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priority sector schemes

Priority Sector Schemes

1.P&SB Scheme of Kisan Credit Cards
2.P&SB Scheme for Financing of Tractors & TWF
3.P&SB Scheme for Boosting Farm Machanization
4.P&SB Kisan Suvidha Scheme
5.P&SB Scheme of Financing Two Wheeler/Jeep/Car/SUV For Farmers
6.P&SB Scheme for Financing Farmers for Purchase of Land for Agricultural Purpose
7.P&SB Estate Purchase Loans
8.P&SB Loans for Agricultural Purposes against Gold & Silver
9.P&SB Kisan All Purpose Term Loans
10.P&SB Kisan Tatkal Scheme
11P&SB Loans to Farmers for Purchase of Renewable Energy Equipments (Solar Pumpsets/ Solar Water Heaters/ Solar lighting)
12.P&SB Scheme for Financing Seed Production & Processing Units
13.P&SB Scheme for Financing of Agriculture Inputs (Fertilisers/Pesticides/Certified Seed etc) Dealers/ Distributors/Stockist against stock and book debts.
14.P&SB Scheme for Financing against Pledge of Warehouse Receipts.
15.P&SB Scheme of Kisan Rahat Scheme for Financing to Aarhtias (Commission Agents).
1. P&SB Scheme of Kisan Credit Cards
Ans. Kisan Credit Card Scheme aims at providing adequate and timely credit support from the banking system under a single window to the farmers for their cultivation & other needs as indicated below:

a. To meet the short term credit requirements for cultivation of crops
b. Post harvest expenses
c. Produce Marketing loan
d. Consumption requirements of farmer household
e. Working capital for maintenance of farm assets and activities allied to agriculture, like dairy animals, inland fishery etc.
f. Investment credit requirement for agriculture and allied activities like pumpsets, sprayers, dairy animals etc.

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

Credit limit may be fixed based on operational land holding, cropping pattern and ancillary & contingency needs of the farmer for the full year. For farmers raising more than one crop in a year, the limit is to be fixed depending upon the crops cultivated as per proposed cropping pattern. The criterion for fixing production credit limit is based on extent of cultivated area of the farmer. The appraiser/sanctioning authority shall exercise due diligence while working out the limit and the actual limits may be fixed on case to case basis and calculated separately for irrigated and un-irrigated land. There is no maximum loan limit under the KCC scheme. The fixation of credit limit is uniformlyapplicable to all categories of farmers.

2. P&SB Tractor finance & tractor welfare fund scheme
Ans. In the field of farm mechanisation Punjab & Sind Bank has adopted a very liberal policy for Tractor Financing. A farmer cultivating a minimum of 8 Acres of irrigated agricultural land is eligible for a tractor loan and his Tractor should have a potential for a use of 1000 productive hours in a year on his farm or for custom hire. The loan may be repayable in equated half yearly installments over a period of upto 9 years. The value of security offered by way of mortgage of land and Hyp. of Tractor should be double the value of Term Loan sanctioned.

Insurance of tractor

To save the farmer from the burden of comprehensive insurance, Punjab & Sind Bank has waived the condition of comprehensive insurance. Now the farmer may opt for membership of Tractor Welfare Fund of the bank. Tractor is to be insured for Third party only. The farmer who has opted for Tractor Welfare Fund Scheme has to contribute only Rs.300/- per year in the Tractor Welfare Fund. In case of serious accident where the amount of loss is more than Rs.10,000, compensation to the extent of 50% of the assessed loss is provided from the Tractor Welfare Fund. By becoming member of Tractor Welfare Fund Scheme, the farmer saves Rs.15,000 to Rs.20,000 over a period of 9 years. The Tractor Welfare Fund is maintained by a Trust named " PSB Trust for Development of Agriculture & Rural Employment". The funds collected in Tractor Welfare Fund are utilized for the benefit of farming community.
3. P&SB Scheme for Boosting Farm Machanization
Ans. An individual or group of individuals, institution or organization which has sufficient and regular income either from own Farm Activity and/or Custom Hiring Service are eligible for finance. Margin requirement is 15 to 25%

