tillers

PURPOSE: Loan is sanctioned for Purchase of new tractors and matching implements/equipments, purchase of new power tillers, purchase of second hand tractors with matching implements, purchase of agricultural machinery, and repair/renovation of tractors. ELIGIBILITY:

For tractors: Farmer or a group of farmers holding land jointly should have a land holding either owned by them or held by them on perpetual leasehold rights of minimum 2.5 acres of perennially irrigated land or corresponding acreage. Economic viability of financing tractor in each case Page | 27

shall be worked out. Thus, financing of tractor shall be done after ensuring economic viability of the tractor loan proposal. For Power tillers: Farmer or a group of farmers holding land jointly should have a land holding either owned by them or held by them on perpetual lease hold rights of minimum 1.5 acres of perennially irrigated land or corresponding acreage. Financing of power tiller shall be done after ensuring economic viability of the power tiller proposal. For other farm machinery/equipments: No condition of minimum land holding has been stipulated. Farmer should have proper scope for utilization of assets and based on economics should be in a position to conveniently repay loan. EXTENT OF LOAN: Need based loan. INSURANCE: The tractor borrowers who have opted for PNB Farmers Welfare Fund Scheme are required to get their tractor and matching implements insured against Liability(third party) under the Insurance Act to get insurance coverage. Subscription will be recovered from the accounts of borrowers who give their consent to opt for PNB Farmers Welfare Fund Scheme. The structure of fee is as under :a)Rs.800/-:for 12 months of calendar year. b) Rs.400/- : for less than 6 months in a calendar year. REPAYMENT OF LOAN : Repayment of loan is to be made in half yearly/yearly installments as under: S.No. i. ii. iii iv Particulars Tractors Second hand tractors Power tillers Other farm machinery: a) Small & marginal farmers b) Other farmers v Repair/renovation of tractors Repayment period (Years) 7-9 5 7 7 (including repayment holiday of one year) 5 5

NOTE: Repayment period shall be fixed on a case by case basis depending on nature of repairs, category of farmer and his repayment capacity, etc.

SCHEME FOR FINANCING FARMERS FOR PURCHASE OF SECOND HAND TRACTORS

PURPOSE : To provide loan for purchase of second hand tractor to eligible farmers. ELIGIBILITY : Farmer or a group of farmers holding land jointly should have a land holding either owned by them or held by them on perpetual leasehold rights of minimum 2.5 acres of perennially irrigated land or corresponding acreage. Thus, financing of tractor shall be done after ensuring economic viability of the tractor loan proposal. EXTENT OF LOAN : Amount of loan will be 75% of depreciated value of tractor. Down payment of 25% at depreciated value of tractor to be financed is to be met by borrower from his own sources. Loan for second hand tractor and three implements including a trailer shall be restricted to Rs.1,50,000/- (Rupees one lakh fifty thousand only). Page | 28

SCHEME FOR FINANCING SELF-PROPELLED COMBINE HARVESTERS

PURPOSE: Loan is given for financing purchase of combine harvester. ELIGIBILITY: In case of farmers: Applicant should be able to maintain and run combine harvester or should make suitable arrangements for the same. In case of persons other than farmers: Applicant should be technically qualified having adequate know-how, skill and managerial ability to run custom service units. In case of State Agriculture Farms/Corporations: State Agriculture Farms/ Corporations engaged in land development activities should have adequate resources and command area to run and maintain combine harvesters. EXTENT OF LOAN: Need based. REPAYMENT OF LOAN: 5-7 years in half-yearly installments.

SCHEME FOR FINANCING FARMERS FOR PURCHASE OF TRUCKS AND OTHER TRANSPORT VEHICLES

PURPOSE: Loan is given for purchase of New trucks, other new motorized light/medium vehicles like tempo, matador, jeeps, pickup vans, mini-trucks, twowheelers to farmers for transport of agricultural inputs/produce.. ELIGIBILITY: Owners, Tenants or lessees of land and engaged in farming or allied agricultural activity for transporting agricultural inputs and farm products. Loan for purchase of trucks shall be given to farmers whose land holding is 3 acres or more. Loans for purchase of light/medium vehicles like jeeps, pick-up vans, mini-trucks, etc., to be used for transport of agricultural inputs and farm products shall also be made to farmers whose land holding is comparatively smaller, i.e. 2 acres or more. Loan for two wheeler is given to farmers having land holding of 1 acre or more. NATURE OF LOAN: Term Loan. REPAYMENT OF LOAN: Loan with interest is repayable in maximum period of 48 months in suitable installments.

