Santa Claus comes around just once a year. In the meantime, there are Credit Cards.

    Bank of India Kisan Samadhan Credit Card

    Bank of India offers the Kisan Samadhan Card to meet all short term and long term credit needs of the farmer. Credit is extended beyond agricultural activity to the allied activities that include maintenance, farm equipment, repairs, and even consumption needs and consumer durables. This scheme aims to bring about operational freedom and flexibility in the utilisation of the credit granted. The Kisan Samadhan Card replaces the Kisan Gold Card and Kisan Suvidha Card.

    Features and Benefits:


    The Kisan Samadhan Card is issued to take care of the agricultural needs of farmers. The loan is sanctioned for the following purposes.


    • Crop Production
    • Short term expenses on maintenance, implements and allied activities.
    • Domestic needs and consumption needs. 25% of the gross estimated income, 20%-25% of the scale of finance, or Rs. 50,000, whichever is lower will be sanctioned.
    • Produce Marketing against storage receipts. A maximum of 50% of the current produce price at the time of sanctioning the loan will be granted. Up to a maximum of Rs. 10 lakhs per farmer can be availed.


    • Farm Development including irrigation/land facilities, buying equipment, machinery, transport vehicles. Investment in draught animals and carts, pre and post-harvest equipment’s, plantation activities and hi-tech infrastructure.
    • Allied activities such as poultry, dairy, piggery, fisheries, and sericulture. Any activity that supplements farm income and ensures optimum utilisation of resources.
    • Off-farm activities such as the personal and consumer needs of the farmer. A loan of Rs. 1 lakh maximum can be sanctioned.

    Additional Loan Purposes:

    • Emergency loans are sanctioned to help farmers in case of unavoidable circumstances up to 20% of the total credit facility or Rs. 50,000, whichever is lower.
    • Personal Loan is granted on the basis of the net surplus that can be used to repay the loan.
    • Bank of India will consider 10% to 15% additional credit limit in a period of time towards cost escalation and inflation.

    Loan Quantum:

    The criteria for determining the loan quantum is based on the farmer’s income and the value of securities to be charged in the account. The quantum of loan is computed on one of the following options.

    • 10 times the net annual income anticipated from the farm. The average of the next five years is calculated to arrive at this figure. The type of crop, scale of finance and area under cultivation is taken into consideration along with income from new and allied activities.
    • 100% of the value of mortgaged land offered as security, plus any other collateral like the surrender value of LIC policy, Bank’s TDR, Gold, pledge of NSC. This option can be taken if the movable assets are created out of the bank’s finance.
    • 70% of the value of mortgaged land as security, plus 100% of other securities such as the surrender value of LIC policy, Bank’s TDR, Gold, pledge of NSC. This option can be taken if the movable assets are not created out of the bank’s finance.

    Credit Limits:

    There is no maximum credit limit mentioned under the Kisan Credit Card Scheme. But under Bank of India, for loans above Rs. 15 lakhs, the bank branches are directed to seek clearance from the Zonal Officers for administrative purposes.

    • Production - 30 to 50% of the total credit limit will be earmarked for meeting short-term recurring expenses on the farm. This is under the revolving cash credit facility. This limit can be enhanced by 10% every year in consideration of inflation and rising costs of input, change in crop patterns and farm expansion.
    • Investment - 50% to 70% of the total credit limit will be sanctioned for this purpose with an annual reduced drawing limit.
    • Others - Consumption Loan + Personal Loan + Emergency Loan should not exceed 25% to 30% of total credit facilities. 10% to 15% additional credit limit in a period of time will be granted towards cost escalation and inflation.


    Interest rates granted on debit balances will be determined from time to time as per the Head Office.

    For credit balances, the interest will be charged as per the savings bank rates.

    Interest Concession:

    • Kisan Credit Card holders can receive an interest subsidy of 0.50% p.a. on the prevailing interest rate with satisfactory conduct for last 3 years.
    • Kisan Samadhan Credit Card holders whose account is conducted satisfactorily for two years will be granted 0.50% discount.


