कृषि ऋण योजना /Agriculture Credit

Scheme

OUR VISION
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for its employees”

OUR MISSION

“ To be a top-class Bank to achieve sustained

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“ONE TEAM, ONE DREAM”

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 Master Directions – Priority Sector Lending (PSL) – Targets and Classification
As per power given u/s 21 & 35A with section 56 of the BR Act 1949, The RBI issues direction in the
public interest.
CATEGORIES AND TARGETS UNDER PRIORITY SECTOR
The categories under priority sector are as follows:
i. Agriculture
ii. Micro, Small and Medium Enterprises
iii. Export Credit
iv. Education
v. Housing
vi. Social Infrastructure
vii. Renewable Energy
viii. Others
Targets /Sub-targets for Priority sector
Categories Domestic Foreign banks with Regional Rural Banks Small Finance
commercial banks less than 20 Banks
(excl. RRBs & SFBs) branches
& foreign banks
with 20 branches
and above
Total 40 per cent of ANBC 40 per cent of ANBC or 75 per cent of ANBC 75 per cent of ANBC
Priority or CEOBE whichever CEOBE whichever is or CEOBE whichever is or CEOBE
Sector is higher higher; out of which higher; However, lending whichever is higher.
up to 32% can be in to Medium Enterprises,
the form of lending to Social Infrastructure and
Exports and not less Renewable Energy shall be
than 8% can be to any reckoned for priority
other priority sector sector achievement only
up to 15 per cent of ANBC.

Agriculture 18 per cent of ANBC Not applicable 18 per cent ANBC or 18 per cent of ANBC
or CEOBE, whichever CEOBE, whichever is or CEOBE,
is higher; out of higher; out of which a whichever is higher;
which target of 10 percent# is out of which a
a target of 10 prescribed for SMFs target of 10 percent#
percent# is is prescribed
prescribed for Small for SMFs
and Marginal
Farmers (SMFs)
Micro 7.5 per cent of Not applicable 7.5 per cent of ANBC or 7.5 per cent of
Enterprises ANBC or CEOBE, CEOBE, whichever is higher ANBC or CEOBE,
whichever is higher whichever is
higher
Advances to 12 percent# of ANBC Not applicable 15 per cent of ANBC or 12 percent# of
Weaker or CEOBE, CEOBE, whichever is higher ANBC or CEOBE,
Sections whichever is higher whichever is higher
# Revised targets for Agriculture and SMFs will be implemented in a phased manner

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 Categories Primary Urban Co-operative Bank

Total Priority 40 per cent of ANBC or CEOBE, whichever is higher, which shall stand increased to
Sector 75 per cent of ANBC or CEOBE, whichever is higher, with effect from March 31,
2024. UCBs shall comply with the stipulated target as per the following milestones:
Existing March 31, March 31, March 31, March 31,
target 2021 2022 2023 2024
40% 45% 50% 60% 75%

Micro 7.5 per cent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure,
Enterprises whichever is higher
Advances to 12 per cent# of ANBC or credit equivalent amount of Off-Balance Sheet Exposure,
Weaker Sections whichever is higher.
# Revised targets for weaker sections will be implemented in a phased manner as indicated below

Financial Year Small and Marginal Farmers target * Weaker Sections target ^
2020-21 8% 10%
2021-22 9% 11%
2022-23 9.5% 11.5%
2023-24 10% 12%
* Not applicable to UCBs
^ Weaker Sections target for RRBs will continue to be 15% of ANBC or CEOBE, whichever is higher.
Computation of Adjusted Net Bank Credit (ANBC)
For the purpose of priority sector lending, ANBC denotes the outstanding Bank Credit in India
[As prescribed in item No.VI of Form ‘A’ under Section 42 (2) of the RBI Act, 1934] and computed as follows:
Bank Credit in India [As prescribed in item No.VI of Form `A’ under Section 42(2) of the RBI Act, I
1934]
Bills Rediscounted with RBI and other approved Financial Institutions II
Net Bank Credit (NBC)* III(I-II)
Outstanding Deposits under RIDF and other eligible funds with NABARD, NHB, SIDBI and MUDRA IV
Ltd in lieu of non-achievement of priority sector lending targets/sub-targets + outstanding PSLCs
Eligible amount for exemptions on issuance of long-term bonds for infrastructure and affordable V
housing as per circular DBOD.BP.BC. No.25/08.12.014/2014-15 dated July 15, 2014
Advances extended in India against the incremental FCNR (B)/NRE deposits, qualifying for VI
exemption from CRR/SLR requirements, as per the Reserve Bank’s circulars
DBOD.No.Ret.BC.36/12.01.001/ 2013-14 dated August 14, 2013 read with DBOD.No.Ret.BC.93/
12.01.001/2013- 14 dated January 31, 2014, DBOD mailbox clarification issued on February 6,
2014 and UBD.BPD.(PCB).CIR.No.5/13.01.000/2013-14 dated August 27, 2013 read with
UBD.BPD.(PCB). Cir.No.72/ 13.01.000/ 2013-14 dated June 11, 2014.
Investments made by public sector banks in the Recapitalization Bonds floated by Government VII
of India
Other investments eligible to be treated as priority sector (e.g. investments in securitized assets) VIII
Face Value of securities acquired and kept under HTM category under the TLTRO 2.0 (Press IX
Release 2019-2020/2237 dated April 17, 2020 read with Q.11 of FAQ and SLF-MF- Press Release
2019-2020/2276
dated April 27, 2020 and also Extended Regulatory Benefits under SLF- MF Scheme vide Press
Release 2019-2020/2294 dated April 30, 2020.
Bonds/debentures in Non-SLR categories under HTM category X
For UCBs: investments made after August 30, 2007 in permitted non SLR bonds held under ‘Held XI
to Maturity’ (HTM) category

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 ANBC (Other than UCBs) III + IV- (V+VI+VII) +VIII - IX + X
ANBC for UCBs III + IV - VI - IX + XI
DESCRIPTION OF ELIGIBLE CATEGORIES UNDER PRIORITY SECTOR
1. Agriculture- The lending to agriculture sector will include Farm Credit (Agriculture and Allied Activities),
lending for Agriculture Infrastructure and Ancillary Activities.
Farm Credit - Individual farmers
Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs) i.e. groups of
individual farmers, provided banks maintain disaggregated data of such loans] and Proprietorship firms of
farmers, directly engaged in Agriculture and Allied Activities, viz. dairy, fishery, animal husbandry, poultry,
bee-keeping and sericulture. This will include:
i. Crop loans including loans for traditional/non-traditional plantations, horticulture and allied activities.
ii. Medium and long-term loans for agriculture and allied activities (e.g. purchase of agricultural
implements and machinery and developmental loans for allied activities).
iii. Loans for pre and post-harvest activities viz. spraying, harvesting, grading and transporting of their own
farm produce.
iv. Loans to distressed farmers indebted to non-institutional lenders.
v. Loans under the Kisan Credit Card Scheme.
vi. Loans to small and marginal farmers for purchase of land for agricultural purposes.
vii. Loans against pledge/hypothecation of agricultural produce (including warehouse receipt1) for a
period not exceeding 12 months subject to a limit up to ₹50 lakh.
viii. Loans to farmers for installation of stand-alone Solar Agriculture Pumps and for solarisation of grid
connected Agriculture Pumps.
ix. Loans to farmers for installation of solar power plants on barren/fallow land or in stilt fashion on
agriculture land owned by farmer.
Farm Credit - Corporate farmers, Farmer Producer Organisations (FPOs)/(FPC)
Companies of Individual Farmers, Partnership firms and Co-operatives of farmers engaged
in Agriculture and Allied Activities
(a) Loans for the following activities will be subject to an aggregate limit of ₹2 crore per borrowing entity:
(i) Crop loans to farmers which will include traditional/non-traditional plantations and horticulture
and loans for allied activities.
(ii) Medium and long-term loans for agriculture and allied activities (e.g. purchase of agricultural
implements and machinery and developmental loans for allied activities).
(iii) Loans for pre and post-harvest activities viz. spraying, harvesting, grading and transporting of their
own farm produce.
(b) Loans up to ₹50 lakh against pledge/hypothecation of agricultural produce (including warehouse
receipts) for a period not exceeding 12 months.
(c) Loans up to ₹5 crore per borrowing entity to FPOs/FPCs undertaking farming with assured
marketing of their produce at a pre-determined price.
(d) UCBs are not permitted to lend to co-operatives of farmers.

Agriculture Infrastructure
Loans for agriculture infrastructure will be subject to an aggregate sanctioned limit of ₹100 crore per
borrower from the banking system.

Ancillary Services
Following loans under ancillary services will be subject to limits prescribed as under:
i. Loans up to ₹5 crore to co-operative societies of farmers for purchase of the produce of members
(Not applicable to UCBs)
ii. Loans up to ₹50 crore to Start-ups, as per definition of Ministry of Commerce and Industry, Govt. of
India that are engaged in agriculture and allied services.
iii. Loans for Food and Agro-processing up to an aggregate sanctioned limit of ₹100 crore per

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borrower from the banking system.

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 Outstanding deposits under RIDF and other eligible funds with NABARD on account of priority sector
shortfall.
The eligible activities under ancillary services and food and agro-processing is given in Annex II and
Annex III, respectively.

Small and Marginal Farmers (SMFs)

For the purpose of computation of achievement of the sub-target, Small and Marginal Farmers will include
the following:
i. Farmers with landholding of up to 1 hectare (Marginal Farmers).

ii. Farmers with a landholding of more than 1 hectare and up to 2 hectares (Small Farmers).
iii. Landless agricultural labourers, tenant farmers, oral lessees and share- croppers whose
share of landholding is within the limits prescribed for SMFs.
iv. Loans to Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups of individual
SMFs directly engaged in Agriculture and Allied Activities, provided banks maintain disaggregated data of
such loans.
v. Loans up to ₹2 lakh to individuals solely engaged in Allied activities without any
accompanying land holding criteria.
vi. Loans to FPOs/FPC of individual farmers and co-operatives of farmers directly engaged in
Agriculture and Allied Activities where the land-holding share of SMFs is not less than 75 per cent, subject
to loan limits prescribed in para 8.2. UCBs are not permitted to lend to co-operatives of farmers.

Lending by banks to NBFCs and MFIs for on-lending in agriculture

(i) Bank credit extended to registered NBFC-MFIs and other MFIs (Societies, Trusts etc.) which are
members of RBI recognised SRO for the sector, for on-lending to individuals and also to members of SHGs /
JLGs will be eligible for categorisation as priority sector advance under respective categories of agriculture
subject to conditions specified in para 21 (not applicable to RRBs, UCBs, SFBs and LABs).
(ii) Bank credit to registered NBFCs (other than MFIs) towards on-lending for ‘Term lending’
component under agriculture will be allowed up to ₹ 10 lakh per borrower

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subject to conditions specified in para 22 and 24 (not applicable to RRBs, UCBs, SFBs and LABs).

2. Micro, Small and Medium Enterprises (MSMEs)

The definition of MSMEs will be as per Government of India (GoI), Gazette Notification S.O. 2119 (E)
dated June 26, 2020 read with circular RBI/2020-2021/10 FIDD.MSME & NFS.BC.No.3/06.02.31/2020-21
read with FIDD.MSME & NFS. BC.
No.4 /06.02.31/2020-21 dated July 2, 2020, August 21, 2020 respectively on ‘Credit flow to Micro, Small
and Medium Enterprises Sector’ and updated from time to time. Further, such MSMEs should be engaged in
the manufacture or production of goods, in any manner, pertaining to any industry specified in the First
Schedule to the Industries (Development and Regulation) Act, 1951 or engaged in providing or rendering of
any service or services. All bank loans to MSMEs conforming to the above guidelines qualify for
classification under priority sector lending.

Factoring Transactions (not applicable to RRBs and UCBs)

(i) ‘With Recourse’ Factoring transactions by banks which carry out the business of
factoring departmentally wherever the ‘assignor’ is a Micro, Small or Medium Enterprise would be eligible
for classification under MSME category on the reporting dates.
(ii) In terms of paragraph 9 of Circular DBR.No. FSD.BC.32/24.01.007/2015- 16 dated July
30, 2015 on ‘Provision of Factoring Services by Banks- Review’, inter-alia, the borrower’s bank shall obtain
from the borrower, periodical certificates regarding factored receivables to avoid double financing/
counting. Further, the ‘factors’ must intimate the limits sanctioned to the borrower and details of debts
factored to the banks concerned, taking responsibility to avoid double financing.
(iii) Factoring transactions pertaining to MSMEs taking place through the Trade Receivables
Discounting System (TReDS) shall also be eligible for classification under priority sector.

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 Khadi and Village Industries Sector (KVI)
All loans to units in the KVI sector will be eligible for classification under the sub- target of 7.5 percent
prescribed for Micro Enterprises under priority sector.
Other Finance to MSMEs
(i) Loans up to ₹50 crore to Start-ups, as per definition of Ministry of Commerce and
Industry, Govt. of India that confirm to the definition of MSME as per Para 9.
(ii) Loans to entities involved in assisting the decentralized sector in the supply of inputs and
marketing of output of artisans, village and cottage industries. In respect of UCBs, the term “entities” shall
not include institutions to which UCBs are not permitted to lend under the RBI guidelines / the legal
framework governing their functioning.
(iii) Loans to co-operatives of producers in the decentralized sector viz. artisans, village and
cottage industries (Not applicable for UCBs).
(iv) Loans sanctioned by banks to NBFC-MFIs and other MFIs (Societies, Trusts etc.) which are
members of RBI recognised SRO for the sector for on-lending to MSME sector as per the conditions
specified in paragraph 21 of these Master Directions (not applicable to RRBs, SFBs and UCBs)
(v) Loans to registered NBFCs (other than MFIs) for on-lending to Micro & Small Enterprises
as per conditions specified in para 22 of these Master Directions (not applicable to RRBs, SFBs and UCBs)
(vi) Credit outstanding under General Credit Cards (including Artisan Credit Card, Laghu
Udyami Card, Swarojgar Credit Card and Weaver’s Card etc. in existence and catering to the non-farm
entrepreneurial credit needs of individuals).
(vii) Overdraft to Pradhan Mantri Jan-Dhan Yojana (PMJDY) account holders as per limits and
conditions prescribed by Department of Financial Services, Ministry of Finance from time to time, will
qualify as achievement of the target for lending to Micro Enterprises.
(viii) Outstanding deposits with SIDBI and MUDRA Ltd. on account of priority sector shortfall.

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3. Export Credit (not applicable to RRBs and LABs)
Export credit under agriculture and MSME sectors are allowed to be classified as PSL in the respective
categories viz. agriculture and MSME. Export Credit (other than in agriculture and MSME) will be allowed
to be classified as priority sector as per the following table:
Domestic banks / WoS of Foreign banks with 20 Foreign banks with less
Foreign banks/ SFBs/ UCBs branches and above than 20 branches
Incremental export credit over Incremental export credit Export credit up to 32 per
corresponding date of the over corresponding date of cent of ANBC or CEOBE
preceding year, up to 2 per cent the preceding year, up to 2 whichever is higher.
of ANBC or CEOBE whichever is percent of ANBC or CEOBE
higher, subject to a sanctioned whichever is higher.
limit of up to ₹ 40
crore per borrower.

Export credit includes pre-shipment and post-shipment export credit (excluding off-balance sheet
items) as defined in Master Circular on Rupee / Foreign Currency Export Credit and Customer Service to
Exporters issued by Department of Regulation, RBI vide DBR No.DIR.BC.14/04.02.002/2015-16 dated July 1,
2015 and updated from time to time.
4. Education
Loans to individuals for educational purposes, including vocational courses, not exceeding ₹ 20 lakh will be
considered as eligible for priority sector classification. Loans currently classified as priority sector will
continue till maturity.
5. Housing
Bank loans to Housing sector as per limits prescribed below are eligible for priority sector classification:
(i) Loans to individuals up to ₹35 lakh in metropolitan centres (with population of ten
lakh and above) and up to ₹25 lakh in other centres for purchase/construction of a dwelling unit per family
provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not
exceed ₹45 lakh and ₹30 lakh respectively. Existing individual

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housing loans of UCBs presently classified under PSL will continue as PSL till maturity or repayment.
(ii) Housing loans to banks’ own employees will not be eligible for classification under
the priority sector.
(iii) Since Housing loans which are backed by long term bonds are exempted from ANBC,
banks should not classify such loans under priority sector. Investments made by UCBs in bonds issued by
NHB / HUDCO on or after April 1, 2007 shall not be eligible for classification under priority sector.
Loans up to ₹10 lakh in metropolitan centres and up to ₹6 lakh in other centres for repairs to damaged
dwelling units conforming to the overall cost of the dwelling unit as prescribed in para 12.1.
Bank loans to any governmental agency for construction of dwelling units or for slum clearance and
rehabilitation of slum dwellers subject to dwelling units with carpet area of not more than 60 sq.m.
Bank loans for affordable housing projects using at least 50% of FAR/FSI for dwelling units with carpet
area of not more than 60 sq.m.
Bank loans to HFCs (approved by NHB for their refinance) for on-lending, up to ₹20 lakh for individual
borrowers, for purchase/construction/ reconstruction of individual dwelling units or for slum clearance and
rehabilitation of slum dwellers, subject to conditions specified in para 23 and 24.
Outstanding deposits with NHB on account of priority sector shortfall.

6. Social Infrastructure
Bank loans to social infrastructure sector as per limits prescribed below are eligible for priority sector
classification
Bank loans up to a limit of ₹5 crore per borrower for setting up schools, drinking water facilities and
sanitation facilities including construction/ refurbishment of household toilets and water
improvements at household level, etc. and loans up to a limit of ₹10 crore per borrower for
building health care facilities including under ‘Ayushman Bharat’ in Tier II to Tier VI centres.

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In case of UCBs, the above limits are applicable only in centres having a population of less than one lakh.
# Bank loans to MFIs extended for on-lending to individuals and also to members of SHGs/JLGs for
water and sanitation facilities subject to the criteria laid down in paragraph 21 of these Master
Directions.
# not applicable to RRBs, UCBs and SFBs.

7. Renewable Energy

Bank loans up to a limit of ₹30 crore to borrowers for purposes like solar based power generators, biomass-
based power generators, wind mills, micro-hydel plants and for non-conventional energy based public
utilities, viz., street lighting systems and remote village electrification etc., will be eligible for Priority Sector
classification. For individual households, the loan limit will be ₹10 lakh per borrower.

8. Others
The following loans as per the prescribed limits are eligible for priority sector classification:
Loans not exceeding ₹1.00 lakh per borrower provided directly by banks to individuals and individual
members of SHG/JLG, provided the individual borrower’s household annual income in rural
areas does not exceed ₹1.00 lakh and for non-rural areas it does not exceed ₹1.60 lakh, and
loans not exceeding ₹2.00 lakh provided directly by banks to SHG/JLG for activities other than
agriculture or MSME, viz., loans for meeting social needs, construction or repair of house,
construction of toilets or any viable common activity started by the SHGs.
Loans to distressed persons [other than distressed farmers indebted to non- institutional
lenders] not exceeding ₹1.00 lakh per borrower to prepay their debt to non-institutional
lenders.
Loans sanctioned to State Sponsored Organisations for Scheduled Castes/ Scheduled Tribes for the
specific purpose of purchase and supply of inputs

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and/or the marketing of the outputs of the beneficiaries of these organisations.
Loans up to ₹50 crore to Start-ups, as per definition of Ministry of Commerce and
Industry, Govt. of India that are engaged in activities other than Agriculture or MSME.

9. Weaker Sections
Priority sector loans to the following borrowers will be considered as lending under Weaker
Sections category:

(i) Small and Marginal Farmers

(ii) Artisans, village and cottage industries where individual credit limits do not
exceed ₹1 lakh
(iii) Beneficiaries under Government Sponsored Schemes such as National Rural
Livelihood Mission (NRLM), National Urban Livelihood Mission (NULM) and Self
Employment Scheme for Rehabilitation of Manual
Scavengers (SRMS)
(iv) Scheduled Castes and Scheduled Tribes
(v) Beneficiaries of Differential Rate of Interest (DRI) scheme
(vi) Self Help Groups
(vii) Distressed farmers indebted to non-institutional lenders
(viii) Distressed persons other than farmers, with loan amount not exceeding ₹1
lakh per borrower to prepay their debt to non-institutional lenders
(ix) Individual women beneficiaries up to ₹1 lakh per borrower (For UCBs, existing loans
to women will continue to be classified under weaker
sections till their maturity/repayment.)
(x) Persons with disabilities
(xi) Minority communities as may be notified by Government of India from time
to time.

Overdraft availed by PMJDY account holders as per limits and conditions prescribed by Department
of Financial Services, Ministry of Finance from time to time may be classified under Weaker Sections.
In States, where one of the minority communities notified is, in fact, in majority, item (xi) will cover
only the other notified minorities. These States/ Union Territories are Punjab, Meghalaya, Mizoram,
Nagaland, Lakshadweep and Jammu & Kashmir.

यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106

UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

INDEX
S. No Particulars of Chapters Page no
1 KISAN CREDIT CARD SCHEME (KCC) 05-09
2 UCO Kisan Tatkal Scheme 10-10
3 UCO Two-wheeler, Light & Medium Vehicle Financing for Farmer 11-12
4 UCO Kisan Bhoomi Vridhi Yojana (UKBVY) 13-13
5 UCO Kisan All Purpose Term Loan 14-14
6 UCO Estate Purchase Loan 15-15
7 Agriculture Loan against Warehouse/Cold Storage Receipt 16-17
8 Finance to Rice Shellers 18-19
9 Minor Irrigation Scheme 20-22
10 Pumpsets Financing 23-25
11 Solar Irrigation Pumpset 26-26
12 Agriclinics and Agri Business 27-28
13 UCO Agricultural Marketing Infrastructure 29-35
14 UCO Food and Agro Processing Units Financing 36-38
15 Cold Storage- Construction/Expension/Modernization Financing & 39-40
Cold-Chain Infrastructure Financing
16 Financial Assistance to Sugar Mills for Enhancement and 41-43

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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

Augmentation of Ethanol Production Capacity

17 UCO Fishery Scheme 44-47
18 UCO FPC & NFPC Scheme 45-53
19 Horticulture and Plantation crops Financing 54-56
20 Green House Farming Scheme 57-62
21 Tractor and other Agricultural Machinery Financing 63-65
22 Dairy Entrepreneurship Development Scheme (DEDS) 66-68
23 DAY- NRLM 69-71
24 DAY- NULM 72-74
25 UCO MAHILA UTTHAN 75-75
26 General Credit Card (GCC) 76-76
27 DRI 77-77
28 Self Help Group 78-79
29 Joint Liability Group 80-81
30 Farmer’s Club 82-83
31 Different Loan Application Form 84-85

1. KISAN CREDIT CARD SCHEME (KCC)

Type of Facility Short Term Credit (CC) & Long Term Credit (TL)
Scope of Finance All Rural and Semi-Urban Branches and in some selected Urban Branches where villages
are allocated under Annual Credit Plan(ACP)
Purpose/ Short Term Credit (CC) :-
Objective To meet the short term credit requirements for cultivation of crops
Post-Harvest Expenses
Produce Marketing loan
Consumption requirement of farmer household
Working capital for maintenance of farm assets and agriculture allied activities, like dairy
animals, inland fishery etc.
Extension of Kisan Credit Card Facility to Animal Husbandry & Fishery (AH & F)
A. Fishery :-
1. Inland Fisheries & Aquaculture
2. Marine Fisheries
B. Poultry & Small Ruminant:-
C. Dairy
Long Term Credit (TL) :- Investment credit requirement for agriculture and allied activities
like pump sets, sprayers, dairy animals etc.
Eligibility All Farmers- Individuals/Joint borrowers who are owner cultivators
Tenant Farmers, Oral lessees & Share Croppers
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc.
Salient Features of Farmer’s KCC limit will be fixed on the basis of his/her/their cultivated land holding,
the Revised cropping pattern and investment.
KCC Scheme/ Basic formula of KCC Limit = SOF x Cultivated LH + 10 % #+ 20 % *
Quantum of Loan SOF- Scale of finance for the crop (as decided by DLTC)
10 %# of limit towards post-harvest / household / consumption requirements
20% * of limit towards maintenance expenses of farm assets plus crop insurance
 Assessment of limit for second & subsequent year :- first year limit for crop cultivation
purpose arrived at as above plus 10% of the limit towards cost escalation/increase in
scale of finance for every successive year (2 nd, 3rd, 4th& 5th year ) and estimated Term loan
component for the tenure of Kisan Credit Card, i.e., five years.

 1st year limit =SOF x Cult. LH + 10% + 20%

 2nd year limit = 1st year limit x 110%
 3rd year limit = 2nd year limit x 110%
 4th year limit = 3rd year limit x 110%
 5th year limit = 4th year limit x 110% = A
 If there is any term loan or investment of B
 Then total maximum permissible limit of KCC = A+B

Sanction limit will be A+B, but drawing limit must be maintained as per farmer’s
cultivating pattern and investment.
Note: Drawing Limit will be reduced every year based on repayment schedule of the
Term Loan(s) availed and withdrawals will be allowed up to the drawing limit.
 Flexi KCC with simple assessment prescribed for marginal farmers.
 Validity of KCC for 5 years.
 For crop loans, no separate margin need to be insisted as the margin is in-built in scale
of finance.
 No withdrawal in the account to remain outstanding for more than 12 months; no
need to bring the debit balance in the account to zero at any point of time.
 Interest subvention / incentive for prompt repayment to be available as per the
Government of India and / or State Government norms.
 No processing fee up to a limit of Rs. 3.00lakh.
 One time documentation at the time of first availment and thereafter simple
declaration (about crops raised/proposed) by farmer.
 The credit balance in KCC cum SB account to be allowed to fetch interest at saving
bank rate.
 Disbursement through various channels, including ICT driven channels like
ATM/PoS/Mobile handsets.
 Zonal Manager may allow up to 50% and General Managers, Agriculture & Rural
Business Department, Head Office shall have power to the extent of 100% excess limit
over & above the scale of finance fixed by District Level Technical Committee (DLTC) for
Short Term Agricultural Production Credit under KCC for a district/area under their
jurisdiction within their sanctioning power.
 Term loan for investment
The term loan for investment is to be made towards
a. land development,

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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

b. minor irrigation,
c. Purchase of farm equipment and allied agricultural activities.
Bank may fix limit on the basis of Repayment capacity vis-a-vis total loan burden
devolving on the farmer, including existing loan obligations. The long term loan limit
should be based on the proposed investment(s) during the five year period and the bank's
perception on the repaying capacity of the farmer.
KCC Type Scheme Code Scheme Description
Scheme Code KCC for Crops CC104 KCC for Crops ≤ 300000
C104A KCC for Crops > 300000
C104B KCC under JLG for Crops ≤ 300000
C104C KCC under JLG for Crops > 300000
KCC for Fisheries C104D KCC for WC for Fisheries ≤ 200000
C104F KCC for WC for Fisheries > 200000
KCC for AH C104E KCC for WC for AH ≤ 200000
(Animal Husbandry) C104G KCC for WC for AH > 200000
Interest Rates& Item Rate of Interest Incentive Subvention
Interest Interest Subvention
Subvention Agril Crop Loan up to 7.00% 2.00% upto Rs. 3 3.00% for Prompt
Rs. 3.00 lakh. lakh paying farmers upto
Rs.3.00lakh
Above Rs. 3.00 lakh MCLR +1.15% Not applicable Not applicable
and uptoRs. 25 lakh
Above Rs. 25.00 lakh MCLR +2.15% Not applicable Not applicable
and uptoRs. 1.00
crore
KCC for WC for 7.00 % Up to 2 lakh only 3.00% for Prompt
Fisheries ≤ 200000 paying farmers upto
KCC for WC for AH ≤ Rs.2.00lakh
200000
KCC for WC for MCLR +1.15% Not applicable Not applicable
Fisheries & AH >Rs 2
lakh and uptoRs 25
lakh
KCC for WC for MCLR +2.15% Not applicable Not applicable
Fisheries & AH >Rs 25
lakh and uptoRs
1crore.
 As per Circular CHO/RM/25/2012-13 dated 18.10.2012, Credit Rating of agriculture
advances more than 1 Crore.
 Up toRs 3 lakh interest subvention up to 2% , prompt repayment further 3% is available.
 The benefit @ 2 % interest subvention will be available to small and marginal farmers
having KCC for a further period of up to six months post harvest of the crop at the same
rate as available to crop loan against negotiable warehouse receipts finance on produce
stored in warehoused accredited with WDRA ( warehousing development regulatory

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UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

authority)
 To provide relief to farmers affected by natural calamities, interest subvention @ 2%
per annum is available for the first year on the restructured loan amount. Such
restructured loans will attract normal rate of interest from the second years onwards.
 If the customer does not repay within the due date or maximum within one year the
interest should be charged from due date at the normal rate i.e. MCLR +1.15% vide
Circular CHO/RM/25/2012-13 dated 18.10.2012.
The interest structure be changed in INTTM menu.
 Circulars ;
CHO/ARBD/48/2012-13 dated 21.09.2012
CHO/ARBD/78/2012-13 dated 17.01.2013
CHO/ARBD/15/2019-20 dated 04.09.2019
CHO/ARBD/23/2020-21 dated 25.11.2020
Subsidy Illustrations
Illustration I
Overall KCC limit – ₹ 2.5 lakhs Limit
Crop loan - ₹ 1.5 lakhs
Sub-limit KCC for Animal Husbandry and / or fisheries –₹ 1 lakh
Interest subvention/PRI benefit will be available on overall ₹ 2.5 lakhs i.e. ₹ 1.5 lakhs crop
loan + ₹ 1 lakh animal husbandry and / or fisheries
Illustration II
Overall KCC limit - ₹ 3 lakhs Limit under Crop loan - ₹ 0.5 lakh
Sub-limit KCC for Animal Husbandry and / or fisheries - ₹ 2.5 lakhs
Interest subvention/PRI benefit will be available on overall ₹ 2.5 lakhs i.e. • ₹ 0.5 lakh
crop loan + ₹ 2 lakhs animal husbandry and / or fisheries
Illustration III
Overall KCC limit - ₹ 4 lakhs Limit under Crop loan - ₹ 1.75 lakhs
Sub-limit KCC for Animal Husbandry and / or fisheries - ₹ 2.25 lakhs
Interest subvention/PRI benefit will be available on overall ₹ 3 lakhs i.e. • ͅ₹ 1.75 lakhs
crop loan + ₹ 1.25 lakhs animal husbandry and / or fisheries
Illustration IV
Overall KCC limit - ₹ 4.5 lakhs Limit under Crop loan - ͅ₹ 2 lakhs
Sub-limit KCC for Animal Husbandry and / or fisheries - ₹ 2.5 lakhs
Interest subvention/PRI benefit will be available on overall ₹ 3 lakhs I.e. • ₹ 2 lakhs crop
loan + ₹ 1 lakh animal husbandry and / or fisheries
Illustration V
Overall KCC limit - ₹ 4 lakhs Limit under Crop loan - ₹ 3.15 lakhs
Sub-limit KCC for Animal Husbandry and / or fisheries - ₹ 0.85 lakh
Interest subvention/PRI benefit will be available on overall ₹ 3 lakh for crop loan
component only
Security Security requirement may be as under:
 For KCC limit up to Rs. 1.60 lakh no margin/ security requirements
 With Tie-up for Recovery: Hypothecation of livestock & crop up to card limit of Rs.3
lakh & on hypothecation of livestock only up to card limit of Rs.2 lakh only without
insisting on collateral security.
 Collateral Security: Collateral security is obtained for limit above Rs. 1.60 lakh in case
of non-tie-up and above Rs. 3 lakh in case of tie-up advance, Such collateral security
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UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

can Pledge of Gold Coins ( up to 50 gram per borrower), ornaments & Jewellary and or
charge/Extension of charge of landed properties (Non- Agricultural Land and Landed
property includes land and the structure thereon) and/or Liquid Security.
 LTV of 100 % must be maintained throughout the tenure of the loan.
Documentation A1/2, A47, A3, A116, A117,A105 (modified), A107 (A), or A107 letter of Guarantee.
Disbursement The KCC limit is in the nature of revolving cash credit facility without any restriction in
number of debits and credits.
After the harvest period of the crops, the farmer(s) shall be eligible for the loan.
Repayment: In suitable half-yearly / annual installments coinciding with overall income generation of
the farmer.
3-5 years in half yearly / annual installments.
The loan is to be cleared in full if a fresh / enhanced limit is sought during the subsequent
year based on revised KCC limit.
Review/Renewal Annually
Insurance PMSBY: All KCC holders to be covered under PMSBY with a premium of Rs. 12/- per year
for availing accidental insurance uptoRs. 2,00,000/- in lieu of discontinuance of PAIS
(CHO/ARBD/04/2017-2018 dated 05.07.2017) Pradhan Mantri Fasal Bima Yojana
(PMFBY) & Weather Based Crop Insurance Scheme (WBCIS)
The scheme is available to all the farmers – loanee and non-loanee.
The Scheme covers all Food and Oilseeds Crops and Annual Commercial / Horticulture
Crops.
The maximum premium payable by the farmers will be 2 % for all Kharif Food & Oilseeds
Crops, 1.5 % for all Rabi Food & Oilseeds Crops and 5 % for Annual Commercial/
Horticultural Crops.
Cut off date for receipt of Proposals of farmers/debit of premium from farmers account –
For Kharif – 31st July & For Rabi – 31st December.
NPA The extant prudential accounting norms for income recognition, assets-classification
and provisioning will apply for loans granted under the KCC scheme
Farm Credit - Agriculture Advances :
Crop loans (and KCC) in agriculture advance will be classified NPA as per crop seasons and
Crop classification is done by SLBC in each States.
Short Duration Crops: Loan granted for short duration crops will be treated as NPA, if the
installment of principal or interest thereon remains overdue for two crop seasons.
Long Duration : Loan granted for long duration crops will be treated as NPA, if the
installment of principal or interest thereon remains overdue for one crop season.
Repayment due dates based on cropping pattern are as follows:
S. Cropping Pattern Crop cultivation period Repayment due date
No (Loan disbursement (fixed) (which shall also be
period) the renewal date)
1 Khariff Crop 1 April to 30 September 31st January
st th

(mono)
2 Rabi Crop (mono) 1st October to 31st March 31st July
3 Double/Multiple Khariff & Rabi Seasons 31st July
Crops
4 Long Term Crops All round the year 12 Months (from the date
(no specific of first disbursement)

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UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

season)
Circular Reference :-

Circular No Date Circular No Date

CHO/ARBD/05/2012-13 22.05.2012 CHO/ARBD/40/2012-13 28.08.2012
CHO/ARBD/15/2012-13 27.06.2012 CHO/ARBD/49/2012-13 29.09.2012
CHO/ARBD/62/2012-13 05.11.2012 CHO/ARBD/01/2016-17 08-04-2016
CHO/ARBD/28/2014-15 02.01.2015 CHO/ARBD/03/2016-17 13-04-2016
CHO/ARBD/17/2016-17 22-06-2016 CHO/ARBD/04/2017-18 05.07.2017
CHO/ARBD/08/2018-19 (KCC CHO/ARBD/22/2019-20
07.07.2018 19.11.2019
Comprehensive Guidelines) (WC to Animal Husbandry & Fishery)
CHO/ARBD/19/2020-21
09.09.2020
(Modification in KCC)

2. UCO KISAN TATKAL SCHEME

Type of Facility

Scope of Finance All Rural and Semi-Urban Branches and in some selected Urban Branches where
villages are allocated under Annual Credit Plan(ACP)
Purpose/ Any purpose (Agriculture or Domestic purposes like social rituals, medical emergency
Objective or other else ) an instant credit for existing KCC farmer *( having satisfactory track
record)
KCC Farmer*- Eligible farmer’s interest subvention claimed submitted continuous last
2 years
Eligibility Individual farmers / joint borrowers (not exceeding 4 farmers) who are existing Kisan
Credit Card (KCC) holder having satisfactory track record of at least two years.
Quantum of Loan Minimum limit: ₹10000/ ; Maximum limit: ₹100000/-
(Subject to ceiling at 50% of existing KCC limit / 25% of annual income)
Scheme Code LA630
RBC code 13010
Rate of Interest One Year MCLR + 0.15 % (without interest subvention)
Security Over all coverage of security must be 125% of total exposure
Extension of charge on land if the amount exceeds ₹ 100000/- subject to value of
security at 125 % of total exposure. Landed property includes land and structure
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 A Handbook on Agriculture Credit Scheme

thereon.
Documentation A116 (Revised) Form-A and other documents as per Bank’s extant guidelines.
and others Minimum half yearly farm visits, as applicable to KCC limits.
Priority Sector- Direct Agriculture
Personal accident The individual farmers are eligible for Personal Accident Insurance Scheme as per
insurance provision of KCC under Pradhan Mantri Suraksha BimaYojna (PMSBY)
(Cir. No- CHO/ARBD/04/2017-18 Dt- 05/07/2017 and the insurance premium is to be
borne by the borrower.)
Optional PMJJBY
Crop Insurance All crop loans to be mandatorily covered under PMFBY/WBCIS
Scheme
Disbursement After the harvest period of the crops, the farmer(s) shall be eligible for the loan.
Repayment: In suitable half-yearly / annual installments coinciding with overall income generation
of the farmer.
3 years in half yearly / annual installments.
The loan is to be cleared in full if a fresh / enhanced limit is sought during the
subsequent year based on revised KCCS limit.
Review/Renewal Annually
Circular Reference :-
CHO/ARBD/75/2012-13 Dated: 10.01.2013
CHO/ARBD/19/2018-19 Dated: 07.12.2018 (Modification of UCO Kisan Tatkal Scheme)

3. Two-Wheeler, Light & Medium Vehicle for Farmer

Type of Facilities
Title of the Product

Scope of Coverage To augment flow of credit to farmers, especially small & marginal
Farmers engaged in farm and allied activities.
Purpose/Objective It provides hassle free financial assistance to purchase two-wheeler, medium and light
vehicles like mini-trucks, pick up van for conveyance needs of existing KCC farmer
( having satisfactory track record) for farm activities.
Eligibility Criteria for An Individual or group of farmers engaged in farming or allied activities:
Borrower 1. Existing Kisan Credit Card (KCC) holder having satisfactory track record of at least
two years and also having Minimum land holding like this :-
a) For Two-Wheeler – Land Holding one hectare or more
b) For purchase of light & medium vehicles like, Pick up Vans, Mini Trucks – Land Holding
four hectare or more
Quantum of Loan 75% of the project cost (cost of vehicle plus insurance & registration cost) is the maximum
limit for bank finance subject his/her eligibility as hereunder :-
1. Total deduction including proposed finance should not go beyond 60% of individual

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 A Handbook on Agriculture Credit Scheme

farmer income.
2. In case of Two-wheeler maximum loan amount per vehicle is Rs1 lac
3. In case of Light & Medium vehicle max. loan amount per vehicle is Rs.7 lac.
Scheme Code LA632 : For Two-Wheeler
LA633: For Light & Medium Vehicle
RBC Code 13010
Disbursement of Loan The Draft/Pay order issued towards cost of the vehicle should be sent directly to the
dealer by registered post or delivered by hand. A copy of receipt of DD/Pay order to be
kept in record.
Branches should arrange for physical inspection of the vehicle and related documents
immediately after sanction of the loan. Records for such verification along with photos of
borrower with the financed vehicle should be preserved in the loan file.
Rate of interest One year MCLR+1.15 %
Penal Interest As per extant guidelines of the bank from time to time.
Processing Charges As per bank’s extant guidelines.
Documentation As per bank’s extant guidelines.
Charges
Cibil/CRIF Charges As per bank’s extant guidelines.
Pre-Payment Charge No pre-payment charges
Security 1. For Loan up to Rs.100000/- Hypothecation of assets created out of our bank finance i.e.
vehicle.
2. For Loans above Rs.100000/- Hypothecation of assets created out of our bank finance
and Extension of charge of landed properties (it shall be at least 200% of the total
exposure). Landed Property includes land and structure thereon.
Repayment Period Loan with interest thereon and other charges will be repaid in 60 months EMI /10 half
yearly equally installments i.e. as per cash flow of the project repayment period are to be
selected. The said repayment period is inclusive of Moratorium. ECS Mandate to be
obtained for installments.
Moratorium 6 months.
Insurance of Vehicle The Vehicle should be comprehensively insured with Bank Clause and a copy of the
insurance policy should be kept in Bank’s records.
Personal accident The individual farmers are eligible for Personal Accident Insurance Scheme as per
insurance provision of KCC under Pradhan Mantri Suraksha Bima Yojna (PMSBY) vide circular no-
CHO/ARBD/04/ 2017-18 DT.05/07/2017 and the insurance premium is to be borne by the
borrower.
PMJJBY Insurance The Disbursing branch should explore the coverage of all individual farmers for Pradhan
Mantri Jeevan Jyoti Bima Yojna (PMJJBY) at borrower cost but the coverage is optional for
the borrower.
Crop Insurance scheme If the individual farmers are having KCC with us then all crop loans to be mandatorily
covered under Pradhan Mantri Fasal Bima Yojna (PMFBY) /Weather Based crop insurance
Scheme(WBCIS) as per the case provided loan has been disbursed in the name of
individual member.
CGFMU Coverage If total exposure is up to Rs.1.00 lacs only then loan to individuals engaged in allied
activities eligible to be covered under CGFMU should be covered under the scheme.
Review/Renewal The accounts under the scheme are to be reviewed annually.
Other terms and 1. Maximum one vehicle can be sanctioned to a farmer in the scheme.
Conditions 2. Each branch can sanction maximum 5 number of vehicles during a financial year
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 A Handbook on Agriculture Credit Scheme

beyond that permission from ZLCC is to be obtained.

3. Financing for used/Second hand vehicle is not allowed.
4. Insurance and RC Copy of the vehicle is to be kept with the documents of the
loan account.
5. Branch can only finance vehicles purchased from authorized dealers and must
visit dealer place before disbursement.
6. The farmers are allowed to use the vehicle financed under the scheme for their
own farm or/& allied activities only i.e. to meet their own farm needs only. Also
they need to give a declaration for the purpose at the time of documentation
and same need to be kept along with other documents.

Circular Reference :-

CHO/ARBD/20/2018-19 Dated:- 07/12/2018 (Introduction Circular)

4. UCO KISAN BHOOMI VRIDHI YOJANA (UKBVY)

Objective  To make the small and marginal holdings economically viable
 To bring fallow lands and waste lands under cultivation.
 To step up agricultural production and productivity
 To finance the share croppers/tenant farmers to purchase land to enable them to
increase their income.
Purpose  The objective of the Scheme is to finance the farmers to purchase, develop and
cultivate agricultural as well as fallow and waste lands.
 Branches may consider financing maximum amount of Rs. 10.00 lacs for purchase of
land for establishing or diversifying into other allied activities.
Eligibility  Small and marginal farmers i.e. those who own maximum of 5 acres of non-irrigated
land or 2.5 acres of irrigated land including purchase of land under the scheme.
 Share croppers/ Tenant farmers.
Quantum of Loan Quantum of loan will depend upon –
1. Valuation as assessed by the Branch.
2. Bench Mark Rate fixed by the State.
3. The registration value.
Out of the three above whichever is less. Plus value of Stamp duty, registration charges
for sale/ mortgage. (Maximum amount of Rs. 10 lacs. )
Scheme Code/ RBC Scheme Code: LA610
Code RBC Code: 13010
Rate of Interest One year MCLR+0.15% . Simple rate at half yearly rest.
Penal Interest UptoRs. 25000.00 : Nil
Above Rs. 25000.00 : As per extant guidelines.
Valuation Valuation to be done for fixing the quantum of finance. The price indicated by the
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 A Handbook on Agriculture Credit Scheme

farmer may be cross checked with the last 5 years‟ average registration value available
with the Registrar/ Sub-Registrar of the area.
Margin The margin will be minimum of 15 %.
Security  The land purchased out of the bank finance.
 Charge creation of land purchased.
 Hypothecation of crops grown from time to time on land.
Disbursement The Term loan is to be disbursed by way of demand draft in favour of vendor after
collecting the required margin from the party or after ascertaining advance paid
supported by proof of documents.
Receipt from the vendor for having received the consideration/ sale proceeds in full
shall be kept along with the loan papers.
The draft sale deed shall be got approved by the Bank’s empanelled advocate before
disbursing.
Repayment period Loan may be repaid in 7-10 years in half yearly/ yearly installments including a
maximum moratorium period of 12 months

Other Terms The farmers should also be financed short term crop loan under KCC, so that they can
&conditions undertake agricultural activities in the purchased land.