SCHEME FOR FINANCING MINOR IRRIGATION

PURPOSE: Purchase of Pump sets, construction of Dug wells, deepening of Wells/Repair to wells, Bore wells, Shallow Tube wells, Deep Tube wells, Installation of Persian Wheels/Reheats, Sprinkler Sets, Drip Irrigation, Solar Pumps, Wind Mills, Check Dams, Construction of pump house, water tanks, laying of field channels, pipe lines and water courses, Use of PVC and MS pipes and GI bends Standby Diesel Engines, Pump sets fitted on Trolleys, Bicycle along with Diesel pump sets Replacement of pumping equipment, Generator sets for energisation of pump sets used for agricultural purposes, Lift Irrigation and related activities.

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ELIGIBILITY:

I. A farmer intending to implement a minor irrigation project must have a holding of at least 2.5 acres of land. Project must be technically feasible and financially viable. II. Group Financing Community Projects: Small and marginal farmers in groups or community minor irrigation projects are also financed. NATURE OF LOAN: Medium term loan. EXTENT OF LOAN: Need based REPAYMENT OF LOAN: Ranges from 5-15 years depending on individual activity.

SCHEME FOR FINANCING DEVELOPMENT OF HORTICULTURE (Fruits, Flowers &Amp; Vegetables) AND PLANTATION CROPS

PURPOSE: Financial assistance will be made available mainly for establishment and development of new orchards or groves of fruit crops, plantation crops, ornamental crops, medicinal plants, essential oil/aromatic plants etc, rejuvenation of existing orchards or plantation, raising vegetables, raising flower crops, inter-cropping in horticultural crops, Marketing loan to meet picking, grading, crating, forwarding and transportation costs etc.. ELIGIBILITY: Individual farmers or group of farmers with stipulated land holding , and Public Sector Undertakings or private firms desirous of seeking financial assistance for plantation of fruit trees or other economic plants on project basis. NATURE OF FACILITY: Short term loan or cash credit facility is provided for production purposes and Medium term loan for development of orchards or vegetable/flower gardens. EXTENT OF LOAN: Need based. However, working Capital loan would depend upon scales of finance. In case marketing loan is also considered, it does not exceed 20 per cent of the estimated value of crop. GESTATION PERIOD : Gestation period will vary with variety of plants/trees grown. REPAYMENT OF LOAN:

Short Term Loans: Crop Loan: Loan disbursed for raising vegetable crops, flower crops or other inter-cropping shall be recovered within 6-8 weeks of harvest of crop unless loans are given as composite loans taking into account both production and investment credit needs. In such cases, loan would be recovered in 4-5 years. Marketing Loan: Repayment within 4 months from date of loan.

Medium Term Loan: Repayment period (inclusive of gestation) in respect of medium term loans shall be in the range of 4-15 years. Page | 30

SCHEME FOR FINANCING FORESTRY DEVELOPMENT PROGRAMMES

PURPOSE: Term Loan shall be provided for the development of nurseries, Plantation and raising forestry trees upto harvesting, Loan for inter-cropping is also considered depending upon the crops to be grown. ELIGIBILITY: Farmers, Companies, State Undertakings having ownership/ lease-hold/ perpetual tenancy rights over land in their name shall be eligible for availing loan under the scheme. EXTENT OF LOAN: Need based. REPAYMENT OF LOAN: (i) Forest Plantation: Loan for scheme where trees are grown should be repaid within a maximum period of 15 years inclusive of grace period. (ii) Nursery: Since nursery starts yielding income within short period, repayment of entire term loan shall be fixed within 5 years.

I. SCHEME FOR FINANCING DEVELOPMENT OF WASTELAND (INCLUDING TREE PATTA SCHEME):

PURPOSE: Loan is given for Reclamation of soil, Soil conservation measures, Conditioning of land by raising seasonal crops in reclaimed area for initial one/two years, raising of forest tree/pastures in existing wasteland or reclaimed land, creating irrigation potential in wasteland, Schematic afforestation of wasteland, tree patta holders under Tree Patta Scheme. ELIGIBILITY: Farmers having land holdings, Panchayats/other bodies having such community land. EXTENT OF LOAN: Need-based loan.