    The margin norms prescribed by the RBI are to be followed strictly.

    • For production credit, no margin is specified. The credit limit will be given to farmers as a regular cash credit facility.
    • For investment credit, 10% to 25% of the total investment will be taken as the margin.


    • Withdrawals should be repaid within 12 months for regular crops and 18 months for banana and sugarcane. The cash credit account should be used to route sale proceeds wherever possible.
    • For investment credit, farmers have 5 to 7 years to repay the loan.
    • Emergency loans should be paid off in two annual installments.


    Farmers will receive crop insurance under this scheme in notified areas.

    Cardholders are also entitled to Personal Accident Insurance.


    There are two levels of security required. The first level is hypothecation of existing and proposed crops and movable assets.

    • Hypothecation of standing crops.
    • Hypothecation of movable assets already owned.
    • Hypothecation of crops and movable assets created out of the bank’s finance.

    The second level is mortgage or third party guarantee.

    • Mortgage of land.
    • Charge on land under the Agricultural Credit Act.
    • Third party guarantee of adequate means and repute.

    The total value of existing and proposed collateral (including hypothecation) should equal about 150% of the loan amount. If the mortgaged land value is sufficient, no other security is required. Mortgage can be waived if there is alternate security available such as pledge of NSC, KVP, gold, or TDRs of the Bank. This is approved by the Zonal Manager based on merit in each case.

    Bank of India Kisan Samadhan Credit Card Documentation:

    The documents you will be required to submit for the application of a Bank of India Kisan Samadhan card are as follows.

    1. Demand Promissory Note for the whole credit.
    2. Letter of Authority (AG-15).
    3. Deed of Composite Hypothecation Agreement (CHA-1 / CHA-2).
    4. Documents for pledge of NSCs, TDRs, KVPs or Gold ornaments.
    5. Legal Mortgage of land, Equitable mortgage or Charge on land as per Agricultural Credit Act (CHA-4).
    6. L-515.
    7. L-516 (if needed).

    Bank of India Kisan Samadhan Credit Card Eligibility:

    All farmers are who are eligible for the Kisan Credit Card will be eligible for this card.

    Farmers who are seeking credit under this scheme must avail of investment and production credit.

    Other Agricultural Products offered by Bank of India:

    • Agri Clinics
    • Cold Storage
    • Composite Cash Credit
    • Crop Finance
    • Farm Mechanisation
    • Financing for Draught Animals & Carts
    • Land Development
    • Minor Irrigation
    • Poultry Development
    • Purchase of Land
    • Rural Godowns
    • Dairy Development
    • Financing against pledge of Warehouse Receipt and/ or Hypothecation of Farm Produce
    • All Purpose Term Loan
    • Solar Pump Set
    • Tatkal Loan
    • Gold Loan
    • KCC

    Bank of India Kisan Samadhan Credit Card FAQs:

    1. Is this scheme only a loan or will I be issued a credit card?

      All borrowers will receive a laminated credit card. You can use this card to withdraw cash from your bank branches. You will also receive a passbook which you are required to carry to make a withdrawal. The card and passbook will have the requisite details of the scheme such as the Borrower’s name and address, facilities sanctioned, validity of card, and name of the Branch.

    2. What happens if I withdraw over the limit?

      Farmers who hold the Kisan Samadhan Card are allowed an over limit of 10% of the working capital. This is granted to meet uncertainties that arise from the agricultural business. Any amount withdrawn over limit should be repaid within 30 days maximum.

    3. How is interest charged?

      Interest is charged differently on each component of the loan.

      • For production and investment credit, interest is charged on a half-yearly basis in September and March. The interest will be compounded on the due date.
      • For allied activities, interest is charged on a monthly basis and will be payable as and when applied.
      • For personal and emergency loans, the interest is charged monthly and compounded on the due date.
    4. Are there provisions for natural calamities?

      Yes, there is crop insurance and personal accident insurance provided under this scheme. Proper relief measures will also be granted as per the guidelines in regards to repayment of loans.

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