Circular Reference :-CHO/ARBD/68/2012-13 Dated: 22.12.2012

5. UCO KISAN ALL PURPOSE TERM LOAN SCHEME

Objective/  To create a hassle free single term loan limit to farmers for all term loan
Purpose requirements like Farm Mechanization, Land Development, Minor Irrigation, Water
Conservation, Horticulture, Allied Activities and Other Agriculture related activities etc.
 Projects with a long gestation period (say more than 3-4 years) may not be
considered
Eligibility Individual, Joint / Group of Farmers-owner cultivators and JLGs, SHGs etc. engaged in
Agriculture and related activities.
Type of facility it is a separate Single Transaction Account and not be a part of the Kisan Credit Card
Limit. The loan repayable within 9 years.
Quantum of Loan  To be based on the investment plan given by the farmer to be undertaken in the next
2-3 years.
 The plan can 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 whichever is
lower, with a maximum Rs.25 lakhs.
Scheme Code Not Specified
Rate of Interest (One year MCLR +1.15) %
Penal interest Upto Rs.25,000/- - NIL
Above Rs.25,000/- as decided by Banks.
Margin a) Small and Marginal Farmers : 5%
b)Other Farmers : 15%
 The entire margin need not be brought in upfront for the entire limit.
 The required margin may be brought at the time of creation of asset only.
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 A Handbook on Agriculture Credit Scheme

 Upto Rs.1.60 lakh - Hypothecation of Assets created out of the loans.

Security  Above Rs.1.60 lakh (aggregate loan) – Mortgage of land(it shall be at least 200% of
the limit sanctioned).
Disbursement The farmer may be allowed to draw the amount at his convenience, with a simple letter
of undertaking linked to the loan application/loan document executed. The drawal
to be permitted on the indicated limit for each of the purposes specified at the time
of sanction.
The farmer should undertake to create the asset/complete the project within 15/30
days of availing the disbursement.
Application As per Master Agricultural Loan Applications Form No.116 & respective Annexures of
loan, category-wise.
Processing and Other  Upto Rs.25,000/- - NIL
Charges  Above Rs.25,000/- - As applicable to Agricultural Term Loans.

Circular Reference :-

CHO/ARBD/80/2012-13 Dated: 17.01.2013

CHO/RM/01/2016-17 Dated 01.04.2016 (Interest Rate on Loans & Advances based on MCLR)

6. UCO ESTATE PURCHASE LOAN SCHEME

Purpose/ To purchase estates for coffee, tea, rubber and cardamom, cashew, pepper, coconut and other
Objective perennial orchard crops plantation.
Eligibility  The Purchaser should have yielding estates and should be in a position to rejuvenate the Estate
proposed to be purchased.
 The intending borrowers having satisfactory past record with the Bank.
 The intending buyer 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 for realizing
higher yields. The estate should have the potential to absorb substantial credit for
developmental activities.
 The existing land holding and the land to be acquired of the borrower should be within the
land ceiling norms of respective State.
 The borrower should be experienced in the same line, financially sound.
Quantum of  Quantum of Loan shall be based on the lowest of (i), (ii) or (iii)
Loan (i) Market value
(ii) Guidance value/Circle rate fixed by the State, it may be cross checked with the last 5 years
average registration value available with the registrar/sub registrar or
(iii) purchase consideration, after retaining the necessary margin.
 The stamp duty and registration charges may also be considered.
 There will be no ceiling for the quantum of loan.
Margin  Normally 50% but in deserving cases it may be relaxed up to 25% in deserving cases.
Rate of Upto Rs.25.00 lac – MCLR + 1.15%
Interest Above Rs.25.00 lac and upto 1.00 Crore – MCLR +2.15%
Above Rs. 1.00 Crore – As per credit rating

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 A Handbook on Agriculture Credit Scheme

Repayment Within 7 to 9 years but inn some specific cases, depending on the status of the Estate and
Period rejuvenation period required, it may be extended up to 20 years.
Scheme Code Not specified scheme Code
Document A116, A1/A2, A47, A105, A109, A21/21A, 107/107A
Security  Mortgage of property to be purchased. Hypothecation of Plantation crops raised on the
land/Estate.
 Also, collateral security of mortgage of existing landed properties/ including preferably
residential property is to be obtained.
 In any case, the value of the security should not be less than 200% of the loan
amount
Disbursement The loan is to be disbursed by way of Demand Draft directly to the vendor after collecting the
margin money or after ascertaining the advance paid with documentary proof in shape of Demand
Loan. Later, on receipt of the original sale deed/certified true copy; term loan is to be disbursed on
putting through EMT/Mortgage. Receipt from the vendor for having received the
consideration/sale proceeds in full shall be kept along with the loan papers.
Processing and As per bank’s extant guidelines.
other charges

Circular Reference :- CHO/ARBD/76/2012-13 Dated: 10.01.2013

7. SCHEME FOR FINANCING FARMERS FOR MARKETING AGRICULTURE

PRODUCE i.e. AGAINST WAREHOUSE / COLD STORAGE RECEIPT
Type of Facility Short Term Loan for maximum 12 months.
Nature of The warehouse receipt is in accordance and prescribed as per the provision of the Warehousing
Receipt (Development and Regulation) Act, 2007 and eNWR (Electronic Negotiable warehouse Receipts)
issued under NERL (National E Repository Ltd.)
Our Bank has agreement with Repository Participant NERL, it is also regulated by Warehousing
Development and Regulatory Authority (WDRA).
Difference between Physical warehouse receipts and eNWR
Physical Warehouse Receipt Electronic Negotiable Warehouse Receipt (eNWR)
Due to physical form, multiple copies Issued in electronic form, secure electronic credit
can be issued leading to fraud into client’s account
It can be damaged, mutilated, defaced Impossible to be damaged/mutilated.
etc.
To be stored safely at some safe place Safe in electronic storage with repository
Needs physical, stationary, signature No need of physical stationary
and other noting
Not available anytime, anywhere Available anytime, anywhere as holder can access it
online
Part transfer/pledge not possible Part transfer/pledge possible
Not under any regulatory supervision Regulatory supervision of WDRA
No recourse for clients/FIs in case of In case of default by warehouse, recourse to WDRA
default by warehouse for resolution is available
It is continued to finance against Physical Warehouse Receipts but efforts is to be done to bring
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 A Handbook on Agriculture Credit Scheme

all into this safer system of eNWR financing.

Eligibility Short Term Loan to farmers, Corporate, Partnership firms and Institutions against their cold
storage/warehouse receipts issued by:
 Warehouses / cold storage units owned by Central and State Government entities.
 Warehouses/cold storage units owned/managed by National Collateral Management
Services Limited (NCMSL).
 Cold storage / warehouse units financed by our Bank, whose accounts are running regular.
(No finance will be made other than the Warehouse receipt of above noted category)
Quantum of 75% of the value of the stock stored.
Loan
Rate of Interest Loan amount Scheme RBC Rate of Interest(RoI)
& Scheme Code Code
Codes Upto ₹ 3.0 lakh(where intt. Sub.) 810AA 1301 7% (Interest Subvention @2%)
0
Upto ₹ 3 lakh to SF/MF 810AB 1301 MCLR as per tenor
0
Upto ₹ 3 lakh to other than MCLR as per tenor
SF/MF
Above ₹ 3 lakh and upto ₹ 50 MCLR as per tenor
lac to farmers
Upto ₹ 50 lakh under MSME MCLR as per tenor (irr. of Rating)
Above ₹ 50 lakh and upto ₹ 1 MCLR as per tenor (irr. of Rating)
cr. Under MSME
Above ₹ 1 cr. under MCLR as per tenor (irr. of Rating)
MSME/Ancially activities under
agriculture sector
WHR financing under NPS upto 1 yr MCLR+ 1.15 %
₹ 1 cr.
WHR financing under NPS As per rating
above ₹ 1 cr. 1 yr MCLR+ Spread
Loans to Corporate, Partnership & 810BB 1301 MCLR+1.15% (Half yearly)
institutions upto ₹ 50 lacs 7
Collateral Management Service Charges .85 % NCMSL & 1% CGRCML & the charges to be born
by the borrower
ROI maximum up to 50 basis points on case to case basis in case of advance above ₹ 3 lac and
upto to ₹ 50 lac can be reduced by the GM, ARBD, HO.
Sanctioning  Existing delegated powers vide circular no. CHO/RM/09/2011-12 dated 09.07.2011.
Authority  NBC clearance has to be obtained as per guidelines in circular no. CHO/RM/10/2012-13
dated 25.06.2012.
Service charges As per Bank’s extant guidelines.
Security  Pledge of Warehouse receipts.

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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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 A Handbook on Agriculture Credit Scheme

Documentation Bank’s usual documents will be executed namely;

a) Demand Promissory Note
b) Letter of Waiver
c) Letter of Pledge
d) In case of Firms & Companies, personal guarantee of promoter directors to be obtained.
e) Pledge of warehouse receipt duly discharged by the borrower/ depositor.
f) An undertaking from the borrower authorizing the bank to recover the advance through the
sale of the stored commodities on behalf of the borrower and to bear the expenses for
marketing of the commodities if the repayment is not made on due date.
Inspection has to be conducted on quarterly.
Insurance Before release of fund, confirmation of Banks’ interest marked on the Insurance policy to be
obtained against the bank’s pledge stock.
Circular Reference :-
CHO/ARBD/61/2013-14 Dated: 22.10.2013 CHO/ARBD/13/2015-16 Dated: 21.05.2015
(Main circular) (MSME classification)
CHO/ARBD/22/2015-16 Dated: 09.07.2015 CHO/ARBD/04/2016-17 Dated: 27.04.2016
(Interest charging frequency ) (Interest rate modification)
CHO/ARBD/32/2018-19 Dated: 17.02.2019 CHO/ARBD/02/2019-20 Dated: 11.04.2019
(Signing of repository Participant agreement (Financing against eNWR & agreement with NERL )
with CDSL Commodity Repository Ltd (CCRL))

8. SCHEME FOR PROVIDING FINANCE TO THE RICE SHELLERS

Type Term Loan /Cash Credit

Eligible borrower Individual or Proprietorship or Limited Company (Public or Private) or HUF having
i. Existing Rice shelling units profitable for at least last 3 years and
ii. New Rice Sheller units (owned as well as ‘On lease basis’) also eligible
Finance availability It can be any form either Term loan and Working Capital and/or export needs of Rice
shellers.
(Category classification- Loan for Food and agro Processing, up to Rs.100.00 Crore per
borrower, Classified as Finance to Agriculture(Priority Sector) ancillary activities)
Term loan Finance
iii.For financing factory Building to house the machinery and Storage space adequate to
store the Paddy and Rice.
iv. For financing Plant and Machinery for processing of paddy.
Working Capital finance including export finance
 For purchase of Paddy for shelling from the grain market where paddy is sold by
farmers under the Auction system to Rice millers
 Rice shelling on Job work basis for Govt agencies like FCI, NAFED (National
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

Agricultural Marketing Federation) etc.

 Export Finance: Packing credit to rice shellers to sell polished Basmati Rice to
Exporters
Advance against Warehouse receipts:
As usual Scheme For Financing Farmers For Marketing AgricultureProduce i.e. Against
Warehouse / Cold Storage Receipt
However it is to be ensured that funds availed under the Rice Sheller scheme are not
utilized for stocking in warehouse i.e., no dual financing takes place.
Non fund based limit;
Bank Guarantee (BG) :
It can be issued for paddy procurement from Govt. Agencies like Food Corporation of
India ( FCI), National Agricultural Marketing Federation ( NAFED) etc.
Scheme Code/ Term Loan LA859 13015
RBC Code Cash Credit CC120 13015
MSE RBC 24019

Rate of Interest Loan amount upto 25.0 Lakh- MCLR+1.15%

Loan amount above 25.0 lakh and upto 1 crore- MCLR+1.65%
Above Rs. 1 crore as per internal rating
Security Primary :
a) Working Capital- Hypothecation of Stocks excluding Husks & Books Debts not more
than 90 days.
B) Term Loan: Hypothecation /Mortgage of Assets purchased out of finance.
Collateral :
Minimum 60% of the exposure by way of mortgage of Immovable property (non-
agricultural). (CHO/ARBD/19/2012-13 DT. 12.06.2013)
Quantum of Loan The composite loan scheme will extend working capital Limit up to Rs.5.00 Crore for
domestic sales and up to Rs.7.50 crore for the unit engaged in export sales
Finance of units taken Obtention of collateral security at least to the equivalent of value of the advance in the
on lease basis form of immovable property.
Lease deed should be registered for minimum 15 years( 5 years with two renewal clause)
In case of takeover of loan account, all takeover norms are to be scrupulously followed.
Working Capital The season of Rice Shelling generally commences from August- September and end by
Assessment May – June next year.
The capacity of Rice Shelling is measured in tons per Hour. The total working days in a
year will be 200 days. (Maximum of 300 days for basmati rice and exported oriented
units)
For one ton of rice production, 1.50 ton of paddy is required to be milled.
The yield of rice is assumed @ 66 % (i.e.2/3 rd) of paddy shelled.
Stock in process to be included as inventory of raw material.
The actual support/ procurement price ( MSP as announced by the Govt.) or actual
market price whichever is lower to be taken as price of the paddy for calculating the limit
of working capital requirement.
Indicative holding period in assessment will be : Raw Material- Paddy(2 to 4 months),
finished goods- Rice(2 to 4 weeks), Rice Bran ( maximum of 4 weeks),Rice Husk
( maximum of 2 weeks; Consumables Maximum of 3 Months) Receivable ( 2 to 4 weeks).
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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 A Handbook on Agriculture Credit Scheme

The maximum permissible bank finance for calculating the working capital assessment is
to be made as per traditional method and on turnover method as per Nayak Committee
Recommendations, whichever is higher.
Margin Minimum Margin of 25% in stocks (excluding Husks) and 35 % under Book Debts not
more than 90 days be maintained while calculating Drawing Power.
Minimum Margin for BG is 25% of value of the assets to be purchased and / or cost of
expenditure to be incurred.
Additional limit of 20% of assessed limit may be considered based on cash flow
statement for peak level from September to March only ( Subject to availability of DP)
Service Charge As applicable.
Insurance Fixed assets and current assets are to be insured as per Bank’s norms
Lending power As per loan policy document.
Application Form Branches may use the application form under the scheme, as prescribed in MSME
advance (Refer Circular No. CHO/PS/26/2008-09 dated 14.3.2009).

Circular Reference :-

CHO/ARBD/13/2012-13 Dated: 20.06.2012 CHO/ARBD/19/2013-14 Dated: 12.06.2013

(Collateral security reduction)
CHO/ARBD/08/2014-15 Dated: 07.06.2014
(ROI Modification)

9. MINOR IRRIGATION SCHEME

OBJECTIVE To meet medium-term credit requirements of farmers for developing irrigation facility in
their farm to increase their crop and adopt multiple cropping.
PURPOSE 1. construction of surface wells
2. construction of shallow and deep tube wells
3. deepening and cleaning of wells
4. lift irrigation from river basins, tanks, bandharas and other catchments
5. sprinklers
6. drip irrigation
7. Layout of field channels, open as well as under ground
ELIGIBILITY 1. All Owners of land having a definite plan and arrangement for developing irrigation
resources either individually or in a group are eligible.
2. The land should be compact and of definite size which varies according to fertility
of soil, topography, water table etc. Normally a viable form is of about 5 acres compact
holding
3. Farmers who are defaulters or who have borrowed for the same purpose from
other sources or are indebted to a co-operative society, or have had reputation or do not
have necessary repaying capacity are not eligible for such advances.
QUANTUM OF 85% of the estimated cost of scheme. Loan upto Rs. 10,000/- and where capital subsidy is
FINANCE available no margin to be stipulated.
GENERAL 1. The quality of water is suitable for the soil and the crops proposed to be grown in

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 A Handbook on Agriculture Credit Scheme

CONDITION the area.

2. The services of an experienced contractor for boring the tube-well are readily
available.
3. If the tube-well is operated by a diesel engine, see that the engine of appropriate
HP is available in the local market.
4. If the tube-well is operated by electricity, ensure that supply of electricity is there.
5. The area proposed to be irrigated with the well should be such that water could be
distributed on the proposed area.
6. Block wise availability of ground water has to be assessed once in few years.
ECONOMIC 1. The applicant should have adequate land for full utilization of irrigation resources.
FEASIBILITY 2. The profit generated from the crops with the additional irrigation facilities should
cover the loan installment and interest after leaving a portion to family expenses.
3. The applicant should arrange the working capital requirement from his own
sources otherwise crop loan should be provided.
4. Estimates for construction of tube well, open well, deepening of well etc to be
reasonable.
5. Bank must satisfy that the yields and price estimated are normal and realizable
under local conditions.
OTHER GUIDELINES 1. A reference to be made to Land Development Bank of the area to ascertain whether
any finance has been made for the same purpose.
2. The certificate of feasibility of tube well and availability of water in the area from the
appropriate authority has to be obtained.
3. Permission to be obtained for lifting water from rivers from the collector and/ or
irrigation department.
4. Disbursement to be made in installments depending upon the progress of the work
after physical verification.
5. Unit cost of various types of development can be obtained from NABARD.
SECURITY Upto cost of economic Above Rs.100,000/-
unit or Rs.100,000/-
whichever is less
Where Movable a) Hypn. of assets Hypn. of assets created out of
Assets are created created out of bank bank finance
finance Mortgage of Land or Third party
b) Hypn. of standing guarantee
crops Hypn. Of standing crops
Where movable a) Hypn. of standing a) Hypn. of standing crops
assets are not crops b) Mortgage of land
created
1. Equitable or registered mortgage of the land of the farmer which should not usually be
less than double the value of the term loan.
2. Hypothecation of crops, oil engines/electric motors and other farm machinery.
3. Guarantee of one or two persons acceptable to the bank.
MARGIN Upto Rs.50,000/- : NIL
Above Rs.50,000/- Small Farmers : 10%
Others: 15%
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

ROI As per HO guidelines.

Scheme Code LA611
Documentation Where immovable assets are created Where movable assets are created
Loan upto Rs.100,000 Loans upto Rs.100,000/-
1. Application Form 1. Application Form
2. Annexure for appraisal 2. Annexure for appraisal
3. Sanction Letter 3. Sanction Letter
4. PSLD 1 4. PSLD 1

Loans Above Rs.100,000/- Loans Above Rs.100,000/-

1. Application Form 1. Application Form
2. Annexure for appraisal 2. Annexure for appraisal
3. Sanction Letter 3. Sanction Letter
4. PSLD 1 (A-105 Combined for 4. PSLD 1 (A-105 Combined for
above Rs.1 lac) above Rs.1 lac)
5. EMTD Documents/A103/ 5. EMTD Documents/A103/Declaratory
Declaratory Mortgage Mortgage
6. A107/A21A and A26A

REPAYMENT Sl. Type of investment Repayment Loan Gestation

SCHEDULE No. period in years installment Period
(Minimum and period
Maximum)
1 Dug well with or 11-15 Yearly 23 months
without pumpset
2 Deepening Well 5 Yearly 11 months
3 Bore Well 11-15 Yearly 11 months
4 Shallow Tube well 11-15 Yearly 11 months
5 Filter points + pumpsets 11-15 Yearly 11 months
6 Sprinkler/ Drip 10-15 Yearly 11 months
Irrigation
7 Lift irrigation 11-15 Yearly 11 months
DRIP IRRIGATION SYSTEM: In this system of irrigation, water is run through pipes (with holes in them) either buried
or lying slightly above the ground next to the crops. Water slowly drips onto the crop roots and stems. Unlike
spray irrigation, very little is lost to evaporation and the water can be directed only to the plants that need it,
cutting back on water waste.Drip irrigation is widely used today because, for certain crops, it is much more
efficient than traditional spray irrigation, where a larger portion of the water is lost to evaporation.
ADVANTAGE:
1. Drip irrigation is a low pressure, low volume irrigation system, suitable for high-return value crops such as fruit
and vegetable crops.
2. If managed properly, Drip Irrigation can increase yields and decrease water, fertilizer and labour requirements.
3. Drip Irrigation applies the water only to the plant's root zone and saves water because of the high application
efficiency and high water distribution uniformity.
4. Drip Irrigation can irrigate sloping or irregularly-shaped land areas that cannot be flood irrigated.
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

5. Any water-soluble fertilizer may be injected through a Drip Irrigation system.

SPRINKLER IRRIGATION SYSTEM:

1. Ideally suitable for hilly terrains with undulating slope
2. Suitable for estate crops like tea, coffee etc.
3. Suited to crops like groundnut, cotton and the crops which are not susceptible to easy flower shedding
4. 30 – 40 % saving in cost than conventional irrigation
GENERAL CONSTRAINTS AND REMEDIES:
1. Initial cost for installation is high & Land holdings are small
2. Equipment has a long life of 10 years
3. Grouping of farmers to operate the system will minimize the cost per unit holding One kilogram per square
centimeter pressure is needed to operate
4. One sprinkler to cover a diameter of 12 m.
5. Training the farmers will equip them with the knowledge about sprinkler
6. Periodical checkup of nozzles to avoid blocking and proper coverage of diameter
7. Wind distorts the sprinkler pattern and affect uniformity

Loans can be sanctioned under UCO Kisan All Purpose Term Loan Scheme.

10. PUMPSETS FINANCING

PURPOSE To provide medium term loan to the farmers for
a) Purchase of oil engines, electric motors and pump sets and accessories
b) Installation expenses
c) Construction of pump house
ELLIGIBILITY a) Individuals or 2 or 3 cultivators jointly having minimum land-holding
b) Land to be held in own names
c) Farmers who are not defaulters and not borrowed for the same purpose from other
sources
d) Farmers having repaying capacity
e) Farmers in the Service Area
TECHNICAL a)Water supply in the well should be adequate.
FEASIBILITY b)The engine should be of a reputed company providing good service after sales.
c)Availability of electric connection in case of electric engines.
d)Availability of fuel in case of diesel engines.
e)The cropping pattern should be suitable for the soil andclimate in the area.
f)Technical knowledge for operating the pumpset/oilengine.
g) Facility for distribution of the water through pipes or anyother means.
h)The water level should be sufficiently high.
ECONOMIC A. Size of land holding & compactness of the land holding.
FEASIBILITY B. Study of existing crop pattern cost & income.
C. Proposed cropping pattern after installation of pump set.
D. Additional income generation.
E. Improve the cropping plan so as to increase the farm output.
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

Economic Viability to be worked out by

a)Net Profit Technique or
b) Incremental Income Technique
GENERAL 1. Payment for oil engine/electric motor pumpsets and accessories should be made
GUIDELINES directly to the supplier after obtaining authority letter from borrower.
2. Bills/invoices should be properly verified for the correct specifications.
3. Construction of shed/cover for the pumpset/oil engine if required can be financed.
4. Farmer to be given freedom of choice for selecting the pumpsets from the list of
approved brand names.
5. No application should be received through any dealer and the farmer should approach
the bank directly.
6. Ground water clearance Certificate to be obtained from the State Ground Water
Department for installation of shallow tube well.
7. Utilisation certificate to be obtained from Contractor, dealer and borrower towards
satisfactory installation and commissioning of the pumpset.
8. No finance to be made for purchase of pump sets without ISI mark

SECURITY Loans Up to ₹ 100,000/- Loans Above ₹ 100,000/-

a)Hypn. Of assets created out of a)Hypn. Of assets created
banks finance out of banks finance
b)Hypn. Of standing crops b)Hypn. Of standing crops
c)Third party guarantee (or)Mortgage of land

MARGIN Loans upto Rs.50,000/- : Nil

Loans above Rs.50,000/-
i) Where subsidy/margin is available : Nil
ii) Where subsidy/margin is not available
a) Marginal Farmers : 05%
b)Small Farmers : 10%
c)Other Farmers : 15%

RATE OF INTEREST As per H.O. Guidelines

Scheme Code LA614
DOCUMENTATION a) A-116 – Master Application form
b) A-118 – Appraisal Annexure for pump sets
c) Sanction Letter (acknowledged)
d) PSLD -1
e) Letter regarding satisfactory installation and functioning of pumpset from borrower
f) Lien letter from supplier
g) A-107 Letter of guarantee and/or A-103 simple mortgage/declaratory mortgage
wherever applicable(For Loans above Rs.50,000/-)
DISBURSEMENT Margin money to be deposited by the farmer.
Payment for the total cost of the pumpset to be made directly to the supplier after
satisfactory commissioning of the pumpset.