II. MARGIN MONEY ASSISTANCE SCHEME FOR DEVELOPMENT OF WASTELAND:

ELIGIBILITY: State Government Corporations, Urban Development Authorities, Public Undertakings and Semi-Governments Organizations. EXTENT OF MARGIN MONEY ASSISTANCE: Quantum of margin money will be decided on the basis of individual project and its cash flow. National Wasteland Development Board (NWDB), will give an amount upto 25 per cent of project cost of bankable projects.

DEVELOPMENT OF NON-FOREST WASTELAND UNDER INVESTMENT PROMOTION SCHEME:

ELIGIBILITY: Projects promoted by Individual entrepreneurs and Individual/group of farmers, Central and State Governments Undertakings, Co-operative

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Institutions, Public Trusts and Societies registered under the Societies Registration Act, Corporate Bodies registered under the Companies Act. AREA COVERAGE OF SCHEME: Scheme will primarily be restricted to non-forest wasteland owned by Central and State Governments.

SCHEME FOR FINANCING AGRICULTURAL GRADUATES FOR SETTING UP OF AGRI-CLINICS AND AGRI-BUSINESS CENTRES (Acabc)

OBJECTIVES: (i) To supplement the efforts of Government Extension System. (ii) To make available supplementary sources of input supply and services to needy farmers. (iii) To provide gainful employment to Agricultural Graduates in new merging areas in agricultural sector. CONCEPT: (i) Agri-clinics: Agri-clinics are envisaged to provide expert services and advice to farmers on cropping practices, technology, dissemination, crop protection from pests and diseases, market trends and prices of various crops in the markets and also clinical services for animal health, etc., which would enhance productivity of crops/animals. (ii) Agri-business Centers: Agri-Business Centers are envisaged to provide input supply, farm equipments on hire and other services. PURPOSE: Financial assistance is provided to the eligible persons for any economically viable activity selected by the Graduates acceptable to the Bank: (i) Soil and water quality-cum-inputs testing laboratories (with Atomic Absorption Spectrophotometers). (ii) Pest surveillance, diagnostic and control services. (iii) Maintenance, repairs and custom hiring of agricultural implements and machinery including micro-irrigation (sprinkler and drip) systems. (iv) Agri-service centers including the three activities mentioned above (Group activity). (v) Seed processing units. (vi) Micro-propagation through Plant Tissue Culture Labs and Hardening Units. (vii) Setting up of vermiculture units, production of bio-fertilizers, bio- pesticides, bio-control agents. (viii) Setting up of Apiaries (bee keeping) and honey & bee products processing units. (ix) Provision of Extension Consultancy Services. (x) Facilitation and agency of agricultural/insurance services. (xi) Hatcheries and production of fish finger-lings for aquaculture. (xii) Provision of livestock health cover, setting up veterinary dispensaries and services including frozen semen banks and liquid nitrogen supply. (xiii) Setting up of Information Technology Kiosks in rural areas for access to various agriculture related portals. (xiv) Feed Processing and Testing Units. (xv) Value Addition Centers. (xvi) Setting up of Cool-Chain from the farm level onwards (Group Activity).

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(xvii) Post Harvest Management Centers for sorting, grading, standardization, storage and packaging. (xviii) Setting up of Metallic/Non-Metallic Storage Structures (Group Activity). (xix) Retail marketing outlets for processed Agri-products. (xx) Rural marketing dealerships of farm inputs and outputs. (xxi) Internet kiosks either separately or in combination of any of the eligible project activities selected by the entrepreneurs. ELIGIBILITY: (i) The applicant should be Agricultural Graduates/Graduates in subjects allied to agriculture like horticulture, animal husbandry, and forestry, dairy, veterinary, poultry farming, pisciculture and other allied agricultural activities. (ii) Individuals or in group of not exceeding 5 persons; of which one could be a Management Graduate with qualification or experience in business development and management. EXTENT OF LOAN: Need-based; subject to the following :(i) Project by Individual : Rs.10 lakh (ii) Project in Group : Rs.50 lakh REPAYMENT OF LOAN: Loan shall be repayable in monthly/ quarterly/ half-yearly/ yearly schedule depending upon the income generation from the project or as prescribed in the respective Credit Schemes of the bank.