  • For tractors: Any individual or group of individuals jointly holding ownership of minimum of 2.5 acres of perennially irrigated agricultural land. Economic viability of financing tractor in each case shall be worked out keeping in view his total cultivation of agriculture land, income from custom hiring etc.
  • For Power tillers/ threshers/Reapers/Any other implement: Any individual or group of individual jointly holding ownership of minimum of 2.0 acres of perennially irrigated agricultural land. Financing of power tiller/thresher/reaper or any other implement like mechanized sprayer, laser land leveller etc shall be done after ensuring economic viability and demand in the area.
  • For bulldozers, JCBs, Well- Boring equipment etc: Any individual or group of individuals jointly holding ownership of minimum of 5 acres of perennially irrigated agricultural land. Farmer should have proper scope for utilization of assets and based on economics should be in a position to conveniently repay loan.
  • For repair/renovation of Farm Machinery:- Any borrower owning farm machinery in his name and, where agriculture land is mortgaged with the Bank is eligible for term loan for repair/renovation up to maximum of Rs. 50,000/- based on the estimate of authorized dealer.
  • For Combine Harvester: Any individual or group of individuals holding land jointly should have a land holding owned by them minimum of 5 acres of perennially irrigated agricultural land. Farmer should have proper scope for utilization of assets and based on economics should be in a position to conveniently repay loan.
4. P&SB Kisan Suvidha Scheme
Ans. An Individual farmers/joint borrowers who are existing Kisan Credit Card (KCC) holders having satisfactory track record of one year are eligible for additional investment credit to farmers for agriculture purposes. Rs 50000/- per acre of owned land with maximum of Rs 5 Lacs. The Term Loan be sanctioned on the basis of risk assessment on case to case basis. This loan amount shall be in addition to existing KCC limit of applicant. Term Loan repayable within 3-5 years for undertaking activities like farm mechanization, land development, minor irrigation, allied activities, horticulture and all other agriculture related activities.
5. P&SB Scheme of Financing Two Wheeler/Jeep/Car/SUV For Farmers
Ans. Though two wheelers/Jeep/Car/SUV are not directly engaged in farming operation but they have good use for a farmers in timely sourcing of various farm inputs and disposing of farm produce. The loan amount shall be 85% of the total cost of Two wheeler/Jeep/Car/SUV proposed to be purchased. The loan amount shall have a relationship with the projected net earning and the repayment capacity of the borrower.
6. P&SB Scheme for Financing Farmers for Purchase of Land for Agricultural Purpose
Ans. The scheme aims at providing term loan to small/marginal farmers including share croppers/tenant cultivators to purchase agricultural land as well as fallow and wasteland production/to develop and cultivate it with a view to increase production/productivity. It also enables them to diversify the present activities and to take up allied activities. Small and Marginal farmers, Share croppers/tenant farmers Entrepreneurs with agricultural background are also eligible (Provided State laws permit purchase of agriculture lands by non-agriculturists) The total land holding of the borrower after the purchase of the land under the scheme should not exceed 2.5 acres of irrigated land or 5 acres of non-irrigated land or equivalent. The quantum of loan depends upon (i) Valuation as assessed by the Branch (ii) Guidance value/Circle rate fixed by the State or (iii) Registration value whichever is lower, plus value of stamp duty, registration charges for sale/ mortgage deed. Maximum amount Rs.10 lakhs.
7. P&SB Estate Purchase Loans :
Ans. To purchase estates growing traditional plantation crops viz. coffee, tea, rubber and cardamom cashew, pepper, coconut and other perennial orchard crops. The purchaser should have
  • Yielding estates and should be in a position to rejuvenate the estate proposed to be purchased.
  • The intending borrowers should have with satisfactory past dealing with the Bank.
  • The purchaser should be experienced in the line, financially should and should be in a position to bring in margin and service the debt.
  • The intending buyers should qualify the respective State Government norms of being an agriculturist / satisfy the income criteria stipulated by the State Government.
  • The estate should preferably be a neglected one. The estate should have potential form realizing higher yields. The estate should have the potential to absorb substantial credit for developmental activity.
  • The total land holding including the land to be acquired should be within the land ceiling norms of the respective State.
8. P&SB Loans for Agricultural Purposes against Gold & Silver :
Ans. To enable farmers to quickly meet their short-term agricultural credit needs and investment needs i.e.both for crop production needs and also for meeting investment needs of agriculture & allied activities.

Any person engaged in agriculture or allied activities as well as persons engaged in activities permitted by GOI/RBI to be classified under agriculture. The applicant should satisfy the KYC guidelines & loan shall be given based on declaration. Additionally, proof of pursuing the activity to be given for loans above Rs.1 lakh.

The purpose of the loan shall be for any one/various purposes for meeting the farm activity related expenses, including that for allied activities. The loan assessment shall be based on Scale of finance for crop production and actual credit requirement by farmers for other purposes. This shall be based on the declaration of the farmers in the application. However the limit shall be limited to value of pledged Gold Jewellery /Gold coins etc as permitted by RBI less the stipulated margin. In case of Silver, the loan shall be extended against silver jewellery only due to difficulties in handling of silver articles other than jewellery.
9. P&SB Kisan All Purpose Term Loans :
Ans. To Create a hassle free single term loan limit to farmers for all term loan requirements like farm Mechanization, Land Development, Minor Irrigation, Water Conservation, Horticulture, Allied activities and other Agri related activities etc. However development projects with a long gestation period (say more than 3 - 4 years) may not be considered in view of the specific tenor of this credit product (eg. Mango plantation – requiring gestation of 6-7 years)