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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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 A Handbook on Agriculture Credit Scheme

REPAYMENT Gestation Period 11 months

SCHEDULE Maximum Period of repayment including gestation period is 9 years.
Repayment to be linked with harvesting.
Reasonable time to be allowed for marketing of the produce.
INSURANCE Insurance of the pump sets is compulsory and comprehensive insurance cover with Bank’s
clause should be taken and renewed every year till bank’s loans is liquidated.
INCREMENTAL I)Net profit from the cropping pattern prior to purchase of pumpset
INCOME II)Net profit from the cropping pattern After purchase of pumpset
TECHNIQUE III)Incremental Income = II minus I
IV)Amount available for repayment (50% of incremental income)
V) Amount payable as annual dues
a) Annual installment of demand loan
b) Interest on demand loan
c) Interest on cash credit
IF IV is more than V then the annual dues can be paid from the incremental income.
NET PROFIT Income:As per new crop plan and from other sources.
TECHNIQUE Expenditure: Cost of cultivation, salary and other expenses, depreciation at 15%, interest on
Term Loan and cash credit.
STEP-I
1. Gross Profit = Total income minus Total Expenditure
2. Deduct-20% of the Gross Profit
3. Deduct annual farm family expenses
4. Amount available for repayment.
STEP-II
Amount payable as annual dues- Term Loan Installments, Interest on term loan and cash
credit.
STEP-III
Examine whether there is adequate net profit to pay the annual dues leaving reasonable
surplus.
SUPERVISION Pre-sanction verification before processing the proposal.
Post disbursement verification to ensure that the pumpset has been supplied according to
the terms of the advance and the same has been properly installed and is in working
condition.
Ensure that BIS marked foot valves are supplied
Complete pumping system is in conformity with IS: 10804-86 covering Prime mover, the
pump and the delivery system.
Quarterly inspection to ensure proper utilisation of the pumpset.

Circular Reference :- Manual of Instruction Volume VIII – PS Agriculture Page no 350-371

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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

11. SOLAR IRRIGATION PUMPSET

OBJECTIVE The solar energy is best suited for the remote areas where power grid is not in place. It helps
the farmers to meet agriculture loads. The amount will be sanctioned in shape of Term Loan
only. The loan will be treated as Direct Agriculture under Priority Sector.
BENEFITS TO 1. No fuel cost & minimal maintenance costs.
FARMERS 2. More economical than diesel pump sets in the long run.
3. Helps in providing the critical protective irrigation in water scarce areas.
4. Saves time and labour.
5. Improve agriculture productivity
6. Improves general quality of life with higher level of income.
7. Incremental income enables easy repayment loan taken for installing system.
ELLIGIBILITY  The farmers’ land should have adequate source of water. The wells to be used should have
sufficient recouping capacity to irrigate.
 Water right certificate from the concerned authority is required, if Public/Government
source is being used.
 Land holding of the farmers should be minimum 10 acres.
 The farmers should not be a defaulter to any bank and should have the repayment
capacity of the loan.
MARGIN 25% of the total cost, If subsidy is available, the same can be considered as Margin.
40% capital subsidy will be available under Jawaharlal Nehru National Solar Mission (JNNSM)
for installation of solar Pumpset for those farmers who have not installed any pump set.
TYPE OF PUMPSET 1. Surface mounted centrifugal pumpset,
2. Submersible pumpset,
3. Floating pumpset
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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 A Handbook on Agriculture Credit Scheme

4. Any other type of motor pumpset, after approval from MNRE(Ministry of New and
Renewable Energy).
QUANTUM OF Maximum 75% of the cost of the pumpset including accessories.
LOAN
SCHEME CODE Not specified
REPAYMENT Maximum period 5-7 years with a moratorium period of 6 months by half yearly instalments.
RATE OF INTEREST MCLR+1.15%
PENAL INTEREST Upto Rs.25,000/- = NIL
Above Rs.25,000/- 2% p.a. over and above normal interest.
SECURITY a)Hypothecation of standing crops& assets created out of Bank finance.
b) Third party guarantee
DOCUMENTS a) Loan Application as per Annexure-A; A-116.
b) Term Loan Agreement A- 109;
c) No dues Certificate from other financial institutions operating in that area.
d) Letter of Hypothecation of crops and /or moveable assets.
DISBURSEMENT The loan amount should be paid directly to the supplier in shape of PO/DD or by crediting the
account of the supplier.
Circular Reference:CHO/ARBD/79 /2012-13 Date : 18.01.2012

12. AGRICLINICS AND AGRI BUSINESS

WHAT IS AN An Agri-clinic provides expert services and advice to farmers on:-

AGRICLINICS AND Cropping patterns, Technology dissemination, Protection of crops from pests and
AGRI BUSINESS diseases, advising about market trends, pricing of various crops and clinical services
for farm animals.

An Agri business means supply of agriculture inputs, farm equipments on hire and
other such services. In order to enhance viability of the venture, Agriculture
graduates may also take up Agriculture and allied activities along with the Agri-Clinic
/Agri-Business centers
OBJECTIVE 1. To provide gainful employment to agriculture graduates in new and emerging
areas in Agriculture sector.
2. To make available supplementary sources of input
supply and services to needy farmers.
3.To supplement the efforts of govt. extension system.
4.Finance under the scheme will be classified under
indirect Agriculture.
ELLIGIBILITY Graduates in Agriculture, Horticulture, Animal husbandry, Forestry, Veterinary.
Poultry farming, Pisci-culture etc.

Bank in consultation with Agricultural universities/KVIC etc. in the area of operation

will be selecting the borrower.
PROJECT COST Individual =Maximum Rs. 20 lacs (in deserving cases can be sanctioned upto 25
lacs)

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 A Handbook on Agriculture Credit Scheme

Group= Maximum Rs. 100 lacs (No. of members in a group, normally 5, Of which
one could be a management graduate)
MARGIN Up to Rs. 5lacs =Rs. nil
Above Rs. 5lacs =minimum 15% .
RATE OF INTEREST As per HO guidelines
Scheme Code LA618
SECURITY No collaterals required up to Rs.5lacs
REPAYMENT 5 to 10 years with moratorium of maximum 2 years (Repayment and Moratorium
to be fixed by the sanctioning authority depending on the activity.)
OTHER GUIDE The first six months of regular expenses (operating expenses) of the agriculture
LINES entrepreneurs may be treated as capital expenditure while considering the loan
amount.
LIST OF VENTURES 1. Soil and water quality cum inputs testing laboratories (with Atomic
Absorption Spectrophotometers)
2. Pest surveillance, diagnostic and control services.
3. Maintenance, repairs and customs hiring of agricultural implements and
machinery including micro irrigation systems (sprinkler and drip)
4. Agri Service Centers including the three activities mentioned above (Group
Activity).
5. Seed Processing Units
6. Micro-propagation through Plant Tissue Culture Labs and Hardening Units.
7. Setting up of Vermi-culture units, production of bio-fertilizers, bio-pesticides,
bio-control agents.
8. Setting up of Apiaries (bee-keeping) and honey & bee products’ processing
units.
9. Provision of Extension Consultancy Services.
10. Facilitation and agency of agricultural insurance services.
11. Hatcheries and production of fish finger-lings for aquaculture.
12. Provision of livestock health cover, setting up veterinary dispensaries &
services including frozen semen banks and liquid nitrogen supply.

13. Setting up of Information Technology Kiosks in rural areas for access to

various agriculture related portals.
14. Feed Processing and testing units.
15. Value Addition Centers.
16. Setting up of Cool Chain from the farm level onwards (Group Activity)
17. Retail marketing outlets for processed Agri-products.
18. Rural marketing dealerships of farm inputs and outputs.
19. Any combination of two or more of the above viable activities along with any
other economically viable activity selected by the Graduates, which is acceptable to
the Bank.

Circular Reference:

CHO/CR-PS/11/2001-02 Dt. 25.08.01 -Detail guidelines and project profile

CHO/CR-PS/5/2005-06 Dt. 20.05.05 -No margin and collateral up to Rs5lacs
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 A Handbook on Agriculture Credit Scheme

CHO/CR-PS/51/2005-06 Dt. 03.12.05 -Financing under Agri clinic and Agri business.
CHO/CR-PS/30/2005-06 DT. 31.08.05 -Private veterinary clinic in rural areas
CHO/ARBD/12/2017-18 DT. 20.07.17 -MUDRA coverage

13. UCO AMI (Agricultural Marketing Infrastructure)

Title of the UCO AMI (Agricultural Marketing Infrastructure)
Product
Objective 1. To develop marketing infrastructure to effectively handle and manage
marketable surpluses of agricultural and allied produce including horticulture
livestock, poultry, fishery, bamboo, minor forest produce and such like produce
supportive to enhance farmers’ income.
2. To promote innovative and latest technologies in post-harvest and
agricultural marketing infrastructure.
3. To benefit the farmers individually and collectively through FPOs from
farm level processing and marketing of processed produce along with
promotion of small size processing units.
4. To promote creation of scientific storage capacity for storing farm
produce, processed farm produce and agricultural inputs etc. to reduce post-
harvest & handling losses, promote pledge financing and market access.
5. To incentivize developing and upgrading of GraminHaats as GrAMs to
make better farmer-consumer market linkages and also to assist in integration
of GrAMs with e-NAM portal so as to improve transparency in trading and
better price discovery.
6. To provide infrastructure facilities for grading, standardization and quality
certification of agricultural and allied produce with the objectives of (a)
ensuring produce quality based value realization to farmers; and (b) promoting
pledge financing, e-NWRS and futures trading.
7. To promote integrated value chains through minimal processing/value
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 A Handbook on Agriculture Credit Scheme

addition to make the produce more marketable.

Scope Infrastructure for development/up gradation to Rural Haats / RPMs/Common
Facilitation Centre by FPOs/FPCs as Grameen Agricultural Market may
comprise Basic & Supporting infrastructure such as open raised/covered
platform, toilet, drinking water facility, drainage, internal road, garbage pit,
office, warehouse for storage (small), space for packaging, fencing which are
essential for rural haats. The Marketing Infrastructure components such as
Drying facility (solar/normal), weighting scale (electronic/normal), assaying
equipments, Computer IT equipments with internet connection, Godown, cold
room, deep freezer/Zero energy freezer, pack house, ripening chamber,
information boards (electronic/non-electronic), de-sheller, Grain cleaner,
specific gravity separator, Mini Dal Mill, Mini Oil expeller, Mini rice huller etc
are also permissible components allowed under rural haat for better realization
of price by the farmers through increased value addition. It includes mobile
infrastructure for post-harvest operations viz. grading, packaging, quality
testing etc including reefer vans, or any other refrigerated vans will be
permissible for assistance. However, transport vehicles such as truck, van etc
will not be permissible for assistance.

Storage infrastructure like godowns including stand-alone silo for storage of

food grains with necessary ancillary facilities like loading, unloading, bagging
facility etc, excluding railway siding are eligible for subsidy.
Sector Priority Sector- Agri Infrastructure
Type of Facilities Term Loan
Eligibility Criteria 1.For creation of storage infrastructure (Capacity 50 – 5000 MTs only )& Non-
for Borrower storage infrastructure:
Individual, Group of farmers/growers, FPOs/FPCs registered under respective
companies Act/Cooperatives societies Act/ Societies registration act (with
minimum 50 number of farmer members); Partnership / Proprietary firms,
Companies, Corporations; Self Help Groups; Cooperatives, Cooperative
Marketing Federations; Autonomous Bodies of the Government, Local Bodies,
Panchayats; State agencies including State Government Departments and
autonomous organization/State owned corporations such as Agricultural
Produce Market Committees & Marketing Boards, State Warehousing
Corporation, State Civil Supplies Corporations etc.
2. For creation of storage infrastructure (Capacity 50 – 10000 MTs only):
State agencies including State Government Departments and autonomous
organization/State owned corporations such as Agricultural Produce Market
Committees & Marketing Boards, State Warehousing Corporation, State Civil
Supplies Corporations etc.
3. For development/upgradation of farmer-consumer market and Rural
Haats /RPMs (Rural Periodical Markets):
State Government or State agencies nominated by State Government for

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 A Handbook on Agriculture Credit Scheme

village haat owned / managed by Panchayats, APMCs (Agricultural Produce

Market Committees)/RMCs (Regulated Market Committees), FPOs/FPCs
registered under respective companies Act/Cooperatives societies Act/
Societies registration act (with minimum 50 number of farmer members), state
agencies, farmers, individual, trustees etc.
Margin 20% of the project cost
Rate of interest Loan limit Rate of Interest
Up to ₹ 25.00 lakh 1 year MCLR + 1.15%.
More than ₹ 25.00 lakh and up to ₹ 1.00 crore 1 year MCLR + 2.15%
More than ₹ 1.00 crore Às per internal rating
Lending Power Branch Heads/Credit Approval Committees as per their lending powers, but
loan to state government, state agencies or FPOs/FPCs cannot be sanctioned at
branch level i.e. it is to be sanctioned by ZLCC & other Credit Approval
Committees as per their lending power.
Review/Renewal The accounts under the scheme are to be reviewed annually
Insurance The assets created out of bank finance should be comprehensively insured with
bank clause and preferably with our channel partners.
Cibil/CRIF As per bank’s extant guidelines.
Charges
Pre-Payment No pre-payment charges
Charge
Security a) Hypothecation of assets created out of our bank finance
b) Charge/Extension of charge of landed properties and/or Liquid security.
Landed property includes land and the structure there on.
Or/and
c) CGFMU/CGTMSE/SFAC Guarantee coverage in eligible cases.
In case of loans above Rs.10 lacs - Total of Landed property and
CGFMU/CGTMSE/SFAC Guarantee coverage must be at least 100% of the
total exposure.
d) Personal guarantee of the promoters.
In case of Government guarantee accounts 100% landed security norms can
be diluted as per the availability of landed security.
Land and Storage infrastructure projects should be outside the limits of Municipal
Location Corporation area except in cases where these are situated within limits of
Municipal Corporation areas except in cases where these are situated within
Food Parks, Market Yards/APMCs, and Industrial areas or approved by State or
Central agencies etc.
Normally, marketing infrastructure projects including storage projects should
be established on land owned by the promoter. In all other cases, subsidy will
also be made available for projects established on registered leased land,
provided the tenure of such lease is more than 15 years from the date of
sanction of term loan of project. No Objection is to be obtained from lessor /
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 A Handbook on Agriculture Credit Scheme

owner.
In case of owned land, market price of land or purchase price of land,
whichever is lower, not exceeding 10% of the project cost may form part of
promoter’s contribution. In case of leased land, allotted by Urban Development
Authorities, Industrial development and infrastructure corporations of the
State Government /UTs , food parks sanctioned by the Ministry of Food
Processing Industries (MoFPI) etc, irrespective of the tenure of the lease, lease
premium paid or onetime cost paid not exceeding 10% of the project cost may
form part of promoter’s contribution. For other leased land, land cost/ lease
premium /lease rent will not be counted towards project cost for the
calculation of subsidy and will not form part of promoter’s contribution.
Capacity of The capacity of storage infrastructure projects will be calculated @ 1.8 MT per
Storage square meter of floor area for projects having height of 4.5 meter and above.
infrastructure For storage infrastructure having average height less than 4.5 meters, the
projects capacity will be calculated @ 0.4 MT per cubic meter of storage volume.
Capacity of silos will be calculated @ 0.62 MT cubic meter volume of silo.
Structural 1. As prescribed by WDRA for NWRs, warehouses are to be constructed as
Specification per Central Warehousing Corporation (CWC) or Food Corporation of India (FCI)
standards.
2. For storage of Onions, specifications prescribed by National Horticulture
Research & Development Foundation (NHRDF) should be followed.
3. For permissible cold storage projects, ripening chamber etc, the technical
specifications of MIDH available at www.midh.gov.in should be followed.
4. For permissible cold storage as a part of Grading and Infrastructure
standalone project, ripening chamber etc, the technical specifications of MIDH
available at www.midh.gov.in should be followed.
Other Technical Structure should
Specifications: a) Be properly ventilated, have well fitted rolling shutters/ steel doors, air
inlets/windows and ventilators and should be waterproof (control of moisture
from floor, walls and roof etc).
b) Have a minimum plinth height of 2.5 feet. However, for smaller storage
infrastructures (up to 500 MT), plinth height should be minimum of 1.5 feet.
c) Have protection from rodents, a minimum plinth projection of 1.5 feet all
around the storage infrastructure should be provided. However, for smaller
storage infrastructures (up to 500 MT), a minimum plinth projection of 1.5 feet
at the entry points for protection from rodents should be provided.
d) Have protection from birds (air inlets/ventilators with wire mesh).
e) Have a proper approach road, internal roads, proper drainage,
arrangements for effective control against fire and theft and also have
arrangements for easy loading and unloading.
f) Only removable steps are to be provided.
Management WDRA has prescribed certain management practices, such as fire fighting
Practices for equipments, security arrangement, appointment of technical staff, availability
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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 A Handbook on Agriculture Credit Scheme

storage of chemicals for preservation of agricultural produce, lab facilities, weightment

infrastructures facilities and insurance and banking etc. The promoter and their technical staff
may be trained as accreditation and registration with WDRA.
All technology innovation such as pre-engineering building structures will also
be eligible.
On need basis, for specific commodities and any innovation, DAC&FW may
modify these specifications from time to time.
Other Conditions 1. The scheme was valid till 31.03.2020 to do advance under this scheme
get clarification form HO, ARBD
2. Under the heading Scope Mini Oil expeller means the one for extraction
of edible vegetable oil (as per FSSAI but without refining) from indigenous
oilseeds (viz. Mustard seed, Sesame seed, Ground nut, Linseed, Mahua,
Safflower, Nigarseed Oil, Coconut, Almond and Olive only), Mini Dal mill for
primary processing of pulses, which includes cleaning, grading, sorting,
splitting, packaging and labelling for promoting direct marketing, are also
eligible. The subsidy for such projects is restricted to the construction of sheds
and oil expellers operated up to power of 7.5 Horse Power (HP).
3. Assistance for storage infrastructure will be available on capital cost of
the project including cost of allied facilities like boundary wall, internal road,
internal drainage system, weighing, grading, packing, quality testing &
certification, fire fighting equipment etc, which are functionally required to
operate the project.
4. Under storage infrastructure capacity of 50-5000 MT for all categories of
promoters across the country and capacity of 50-10000 MT for State agencies,
in all the States/UTs are eligible for claiming subsidy under the scheme. In case
of State agency storage projects, silos up to 15000 MT can be constructed.
5. There is no provision of assistance for renovation of storage
infrastructure projects under the scheme.
6. Stand-alone standardised cold storage units as per standards promoted
by NCCD up to 1000 MTs is allowed as per the MIDH cost norms for all the
eligible beneficiaries subject to eligibility of the subsidy for non-storage
infrastructure.
7. Promoters contribution cannot be more than 50% of TFO (Total Financial
Outlay)
8. Branch can visit NABARD website at www.nabard.org for further
clarification on operational guidelines of the scheme.
Subsidy 1. For Storage Infrastructure Projects:
Capital cost of the project for the purpose of subsidy will be calculated on the
project cost as appraised by financial institution or actual cost of eligible
components as certified by a Chartered Accountant, whichever is lower subject
to the subsidy ceiling per MT as well as overall ceiling given below:

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 A Handbook on Agriculture Credit Scheme

Category Rate of Subsidy Ceiling

Subsidy More Maxim
(on 50- than um
Capital 1000 1000 MT ceiling
Cost) MT in and up to (Rs.
Rs./MT 10000 Lakhs)
A) North Eastern States, 33.33% 1333.20 1333.20 133.20
Sikkim, UTs of Andaman &
Nicobar and Lakshadweep
islands, hilly * areas
B) In other Areas
For Registered FPOs, 33.33% 1166.55 1000.00 100.00
Panchayats, Women,
SC/ST entrepreneurs or
their cooperatives**/SHG
For all other categories of 25% 875.00 750.00 75.00
beneficiaries

2. For Infrastructure Projects other than Storage:

Category Rate of Maximum
Subsidy (on Subsidy
Capital Cost) Ceiling# (Rs.
In lakhs)
A) North Eastern States, Sikkim, UTs 33.33% 30.00
of Andaman & Nicobar and
Lakshadweep islands, hilly * areas
B) In other Areas
For Registered FPOs, Panchayats, 33.33% 30.00
Women, SC/ST entrepreneurs or their
cooperatives**/SHG
For all other categories of beneficiaries 25% 25.00