SCHEME FOR FINANCING FARMERS FOR PURCHASE OF LAND FOR AGRICULTURE PURPOSE

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. EXTENT OF LOAN: It will depend on the area of the land to be purchased and its valuation and also development cost. However, maximum extent of loan under the Scheme shall be restricted to Rs.5 lakh. REPAYMENT OF LOAN: Loan is to be repaid in 7-10 years in half-yearly/ yearly installments including maximum moratorium period of 24 months.

SCHEME FOR FINANCIAL ASSISTANCE TO AGRICULTURAL GRADUATES FOR PURCHASE OF LAND AND UNDER AGRICULTURAL ACTIVITIES

PURPOSE: Purchase of land, Development of land, Crop loan/loan for any allied agricultural activity. ELIGIBILITY: The applicant must belong to farming families which have no land holding. And must be Graduates in Agriculture, Veterinary Sciences, or Agriculture Engineering and must be presently unemployed. AMOUNT OF LOAN:

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Extent of loan will be need-based depending upon area of land to be purchased for a defined project to be undertaken by borrower; subject to limitations, maximum 2.5 acres irrigated or 5 acres unirrigated. REPAYMENT OF LOAN: Loans given for purchase of land should be repaid in a period not exceeding 8 years including gestation period.

SCHEME FOR FINANCING MUSHROOM CULTIVATION

PURPOSE: 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 SETTING UP OF BIOGAS UNITS

ELIGIBILITY: Intending borrower should have adequate number of cattle commensurate with size of plant proposed to be set up. EXTENT OF LOAN: Need based depending upon models and capacities of biogas plant REPAYMENT OF LOAN: 5-7years.

SCHEME FOR FINANCING POULTRY FARMING

Scheme for financing poultry farming provides for investment credit for construction of sheds and purchase of equipments on the one hand and production credit for purchase of day old chicks, feed, medicines, etc., on the other hand. Financial assistance shall be made available to the intending borrowers as under: PURPOSE: For subsidiary activity: Investment credit will be provided in the shape of medium term loan for acquiring fixed assets whereas production credit will be given to meet the working capital requirements in the shape of Short Term Loan. For main activity: Investment credit will be provided as medium term loan whereas production credit will be given either in the shape of cash credit limit or as an integral component of investment credit.

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ELIGIBILITY: For subsidiary activity: Small farmers, landless agricultural labourers or any other persons who are under-employed and intend to supplement income through poultry. He should be having adequate land/shed where he/she proposes to establish poultry farm. For main activity: The applicant should be well experienced in running poultry unit and should be engaged/desirous of engaging himself in such an activity on commercial basis as his main vocation. He should be having required land/shed where he intends to establish or enlarge a poultry farm. Unit size: Minimum size of the poultry unit to be financed as subsidiary activity should be 500 birds. EXTENT OF LOAN: Extent of loan will be need-based. REPAYMENT OF LOAN: Production credit, if given as short term loan, would be recovered in maximum period of 18/12 months providing gestation period of 6/3 months in the case of layers and broilers, respectively. Repayment of investment loan shall start after adequate gestation period (upto 12 months in the case of layers and upto 3 months in the case of broilers) in suitable monthly/quarterly/half-yearly installments over a period of 6-7 years in the case of small farmers depending upon their repaying capacity.

SCHEME FOR FINANCING DAIRY DEVELOPMENT PROGRAMMES

Dairy projects are financed for the following activities: I. Financing individuals for purchase of good quality high yielding milk animals, viz., cows/buffaloes or cross bred cows for milk production. II. Financing individuals for purchase and rearing of calves upto the stage of first lactation. III. Financing for other innovative animal husbandry activities, namely, cattle breeding, salvaging of dry pregnant cattle, milk-processing facilities, construction of milk houses, etc.

FINANCING FOR MILK PRODUCTION ACTIVITY i.e. PURCHASE AND MAINTENANCE OF MILCH ANIMALS (LACTATING COWS/BUFFALOES) FOR MILK PRODUCTION:
PURPOSE:

Bank provides loan for following purposes:

Purchase of good quality high milk cows/buffaloes. Construction of shed(s) for keeping the animals. Purchase of dairy machinery or other equipments of dairy business. Providing fodder for the animals. Cost of transportation of animal from cattle market. Composite loans are also given for purchase of milk cattle and one month concentrate feed requirements as also for cultivation of fodder crops in integrated manner.