Quantum of loan/Ceiling:



  • To be based on the investment plan given by the farmer to be undertaken in the next 2-3 years.
  • The plan may be a combination of investment / development activities relating to agriculture and allied activities.
  • It shall be subject to 5 times of Annual income (current - pre development stage) of the farmer including allied activities or 50% of the value of land mortgaged which ever is lower, with a maximum Rs.20 Lakhs.
10. P&SB Kisan Tatkal Scheme :
Ans. An instant credit for farming community to meet the emergency requirements for Agriculture and domestic purposes for tiding over temporary difficulties. Individual farmers / joint borrowers (not exceeding 4 farmers) who are existing Kisan Credit Card (KCC) holders having satisfactory track record of at least two years are eligible under the scheme.
11. P&SB Loans to Farmers for Purchase of Renewable Energy Equipments (Solar Pumpsets/ Solar Water Heaters/ Solar lighting)
Ans. Under this scheme loan shall be granted for installation of Solar Water Pumping System. The proposed scheme shall help in harnessing the solar energy for pumping water by water pumps.

Eligibility condition under the scheme are as under:-
  • The farmers’ land should have adequate source of water. In case any Public/ Government source is being used, water right certificate from the concerned authority should be produced. In case of wells they should have sufficient recouping capacity to irrigate area proposed to be brought under irrigation.
  • He/She should own an economic land holding with a minimum of 10 acres. However, loans may be considered even if the benefiting area is less than 10 acres provided the farmer is able to sell surplus water.
  • It is also possible that due to Technical limitation of solar pumpset that it can work at low Heads only (shallow water sources) and low capacity (2.50 HP pumpsets) & hence capacity to irrigate small area only (1- 2 Hectares) due to small discharge.
  • In such cases it should be ensured that viability is ensured and projected DSCR is not less than 1.60.
12. P&SB Schemefor Financing Seed Production & Processing Units
Ans. Any individual, firms (Proprietorship/partnership), Private Ltd and Limited Companies having owned/leased land (Minimum one acre of land)can take benefit of this scheme. The maximum quantum of bank finance is fixed at Rs.2.00 crore (per borrower). Both term loan as well as working capital facilities are available under the scheme. The rate of interest to be charged shall be BR+1% for credit rating 1 to 4.In case of lease hold property, equitable mortgage of separate land and building is to be obtained in the name of borrower/Guarantors valued at minimum 100% of the loan limit.
13. P&SB Scheme for Financing of Agriculture Inputs (Fertilisers/Pesticides/Certified Seed etc) Dealers/ Distributors/Stockist against stock and book debts.
Ans. Any firms (Proprietorship/partnership), Private Ltd and Limited Companies, Co-operatives/JLGs/SHGs who are involved in sale of agriculture inputs such as fertilizers, pesticides, seeds. Cattle Feed, Poultry Feed, Agriculture Implements, Farm Machinery etc. can avail Overdraft against Property /Cash Credit facilities under the scheme. The rate of interest to be charged shall be BR+1% for exposure less than Rs.500 lac irrespective of credit rating. Stock statement/Book Debt statement to be furnished by the borrower at the time of sanction and thereafter on yearly basis of the stocks not older than six months.

In case of Cash Credit facility, margin in the form of stock may be 20% and against Book Debts may be 50%.where as in case of ODP facility for fresh cases, margin of 35% shall be applicable and for renewal where revaluation of property is not due, margin of 25% is required. In case of renewal, where revaluation of property is due margin of 35% on revalued property shall be applicable.
14. P&SB Scheme for Financing against Pledge of Warehouse Receipts:
Ans. Farmers, Food Grain Dealers/Commission Agents/Millers are eligible for finance under the scheme. Besides this, those farmers, traders/millers who store their Agricultural produce in State Government/Central warehouses or those owned, leased, franchised by the NHBC/SAMC are also eligible

The scheme is being implemented on all India basis. A short term finance upto 9 months is available for seeking finance under the Warehouse Receipts issued by M/s National Bulk Handling Corporation (NBHC) and M/s Star Agriwarehousing & Collateral Management Limited (SACM). The range of services for Collateral Management and the fee & charges for these services are available in the agreement with these companies.
15. P&SB Scheme of Kisan Rahat Scheme for Financing to Aarhtias (Commission Agents)
Ans. Bank makes Cash Credit facilities available to Aarhtias (Commission Agents) on very liberal terms and conditions. Bank is charging rate of interest @ Base Rate + 0.50% p.a. irrespective of amount of credit limit (Max Rs.100 lac presently). The margin norms of 50% in the shape of Book Debt and collateral security valuing at least 100% of the limit sanctioned up to Rs.25 lac and 150% for limit above Rs.25 lacs in the shape of properties/FDR/NSC/LIC policy/ any other Government securities.
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