Overview of Sarva Haryana Gramin Bank Kisan Credit Card:
Sarva Haryana Gramin Bank came into existence after the amalgamation of Gurgaon Gramin Bank and Haryana Gramin Bank. Sarva Haryana Gramin Bank is committed to providing affordable financial and banking solutions for people in rural areas including farmers and agriculturists. In 2013, the bank was awarded the first position as appreciation to the formation of farmer’s club in a meeting organized by NABARD. The bank has an array of products exclusively for farmers and to cater to agriculture credit requirements including dairy development financing, Kisan Credit Card, farm mechanization financing and rural godown construction.
Sarva Haryana Gramin Bank Kisan Credit Card and Sarva Haryana Gramin Bank Kisan Investment Credit Card Yojana will provide adequate and timely credit to the farmers in a hassle-free manner. The crop loans under Kisan Credit Card come with low interest rates, affordable margin and various other benefits.
Types of Sarva Haryana Gramin Bank Kisan Credit Card:
The two types of credit products offered under agriculture loan section for farmers are,
- Sarva Haryana Gramin Bank Kisan Credit Card
- Sarva Haryana Gramin Bank Kisan Investment Credit Card Yojana
The important features of both credit cards are mentioned in the sections given below.
Margin for Sarva Haryana Gramin Bank Kisan Credit Card:
The margin requirements for Sarva Haryana Gramin Bank Kisan Credit Card is as given below.
- For production credit, no margin is required.
- For term loan, the margin requirements are as given below.
|Up to Rs. 1 lakh
|Above Rs. 1 lakh to Rs. 2 lakhs
|Above Rs. 2 lakh to Rs. 5 lakhs
|Above Rs. 5 lakhs
Features and Benefits of Sarva Haryana Gramin Bank Kisan Credit Card:
The following features and benefits come with Sarva Haryana Gramin Bank Kisan Credit Card.
- Multi-Purpose Loan:
Through this credit card, Sarva Haryana Gramin Bank aims to provide hassle free production credit to agriculturists for meeting the cultivation cost and also to maintain long term plantation and horticultural crops.
The loan aims to satisfy the financial requirements for the following.
- Produce marketing loan
- Post harvest expenses
- Short term credit requirements for crop cultivation
- Consumption requirement for farmer household
- Working capital requirements for the maintenance of farm activities and assets related to agriculture like inland fishery, dairy animals etc.
- Investment credit requirement for agriculture and other allied activities like pump sets, sprayers and dairy animals.
- High Loan Quantum:
Farmers can avail considerable amount as loan with Sarva Haryana Gramin Bank Kisan Credit Card. The following points are to be noted about the quantum of loan.
- Short term limit for the first year - The quantum is decided by scale of finance for the crop as decided by DLTC x extent of area cultivated + 10% of the limit towards post harvest, consumption and household requirements + an additional 20% of the limit towards repair and maintenance expenses of farm assets.
- Short term limit for 2nd and consecutive years - During the second year and subsequent years, the limit is calculated by the formula used for first year + 10% of the limit towards cost increase or escalation in financing scale for every successive year, up to 5th year, for the tenure of 5 years.
- Term loans for investments towards minor irrigation, land development, purchase of farm equipments and other allied activities will be based on the unit cost of assets proposed to be acquired by borrower, the activities already being done on the far, the judgement of repayment capacity done by the bank based on total loan burden including existing loan responsibilities faced by the farmer.
- Affordable Margin:
For production credit availed using Sarva Haryana Gramin Bank Kisan Credit Card, the margin is Nil. For term loans, the margin percentage varies from 5% to 25% depending on the loan quantum and there is no margin for term loan amounts up to Rs. 1 lakh.
Features and Benefits of Sarva Haryana Gramin Bank Kisan Investment Credit Card (KICC) Yojana:
The main highlights of Sarva Haryana Gramin Bank Kisan Investment Credit Card (KICC) Yojana are as follows.
- Purpose of the Loan:
The loan availed using KICC can be used for the following purposes.
- Production and investment credit purposes related to agriculture and other allied activities.
- As consumption loan for purposes like education, marriage, medical expenditure, family or religious functions, purchase of consumer goods, cars and two wheelers.
- Rural housing related purposes like purchase or construction of new house, purchase of a plot for house construction, extension of house, renovation of existing house, construction of toilet, bathroom and other sanitary facilities.
- Loan Quantum:
The quantum of loan is decided based on the property value offered as security and annual income of the farmers. However, the maximum permissible loan limit is Rs. 20 lakhs.
- Nominal Security Requirements:
The security requirements for KICC loan is as follows.
- Hypothecation of assets created with bank loan as primary security.
- Mortgage of land that is valued at 200% of the loan amount with primary security, if any, as collateral security
- The valuation of land is done on the basis of current market rate or circle rate, whichever is lower.