ELIGIBILITY:

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>> Individuals undertaking dairying as subsidiary activity.

>> Individuals undertaking commercial dairy as main activity. EXTENT OF LOAN: Need-based loan is provided. A unit of 2 milk animals is considered viable minimum size for such an activity for continuous production of milk. REPAYMENT OF LOAN: Loans for purchase of milk animals should be repaid as under: Repayment period (including Loan period Monthly/ Quarterly -do-do-doInstallment

S.No. Type of Investment

gestation period) 5 years 4-5 years

Gestation period Repayment to be linked with

1 2 3 4

Cross bred cow(s) Buffaloes 2 Graded Murrah

lactation period. -do-do30 months

buffaloes

4-5 years

Cross bred calf rearing 5-6 years

Scheme For Financing Rearing Of Good Quality Female Calves:

PURPOSE: Rearing of female calves of about 4 months of age born of healthy parents upto the age of first calving. ELIGIBILITY: Cattle breeders/ progressive farmers having female calves undertaking to retain them for milk production or sell them on first calving. Farmer should have land for raising adequate fodder. EXTENT OF LOAN: Amount of loan shall depend upon the number of calves the borrower(s) intends to rear. REPAYMENT OF LOAN: If the calf is retained as lactating cow, loan and interest shall be recovered in maximum four years after first calving in suitable installments. If the calf is sold as fresh calve, principal and interest should be recovered in lump sum from the sale proceeds of the animal. Accordingly, maximum repayment period shall be 5-6 years in the former case while it shall be 2 years and 6 months in the latter case.

Financing For Other Innovative Animal Husbandry Activities:

PURPOSE: Cattle Breeding through Artificial Insemination; Salvaging of dry pregnant cattle; Financing for milk processing facilities; Financing for construction of milk houses (Dudhghar) by Village Milk Cooperative Societies; Financing for development of pasture, etc. EXTENT OF LOAN: Need based.

DAIRY VIKAS CARD SCHEME (IMPLEMENTED IN SELECT STATES)

PURPOSE: Purchase of good quality high milk yielding cows/buffaloes or exotic cross bred cows; Construction of shed for keeping the animals; Purchase of working capital items like, dairy feeds, veterinary medicines, fodder, dairy machinery or other equipments, etc. ELIGIBILITY: Landless agricultural labourers or farmers/ individuals having experience in maintaining milk animals. MARGIN: Nil.

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TYPE OF CARD: PNB Dairy Vikas Card. VALIDITY OF CARD: 5 Years. EXTENT OF LOAN: Rs.1,00,000/-

FIXATION OF LIMIT: Production Credit: Maximum 25% of the limit. Investment Credit: Minimum 75% of the limit.

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. Installments in the account shall be repaid on monthly/quarterly basis.

PURCHASE OF NEW BUFFALO/REPLACEMENT OF EXISTING BUFFALO

PURPOSE: Applicants are allowed to purchase new buffalo/replacement of existing buffalo to the extent of reduction in limit provided the conduct of account is observed satisfactory for one year. Such a facility will be allowed upto third year.

AREA OF OPERATION: Initially the scheme is implemented in the States of Punjab, Haryana, Rajasthan, Uttar Pradesh, Madhya Pradesh, Gujarat & Maharashtra.

SCHEME FOR FINANCING INLAND FISHERIES DEVELOPMENT AND BRACKISH WATER FISH AND PRAWN CULTURE:
PURPOSE: Financial assistance is extended for Construction/renovation of ponds/tanks., construction of sluices, purchase of fish prawn, fry and fingerlings/ fish seed/ prawn seed, purchase of inputs like oil cake, fertilizers, organic fertilizers and other feed materials upto the first harvest, purchase of nets, boxes, baskets, ropes, shovels, hooks and other accessories etc. ELIGIBILITY: Loan assistance is extended to farmers, individuals, co-operative societies, companies, association of persons who have adequate know-how and necessary infrastructural facilities for implementation of the scheme EXTENT OF LOAN: Need based. REPAYMENT OF LOAN: Loans need to be repaid within the period specified as under: -

Pond fish culture: 5-8 years including gestation period with yearly mode of repayment.