*Hilly area is a place at an altitude of more than 1000 meters above mean sea
level.
**SC/ST Cooperatives to be certified by the concerned officer of the State
Government.
#For the projects of pulse splitting and oil crushing, the maximum subsidy for
25% category is Rs.12.50 lakh and 33.33% category is Rs.16.66 lakh only.
Subsidy Norms:
1. The total subsidy which can be availed of by a promoter for all his/her
projects in a District since inception of the scheme (erstwhile GBY-
GrameenBhandaranYojana) up to the end of 2019-20 will be restricted to a
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 A Handbook on Agriculture Credit Scheme

maximum capacity ceiling of 10000MT. If a promoter intends to have more

than one project of different type including storage project in the same District
he/she will be eligible for a maximum subsidy up to Rs.75 lakh or Rs.133.20
lakh as the case may be.
2. There will be no maximum ceiling on subsidy in the case of infrastructure
projects of State agencies. However, this is not applicable for storage
infrastructure projects of State agencies.
3. In case of infrastructure projects including storage infrastructure projects
having co-ownership from categories eligible for different rates of subsidy, the
subsidy will be available at the lower rate.
4. NABARD will release 50% as advance subsidy on submission project
profile-cum-claim form (Annexure-VIII) along with the documents as per check
list at Annexure – IX by the FI. FI will submit the above within 60 days of
disbursal of the first instalment of loan.
5. Rest 50% of subsidy will be released by NABARD after an inspection and
recommendation by a Joint Inspection Committee (JIC) comprising of Officers
from NABARD (or its representative), FI and Directorate of Marketing and
Inspection (DMI). The time schedule for completion and submission of
documents for final subsidy is detailed in Annexure - I.
6. Branch will keep the advance subsidy in Subsidy Reserve Fund (SRF)
account and adjust finally against the loan amount at the last.
7. Interest will be charged on the amount of bank finance less subsidy
amount.
Repayment Term loan: Repayable within 7 years including Moratorium period. Moratorium
Period period should be allowed depending upon the nature of the project.
Interest shall be payable during the moratorium period. Loan installment is
repayable in monthly/quarterly installments depending upon the cash flow of
the project/borrowing entity. Interest shall be serviced as and when debited.
Scheme Code LA640
In case loan amount is more than 1 Cr, default interest rate shall be
MCLR+3.15% considering the lowest internal rating.
Branch user has to modify the interest rate in INTTM Menu as per credit rating.
CGFMU In eligible cases branch must take the available coverage.
/CGTMSE/SFAC
Guarantee
Coverage

Circular Reference :- CHO/ARBD/37/2018-19 Dated :- 30/03/2019 (UCO AMI Financing)

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14. UCO Food & Agro Processing Units

Title of the Financing Agro & Food Processing Units.
Product
Objective 1. Financing New Agro & Food Processing units.
2. Financing for expansion/modernization/renovation/improvement of existing Agro &
Food Processing units.
Scope The scope of Agro & Food processing activities cover a wide range of post-harvest
processes resulting in value addition and /or enhanced storage life such as cleaning,
grading, waxing, controlled ripening, labeling, packing and packaging, warehousing,
canning, freezing, freeze drying, various levels of product processing(primary/secondary)
etc. The products of processing/manufacturing undertaken by the units may include:
Cereals, pulses, oilseeds and oil crops.
Fruits, vegetables, mushrooms, plantation crops and other horticulture crops.
Milk and milk products,
Poultry and meat
Fish and other aquatic and marine products.
Herbs, medicinal and aromatic plants, forest produce, etc.
Consumer food products such as bakery items, confectionery snacks, etc.
Any other ready to eat food/convenience foods.
Beverages, non-alcoholic drinks, energy drinks, carbonated drinks, packaged drinking
water, soft drinks, etc.
Food flavours and colours, spices, condiments, ingredients, preservatives and any other
item which may be required in food processing.
Nutraceuticals, health foods, health drinks, etc.
The above list is only illustrative and not exhaustive.
Sector Priority Sector- Ancillary
Type of Facilities a. Term Loan

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b. Working Capital
Eligibility Criteria -Indivduals, Proprietor/Partnership concerns, Corporate companies etc.,
for Borrower -Co-operatives, Federation of Co-operatives, Self Help Groups (SHGs), Farmer Producer
Organizations. Entities promoted by the State Governments.
Quantum of Loan Credit facilities up to maximum of Rs.100 Crore per borrower from the entire banking
system by way of term loan/ working capital facility. It will be treated as agriculture
advance as per latest RBI guidelines on priority sector advance.
Margin Term Loan:
Limit up to Rs.1.00 Crore – 15%
Limit above Rs.1.00 Crores and Above --- 20%
Working Capital
25% margin
Rate of interest For loan up to Rs.1 Cr - One year MCLR+1.15 i.e. presently 8.70+1.15=9.85%
Above Rs.1 Cr – As per internal credit rating as under:
Internal Credit Rating Spread over one year MCLR Present Effective Rate
UCO 1 1.90% 10.60%
UCO 2 & UCO 3 2.15% 10.85%

UCO 4 2.65% 11.35%

Below UCO 4 3.15% 11.85%
The internal credit rating of borrower entity should be UCO 5 & above.
The external credit rating shall be obtained for credit limit above Rs.5 Crores and
minimum acceptable rating is BBB- or equivalent.
Documentation As per extant guidelines.

Lending Power Branch Heads/Credit Approval Committees as per their lending powers, presently lending
power of Branch head in Scale is as under:
Branch head I II III IV V VI VII
in Scale
Aggregate Rs.10 Rs.30 Rs.50 Rs.1.5 Rs.5 Rs.10 Rs.20
Fund based lacs lacs lacs Crores Crores Crores Crores
limit
Review/ Renewal The accounts under the scheme are to be renewed /reviewed annually.
Insurance The assets created out of bank finance i.e. machinery, raw material or finished goods etc
should be comprehensively insured with bank clause and preferably with our channel
partners.
Cibil/CRIF As per bank’s extant guidelines.
Charges
Pre-Payment No pre-payment charges
Charge
Security 1. For Loan up to Rs.10,00,000/-
a) Hypothecation of assets created out of our bank finance.
b) Charge/Extension of charges on Landed properties of assets created out of our
bank finance. Landed property includes land and the structure there on.
c) CGFMU/CGTMSE coverage in eligible cases.
2. For Loans above Rs.1000000/-

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 A Handbook on Agriculture Credit Scheme

e) Hypothecation of assets created out of our bank finance

f) Charge/Extension of charge of landed properties and/or Liquid security (it shall be
at least 100% of the total exposure). Landed property includes land and the structure
there on.
Or/and
g) CGFMU/CGTMSE coverage in eligible cases, presently up to Rs.2 Crores and above
that as per HO Circular No. CHO/MSME/19/2017-18 dated 15.03.2018 for the difference
of exposure (i.e. Total exposure minus available CGFMU/CGTMSE coverage) clause 2 b)
must be ensured.
Personal guarantee of the promoters must be taken in case where CGFMU/CGTMSE cover
is not available.
Process of Before sanctioning of proposals under the scheme Branch must analyse the project on
Sanction following points:
a) Market Analysis – the objective of the study is to determine if the total output of
the plant can be sold at a profit over the life span of the venture i.e. a study of the output
product and co product, market composition & size, competitive factors, connectivity
between farmers, processing and consumers.
b) The applicant should have experience/knowledge in food processing.
c) There should be adequate supply of power, water &labour.
d) The applicant should be free from statutory dues.
e) Sanctioning Authority must meticulously follow the RBI guidelines issued on the
matter from time to time.
Repayment Term loan: Repayable within 7 years with Moratorium period of one year. Moratorium
Period period up to 2 years will also be allowed depending upon the nature of the project.
Interest shall be payable during the moratorium period. Loan installment is repayable in
monthly/quarterly installments depending upon the cash flow of the project/borrowing
entity. Interest shall be serviced as and when debited.
Working capital: Facility for a period of one year subject to annual review.
Scheme Code Term Loan: LA631 Cash Credit: CC140
CGFMU /CGTMSE In eligible cases branch must take the available coverage.
Coverage

Circular Reference :- CHO/ARBD/21/2018-19 Dated :- 07/12/2018

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15. Scheme of financing Construction/Expansion/Modernization of Cold

Storage & Cold-Chain Infrastructure
Particulars Details
Type of Facility Term Loan
Sector Priority Sector-Agriculture Infrastructure

Eligible Farmers, Group of farmers, SHGs, JLGs, Companies including farmers’ producer companies of
Borrowers individual farmer, Partnership firms, LLPs (Limited Liability Partnership) and Cooperatives
of farmers directly engaged in agricultural and allied activities.
Purpose a) Construction/Expansion/Modernization of Cold Storage for Agriculture and Allied
products.
b) Cold Chain Infrastructure including Integrated Pack-house, Ripening Chambers, Pre
Cooling Units, Cold Storage Units, CA (Controlled Atmosphere ) Storage, IQF (Individual
Quick Freezing) Line, Milk Chilling Centre, Blast Freezer, Spiral Freezer, Mobile pre-
cooling vans, Refrigerated vans/trucks, Mobile insulated tankers & Refrigerated
Containers.
Scheme Code Scheme Code: LA622
&RBC Code RBC Code: 13010
Rate of For Term Loan

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 A Handbook on Agriculture Credit Scheme

interest Loan limit Rate of Interest

Up to Rs.25.00 lakh MCLR + 1.15% i.e. presently 8.65+1.15=9.80%

More than Rs.25.00 lakh and up to MCLR + 2.15% i.e. presently 8.65+2.15=10.80%
Rs.1.00 crore
More than Rs.1.00 crore Às per internal rating

Security 1. For Loan up to Rs.1 lac - Hypothecation of assets created out of our bank finance.

2. For Loan above Rs.1 lac –

a) Hypothecation of assets created out of our bank finance.
b) Charge/Extension of charge of landed properties and /or Liquid security & its value should
be at least 100% of the total exposure. Landed property includes land and structure there
on.
c) Personal guarantee of the promoters.
Other Terms and Conditions:-
Margin Promoter’s contribution must be 20%.
Eligibility 1. The applicant should own sufficient land holding depending upon the project.
2. The applicant should have experience/knowledge in the proposed activity.
3. Technical advice on various aspects should be available from an extension agency.
4. The applicant should be free from statutory dues.
5. The borrower may submit his/her loan proposal directly to the branch or the same may
be sponsored by the implementing agency where subsidy is available i.e.
NHB/NHM/NABARD/NCCD/MoFPI as the case may be and the project should have in
principal approval of the concerned branch so as to obtain Letter of Intent (LOI) from
concerned sponsoring agency.
Penal Interest As per extant guidelines of the bank from time to time.

Repayment Repayment of 9 years inclusive of moratorium of maximum one year.

Period
Cibil/CRIF As per bank’s extent guidelines.
Charges
Pre-Payment No pre-payment charges
Charge
Lending Branch Heads & Various Committees like ZLCC, HLCAC etc as per their lending powers,
Powers presently Branch Heads lending Power as per Loan Policy 2017 is as under:
Branch head in I II III IV V
Scale
39
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

Aggregate Fund Rs.10 lacs Rs.30 lacs Rs.50 lacs Rs.150 lacs Rs.500 lacs
based limit
Personal Saving account of Individual borrower/promoter must be covered under Pradhan
accident Mantri Suraksha BimaYojna(PMSBY) for Personal Accident and the insurance
insurance premium is to be borne by the borrower.

PMJJBY The Disbursing branch should explore the coverage of all individual farmers for
Insurance Pradhan Mantri Jeevan JyotiBimaYojna (PMJJBY) at borrower cost but the
coverage is optional for the borrower.
Insurance The assets created out of bank finance should be comprehensively insured with bank
clause and preferably with our channel partners.
Review/ The accounts under the scheme are to be renewed/ reviewed annually.
Renewal
Other terms 1. National Horticulture board(NHB)/National Cold Chain Development(NCCD) /Ministry
and Conditions of Food Processing Industries(MoFPI) also provide back ended subsidy for various crops
from time to time so branch must go through the latest NHM (National Horticulture
Mission)/NCCD/MoFPI guidelines and complies of the same. Branch can visit NHM site
www.nhm.nic.in, NCCD site www.nccd.gov.in&MoFPI site www.mofpi.nic.in for the
purpose.
2. Product must be analysed as per the cost norms of Nation Horticulture Board/ National
Cold Chain Development (NCCD) /Ministry of Food Processing Industries (MoFPI).

Circular Reference :- CHO/ARBD/18/2018-19 Dated :- 07/12/2018

16. Financial Assistance to Sugar Mills for Enhancement and Augmentation

of Ethanol Production Capacity
Parameter Details

Scheme 1. Term Loans to the sugar mill for for increasing the ethanol production of their
existing distilleries by enhancing the number of working days in a year by installation of
new incineration boilers or by adoption of any other method approved by the Central
Pollution Control Board (CPCB) for Zero Liquid Discharge (ZLD) in a distillery.
2. Term Loan for augmentation of ethanol production capacity by setting up of new
distilleries attached with sugar mills including expansion of the capacity of the existing
distilleries attached with sugar mills.
Scheme Code LA637

Eligibility Sugar Mills having In-Principle clearance from DFPD for the following purpose are eligible

40
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

Parameter Details

for bank finance:-

1. Existing distilleries attached with the sugar mills are eligible for assistance for
increasing ethanol production by enhancing the number of working days in a year by
installation of new incineration boilers or by adoption of any other method approved by
the Central Pollution Control Board (CPCB) for Zero Liquid Discharge (ZLD) in a distillery.
2. All the sugar mills are eligible for assistance to set up new distilleries including
expansion of capacity of existing distilleries attached with sugar mills.
Sector Priority Sector- Agriculture Ancillary

Margin 25%

Quantum of Credit facilities up to maximum of Rs.100 Crore per borrower from the entire banking
Finance system by way of term loan facility.

Security h) Hypothecation of assets created out of our bank finance

i) Charge/Extension of charge of landed properties and/or Liquid security (it shall be
at least 100% of the total exposure). Landed property includes land and the structure
there on.
Or/and
j) CGFMU/CGTMSE coverage in eligible cases, presently up to Rs.2 Crores and above
that as per HO Circular No. CHO/MSME/19/2017-18 dated 15.03.2018 for the difference
of exposure (i.e. Total exposure minus available CGFMU/CGTMSE coverage) clause b)
must be ensured.
k) Personal guarantee of the promoters
Repayment The entire tenure of the loan shall not exceed 60 months. Repayment may be scheduled
Period as EMIs commencing after an initial moratorium not exceeding 12 months.

Rate of Interest 12% (MCLR+3.30%)

Bank will be eligible to claim subvention during the moratorium period from NABARD.
Interest subvention @ 6% per annum or 50% of rate of interest charged by bank,
whichever is lower is available from Central Government through NABARD for five years
from current financial year.

Penal Interest As per extant guidelines of the bank from time to time.
CGFMU /CGTMSE In eligible cases branch must take the available coverage.
Coverage

Prior Clearance & Since financing to sugar units is under restricted sector as per our Loan Policy 2017 , prior
Lending Powers clearance is to be obtained as under as per HO Circular No. CHO/RM/04/2018-19 dated
13/04/2018:

For Loan Up to Rs.5 Crore – By HLNBC

41
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

Parameter Details

For Loan above Rs.5 Crore – By BLNBC

Branch Heads/Credit Approval Committees as per their lending powers will sanction the
loan proposals.
Other Special 1. Modalities of the Scheme
Conditions a) The applicant should get the loan disbursed from the bank within one year from
the date of in-principle approval by Department of Food and Public Distribution (DFPD),
failing which the in-principle approval for the project will stand cancelled. Further, the
project should be completed within two years from the date of disbursement of first
installment of loan from bank.
b) While implementing their respective projects, the sugar mills shall strive to seek
convergence with the Make in India scheme of the Government for capacity addition / up-
gradation in ethanol production.

c) Payment of interest subvention on loan amount under the scheme will be limited
to 5 years only, including one year moratorium period. During the moratorium period the
sugar mills will be required to pay interest to the banks. Bank will be eligible to claim
subvention during the moratorium period from NABARD. Interest subvention @ 6% per
annum or 50% of rate of interest charged by bank, whichever is lower is available from
Central Government through NABARD for five years from current financial year. Interest
subvention released by NABARD should be credited to the borrower’s loan account within
one week from receipt thereof.

d) The benefit of interest subvention will be provided by the Government only if a

sugar mill account is Standard and will not be available as long as account is NPA. The
sugar mill will be responsible for repayment of interest including penal interest for the
period of default along with the principal. Loan accounts settled by borrowers under One
Time Settlement scheme / compromise, etc. will not be eligible for finance under this
scheme.

2. Project Completion Certificate- The concerned distilleries attached with sugar mills
shall submit a certificate duly verified by the Central Pollution Control Board certifying
that zero liquid discharge has been achieved through the method proposed at the time of
submitting application for such purpose.

Sugar mills availing loan to establish new distilleries or expansion of the existing
distilleries, shall submit a ‘Completion & Commencement Certificate’ duly verified by the
Excise Commissioner of the State concerned and a Chartered Engineer certifying
respectively that the new distillery has been installed and had commenced production or
the expansion of the existing distillery has been completed and enhanced production of
ethanol has commenced. Any failure to submit such certificates shall lead to non-
reimbursement of Interest Subvention by the Central Government.

42
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

Parameter Details

The ‘Completion & Commencement Certificate’ in the format prescribed at Annexure III
should be submitted within a period of 6 months from the date of completion and not
later than 30 months from the date of disbursement of first installment of loan by the
Bank, to the Chief Director (Sugar), Directorate of Sugar and Vegetable Oils, Department
of Food & Public Distribution (DFPD), KrishiBhavan, New Delhi – 110001 with a copy to the
concerned financing Bank.

3. Utilization Certificate - The concerned sugar mills shall submit utilization certificate
(Annexure II) for the sanctioned loan amount within three months of the completion of
the project, duly verified by the respective sugar / cane commissioners certifying that the
loan amount has been utilized for the purpose specified in the scheme. The State Govt. /
Cane Commissioner shall also monitor the utilization of the loan in the prescribed
proforma enclosed. Any failure to submit the utilization certificate shall lead to non-
reimbursement of interest subvention by the Central Government.

4. Instructions to Lending Banks

a) Lending bank branches through their Zonal Office should submit the claims for
interest subvention within two weeks of the close of the previous quarter to the Head
Office of NABARD (Department of Refinance) in the format prescribed (Bank Form II).

b) The lending bank branches shall obtain a certificate from the Chartered Accountant
regarding the correctness of the claim made and submit it to the Head Office of NABARD
along with the interest subvention claim (Bank Form III).

c) Each lending branch shall also satisfy itself by inspection of the financed units that
the loan amount has been utilized for the purpose as specified in the scheme. Such
inspection report will be preserved by the concerned branch in its records and shall be
made available to NABARD/DFPD when required.

Circular Reference :- CHO/ARBD/28/2018-19 Dated:- 29/01/2019

17. UCO Fishery

Particulars Details
Type of Facility 1. Term Loan
2. LC & BG
3. Pre-shipment credit & Post-shipment Credit
Sector Priority Sector-Farm Credit
Eligible Farmers, Group of farmers, SHGs, JLGs, Companies including farmers’ producer companies
Borrowers of individual farmer, Partnership firms, LLPs (Limited Liability Partnership) and
Cooperatives of farmers directly engaged in agricultural and allied activities.
Objective a) For Construction/Renovation of ponds/tanks
b) For purchase of fingerlings, manuring of ponds etc.
c) Financing for fishing Boats.
43
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

d) Financing for fishing vessels/trawlers, etc

e) Construction of Fish Seed Producing Units & Fish Feed Producing Units
f) Construction of Cold Storage or Purchase of Refrigerated Vehicles , etc.
Scope A. In inland fisheries - Financial assistance is extended for
Construction/Renovation of ponds/tanks, establishment of Fish Seed producing
units & Fish Feed producing units, Construction of sluices, Construction of Cold
Storage or purchase of refrigerated vehicles, purchase of prawn, fry and
fingerlings/fish seed/prawn seed, purchase of inputs like oil cake, fertilizers, organic
fertilizers and other feed material up to the first harvest, small boats, purchase of
nets, boxes, crates, baskets, ropes, shovels, hooks and other accessories etc.
B. In Marine fisheries Financial assistance is extended for purchase of
mechanized/non-mechanized boats/deep sea fishing vessels/trawlers, purchase of
fishing nets, purchase of other deck equipments like winch, wire rope, gallows,
net-handler, navigational lights, life jackets, life boats, anchors, direction finders,
fish finders, etc. purchase of marine engine, solar powered micro cold rooms etc.
Scheme Code Scheme Code: LA606
RBC Code RBC Code: 13010
Rate of interest For Term Loan
Loan limit Rate of Interest
Up to Rs.25.00 lakh MCLR + 1.15% i.e. presently 8.65+1.15=9.80%

More than Rs.25.00 lakh and up to MCLR + 2.15% i.e. presently 8.65+2.15=10.80%
Rs.1.00 crore

More than Rs.1.00 crore Às per internal rating

Security 1. For Loan up to Rs.1 lac - Hypothecation of assets created out of our bank finance.
2. For Loan above Rs.1 lac –
a) Hypothecation of assets created out of bank finance.
b) Charge/Extension of charge of landed properties and / or liquid security and its value
should be at least 125% of the total exposure. Landed property includes land &
structure there on.
c)Personal guarantee of the promoters / partners / directors
Note: If the CGFMU / CGTMSE coverage is applicable, as per extant guidelines.
Other Terms and Conditions:-
Margin 15% of total project for Loan up to Rs.1 lac
25% of total project for Loan above Rs.1 lac
Note : If subsidy is admissible and payable by sponsoring agency, requirement of
margin must be derived with consideration of subsidy component and Bank’s extant
guideline
Eligibility For Inland Fisheries:-
a) The applicant should be experienced/professional fisherman/trained entrepreneur.
b) The applicant should own/take on lease land/water tanks/swamps brackish water
areas.

44
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

c) Technical guidance from Fishery department should be available.

d) Fingerlings should be easily available.
e) The area should be well served by rail/road to facilitate quick transport of fish
catches to processing/marketing centres.
f) There should be adequate cold storage/processing/ freezing/canning facilities.
Refrigerated and insulated transport vehicles must be available for marketing the
products.
g) The applicant must have licence /inspection certificate issued by port authority of
the area.
h) The applicant must have registration certificate issued by Marine Products Export
Development Authority (MPEDA) and from Fisheries Department wherever necessary.
For Marine Fisheries:-
a) The applicant should be having long standing experience in the line of fishing
activity and / or one of the promoters must be qualified skipper.
b) Applicant should be able to manage the craft and have trained crew to operate the
craft/vessel. Skilled crew members should be available in the area.
c) There should be good potential fishing grounds in the command area of coastal
tracts and fish varieties which have good demand (inland/ export) should be available
in large quantities.
d) There should be adequate harbor facilities for landing, berthing and sheltering of
boats.
e) The area should be well served by rail and road network to facilitate quick transport
of fish catch to the processing/marketing centres.
f) Adequate servicing and repairing facilities for the craft should be available.
g) There should be adequate cold storage/processing/freezing/canning facilities. For
marketing, refrigerated and insulated transport vehicles must be available.
h) The applicant should be preferably a member of fish marketing federation, which
assists the fisherman for marketing the catch and also undertaken to remit the sale
proceeds to the Bank.
i) The applicant must have registration certificate issued by Marine Products Export
Development Authority (MPEDA) and from Fisheries Department wherever necessary.
j) The applicant must have licence /inspection certificate issued by port authority of
the area. Fishing Boats / Vessels must be registered with the port of Registry and
Registrar of Fishing Vessels as per the provisions of M S Act (Merchant Shipping Act)
1958 and amendments therein. Mortgage of such Boats/Vessels must also be
registered with the concerned Registrar.
Penal Interest As per extant guidelines of the bank from time to time.

