Short Term Crop Loan
Short Term Crop Loan :
The interest Subvention @ 2% p.a. will be available to Banks on loans for meeting short term credit requirement (subject to maximum period of one year) for cultivation of crops and Post harvest expenses only, up to Rs. 3.00 lakh per farmer provided the lending institution make available short term credit at the ground level at 7% per annum to farmers.
The eligible categories of farmers for claiming interest subvention:
Naini Kisan Credit Card (NKCC) Scheme :
For providing interest subvention to eligible farmers under Bank's Naini Kisan Credit Card (NKCC) schemes, one separate account to be opened under the Short Term Crop Loans-lnterest Subvention with ROI @ 7% p.a. for a maximum period of one year for cultivation of crops and/or Post harvest expenses only maximum up to Rs. 3.00 lakh per farmer out of the total calculated limit as per the scale of finance as prescribed by DLTG of respective.
Naini Bank Kisan Gold Card (NBKGC) Scheme :
lt is an agriculture credit Scheme for providing production and investment credit to farmers based on land holdings and income criteria. Maximum amount for interest subvention will be eligible as per the scale of finance as NKCC scheme above. interest subvention will be available only on the amount which qualifies under NKCC scheme (as per the scale of finance prescribed by DLTC). One separate account should be opened under the (Short Term Crop Loans-lnterest Subvention) with ROI @ 7% p.a. for a maximum period of one year for cultivation of crops and/or Post harvest expenses only maximum up to Rs. 3.00 lakh per farmer. The total loan amount of both the accounts should not exceed the maximum eligible limit as per the scale of finance prescribed under NBKGC scheme.
If the Short Term Crop Loans eligible for interest subvention are not repaid on or before the due date fixed by the bank or within a maximum period of one year, whichever is earlier, then the normal interest rate as applicable for the particular Crop Loan/ scheme will be charged.
Since on default of repayment of Short Term Crop Loan on due date or within one year of withdrawal/disbursement, whichever is earlier, normal rate of interest has to be charged