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Brackish water fish/prawn culture: 5-10 years including gestation period with half-yearly mode of repayment.

SCHEME FOR FINANCING MARINE FISHERIES

PURPOSE: Loan can be considered for purchase of mechanized/non-mechanized boats/deep sea fishing vessels/trawlers, purchase of nets - travel net/purseseine/grill nets, purchase of other deck equipments like travel, winch, wire rope, gallows, net-handler, navigational lights, life jackets, life boats, anchors, direction finders, fish finders, etc. purchase of marine engine. etc. ELIGIBILITY: Loan is extended to individual(s)/partnership firm(s), co-operative society(ies), limited company(ies) who are technically qualified and having adequate experience to undertake such venture. EXTENT OF LOAN: Amount of loan will be according to the requirements of project report submitted by intending borrower(s). REPAYMENT OF LOAN:

Medium Term Loan: Non-mechanized boats/vessels : 6-7 years. Mechanized boats : 8-12 years. Cash Credit Limit: Cash Credit Limit for working capital requirements are renewed every year.

SCHEME FOR FINANCING SHEEP/GOAT/ BREEDING/REARINGS

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 (installments) Quarterly/ Half-yearly/ Yearly Quarterly/ Half-yearly/ Yearly

Sheep Breeding 5-6 years Goat Rearing Working Capital: 5-6 years

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.

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SCHEME FOR FINANCING PIGGERY DEVELOPMENT

PURPOSE: For breeding and/or rearing of pigs. ELIGIBILITY: Farmers/agricultural labourers and individuals desirous of undertaking piggery as subsidiary activity and the persons undertaking such activity on commercial lines as main activity. EXTENT OF LOAN: Need based. REPAYMENT OF LOAN: Production Credit: Working capital loan is to be repaid in a maximum period of one and half years from the date of advance. Investment Credit: Repayment of the medium term loan is to be made in yearly installments within a period of 5-6 years including gestation period.

SCHEME FOR FINANCING PURCHASE OF ANIMALS DRAWN VEHICALS I.E. CARTS AND DRAFT ANIMALS

PURPOSE: Loan is given for purchase of draft animals, animal drawn carts for transport of agriculture inputs & farm produce and other such purposes. ELIGIBILITY: Farmers owning minimum 2 acres of land; farmers having perpetual right of cultivation of minimum 2 acres of land. Persons belonging to category of `Landless agriculture labour are also financed for purchase of animals and carts for providing self-employment. EXTENT OF LOAN: Need based. REPAYMENT OF LOAN: Repayment period is fixed through Monthly/ Quarterly/ Half-yearly intervals as under: Assets Created Bullocks only He buffaloes & drawn carts (Jhota Buggies) Camels only Bullocks & carts Animal drawn carts only Camels & carts Repayment Period 4 years 4-5 years 5 years 5-7 years 5-7 years 5-7 years

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

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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.

SCHEME FOR FINANCING KITCHEN GARDENING

PURPOSE: Loan is given for initial expenditure on fencing, purchase of inputs like seeds, fertilizers, plant protection chemicals; Land development, Small gardening equipments. ELIGIBILITY: Applicant is employed in a Government/Semi-Government unit or in a Co-operative/Private Sector Organization of repute. However, he/she should not be working as an ad-hoc employee; Professional and self-employed person having previous dealings with the financing branch; Pensioner of Central/State Government or other Government Undertakings and should be having pension account with financing branch; Wives of employees of Government/Semi Government bodies and other organizations as aforesaid are also eligible provided loan for the purpose has not been raised by their husbands; Staff members are also eligible provided they have sufficient space to undertake such activities; Applicant must have vacant land in/around residential house with right to use such land; He/she should have a deposit account with bank for at least six months; The applicant should have adequate income for repayment of loan. NATURE & EXTENT OF LOAN: Short term loan upto Rs.5000/-. REPAYMENT OF LOAN: One year.

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..

