Bank of India Kisan Samadhan Credit Card

All farmers who are eligible for Kisan Credit Card would also be eligible for Kisan Samadhan Card for their agri-businesses. They must avail production credit and investment credit.

Kisan Samadhan Card provides financial assistance for the smallest agricultural operations to large-scale production. Bank of India extends two lines of credit under the Samadhan Credit Card- Production and Investment. The purpose of the two are mentioned below-

Production Line of Credit

• Crop production loan sanctioned depends on the type of crops, cultivation area, and loan required for raising a crop per unit area cultivated.
• Finance will be extended for short-term expenditures such as the maintenance of equipment (tractors and farms) and allied activities such as dairy, poultry, cost of feed, fuel, annual repairs, etc.
• Funds will also be provided for consumption needs and domestic needs of the farmers. The maximum limit will be “25% of the gross estimated income of the farmer” or “20% to 25% of the loan” or “highest loan of ₹ 50,000” whichever is lower.
• Finance against storage receipts or produce marketing can also be availed. The maximum limit will be 50% of the produce price prevailing at the current time of the sanctioned loan and maximum loan amount should not exceed ₹ 10 Lakhs per farmer.

Investment Line of Credit

This is a borrowing to invest for a long-term financial farm development sectors such as the development of land and irrigation facility, purchase of machinery or equipments, draught animals and carts, transport vehicles, pre-harvesting or post-harvesting processing equipments and practicing modern agriculture or Hi-tech Agriculture with farm infrastructure, plantation activities which are all essentially needed.

Extending loans for the needs of farmers such as personal loans consist of purchase of consumer durables to be maximum of ₹ 1 Lakh for off-farm activities.

The extent of finance available to a farmer will depend upon his net annual income from the farm and the value of securities to be charged in the account.

• 100% of the value of land mortgaged as collateral security and other securities like the assignment of LIC Policy (Surrender value), pledge of NSCs/Bank’s TDRs/Gold ornaments.
• 10 times of anticipated net annual income from the farm (average for next five years) taking into consideration the type of crops, area under cultivation, scale of finance and including income from proposed new activities/allied activities.

The lower of the above two will be considered where movable assets are created.

• 10 times of anticipated net annual income from the farm (average for next five years) taking into consideration the type of crops, area under cultivation, scale of finance and including income from proposed new activities/allied activities.
• 70% of value of land mortgaged as collateral security and 100% value of other securities like assignment of LIC Policy (Surrender value), pledge of NSCs/Bank’s TDRs/Gold ornaments

Where movable assets are not created, the lower of the above two will be taken.

Line of Credit	Quantum of Finance
Production Line of Credit	0% to 50% of the total limit will be reserved for meeting recurring expenses on the farm which are of short term nature.
Investment Line of Credit	50% to 70% of the total limit will be earmarked for the purpose of investment credit in the form of Term Loan/s limit with reducing drawing limit every year.
Emergency loan for specific purpose	20% of the original limit up to a maximum of ₹ 50,000.