- In case the new borrowers have a considerable amount of deposit as savings and fixed deposit ( Rs. 1 lakh and above) for the last two years the security will be either of - 100% liquid collateral like NSCs and deposits or 50% liquid collateral plus 50% mortgage of land.
- Repayment Tenure:
Some of the important features to be noted about repayment tenure are as follows.
- The aggregate credit during past 12 months must be at least equal to the maximum outstanding in the account.
- No withdrawal from the account should remain outstanding for more than 12 months.
- For housing loan, the maximum repayment tenure is set at 9 years including a gestation period of 12 months.
- For allied agricultural activities, the repayment period is maximum of 7 years.
- For main agricultural activities, the maximum repayment period allowed is a maximum of 9 years.
Eligibility for Sarva Haryana Gramin Bank Kisan Credit Card:
The eligibility criteria for both the Kisan credit card schemes offered by Sarva Haryana Gramin Bank is as follows.
Sarva Haryana Gramin Bank Kisan Credit Card:
- All farmers - individuals and joint borrowers who are owner cultivators are eligible to apply for Sarva Haryana Gramin Bank Kisan Credit Card.
- Share croppers, tenant farmers and oral lessees are eligible to apply for this credit card.
- Joint Liability Groups (JLGs) and Self Help Groups (SHGs) of farmers including share croppers and tenant farmers can apply for this Kisan Credit Card variant.
- The applicant must be an Indian resident and must be in the age group of 18 to 70 years.
Sarva Haryana Gramin Bank Kisan Investment Credit Card Yojana:
- This facility is offered to existing customers who are exemplary agricultural land owner borrowers and have been continuously availing loan from the bank.
- The applicant must have good repayment history for a period of two years from the date of application.
- New farmers who have had satisfactory dealing with other banks for a time frame of minimum 2 years will be eligible after presenting the evidence.
- If the land is mortgaged in the name of more than one applicant, all owners will be eligible jointly.
- The condition of track record of two years may be relaxed in case of new farmer applicants having a considerable fixed deposit account or savings account with deposits of Rs. 1 lakh and above for the last two years given that, the loan is secured by 100% liquid collateral security of means like NSCs and deposits or the loan is secured by 50% mortgage of land which is valued at 50% of bank loan for marginal and small farmers and 75% for other farmers along with 50% of collateral security.
Documents Required for Sarva Haryana Gramin Bank Kisan Credit Card:
The applicant must submit the following documents to complete the application process for Sarva Haryana Gramin Bank Kisan Investment Credit Card Yojana and Sarva Haryana Gramin Bank Kisan Credit Card Scheme.
- KYC documents - address proof and identity proof
- Land documents, if required
- Security PDCs, if required
All the documents given above must be submitted along with completely filled application form and passport size photographs. Applicants must keep documents like PAN card, Aadhaar card and voter ID handy to speed up the application process.
FAQs for Sarva Haryana Gramin Bank Kisan Credit Card
- Under what circumstances is the condition, “No withdrawal should remain outstanding for more than 12 months” relaxed?
This condition is relaxed in cases where the limit has been stretched for cultivation of long duration crops like sugarcane or for agricultural activities where returns are expected after one year or so. But in any case, no balance should remain outstanding for a period of more than 18 months,
- What security is required for Sarva Haryana Gramin Bank Kisan Credit Card loan?
The following security is prescribed for Sarva Haryana Gramin Bank Kisan Credit Card loan.
- For cards with a limit of up to Rs. 1 lakh, hypothecation of assets and crops created using the bank loan is main security.
- For cards with limits greater than Rs. 1 lakh, hypothecation of assets and crops created using the bank loan is the prescribed security. With this, the cardholder must also agree to the below mentioned security requirements.
- Hypothecation of primary assets and charge on land as per Agricultural credit Operations and Miscellaneous (Provisions) Act of the State to the concerned mortgage of land valued at 150% of the loan amount for other farmers, 100% of loan amount for marginal & small farmers.
- The above mentioned or alternate security by means of lien or charge over liquid securities such as KVP, NSC and term deposits which may be considered adequate.
- Hypothecation plus charge of land or suitable third party guarantee with sufficient net means.
- What is the validity for Sarva Haryana Gramin Bank Kisan Credit Card?
Sarva Haryana Gramin Bank Kisan Credit Card is valid for a period of 5 years after which it can be renewed which is at the discretion of bank.
- What is the maximum loan amount offered under Sarva Haryana Gramin Bank Kisan Investment Credit Card Yojana?
The maximum loan amount offered under Sarva Haryana Gramin Bank Kisan Investment Credit Card Yojana is Rs. 20 lakhs.
- How is the quantum of Kisan Credit Card loan decided?
The loan amount is based on a variety of factors including value of property offered as security and annual income of the borrowers.