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PNB KALYANI CARD SCHEME

PURPOSE: For meeting working capital requirement of agriculture/allied agricultural activities/ non-farm activities. ELIGIBILITY: Literate /illiterate women dwelling in rural/semi-urban areas who have attained the age of majority shall be eligible under the scheme. NATURE & EXTENT OF LOAN: Cash Credit. Rs. 50000 REPAYMENT OF LOAN: 12 months

NB GENERAL CREDIT CARD(GCC)

PURPOSE: To provide hassle-free credit to bank's customers based on the assessment of cash flow without insistence on security, purpose or end-use of the credit. This is given as cash-credit with limit no end-use stipulation. ELIGIBILITY: Bank's individual customers with sources of adequate income in rural and semi-urban areas. NATURE & EXTENT OF LOAN: Maximum Rs.25000. REPAYMENT OF LOAN: GCC limit shall be repayable in 12 months with the following stipulations: Aggregate credits into the account during 12 months period should at least be equal to the maximum outstanding in the account. No drawl in the account should remain outstanding for more than 12 months

PNB KRISHAK SATHI SCHEME (KSS)

PURPOSE: Providing finance to the farmers to redeem their outstanding dues to moneylenders. ELIGIBILITY: All farmers including small & marginal farmers, tenant farmers, oral lessees, sharecroppers NATURE & EXTENT OF LOAN: Maximum Rs 50000 REPAYMENT OF LOAN: The loan shall be repaid by the farmers in 5-7 years including a maximum moratorium period of 12 months with a half-yearly/yearly installments

MARGIN NORMS FOR AGRICULTURE ADVANCES: (a) For production and/or Investment Credit: Amount of loan Upto Rs.50,000/Above Rs.50,000/- to Rs.2 lakh Above Rs.2 lakh to Rs.5 lakh Above Rs.5 lakh Margin Nil 5% 10% 25%

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b) Under PNB Krishi Card Scheme and PNB Kisan Sampurna Yojana:
Amount of loan Upto Rs.2 lakh Above Rs.2 lakh to Rs.5 lakh Above Rs.5 lakh to Rs.10 lakh Margin Nil 10% 25%

(c) Under the Scheme of Agri-Clinics/Agri-Business Centers: Amount of loan Upto Rs.5 lakh Above Rs.5 lakh Margin Nil 25%

SCHEME FOR FINANCING SOLAR ENERGY LIGHTING SYSTEM (SELS)

OBJECTIVE: To provide renewable source of energy in rural/semi-urban areas by using solar energy. PURPOSE: To finance farmers engaged in agriculture & allied activities for installation of Solar Energy Lighting System with necessary accessories from reputed manufacturers/ suppliers/authorized dealers. ELIGIBILITY: a. Individual farmers in rural/semi-urban centers. Focused attention will on covering existing good KCC borrowers under the scheme but there will be no bar for financing fresh farmers who would be financed on merits of the case. Sanctioning Authority will ensure that farmer has assured source of income/cash flow adequate enough to repay the bank loan. b. Further, if a farmer satisfies the income and land holding criteria and is otherwise eligible to draw the financial assistance under DRI Scheme will also be eligible for financing under Solar Energy Lighting System so that they can get the loans at the interest rate applicable to DRI Scheme. EXTENT OF LOAN: Need based with a maximum limit of Rs.50,000/-. REPAYMENT OF LOAN: 5 to 7 years in yearly/half yearly installment MARGIN NORMS FOR AGRICULTURAL ADVANCES: For production and/or Investment Credit: Amount of loan (i) Upto Rs.1 lakh (both for short term and medium term) (ii) Above Rs.1 Lakh to Rs.2 lakh (iii) Above Rs.2 lakh to Rs.5 lakh (iv) Above Rs.5 lakh 5% 10% 25% Margin Nil

