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Table 1.2: Important features of 3 major KCC Guidelines
Particulars
Circulars on KCC implementation
Cir. No. 15/98-99
dtd. 14.08.1998
Cir. No. NB.214/
PCD.30/2004 dtd
09.08.2004
Circular No 71/PCD 04/2011-12 dtd
29.03.2012 & No. 97/PCD 10/2012
dated 20 April 2012
1 Applicability
of Scheme
Commercial Banks,
RRBs & DCCBs/
PACS
No change
No change
2 Objective/
purpose of
loan
Cultivation needs incl
purchase of inputs
Term Loan
component has
been added to
KCC
(i) Short term credit for cultivation
of crops
(ii) Post harvest expenses
(iii) Produce Marketing loan
(iv) Consumption requirements of
farmer
(v) Working capital for maintenance
of farm assets and activities allied
to agriculture
(vi) Investment credit requirement for
agriculture and allied activities
3 Eligibility S.T. Production
credit of Rs. 5000/- &
above to all farmers
Term Loan +
S.T. Production
credit of Rs.
5000/- & above
(i) All Farmers– individuals /
Joint borrowers who are owner
cultivators
(ii) Tenant Farmers, Oral Lessees &
Share Croppers
(iii) SHGs or Joint Liability Groups
of Farmers incl. tenant farmers,
share croppers etc.
4 Fixation of
Credit Limit
(i) As revolving cash
credit taking
production credit
requirement for
full one year
(ii) Any number
of drawal &
repayments
(iii) Operational land
holding (incl
leased-in land
& excl leased-
out), cropping
pattern & scale
of finance to
be taken into
account.
(i) Short Term
credit/ crop
loan keeping
in view land
holding,
cropping
pattern &
scale of
finance
(ii) working
capital credit
for activities
allied to
agriculture
in term of
revolving
cash credit
(iii) Term loan
A
. All farmers
(other than marginal
farmers:
(a)
Sort term limit for I year:
For
farmers raising crop: Scale of
finance for the crop x Extent of
area cultivated + 10% of limit
towards post-harvest / household
/ consumption requirements +
20% of limit towards repairs and
maintenance expenses of farm
assets + crop insurance, PAIS &
asset insurance.
(b)
S.T. limit for I year:
10% increase in ST limit towards
cost escalation / increase in scale
of finance for every successive
year (2nd, 3rd, 4th and 5th year)
and Term loan component for the
tenure of Kisan Credit Card,
i.e.
,
5 years