Repayment 1. Loans for purchase of fingerlings, manuring of ponds etc. shall be repaid as
Period follows:-

a) Culturing of shrimps: Loans is to be repaid in ONE Year with 2-3 equal

instalments and first of such instalments shall fall due after 4 months from the date of
stocking.
45
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

b) Culturing of fishes: Loan is to be repaid within one year in one lump sum or
after harvest of fishes whichever is earlier.
2. Loans for repair/renovation/construction of tanks shall be repaid in half yearly
instalments as follows:-

a) In 5- 8 years (including moratorium of 11 months) in case of pond fish culture,

Construction of Fish Seed producing units & Fish Feed producing units, Construction of
Cold Storage or purchase of refrigerated vehicles.

b) In 5 – 10 years (including moratorium of 11 months) in case of brackish water

fish/prawn culture.

The due dates of installment should always coincide with the period of harvest of
shrimps/fishes.
3. For Non-Mechanised boats/vessels: 4-8 years.
4. For Mechanised boats/vessels: 8-12 years.
Cibil/CRIF As per bank’s extent guidelines.
Charges
Pre-Payment No pre-payment charges
Charge
Lending Branch Heads & Various Credit Approval Committees like ZLCC, HLCAC etc as per their lending
Powers powers, presently Branch Heads lending Power as per Loan policy 2017 is as under:
Branch head in I II III IV V
Scale
Aggregate Rs.10 lacs Rs.30 lacs Rs.50 lacs Rs.150 Rs.500 lacs
Fund based lacs
limit
All the benificiaries are eligible for Personal Accident Insurance Schemeas per
Personal provision of KCC under Pradhan Mantri Suraksha BimaYojna(PMSBY) vide circularno-
accident CHO/ARBD/04/ 2017-18 DT.05/07/2017 and the insurance premium is to be borne by
insurance the borrower. Branch should also explore the possibilities that the beneficiary should be
insured to the tune of credit limit amount under Personal Accidental Scheme, preferably
through our channel partner.
PMJJBY The Disbursing branch should explore the coverage of all beneficiaries under PMJJBY
Insurance at borrower cost but the coverage is optional for the borrower.
Insurance The assets created out of bank finance (except pond/tank, fish, prawn, fingerling
which could not be insured) like boat, vessel, trawler, cold store etc should be
comprehensively insured with bank clause and preferably with our channel partners.
Review/ The accounts under the scheme are to be renewed/ reviewed annually.
Renewal
CGFMU In eligible cases branch must take the available coverage.
/CGTMSE
Coverage

46
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

Other terms NABARD, Department of Animal Husbandry, Dairying & Fisheries at central & state levels
and introduces various subsidy schemes from time to time. Branches must go through the latest
Conditions guidelines of these regulatory departments for compliance of the directions. Branch should
visit NABARD site www.nabard.org for ready reference.

Circular Reference :-CHO/ARBD/16/2018-19 Dated :- 06/12/2018

18. UCO FPC & UCO NFPC

Sl. No. Parameter Details
Title of Product Scheme for financing Producers Companies.
Objective A Producer Company (PC) is a legal entity formed by primary producers, viz.
farmers, milk producers, fishermen, weavers, rural artisans, craftsmen.
The objective of the Scheme is to extend credit support to Produce Companies
for any / few or all the activities depending upon requirement of PC
 Purchase of inputs for supplying to farmers
 Custom Purchase / Hiring of Farm Machinery
 Purchase of High Tech Farm equipment
 Setting up of Processing Centre
47
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

 Common irrigation facility

 Setting up of Common Service Centre
 Warehouse Receipt
 Marketing activities
 On lending to its members for crop cultivation, purchase of tractor, pump
sets, construction of wells & laying of pipelines etc.
 Any other productive activities based on submitted Investment Plan
Eligibility - Only PO Registered under Companies Act 2013. In terms of Sec 465 of
Companies Act 2013, the provisions of Part IX-A of Companies Act 1956 shall
be applicable Mutatis Mutandies to a producer Company.
- PO must be supported by either SFAC or NABARD.
- PO must achieved minimum 30 months period after identification of
product specific cluster and reached the take off stage as identified by
SFAC/NABARD i.e. the stage of implementation of business plan of PO.
PCs applying for collateral free loan based on Credit Guarantee from SFAC under
CGF SFAC Scheme shall comply with the eligibility criteria as specified in the CGF
scheme document.
Sector UCO FPC - Agriculture
UCO NFPC – MSME
Quantum of loan Minimum : Rs.5.00 lakh
Maximum : Rs.100.00 lakh
Nature of facility 1. Fund Based : a) Working Capital including Cash Credit & Packing Credit
b) Term Loan
2. Non-Fund Based : LC & BG
Rate of Interest As per circular no. CHO/RM/12/2018-19 dated 07/06/2018, slabs are mentioned
below or any revision in MCLR or spread accordingly in future:

Total funded exposure upto Rs.25.00 lakh 1 year MCLR+ 1.15 %

Total funded exposure more than Rs.25.00 lakh and upto Rs.1.00 cr. 1 year MCLR+ 2.15 %

Concession “UCO FPC & UCO NFPC” scheme is a new initiative by Bank & Government; as
such ZLCC may provide concession of 0.25% in effective rate of interest for loans
sanctioned under the scheme. The power of providing concession in rate of
interest is available to ZLCC for the loans sanctioned till March 2022 only.
Margin Minimum 15% of loan amount
Repayment Period For Cash Credit – 12 months
For Term Loan is 3 to 9 years depending upon purpose of Investment, Economic
life of Asset & Cash flow of the activities.
Repayment of Term Loan can be monthly / quarterly / half yearly / yearly based
on the purpose of loan / cash flow of PC.

Security Hypothecation of structure / equipment / machinery purchased or created out

48
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

of Bank finance.
For credit facility up to Rs.1.00 crore and Credit Guarantee from SFAC(Small
Farmer Agribusiness Consortium) sought – No collateral security / third party
guarantee is required.
The PCs, who are not applying for collateral free loan, will have to provide
collateral security up to 100% of the limit sanctioned. The collateral security can
be agricultural or non-agricultural land.
ROC Charge must be created within 30 days from the date of creation of charge.
Credit Guarantee A. One time Guarantee fee @ 0.85% of the sanctioned Credit facility subject
Fund Coverage to maximum of Rs.85,000/-.

B. In addition, Annual Service fee of 0.25% per annum or such other rate
decided from time to time by SFAC.

C. Annual Service fee shall be paid to SFAC by 31st May each year.

D. Application for Guarantee cover in the specified form – Annexure 3 (as

provided by SFAC) should be submitted for credit proposals sanctioned during
any quarter prior to the expiry of following quarter to qualify for consideration
under the scheme.
Sanctioning All the loans to FPC & NFPC will be sanctioned by Zonal Office through ZLCC
Authority after receiving the processed proposal by Branch.
Other Service As per circular no. CHO/ARBD/02/2018-19 dated 08/06/2018,
charges
Insurance All goods, stock, equipment, commodities hypothecated to Bank will be insured.
The insurance shall invariably be obtained with Bank clause.
The Insurance obtained should also cover for following stipulated rights:
A) Fire and allied perils including flood or any other natural calamities
B) Burglary or theft
C) Earthquake, Floods
D) Spontaneous combustion
E) Riots and malicious damage
The Insurance shall be obtained based on the value of goods / commodities.
CBS Product Code/ FPC – Term Loan – LA634
Scheme Code FPC- Cash Credit – CC141
NFPC – Term Loan – LA635
NFPC – Cash Credit – CC142
In case account is opened under cash credit limit (CC141 & CC142), default
interest rate shall be MCLR + 2.15%. Branch user has to modify the interest rate
in INTTM menu.
Guarantee cover refers to maximum cover available per eligible borrower of the amount in default in
respect of the credit facility extended by the Bank. SFAC provide maximum guarantee cover to the
extent of 85% of the eligible sanctioned credit facility, or Rs.85 lac, whichever is lower. The Credit
49
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

Guarantee Coverage for producer companies by SFAC has broadly following terms and conditions:

A. One time Guarantee fee @ 0.85% of the sanctioned Credit facility subject to max. of ₹ 85, 000/-.

B. In addition, Annual Service fee of 0.25% per annum or such other rate decided from time to time
by SFAC.

C. Annual Service fee shall be paid to SFAC by 31st May each year.

D. The fee shall be paid upfront to SFAC by Bank. The payment shall be made within 30 days from
date of approval of the guarantee or such date as specified by SFAC, failing which the Guarantee is
liable to become void unless and until its continuance is specifically approved by SFAC.

E. As on date of payment of Guarantee Fee, Bank shall certify that:

i) Any dues of the Producer Company borrower to the lending institution have not become overdue
and /or is not an overdue/NPA credit facility taken over and / or is not a credit facility which has
been rescheduled on becoming overdue.
ii) The business or activity of the borrower for which the credit facility was granted has not ceased.
iii) The credit facility has not been utilized, wholly or partly, for adjustment of any debts deemed bad
or doubtful of recovery.

F. In the event of non-payment of Annual Service Fee by the due date, the Guarantee under the
Scheme shall not be available to Bank unless SFAC agrees for continuance of Guarantee, but in
that case Bank has to pay penal interest on the Annual Service Fee due at a rate of 1% above the
rate charged by the Bank on the Credit Facility, or at such rate as is specified by SFAC form time to
time. The Guarantee shall stand restored on receipt of such payment and shall be deemed to have
been in continuance without break.

G. The Guarantee Fee and /or Annual Service Fee once paid by the lending institution to SFAC are
non-refundable. However if in the event of any error or discrepancy being found in the
computation of the amount or in the calculation of Guarantee Fee/ Annual Service Fee, or any
amount found to have been paid excess by the Bank to SFAC for a particular claim shall be
refunded by SFAC and any shortfall in payment by Bank, if subsequently identified, such deficiency
/ shortfall shall be paid by Bank to SFAC.

H. Application for Guarantee cover in the specified form (as provided by SFAC) should be submitted
for credit proposals sanctioned during any quarter prior to the expiry of following quarter to
qualify for consideration under the scheme.

I. Branch will apply for SFAC Guarantee Coverage online in on SFAC site i.e. www.sfacindia.com and
upload the required documents. Then hard copies of all the documents in original will be send by
the Branch to their Zonal Office and the Zonal office will then submit the same to the SFAC for
approval.
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J. Zonal office will be the nodal office in this matter and will keep proper record of all coverage,
claims, reconciliation & Fees calculation & remittance etc under the Credit Guarantee Scheme of
SFAC for the Branches under their Zone. Thus all correspondence to SFAC must go through
respective Zonal office only.

K. Further Branch will have following responsibility in under this coverage:

“Branch” shall:
i. Certify that the Credit Facility has been sanctioned without any Collateral.
ii. Enclose Appraisal Note with the Application for Guarantee Cover.
iii. Carry out processing, legal work and documentation for sanction of the loan in accordance with
the requirements of the “Bank” and the terms & conditions of SFAC.
iv. Furnish such Statements and Information, documents, receipts, certificates as SFAC may require in
connection with credit facility.
v. Certify that /be deemed to have affirmed that the contents of such documents, receipts,
certificates and other written Documents are true, provided that no claim shall be rejected and no
liability shall attach to the lending institution or any officer thereof for anything done in good
faith.
vi. Monitor the borrower account and maintain records of periodical monitoring and actions initiated
on observations, if any.
vii. Safeguard the Primary Securities taken over by it, if any, from the Borrower.
viii. “Branch” shall intimate in advance to SFAC its intention to enter into any compromise or
arrangement, which may have effect of discharge or waiver of primary security.
ix. “Branch” shall also ensure through an Agreement with the Borrower that the borrower shall not
create any charge on the assets held as primary security for the credit facilities covered by the
Guarantee with itself, or in favour of any other creditor(s) without seeking prior permission of
SFAC.
L. Invocation of Guarantee

“Branch” shall invoke the Guarantee in respect of Credit Facility within a maximum period of one
year from date of NPA, if the following conditions are satisfied:
i. The Claim must be forwarded to the SFAC through the Zonal Office.
ii. Guarantee in respect of the Credit Facility is in force at the time of account turning NPA.
iii. Dues have been classified by “Branch” as Non Performing Assets
i. Provided that SFAC reserves the right to refuse the Claim, if the loss in respect of the said Credit
Facility in its opinion had occurred owing to Guidelines not having been strictly followed by
“Branch”/ or if any misrepresentation or concealment of facts is found leading to undue favour to
the concerned FPC.
ii. The Guarantee shall be effective
a) If SFAC and “Branch” are convinced that the FPC has suffered genuine business losses, which may
include crop/ asset losses by the members, and the gravity and impact of such losses is assessed
jointly or by independent assessment or by the “Branch” as may be mutually agreed between
SFAC and “Branch” on a case by case basis and the FPC is not in a position to repay dues under any
circumstances including restructuring/re-phasing/rescheduling the loan.
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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 A Handbook on Agriculture Credit Scheme

b) for such amounts as may be written off or interest waived from the credit facility by the “Branch”
with intimation to SFAC as a result of the business failure of the FPC
c) In all other cases
o Only when proceedings for recovery have been initiated by “Branch”.
o The responsibility of recovery of the dues shall rest with “Branch”.
M. Claim Settlement

i. Only such Claim as is preferred by “Branch” on the Defaulted account, which has become NPA,
within a maximum period of one year from date of NPA or as specified by SFAC from time to time,
shall be considered.
ii. Fund shall honour 75 per cent of the Guaranteed Amount in Default subject to maximum of 75 per
cent of the guaranteed cap amount, on preferring of claim by “Branch” where appropriate action
for recovery has been initiated.
iii. Balance 25 per cent of the defaults or guaranteed cap amount, as the case may be, shall be paid
on conclusion of recovery proceedings by the “Branch”.
iv. Subject to the Claim being otherwise found in order and complete in all respects, SFAC shall pay
the “Branch” eligible claim within 90 days.
v. The outstanding dues of the FPC to “Branch” shall be reduced to the extent of the Amount of
Claim settled by SFAC.
vi. “Branch” shall continue to make efforts to realize the balance amount due even after settlement
of Guarantee
vii. SFAC reserves right to claim from “Branch” any amount that is realised by “Branch” from the FPC
even after settlement of guarantee amount:
viii. Any amount realized by the “Branch” from FPC shall be shared in the ratio of 85%:15% between
SFAC & “Branch”. Such payment may be made as and when any such amount is realised subject to
the relaxation that any payments below the sum of Rs.1 Lakh to SFAC may be made on a quarterly
basis on or before the last day of the quarter.
ix. Once the Claim is paid, SFAC shall be deemed to have been discharged from all its liabilities on
account of the Guarantee in force in respect of the Credit Facility.
x. “Branch” shall be liable to refund the Claim released by SFAC together with the penal interest at a
Rate of Interest, which is 1% above the Rate of interest at which the Credit Facility has been
sanctioned by “Branch” to FPC for the period for which the Claim has been released, if the
Guarantee Amount is recalled by SFAC for any reason whatsoever.
xi. Erroneous duplicate payment of claim by SFAC shall not be construed as recall. However, any
duplicate claim by “Branch” and the settlement there against by SFAC shall be recalled and SFAC
reserves the right to recall the entire payment released to “Branch” against the Credit Facility.

N. Subrogation of Rights and Recoveries On Account Of Claims Paid

i. Details of efforts for recovery, realization and such other information as may be demanded by
SFAC from time to time shall be furnished by “Branch”.
ii. On its own behalf and on behalf of SFAC, “Branch” shall hold lien on assets created out of the
Credit Facility extended by the Branch to the Borrower.
iii. The responsibility for the recovery of dues including takeover of assets, sale of assets, etc., shall
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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 A Handbook on Agriculture Credit Scheme

rest with “Branch”;

iv. Payments made by Borrower towards any one or more of several distinct and separate debts
owed by it to “Branch”, shall be deemed to have been appropriated by “Branch” to the debt
covered by the Guarantee and in respect of which a Claim has been preferred and paid,
irrespective of the manner of appropriation indicated by such Borrower or the manner in which
such payments are actually appropriated.
O. Residual Recovery
SFAC shall have the first claim to Appropriation of the Amount realized by “Branch” before making
the final settlement of the Claim in the ratio of 85:15.

Circular Reference :- CHO/ARBD/27/2018-19 Dated :- 28/01/2019 (Introduction circular)

19. Scheme of financing Horticulture & Plantation Crops

Particulars Details
Type of CC &Term Loan
Facility
Sector Priority Sector-Farm Credit
Eligible Farmers, Group of farmers, SHGs, JLGs, Companies including farmers’ producer
Borrowers companies of individual farmer, Partnership firms, LLPs (Limited Liability
Partnership) and Cooperatives of farmers directly engaged in agricultural and
allied activities.
Scope of a) Pomology – Mainly dealing with fruit crops e.g. Mango, Apple, Banana, etc.
Coverage b) Olericulture – Dealing with vegetable crops e.g. Potato to Peas and Beans etc.
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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 A Handbook on Agriculture Credit Scheme

c) Floriculture – Dealing with flowers and other ornamental plants e.g. Rose,
Marigold, Gold Mohar, Plams etc.
d) Plantation Crops – Dealing with those crops where usually large areas are required
for the commercial activity and the produce may be other than fruits, which in
most of the cases needs processing before it can be used e.g. Cashew and Cocoa
e) Medicinal Plants – Dealing with plants yielding alkaloids and other medicinal
constituents e.g. Beladona, Cinchona, etc.
f) Essential Oil & Aromatic Plants – Dealing mainly with those plants which on
processing yield oil for perfumery, confectionary, medicinal and other uses e.g.
Mentha, Tulsi, Jasmine etc.
Spices & Fruits and Vegetable Preservation by canning, dehydration etc.
Scheme Scheme Code: LA608
Code & RBC Code: 13010
RBC Code
Eligibility 1. The applicant should own sufficient land holding depending upon the type of crop
proposed.
2. The applicant should have experience/knowledge in the proposed activity.
3. Technical advice on various aspects should be available from an extension agency.
4. Wherever commodity boards are constituted for the development/marketing of
such crops, registration with such boards to be insisted.
5. The applicant should be free from statutory dues.
The borrower may submit his/her loan proposal directly to the branch or the same
may be sponsored by the implementing agency where subsidy is available i.e.
NHB/NHM/NABARD as the case may be and the project should have in principal
approval of the concerned branch so as to obtain Letter of Intent (LOI) from
concerned sponsoring agency.
Rate of
interest 1. For Working Capital Loan as per KCC Scheme i.e.
Loan limit Rate of Interest
Up to Rs.3 lakh 7% with 2% interest Subvention and further
3% for prompt repayment
Above Rs.3 lakh and up to MCLR + 1.15%
Rs.25.00 lakh
More than Rs.25.00 lakh and up MCLR + 2.15%
to Rs.1.00 crore
More than Rs.1.00 crore Às per internal rating

2. For Term Loan

Loan limit Rate of Interest
Up to Rs.25.00 lakh MCLR + 1.15%
More than Rs.25.00 lakh and up to MCLR + 2.15%
Rs.1.00 crore
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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More than Rs.1.00 crore Às per internal rating

For term loan up to Rs.1 Crore for Organic crops or cultivation of crops that are
INDGAP or GAP certified will be financed at MCLR i.e. presently 8.65% only& for
e-NAM registered traders/farmers it is at MCLR +0.15 %
Security 1. For Loan up to Rs.100000/- Hypothecation of Crops/assets created out of our bank
finance.
2. For Loans above Rs.100000/- Hypothecation of Crops/assets created out of our
bank finance and Charge/Extension of charge of landed properties (it shall be at
least 100% of the total exposure). Landed Property includes land & structure
thereon. Personal guarantee of the promoters.
Other Terms and Conditions:-
Quantum of 1. Working capital should depend on Scale of finance as per KCC scheme determined
Finance by DLTC or Cost norms decided by NHM/NHB.
2. For Loan up to 100000/- no margin requirement
& for loan above 100000/- promoter’s contribution must be 20%.
Penal As per extant guidelines of the bank from time to time.
Interest
Repayment Crop wise repayment is to be fixed and maximum period of finance is 15 years
Period (inclusive of moratorium).
Moratorium Moratorium period will vary with variety of plants/trees grown.
Cibil/CRIF As per bank’s extent guidelines.
Charges
Pre-Payment No pre-payment charges
Charge
Lending Branch Heads & Various Committees like ZLCC, HLCAC etc as per their lending powers,
Powers presently Branch Heads lending Power is as under:
Branch I II III IV V
head in
Scale
Aggregate ₹ 10 lacs ₹ 30 lacs ₹ 50 lacs ₹ 150 lacs ₹ 500 lacs
Fund
based
limit
Personal The individual farmers are eligible for Personal Accident Insurance Schemeas per
accident provision of KCC under Pradhan Mantri Suraksha BimaYojna (PMSBY) vide circular
insurance no- CHO/ARBD/04/ 2017-18 DT.05/07/2017 and the insurance premium is to be
borne by the borrower.
PMJJBY The Disbursing branch should explore the coverage of all individual farmers for
Insurance Pradhan Mantri Jeevan JyotiBimaYojna (PMJJBY) at borrower cost but the
coverage is optional for the borrower.
Crop If the individual farmers are having KCC with us then all crop loans to be mandatorily
Insurance covered under Pradhan MantriFasalBimaYojna(PMFBY) /Weather Based crop
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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 A Handbook on Agriculture Credit Scheme

scheme insurance Scheme(WBCIS) as per the case provided loan has been disbursed in the
name of individual member.
In case of Plantation Crops or term loans all assets/crops created out of bank finance
must be comprehensively insured with Bank Clause and a copy of the insurance
policy should be kept in Bank’s records.
Review/ The accounts under the scheme are to be renewed/reviewed annually.
Renewal
Other terms National Horticulture board also provide back ended subsidy for various crops from
and time to time so branch must go through the latest NHM (National Horticulture
Conditions Mission) guidelines and complines of the same. Branch can visit NHM site
www.nhm.nic.in for the purpose.
Product must be analysed as per the cost norms of Nation Horticulture Board.

