Canara Bank Kisan Credit Card Scheme

The Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedure to the farmers for their cultivation and other needs as indicated below:

To meet the short term credit requirements for cultivation of crops;
Post-harvest expenses;
Produce marketing loan;
Consumption requirements of farmer household;
Working capital for maintenance of farm assets and activities allied to agriculture;

All Farmers – Individuals / Joint borrowers who are owner cultivators
Tenant Farmers, Oral Lessees
Share Croppers SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc

Margin

Limit type	Margin %
Working Capital(for Crop production)	As per Scale of finance decided by the District Level Technical Committee. No separate margin is insisted as it is already factored while fixing the scale of finance for each crop.
Term Loan (other than Crop production)	Upto₹. 1.60 Lakhs – Nil Above₹.1.60 Lakhs – 15% to 25% of the loan amount

Security

Loan Quantum	Security to be stipulated
For Loan upto Rs. 1.60 Lakhs	Hypothecation of crops/assets created out of our finance.
For loans above Rs. 1.60 Lakhs to Rs. 2.50 Lakhs	In States where online/Manual charge creation is not available	In States where online/Manual charge creation is available
For loans above Rs. 1.60 Lakhs to Rs. 2.50 Lakhs	Hypothecation of crops/assets created out of our finance. Mortgage of landed properties.	Hypothecation of crops/assets created out of our finance. Creation of charge on land records.
For loan above Rs. 2.50 Lakhs	Hypothecation of crops/assets created out of our finance. Mortgage of landed properties.	Hypothecation of crops/assets created out of our finance. Mortgage of landed properties. Creation of charge on land records.

Repayment Period

WC:
The operative short term WC limit will be valid for 5 years subject to annual review
Term Loan:
Repayable in Yearly/Half yearly installments. Max. term of 5 years.

Quantum of Loan

The short term operative limit for the first year (for cultivating single crop in a year Sub limit I )

Sno.		Norm
1	Crop maintenance	As per Scale of finance (as decided by District level technical committee ) * Extent of area cultivated
2	Post-harvest /household / consumption requirements	10% of limit
3	Repairs and maintenance expenses of farm assets	20% of limit
4	Crop insurance and /or accident insurance , health insurance & asset insurance.

If there is increase in SOF but below 10%, then branches to enhance the limit up to the extent of % increase in SOF, if stipulation for 10% enhancement in subsequent year permitted in original sanction.