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3.12 In Punjab, a single SOF was being prepared for each crop for the entire state and
notification was issued by the Registrar, Cooperative Societies (RCS). Further, the
SOF included expenditure on the cultivation of crops (Cash & Kind separately),
additional 10 per cent of it towards post-harvest/ household/ consumption
requirement and additional 20 per cent towards repair and maintenance of farm
assets and insurance.
3.13 In majority of the districts, SOF was given as a fixed amount for various crops.
In some districts (e.g. Gaya & Begusarai in Bihar, Moradabad in UP), SOF was
prescribed as a range instead of a fixed amount.
Application for KCC loan & Appraisal by Branch Managers
3.14 A total of 32 banks (Comm -10, RRBs -11 & Coop -11) were covered in the present
study. All the banks have developed a unique ‘application cum appraisal form’
for appraisal of KCC loan application keeping in view the specific requirement
of the banks. Although some of the features viz., family and land detail of
the farmer, were common in the formats of all the banks, most of the other
features viz., appraisal format, credit scoring sheets, calculation of farm income
& expenditure, guarantor’s consent form, mortgage format, sanction note, etc.,
were varying to a great extent from bank to bank.
3.15 Some banks had already re-designed their application cum appraisal format
keeping in view the revised KCC guidelines (March/ May 2012) clearly indicating
year-wise/ component-wise sub-limits of the KCC limits. However, majority of
banks were yet to include calculation sheet for arriving at the KCC limit and
year-wise/ component-wise sub-limits. There were few banks (e.g. Bihar Gramin
Bank) which had also printed the ‘scale of finance’ in its KCC application form.
Fixation of Kisan Credit Card Limit
Use of Cropping Pattern & Scale of Finance
3.16 ‘Cropping Pattern’ is one of the important determinants for arriving at the KCC
limit of the farmer. As observed from the application cum appraisal form of
the sample farmers, in 434 cases (61% of the sample), KCC limits were fixed
taking into account both Kharif as well as Rabi crops. In rest of the cases, either
only kharif crop (35% of the sample) or only Rabi crop (4% of sample) were
considered for fixing of KCC limit. It was observed that almost similar type of
cropping pattern was shown for majority of the farmers in a particular bank
branch which speaks about the non-seriousness in filling up the appraisal form.
3.17 Further, the fixation of KCC limit assumes that the cropping pattern adopted
by the farmer during the first year would remain unchanged during the next
four years. Although KCC guideline allows for change in KCC limit on account
of change in cropping pattern, it was observed that no change in KCC limit
was effected on account of change in cropping pattern of anyone of the sample
farmers.