Circular Reference :- CHO/ARBD/23/2018-19 Dated:- 18/12/2018

20. UCO Green House Farming Scheme

Particulars Details
Eligibility 1. Farmers, Group of farmers, SHGs, JLGs, Companies including farmers’ producer
companies of individual farmer, Partnership firms, LLPs (Limited Liability Partnership)
and Cooperatives of farmers directly engaged in agricultural and allied activities.
2. The applicant should own sufficient land holding depending upon the type of
crop proposed.
3. The applicant should have experience/knowledge in the proposed activity.
4. Technical advice on various aspects should be available from an extension
agency.
5. Wherever commodity boards are constituted for the development/marketing
of such crops, registration with such boards to be insisted.
6. The applicant should be free from statutory dues.
7. The applicant may submit his/her loan proposal directly to the branch or the
same may be sponsored by the implementing agency where subsidy is
available i.e. NHB/NHM/NABARD/State agriculture or Horticulture department
as the case may be and the project should have in principal approval of the

56
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 A Handbook on Agriculture Credit Scheme

concerned branch so as to obtain Letter of Intent (LOI) from concerned

sponsoring agency.
Purpose Financial assistance to farmers willing to establish Green House Farms all over India in the
form of Term Loan and Cash Credit (KCC) Limit for Crop Loan. Crops cultivated under
Green House Farming should be as per geographical area.
Unit Size The Green House will be established on one acre plot of land covering 4000 square
meters of area. However, the farmer will have the option to establish higher or
smaller size Green House. Subsidy component will be restricted to minimum of 500
square meters & maximum of 4000 square meters.
Assessment of Project Cost based on cost norms and pattern of assistance under Mission for Integrated
Project Cost Development of Horticulture (MIDH), during XII Plan for NHM and HMNEH Sub-
Schemes will be followed.
Technical Project beyond Rs.100 lakh should be Technically appraised by specialized agencies like
appraisal NABARD CONSULTANCY services (NABCON), Central/State Agricultural University or
any agency suggested by any State Agriculture Department/ Local office of NHB/NHM

Quantum of Loan For a unit of maximum of 4000 square meters. The cost norms provided by National
Horticultural Mission (NHM) as detailed below will be applicable:

Protected cultivation
1. Green House Structure:
a) Fan & Pad System:
Cost Norms Subsidy
Rs.1650/sq.m(up to area 500 sq.m) Back-ended subsidy
Rs.1465/sq.m(>500 sq.m up to 1008 sq.m) 50% of cost for a
Rs.1420/sq.m(>1008 sq.m up to 2080 sq.m) maximum area of
Rs.1400/sq.m(>2080 sq.m up to 4000 sq.m) 4000 sq. m per
Above rates will be 15% higher for hilly areas. beneficiary

b) Naturally Ventilated System:

i) Tubular Structure:
Cost Norms Subsidy
Rs.1060/sq.m(up to area 500 sq.m) Back-ended subsidy
Rs.935/sq.m(>500 sq.m up to 1008 sq.m) 50% of cost for a
Rs.890/sq.m(>1008 sq.m up to 2080 sq.m) maximum area of
Rs.844/sq.m(>2080 sq.m up to 4000 sq.m) 4000 sq. m per
Above rates will be 15% higher for hilly areas. beneficiary

Back ended Subsidy to the extent of 50% of the cost to an area 4000 sq. m. per
beneficiary will be given by Govt. of India through NHM.

At present the loan amount for construction of Green House will be around Rs.25.00 lakh
to Rs.30.00 lakh for an area of 4000 sq. m.

Branches can visit mission website www.nhm.nic.in where further details regarding cost

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norms and pattern of assistance under Mission for Integrated Development of

Horticulture (MIDH) during XII Plan for NHM and HMNEH Sub-Schemes are available.

ii) Wooden Structure

Cost Norms Subsidy
Rs540/Sq. m & Rs.621/Sq. m for 50% of the cost limited to 20 units per
hilly areas beneficiary (each unit not to exceed
200 Sq.m)
iii) Bamboo Structure
Cost Norms Subsidy
Rs450/Sq. m & Rs.518/Sq. m for 50% of the cost limited to 20 units per
hilly areas beneficiary (each unit not to exceed
200 Sq.m)

2. Shade Net House

a) Tubular Structure
Cost Norms Subsidy
Rs710/Sq. m & Rs.816/Sq. m for 50% of cost for a maximum area of 4000
hilly areas sq. m per beneficiary
b) Wooden Structure
Cost Norms Subsidy
Rs492/Sq. m & Rs.566/Sq. m for 50% of the cost limited to 20 units per
hilly areas beneficiary (each unit not to exceed
200 Sq.m)
c) Bamboo Structure
Cost Norms Subsidy
Rs360/Sq. m & Rs.414/Sq. m for 50% of the cost limited to 20 units per
hilly areas beneficiary (each unit not to exceed
200 Sq.m)

3. Plastic Tunnels
Cost Norms Subsidy
Rs60/Sq. m & Rs.75/Sq. m for 50% of cost for a maximum area of 1000
hilly areas sq. m per beneficiary

4. Walk in Tunnels
Cost Norms Subsidy
Rs600/Sq. m 50% of the cost limited to 5 units per
beneficiary (each unit not to exceed
800 Sq.m)

5. Anti Bird/Anti Hail Nets

Cost Norms Subsidy
Rs35/Sq. m 50% of cost for a maximum area of 5000
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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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sq. m per beneficiary

6. Cost of planting material & cultivation of high value vegetables grown in poly house.
Cost Norms Subsidy
Rs140/Sq. m 50% of cost for a maximum area of 4000
sq. m per beneficiary

7. Cost of planting material and cultivation of Orchid &Anthurium under Poly

house/shade net house.
Cost Norms Subsidy
Rs700/Sq. m 50% of cost for a maximum area of 4000
sq. m per beneficiary

8. Cost of planting material & cultivation of Carnation & Gerbera under Poly
house/shade net house.
Cost Norms Subsidy
Rs610/Sq. m 50% of cost for a maximum area of 4000
sq. m per beneficiary

9. Cost of planting material & cultivation of Rose and lilum under poly house/ shade
net house
Cost Norms Subsidy
Rs426/Sq. m 50% of cost for a maximum area of 4000
sq. m per beneficiary

10. Plastic Mulching

Cost Norms Subsidy
Rs.32000/Ha & Rs.36800/Ha for 50% of cost for a maximum area of 2 Ha
hilly areas per beneficiary

Branches can visit mission website www.nhm.nic.in where further details regarding cost
norms and pattern of assistance under Mission for Integrated Development of
Horticulture (MIDH) during XII Plan for NHM and HMNEH Sub-Schemes are available.
Any change in Cost and subsidy norms by NHM from time to time is to be followed by
branch.

Type of facility Term Loan: Term Loan for construction of Green House.

Cash Credit: A suitable amount of Cash Credit will also be allowed as per National
Horticulture Mission (NHM)/District Level Technical Committee (DLTC) guidelines for
cultivation of crop.
Margin 1. Margin shall be 5% where subsidy is available
2. Margin shall be 20% where subsidy is not available

Rate of Interest The rate of Interest charged will be as follows:

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Loan limit Rate of Interest

Up to Rs.25.00 lakh 1 year MCLR + 1.15%

More than Rs.25.00 lakh and up to Rs.1.00 crore 1 year MCLR + 2.15%

The Scheme is available for Maximum Rs.1 Crore And subsequent changes from time to
time.

(No Interest Subvention on Crop Loan will be allowed since the Scheme is backed by
subsidy)

Repayment i) Term Loan: Maximum of 7 years (including moratorium period of 6 months). Term
period Loan to be repaid in equated half yearly installments.
Cash Credit Limit for Crop Loan: To be renewed every year.

Security 1. Hypothecation of fixed and movable assets created out of Bank loan and
Hypothecation of standing crops grown in the Green House.
2. Landed security (and / or Liquid Security) in the form of Registered Mortgage of
Agriculture land / Equitable Mortgage of immovable property equivalent, at least, to
the 125 percent of loan amount. Landed Property includes land and structure
thereon.

Guarantee Personal guarantee of promoters.

Scheme code Type of Scheme Scheme GL Sub Head Interest

Loan Code Description Code Rate Code

Cash CC126 CC-Green 41043 CBAG6

Credit House Farming

Term LA625 TL-Green 47251 LB600

Loan House Farming

In this regard we would like to apprise that,

 Multiple Interest slab in cash credit is not available in finacle. So, by default
interest rate in cash credit will be (Base Rate + 2%). Branch can rectify the
interest as applicable through ‘INTTM’ menu.

The Job Card related to Scheme is available in UCOONLINE

Insurance Plant & Machinery including raw materials and stocks etc. are to be insured for full
value with Bank clause. Crops cultivated will be covered under Agril Crop
Insurance Scheme.

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यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
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 A Handbook on Agriculture Credit Scheme

Penal Interest As per extant guidelines of the Bank

Training All the farmers desirous of availing finance under the Scheme should preferably go
for training from State /Central Agricultural University or any other institute
selected by the State/ Central Department/ Local office of NHB/NHM/Any Institute
designated by state government/ NABARD to impart training.
Service Area All over India

Specific condition Takeover from other Banks is not allowed.

Sector Direct Agriculture
Other Terms and Conditions:-
Documentation A1, A47, A116 (Revised), A117, A105 (modified), A107, A21A (Where required),
PSVR-Agri, A109 and other necessary documents related to KYC.
Lending Power Branch Heads as per their lending powers, presently is as under:
Branch head in Scale I II III IV
Aggregate Fund Rs.10 lacs Rs.30 lacs Rs.50 lacs Rs.150 lacs
based limit
Review/Renewal The accounts under the scheme are to be renewed/reviewed annually.

Personal The individual farmers are eligible for Personal Accident Insurance Schemeas per
accident provision of KCC under Pradhan Mantri Suraksha BimaYojna(PMSBY) vide
insurance circularno- CHO/ARBD/04/ 2017-18 DT.05/07/2017 and the insurance
premium is to be borne by the borrower.
PMJJBY The Disbursing branch should explore the coverage of all individual farmers for
Insurance Pradhan Mantri Jeevan JyotiBimaYojna (PMJJBY) at borrower cost but the
coverage is optional for the borrower.
Cibil/CRIF As per bank’s extent guidelines.
Charges
Pre-Payment No pre-payment charges
Charge

Circular Reference :-

CHO/ARBD/17/2018-19 Dated :- 07/12/2018 (Modification in UCO Green House Farming Scheme)

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21. SCHEME FOR FINANCING PURCHASE OF TRACTOR AND

OTHER AGRICULTURAL MACHINERY

OBJECTIVES The objective of the scheme is to assist farmers, who intend to shift from traditional
farming to mechanized farming for reducing the time and cost of tillage and other
agricultural operations and also improving the quality of tillage so as to increase their
crop productions through multiple cropping and profitability.
ELEGIBILITY i) Each beneficiary or group of beneficiaries to whom a joint loan or group loan is
sanctioned shall be able to use the tractor for cultivation of his/their own farm of not
less than 8 acres of perennially irrigated land or corresponding acreage as prescribed
for different categories of land under the concerned State Land Ceiling Act.
ii) The minimum land holding for loan eligibility for power tiller has been reduced
on selective basis to 4 acres of perennially irrigated land or corresponding acreage as
prescribed for different categories of land under concerned State Land Ceiling Act
where relaxation may be extended subject to terms and conditions, while in respect of
remaining districts it would continue to be 6 acres of perennially irrigated land.
It shall also be ensured that the tractor/power tiller will have a minimum of
1000/600 hours of productive work in Agriculture per year on own farm of both on
own farm and on account of custom service.
It shall be ensured that at least 50% of the total amount required for repayment of
installment of loan together with interest will come from the incremental income
derived out of mechanization of beneficiary’s farm. However, for financing purchase
of tractors in North Eastern State, it is enough if at least 40% of total amount
accrues from own farm.
PURPOSE Loans can be granted under this scheme for purchase of agricultural machinery,
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implements and equipment listed below :

Tractor, trailor and tractor driven implements, such as mould-board plough, disc
harrow, cultivator, seed drill, paddy puddler, bulldozer, combine harvester etc.
Indigenous wooden implements such as ploughs, clod crushers, harrows, cultivators,
etc.
Improved iron implements such as ploughs, clod crushers, land actually, puddlers,
harrows, hoes, bund formers, seed drills, harvesters, paddy threshers, wheat
threshers, threshers for other crops, sugar-cane crushers, groundnut shellers, maize
shellers, etc.
Agricultural equipment such as sprayers, dusters-hand operated or power driven.
Hand tools such as plant pullers, kodali, budding and grafting knives, forks, rakes and
other garden tools.
LOAN APPLICATION The same From ‘’A’’ (A-116) as is taken for crop loan should be taken here also
withAnnexure “V” (A-121) meant for tractor loaned
GENERAL (a) The loan applications received from beneficiaries shall be evaluated on a case by
GUIDELINGS case basis in terms of incremental income from proposed investment including
income from custom service.
The amount of loan should not be paid to the borrower. Instead, payment should
made directly to the supplier(s) on behalf of the borrower, after verifying the original
invoice and ensuring receipt of the equipment by the borrower. Full costs of the
item(s) purchased should be paid to the supplier(s) to the debit of the loan account of
the borrower after recovering the margin from him.
The manager should verify that the tractor and/or equipment and/or implements
have actually been delivered by the supplier and are put to proper use by the
borrower.
The Bank shall satisfy itself regarding actually cost of tractor/power tiller and
implement by verification of invoices/quotations/vouchers/bills etc. before
sanctioning/disbursing loan under the scheme.
TECHNICAL (a) The implements proposed to be purchased should be appropriate and in common
FEASIBILITY use for the type of soil, the farmer has and the type of operations he would be
required to carry out for the normal crop plan in the area.
b) The Bank shall ensure that the beneficiary availing himself of a loan for tractor,
purchases along with the tractor a minimum of three implements including trailer
unless beneficiary already owns these implements at the time of purchase of tractor.
c) The farmer should have sufficient number of draft animals to use the implements
proposed to be purchased. If not, bullocks should be available to him on her.
d)Implements should be such as the farmer can operate himself; if not, services of
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experienced operator(s) at reasonable rates should be available.

e)Easy availability of repairs facility and spare parts at reasonable rates is essential.
f) The farmer should have adequate irrigational facility for adopting new cropping
pattern.
g) In cse of a proposal for purchases of tractor, the crude oil or diesel oil for operating
the tractor should be available in close vicinity.
CALCULATION OF ECONOMIC VIABILITY TO JUDGE REPAYING CAPACITY :
It can worked out by either of the two techniques :
Annexures available in manual of
i) Net profit technique instructions Vol-VII (Pri. Sector)

ii) Incremental income technique

SECUTIRY i) Hypothecation of tractor and other implements and accessories proposed to be

purchase [Hypothecation-cum-Agreement form No. A105 (Combined)]
ii) Guarantees from one or two guarantors acceptable to the banks (A107).
iii) Simple/equitable mortgage of land to the extent of usually double the value of
loans advanced (A-103). Whenever applicable declaratory mortgage as required in the
states.
iv) Insurance : Tractor purchased by the farmer should carry comprehensive insurance
as per Motor Vehicles Act and policy should be got assigned in Bank’s favour
RATE OF INTEREST The rate of interest should be as per NABARD/RBI stipulations
Scheme Code LA616- Tractor/Power Tiller
LA600- Agricultural Implement
MARGIN Down payment in respect of loans for new tractors/power tillers is not less than 15% of
investment ( in case of affluent farmers margin @ 25% may be obtained) cost in case of
purchase for First time. However, in case of the beneficiaries availing of loans from the
Bank Second time for acquisition of tractors, the down payment to be met by a
borrower shall not be less than 30% of investment cost.
DISBUREMENT The loan amount should be disbursed by the Bank by direct payment to the suppliers
against a letter of authority from the borrower
REPAYMENT The maximum repayment period within which the loan for purchase of tractors and
SCHEDULE power tillers is to be repaid by the beneficiaries will be 9 and 7 years respectively.
The due dates of installments should be worked out so as to coincide with the
harvesting of crops after allowing a reasonable time for marketing
POST ADVANCE Supervision is necessary to ensure utilisation and proper maintenance of the
INSPECTION AND machinery. The farm should be visited by the Bank’s officersat quarterly intervals for
SUPERVISION
physical inspection of the tractor.

Circular Reference :-
Manual of Instructions Volume VIII- Priority sector Page no 302-334

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22. Dairy Entrepreneurship Development Scheme (DEDS)

Objectives of the To promote setting up of modern dairy farms for production of clean milk
scheme To encourage heifer calf rearing thereby conserve good breeding stock
To bring structural changes in the unorganized sector so that initial processing of milk
can be taken up at the village level itself.
To bring about up gradation of quality and traditional technology to handle milk on a
commercial scale
To generate self employment and provide infrastructure mainly for unorganized sector.
Eligibility Farmers, individual entrepreneurs, NGOs, companies , groups of unorgainsed and
organized sector etc. Groups of organized sector include self help groups, dairy
cooperative societies, milk unions , milk federations etc.
An individual will be eligible to avail assistance for all the components under the
scheme but only once for each component
More than one member of a family can be assisted under the scheme provided they
set up separate units with separate infrastructure at different locations. The distance
between the boundaries of two such farms should be at least 500m.
Scheme Code LA628

Subsidy.

Components that can be financed, indicative unit cost and pattern of assistance are given below

S.No Component Unit Cost Pattern of Assistance

i Establishment of small Rs 5.00 lakh 25% of the outlay (33 .33 % for SC / ST farmers, ) as
dairy units with crossbred cows/ for 10 animal back ended capital subsidy subject to a ceiling of Rs
indigenous descript milch cows unit – minimum 1.25 lakh for a unit of 10 animals ( Rs 1.67 lakh for
like Sahiwal, Red Sindhi, Gir, Rathi unit size is 2 SC/ST farmers,). Maximum permissible capital subsidy
etc / graded buffaloes upto 10 animals with is Rs 25000 ( Rs 33,300 for SC/ST farmers )for a 2
animals an upper limit animal unit. Subsidy shall be restricted on a prorata
of 10 animals. basis depending on the unit size
ii Rearing of heifer Rs 4.80 lakh 25% of the outlay (33.33 % for SC / ST farmers) as

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calves – cross bred, for 20 calf unit back ended capital subsidy subject to a ceiling of Rs
indigenous descript – minimum 1.20 lakh for a unit of 20 calves ( Rs 1.60 lakh for
milch breeds of cattle unit size of 5 SC/ST farmers). Maximum permissible capital subsidy
and of graded calves with an is Rs 30,000 ( Rs 40,000 for SC/ST farmers) for a 5 calf
buffaloes – upto 20 upper limit of unit. Subsidy shall be restricted on a
calves 20 calves prorata basis depending on the unit size
iii Vericompost (with milch Rs 20,000/- 25% of the outlay (33.33 % for SC / ST farmers)as
animal unit .To be considered with back ended capital subsidy subject to a ceiling of Rs
milch animals and not 5,000/- ( Rs 6700/- for SC/ST farmers,).
separately )
iv Purchase of milking Rs 18 lakh 25% of the outlay (33.33 % for SC / ST farmers) as
Machines /milkotesters/bulk milk back ended capital subsidy subject to a ceiling of Rs
cooling units (upto 4.50 lakh ( Rs 6.00 lakh forSC/ST farmers).
2000 lit capacity)
v Purchase of dairy processing Rs 12 lakh 25% of the outlay (33.33 % for SC / ST farmers) as
equipment for manufacture of back ended capital subsidy subject to a ceiling of Rs
indigenous milk products 3.00 lakh ( Rs 4.00 lakh for SC/ST farmers).
vi Establishment of dairy product Rs 24 lakh 25% of the outlay (33.33 % for SC / ST farmers) as
transportation facilities and cold back ended capital subsidy subject to a ceiling of Rs
chain 6.00 lakh ( Rs 8.00 lakh for SC/ST farmers).
vii Cold storage facilities for milk and Rs 30 lakh 25% of the outlay (33.33 % for SC / ST farmers) as
milk products back ended capital subsidy subject to a ceiling of Rs
7.50 lakh ( Rs 10.00 lakh for SC/ST farmers).
viii Establishment of private Rs 2.40 lakh for 25% of the outlay (33.33 % for SC / ST farmers) as
veterinary clinics mobile clinic and back ended capital subsidy subject to a ceiling of Rs
Rs 1.80 lakh for 60,000/- and Rs 45,000/- ( Rs 80,000/- and Rs 60,000/-
stationary for SC/ST farmers) respectively for mobile and
clinic stationary clinics
ix Dairy marketing outlet Rs 56,000/- 25% of the outlay (33.33 % for SC / ST farmers) as
/ Dairy parlour back ended capital subsidy subject to a ceiling of Rs
14,000/-( Rs 18600/- for SC/ST farmers).
Funding pattern
o Entrepreneur contribution ( margin) - 10 % of the outlay ( minimum)

o Back ended capital subsidy-as indicated above

o Effective Bank Loan - Balance portion, Minimum of 40% of the outlay

Linkage with credit

Assistance under the scheme would be purely credit linked and subject to sanction of the project by eligible
financial institutions

Sanction by branches

The entrepreneurs shall apply to their branches for sanction of the project. The branches shall appraise the project
as per their norms and if found eligible, sanction the total outlay excluding the margin, as the bank loan. The loan
amount is then disbursed in suitable instalments depending on the progress of the unit. After the disbursement of

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first instalment of the loan, the bank shall apply to the concerned Regional Office of NABARD for sanction and
release of subsidy in the format given in Annexure I.

Release of subsidy
After sanction of the subsidy by the PSC, the Regional Office of NABARD shall release the subsidy amount
after confirming the availability of funds from NABARD Head Office. The subsidy shall be released on first
come first serve basis subject to availability of funds.

Immediately after receipt of subsidy amount from NABARD, the implementing bank branch should credit the
subsidy to the reserve fund of the borrower. A Utilization Certificate in the shall be submitted by the participating
bank to NABARD to the effect that the amount of subsidy received by them has been fully utilized and adjusted in
the books of account within the overall guidelines of the scheme.

Repayment
Repayment Period will depend on the nature of activity and cash flow and will vary between 3- 7 years. Grace
period may range from 3 to 6 months in case of dairy farms to 3 years for calf rearing units (to be decided by the
financing bank as per needs of individual projects).

The recovery of loan will be based on net loan amount only. i.e. not including subsidy, which will be adjusted by
the concerned bank after effective bank loan and interest thereon has been repaid .i..e. The repayment
schedules will be drawn on the total amount of the loan (including subsidy) in such a way that the subsidy
amount is adjusted after liquidation of net bank loan (excluding subsidy).