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(b) Under PNB Krishi Card Scheme: Amount of loan (i) Upto Rs.2 lakh (ii) Above Rs.2 lakh to Rs.5 lakh (iii) Above Rs.5 lakh to Rs.10 lakh (c) Under the Scheme of Agri-Clinics/Agri-Business Centers: Amount of loan (i) Upto Rs.5 lakh (ii) Above Rs.5 lakh SECURITY NORMS: (A) Production Credit/Investment Credit: (i) Upto Rs.1,00,000/Hypothecation of crops/assets created out of bank loan; (ii) Above Rs.1,00,000/(a) Hypothecation of crops/assets created out of bank loan; AND (b) Charge on land as per Agricultural Credit Operations and Miscellaneous (Provisions) Act of the State concerned/Mortgage of agricultural land valued at 100% of amount of loan for other farmers and 75% of the loan amount for small farmers/marginal farmers; OR Alternate security, viz., charge/lien over liquid securities such as term deposits/NSCs/KVPs, etc., which may be considered adequate. OR Suitable third party guarantee. (B) Under the Scheme of Agri-Clinics and Agri-Business Centers: (i) Upto Rs.5 lakh: Hypothecation of assets created out of bank loan; (ii) Above Rs.5 lakh: (a) Hypothecation of assets created out of bank loan; AND (b) Charge on land as per Agricultural Credit Operations and Miscellaneous (Provisions) Act of the State concerned/ Mortgage/Equitable Mortgage of agricultural land/any other suitable property valued at 150% of amount of loan for other farmers and 100% of the loan amount for small farmers/marginal farmers; OR Alternate security, viz., charge/lien over liquid securities such as term deposits/NSCs/KVPs, etc., which may be considered adequate. OR Suitable third party guarantee. Margin Nil 25% Margin Nil 10% 25%

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CONCLUSION

Now a days the banking scenario is changing quite rapidly. In last decade of 20th century the Indian banking industry open its door for private banks and international banks .So because of entrance of these banks in Indian banking industry the expectation of customer is increased and they expect world class services also from Indian banks. Because of globalization of business, liberalization of economies and integration of markets of whole world opened new doors of prosperity and growth for humans and this increase both the household income and urbanization of people, which has led to substantial growth in disposable income. These people are able to spend money to improve his life. So in brief they are more materialistic. So they now become an opportunity for bank.

So, Punjab National Bank focus on agriculture & small scale industries because they know that agriculture is an up growing sector in Indian banking. Government can also help to banks for providing loans to farmers for Rural Development. By development in agriculture sector, Indias GDP rate will increase and farmers also benefitted to get loans on low interest rates instead of to get loan from money lenders on high interest rates. Now there are many banks which works in agriculture field also so now it require innovative schemes and generate healthy competition which will beneficial for all lenders.

Launching of new products is not sufficient in todays competitive environment so the bank have to open his eyes very well because this helps bank most to adopt the changing banking environment . Pricing of product with competitive edge is can become one of the reasons of the growth of bank schemes. so the Punjab national bank change its schemes time to time on the basis of general survey which include public as well as its own employees. So by keeping these things in mind PNB appoint Boston consultancy group in the year 1999 to understand exactly the need of customers. So as to cater the need of customer the Punjab national bank offers a number of advanced retail schemes (retail loans and deposit).

Punjab national bank also provides his customers different services of like kissan credit card (KCC), SFAC, etc., according to the changing banking scenario to meet the requirements of customer. Punjab national bank has a successful golden history of 110 years. In which it see many up and downs but now in todays banking scenario it is one of the most successful banks and give tough competition to its competitor just because of its advanced schemes and services and this helps most in winning the trust of people.

Punjab national bank makes its terms and condition very easy with less paper work. so the people can take help from bank in emergency also and this makes Punjab national bank a customer friendly bank and people feel very comfortable in dealing with bank. This can be proving by figures which show.

So we can say that Punjab national bank is that bank where we can really bank our trust.

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OBSERVATIONS

1. The employees here are very dedicated 2. The procedure followed is very systematic 3. The record maintained here is on fair basis and very systematic 4. The opportunities are grabbed as and when they occur. 5. The staff members are treat each other with respect and dignity 6. Being the management trainees, i were in the department for a short period of time but were treated as if i were a part of their family. 7. Every sort of information, which we required, was given to me. 8. I received help from almost every member to whom i approached. 9. Although this department being the busiest department but time was taken out for us somehow and were taught and told what we needed to know. 10. Besides this proper utilisation of the resources takes place here. 11. The only problem i observed that bank should spread awareness regarding agricultural schemes so that more farmers will approach banks for their credit needs. 12. Pamphlets should be in regional language or in Hindi so that farmers can easily understand the schemes of bank.

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BIBLIOGRAPHY

PNB circulars in context to agricultural credit schemes and loans for small scale industries. Study material provided by PNB. PNBs brochures and pamphlets. Visited at various sites:-

www.yahoo.com

www.pnbindai.com

www.google.co.in

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