Rate ofInterest
Rate of interest on the loans shall be as per RBI guidelines and declared policy of the bank in this regard. The
bank may charge interest on the entire loan amount till the subsidy is received and from the date of receipt of
subsidy by the implementing branch, interest has to be charged only on the effective bank loan portion i.e. outlay
excluding the margin and subsidy

Security
The security for availing the loan will be as per guidelines issued by RBI from time to time.

Time limit for Completion of the project.

(a) Time limit for completion of the project ( except for calf rearing units where disbursements are
expected to continue till two years) would be as envisaged under the project, subject to maximum of 9 months
period from the date of disbursement of the first instalment of loan which may be extended by a further period
of 3 months, if reasons for delay are considered justified by the financial institution concerned.

(b) If the project is not completed within the stipulated period, benefit of subsidy shall not be available

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and advance subsidy placed with the participating bank, if any, will have to be refunded forthwith to NABARD

Adjustment of subsidy
The capital subsidy will be back ended with minimum lock-in period of 3 years.

The capital subsidy should be refunded one year after the account becoming NPA and remaining NPA as on date..

The capital subsidy will be adjusted against the last few installments of repayment of bank loan.

The capital subsidy admissible under the scheme will be kept in the “Subsidy Reserve Fund Account (Borrower-
wise) in the books of the branch. No interest will be paid on this amount by the bank. In view of this, for the
purposes of charging interest on the loan component, the subsidy amount should be excluded. The balance lying
to the credit of the “Subsidy Reserve Fund Account” will not form part of Demand and Time Liabilities for
calculation of CRR and SLR.

Other Conditions
o The participating banks will adhere to the norms of appraising the projects regarding technical
feasibility and commercial/financial viability.

o All possible care will be taken to avoid duplication of projects under the scheme with similar projects
implemented by Directorate of Agicultural Marketing, Ministry of Agriculture in the same areas.

o The participating branches should ensure insurance of the assets created under the project, wherever
required.

o Pre and post completion inspection of the project shall be undertaken by the participating bank to
verify physical, financial and operational progress as and when required.

Circular Reference :-
CHO/ARBD/18/2017-18 Dated:- 30/11/2017 (Scheme Code)
CHO/ARBD/16/2019-20 Dated:- 16/09/2019 (DEDS Scheme for FY 2019-20)
23. DEENDAYAL ANTYODAYA YOJANA - NATIONAL RURAL LIVELIHOOD
MISSION (DAY - NRLM)

Objective To reduce poverty among rural BPL through promotion of diversified and gainful self-
employment and wage employment opportunities to provide appreciable increase in income on
sustainable basis.
To ensure that SHG s are enabled to access repeat finance from Banks, till they attain
sustainable livelihoods and decent living standards.
Salient Features The Ministry of Rural Development, Government of India has launched National Rural Livelihood
of the Scheme Mission (NRLM) by restructuring Swarnajayanti Gram SwarozgarYojana (SGSY) replacing the
existing SGSY scheme, effective from April 1, 2013.
NRLM focuses on building, nurturing and strengthening the institutions of the poor women,
including the SHGs and their Federations at village and higher levels. In addition NRLM will
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promote livelihoods institutions of rural poor.

The implementation of NRLM is in a Mission Mode. NRLM adoptsa demand driven approach,
enabling the States to formulate theirown State specific poverty reduction action plans. NRLM
enables the State rural livelihoods missions to professionalize their human resources at State,
district and block level. The State missions are capacitated to deliver a wide range of quality
services to the rural poor.

Women SHGs under NRLM consist of 10-15 persons. In case of special SHGs i.e. groups in the
difficult areas, groups with disabled persons, and groups formed in remote tribal areas, this
number may be a minimum of 5 persons.
Only for groups to be formed with Persons with disabilities, and other special categories like
elders, transgender, NRLM will have both men and women in the self-help groups.
Thrust is on empowerment of the vulnerable sections of the society, i.e. 50% for SC/STs, 15% for
minorities and 3% for disabled persons.
No Capital Subsidy will be sanctioned to any SHG from the date of implementation of
NRLM.
NRLM has a provision for interest subvention, to cover the difference between the Lending Rate
of the banks and 7%, on all credit from the banks/ financial institutions availed by women SHGs,
for a maximum of Rs 3,00,000 per SHG. This will be available across the country in two ways:
A) For identified Districts
 All women SHGs will be eligible for interest subvention on credit up to Rs 3.00 lacs @
7.00 % p.a.
 Further the SHGs will be provided with an additional 3 % intesest subvention on prompt
repayment of loan.
B)For Other Districts
 All women SHGs will be eligible for interest subvention on credit up to Rs 3.00 lacs @
7.00 % p.a. subject to prompt repayment.
 The scheme will be implemented by SRLM.
Revolving Fund NRLM would provide a Revolving Fund (RF) support to SHGs in existence for a minimum period
of 3/6 months and follow the norms ‘Panchasutra’ – regular meetings, regular savings,
regular internal lending, regular recoveries and maintenance of proper books of
accounts. Only such SHGs that have not received any RF earlier will be provided with RF, as
corpus, with a minimum of Rs. 10,000 and up to a maximum of Rs. 15,000 per SHG.
The purpose of RF is to strengthen their institutional and financial management capacity and
build a good credit history within the group.

Lending Norms The eligibility criteria for the SHGs to avail loans:
• SHG should be in active existence at least since the last 6 months as per the books of account
of SHGs and not from the date of opening of S/B account.
• SHG should be practicing ‘Panchasutras’ i.e. Regular meetings; Regular savings; Regular inter-
loaning; Timely repayment; and Up-to-date books of accounts;
• Qualified as per grading norms fixed by NABARD.
• The existing defunct SHGs are also eligible for credit if they are revived and continue to be
active for a minimum period of 3 months.
Corpus is inclusive of revolving funds, if any, received by that SHG, its own savings and funds
from other sources in case of promotion by other institutes/NGOs.)
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Loan amount& Loan amount under different facilities

Repayment Cash Credit Limit Term Amount Repayment
Loan (Monthly/QTLY)
1st Year DP 1st Dose 6 times of the existing corpus or min 12-18 months
₹ 1 lakh whichever is higher
2nd Year DP 2nd Dose 8 times of the existing corpus or min 18-24 months
₹ 2 lakh whichever is higher
3rd Year DP 3rd Dose Min. ₹ 3 lakh based on SHG previous 24-36 months
credit history and Micro credit plan
4th Year onwards 4th Dose Min. ₹ 5 lakh based on SHG previous 3-6 years based
credit history and Micro credit plan on cash flow
Wilful defaulters of the group should not get benefits under the NRLM Scheme and the group
may be financed excluding such defaulters while documenting the loan.
Further, non-wilful defaulters should not be debarred from receiving the loan.
Rate of Interest Up to Rs 3.00 Lacs – 7 %
Above Rs 3.00 Lacs – MCLR + 1.15
Security and No collateral and no margin will be charged upto Rs. 10.00 lakhs limit to the SHGs. No lien
margin should be marked against savings bank account of SHGs and no deposits should be insisted
while sanctioning loans.
Others NRLM is promoting a major shift from purely ‘allocation based’ strategy to a ‘demand
driven’ strategy.
NRLM will identify the target group of poor through a ‘participatory identification of the
poor’ process instead of using the BPL list as was done in SGSY.
NRLM will promote the formation of women SHGs on the basis of affinity and not on the
basis of a common activity, as it used to be under SGSY.
NRLM has taken a saturation approach and will ensure all the poor in a village are
covered and a woman from each poor family is motivated to join the SHG.
NRLM will provide continuous hand-holding support to SHGs, and their federations.
Loan pass books in regional languages may be issued to the SHGs which may contain all the
details of the loans disbursed to them and the terms and conditions applicable to the loan
sanctioned.
Bank branches may observe one fixed day in a fortnightly to enable the staff to go to the field
and attend the meetings of the SHGs and Federations
Scheme Code
TYPE OF LOAN UPTO 3 LAKH ABOVE 3 LAKH
TERM LOAN LA894 LA895
CASH CREDIT C114B C114C
GL Head for xxxx1064050025 – For 3 % interest subvention
Interest xxxx1064050023 – For regular interest subvention.
Subvention

Circular Reference :-

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CHO/ARBD/32/2013-14 Dated: 18.07.2013

CHO/ARBD/31/2016-17 Dated: 19-12-2016
CHO/ARBD/10/2017-18 Dated: 18/07/2017
CHO/ARBD/07/2018-19 Dated: 06/07/2018
CHO/ARBD/24/2019-20 Dated: 31/12/2019 (Master Circular)

24. DEENDAYAL ANTYODAYA YOJANA - NATIONAL URBAN LIVELIHOOD

MISSION (DAY - NULM)
Objective The key objective of the Scheme was to provide gainful employment to the urban
unemployed or underemployed through the setting up of self-employment ventures or
provision of wage employment.
The existing Swarna Jayanti ShahariRozgarYojana (SJSRY) scheme has been restructured
and launched the National Urban Livelihoods Mission (NULM) in 2013in all district
headquarters and all the cities with population of 1 lakh or more.
The Self Employment Program (SEP) is one of the components of NULM which will focus on
providing financial assistance through a provision of interest subsidy on loans to support
establishment of individual (SEP-I) & Group Enterprises (SEP-G) and self-Help Groups (SHGs)
of urban poor.
Target The unemployed urban poor will be encouraged to set up small enterprises relating to
Beneficiaries manufacturing, servicing and petty business for which there is considerable local demand.
Local skills and local crafts should be particularly encouraged.
Percentage provision of different beneficiaries
Women- 30 %
Differently-abled- 3 %
Minorities communities- 15 %
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SCs and STs must be benefited at least to the extent of the proportion of their strength in
the city/town population of poor.
The group enterprise should have minimum 5 members with a minimum of 70% members
from urban poor families.
Identification of The Community Organizers (COs) and professionals from Urban Local Body (ULB) will
borrower identify the prospective beneficiaries from among the urban poor. The beneficiaries may
directly approach ULB or its representatives for assistance. Banks may also identify
prospective beneficiaries at their end and send such cases directly to ULB.
Educational  No Minimum Educational Qualification is required, however where the identified
Qualification activity for micro-enterprise development requires some special skills appropriate
and Training training must be provided to the beneficiaries before extending financial support by
Requirement linking for training under Employment through Skills Training and Placement (EST&P).
Financial assistance should be extended only after the prospective beneficiary has
acquired required skills for running the proposed micro-enterprise. Such training may
not be necessary if the beneficiary has already undergone training. In addition to skill
training of the beneficiaries, the ULB will also arrange to conduct Entrepreneurship
Development Program for 3-7 days for individual and group entrepreneurs. EDP training
may be arranged by RSETI , reputed NGOs etc.
Age The prospective beneficiary should have attained the age of 18 Years at the time of
applying for loan.
Project cost& The Maximum unit Project Cost for individual micro-enterprises cases is ₹ 2,00,000/.
Type of Loan The Maximum unit Project Cost for a group enterprise is ₹ 10,00,000/.
It can be extended wither as a single loan to the group functioning as on borrowing unit or
each member of group can be provided individual loans up to ₹ 2 lakhs and overall cap of ₹
10 lakhs based on the principal of joint liability of the group. It can be TL or CC.
Margin Up to ₹ 50000/- no margin
More than ₹ 50000/ minimum 5 % but not more than 10 %.
Collateral The loans would not require any collateral guarantee. Only assets created under the
programme would be hypothecated /mortgaged/pledged to the bank advancing the loans.
The loan may be covered under CGTMSE as per the guideline.
Repayment 5 to 7 Years after initial moratorium of 6-18 months as per norms of the banks.
Selection of The application for individual and group enterprise loans will be sponsored by the Urban
Beneficiary & Local Body (ULB) which will be the sponsoring agency for the individual and group
Procedure of enterprise. The beneficiary desirous of seeking financial assistance for setting up an
Sponsoring enterprise can submit an application of intent to the concerned ULB officials on a plain
paper with basic details viz; Name, Age, Contact details, address, Aadhar Number, Loan
Applications
amount required, banks details etc. After this ULB will call the beneficiaries in order of the
serial number or waiting list to complete requisite documentation including filling of Loan
Application Form, Activity Details, Identity Proof, Address Proof, Bank Account Details,
Aadhar number etc.
The applications completed in all respect will be sent to the TASK Force for scrutiny and
thereafter the Task Force will shortlist the applications and call for interview of the
applicants before recommending or rejecting the application.
The case duly recommended by the task force will be forwarded to the concerned banks for
further processing within a time frame of 15 days. No application will be rejected by the
concerned banks except in exceptional circumstances.
Bank branch may also directly accept the loan application of urban poor on the basis of

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relevant documents without prior sponsoring from ULB. The loan application can be
sanctioned under MUDRA or any other scheme. The details of sanctioned application will
be sending to ULB for confirmation of their eligibility for Interest subsidy under DAY-NULM.
Task Force will scrutinize and give a consent. On confirmation Interest subsidy will be
claimed from ULB.
Task force Composition of Task Force
Task Force at ULB Level Role
Chief Executive officer(CEO) ULB/ Municipal Commissioner of Chairman
ULB/ or any representative authorized by CEO ULB
Lead District Manager Member
City Project Officer (CPO), ULB/ or any authorized representative Member Convenor
of ULB
Representative from District Industries Centre (DIC) Member
Senior Branch Managers (Maximum 2) of Banks Member
Representatives (2) of Area Level Federation/City Level Member
Federation
Financial The financial assistance available to urban poor in setting up individual and group
Assistance enterprises will be in the form of Interest subsidy on the bank loans. Interest subsidy, over
&Interest and above 7% rate of interest will be available on a bank loan for setting up of individual or
subsidy group enterprises. The difference between 7% p.a. and the prevailing rate of interest will
be provided to banks under NULM.
An additional 3 percent interest subvention will be provided to all Women SHGs (WSHGs),
who repay their loan in time. The banks should credit the amount of 3% interest subvention
to the eligible WHSGs accounts and thereafter seek the reimbursement.
After disbursement of loan to the beneficiaries, the concerned branch of the bank will send
details of disbursed loan cases to ULB along with details of interest subsidy amount.

The settlement of claims made by banks would be done on quarterly basis by the ULBs,
however the submission of claims should be monthly.
The ULB will check the data at their end and will release the interest subsidy amount on
quarterly basis to the banks.It may be noted that the identification, selection, formation
and monitoring of SHGs who are to get interest subvention would be the responsibility of
State/ ULBs and banks would not be liable for wrong identification of SHGs who get interest
subvention.
The pending claims should not be more than a quarter. In case the claims of the banks are
not settled for a period of 6 months, SLBC is empowered to stop the scheme temporarily in
selected cities subject to clearance of claims by such ULBs. In such eventualities, the claims
settlement should prospectively be given to the Lead District Bank.
Criteria for Cash Credit Limit to SHGs:
prompt i. Outstanding balance shall not have remained in excess of the sanctioned limit/ drawing
repayment power continuously for more than 30 days.
ii. There should be regular credits and debits in the account. In any case there shall be at
least one customer induced credit during the month.
iii. Customer induced Credits during a month shall be sufficient to cover the interest
debited during the month.
Term Loan to SHGs:
A term loan account where all of the interest payments and/or instalments of principal
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were paid within 30 days of the due date during the entire tenure of the loans would be
considered as an account having prompt payment.
Other The ULB will identify the prospective beneficiaries and will facilitate linkages with banks for
guidelines issuance of credit cards. The focus is to initially facilitate issuance of credit card to cover all
the beneficiaries who have availed financial assistance under SEP. Additionally other
beneficiaries who are running their own business but have not availed assistance under SEP
may also be covered if they satisfy the norms of issuance of credit cards.
The City Livelihoods Centers (CLCs) established under NULM will offer services to the micro-
enterprises such as in establishment (licenses, certificates registration, legal services etc.),
production, procurement, technology, processing, marketing, sales, packaging, accounting
etc. for long term sustainability. CLC will also provide support in taking up feasibility/
assessment studies on market demand and market strategy for products and services of
micro-enterprises. All SEP individual and groups enterprises can avail the services from CLCs
as per the norms of CLCs. The SULM may arrange for additional funds/professional
assistance for the purpose of providing above services to CLCs.

Circular Reference:

CHO/ARBD/06/2016-17 Dated 02-05-2016 CHO/ARBD/30/ 2016-17 Dated 27-10-2016

CHO/ARBD/06/2017-18 Dated 18-07-2017 CHO/ARBD/25/2018-19 Dated- 29-12-2018
CHO/ARBD/09/2019-20 Dated 05-07-2019 (Master Circular)

25. UCO MAHILA UTTHAN (UMU)

OBJECTIVE  To encourage and empower women beneficiary through hassle free financial
assistance at liberal and concessional terms.
 Priority sector advance. The loan can be sanctioned Both For Farm and Non-Farm
activities.
 Cash credit facility only.
 SHGs which have been in existence at least for six months are eligible.
ASSESSMENT OF The SHG will be graded by the bank as per the bank’s format. The finance will be
LOAN depending upon the income generation and social needs. Quantum of finance may
be from 1 to 20 times of savings. Minimum Rs.1.0 lacs and Maximum Rs.5.0 lacs.
1st linkage 10 times of the Savings and internal lending.
2nd linkage 15 times of the Savings and internal lending.
After repayment of 1st linkage.
3rdlinkage 20 times of the Savings and internal
lending.After repayment of 2nd linkage.

MARGIN NIL
SERVICE CHARGE Up to 3 lacs NIL
RATE OF INTEREST MCLR+0.15%

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SECURITY No collateral security, only primary security

INSURANCE Members of SHGs to be covered under JanashreeBimaYojana with a premium of
Rs.100/-.(CHO/RETAIL/14/08-09 Dt.09.09.2008)

BENEFIT:
 Natural death coverage-Rs.30,000/-
 Death due to accident- Rs.75,000/-
 Two children of beneficiary, studying between IX &XII would be eligible for
scholarship.
DOCUMENTATION Application by SHG
Inter-se Agreement
Hypothecation of goods
CBS CODE SCHEME CODE: C114A
RBC CODE: Direct Agriculture- 13010
Non-farm activities- 13022

Circular Reference :-

CHO/ARBD/07/2012-13 Dated: 07.06.2012

CHO/ARBD/09/2013-14 Dated: 19.04.2013

26. UCO GENERAL CREDIT CARD(UGCC)

Objective: To increase flow of credit to individuals for entrepreneurial activity in the non-farm
sector provided through General Credit Card.
The credit facility extended under the scheme would include both working capital and
term loan requirements of entrepreneurs.
Borrower  Existing depositor/borrower having relationship with Bank/Branch
 Small Businessmen/Retail Traders/ Self-employed persons / pensioners
/servicemen /Artisans /Salaried Persons/Agriculture labourers and other daily wages
earners etc.
 Borrower be resident of rural/semi-urban areas.
 The borrower should not be defaulter to any lending institution.
 Preference should be given to women beneficiaries.
 The borrower should satisfy KYC norms.
 KCC holders are not eligible for loan under GCC scheme.
 Non-farm entrepreneurial credit extended to individuals, which is eligible for
classification under the priority sector guidelines.
The scheme shall cover all the branches in India. Margin is NIL.
Quantum of Loan Maximum amount of Bank Finance under the scheme shall be Rs. 1.00 crore. Limit is to
be fixed strictly on case to case basis based on:
a. Risk assessment
b. Viability of the project

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c. Capacity of the borrower

d. Availability of cash surplus.
Rate of Interest MCLR+0.15%
Sanctioning Branch Head. (As per lending powers in terms of circular No. CHO/RM/48/2013-14
authority dated12.03.2014 and amended from time to time. )
Security Primary: Primary security must be assets financed by the Bank.
Collateral: Security norms will be applicable as per Bank’s guidelines on collateral free
lending for micro and small units issued from time to time.
The loan should be mandatorily covered under credit guarantee scheme of CGTMSE as
per extant guideline.
Repayment The borrower has to pay interest accrued in the loan on half-yearly basis positively
within 30 days of the following month, to which it relates.
Documentation Composite Loan Application-cum-Appraisal-cum-Sanction Advice-cum-Documentation
Form under UGCC Scheme.
Form No- PSLD-1(A)
• SCHEME CODE: CC116
• RBC CODE:13028(other services including small business)
• 13017(Indirect agriculture)
Circular Reference :-
CHO/CR-PS/01/2006-07 Dated: 04.04.2006
CHO/ARBD/06/2012-13 Dated: 06.06.2012
CHO/ARBD/03/2013-14 Dated: 05.04.2013
CHO/ARBD/16/2014-15 Dated: 16.07.2014
27. DIFFERENTIAL RATE OF INTEREST (DRI) SCHEME
Objective • To Improve the living standard of weakest among the weaker sections of the society by
providing financial assistance at concessional rate of interest of 4% for engaging in
productive and gainful activities
• 2/3rd of total DRI loans should come from rural and semi urban areas. 40% of total DRI
loans should be granted to SC/ST.
Eligibility  The family income should not exceed Rs.18000/- in rural and Rs.24000/- in other area.
 The land holding should not be more than 1 acre irrigated land or 2.5 acres of none
irrigated land. No ceiling for SC/ST beneficiaries.
 The financial assistance will be for productive purpose and help in stabilizing the flow of
income over a period of 3 years.
 The beneficiary can avail the services of his family members only .He cannot engage any
outsiders.
 The beneficiary should not have been assisted under DRI scheme.
 No documentary evidence is required. The bank has to satisfy the eligibility norms by
local enquiries.
 Both individuals & certain specific institutional beneficiaries can avail loan under the
scheme.
 No tangible security.

Quantum of Maximum Loan amount

Loan  General Composite Loan : Rs 15,000/-
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 Housing Loan to SC/ST Beneficiaries : Rs 20,000/-

• Physically handicapped persons for purchase of artificial limbs, hearing aids, etc. cost
should not exceed Rs.5, 000/-.
Rate of interest Rate of interest shall be uniformly at 4% p.a. Interest.
Repayment Maximum 60 month with a moratorium period of 24 month (maximum) depending upon
the surplus generated by the scheme.
Documentation  Loan application.
 Term Loan Agreement (Form A-109)
 Letter of Hypothecation (Form A-9)
 Letter of Guarantee( Form A -107A ),wherever applicable
 Guarantor's Statement (Form 4-264), wherever applicable
Security Loans under the Scheme should be secured by hypothecation of tools/equipment/other
assets which have been acquired out of the loan amount and/or borrowers own fund.
In addition, in case of loans to a homogenous groups of borrowers, group guarantee should
be obtained
Eligible Orphanages and women homes engaged in producing, marketing goods. Institutions for the
institution handicapped persons. Corporations for SC/ST people which provide employment. Co-
operatives or LAMPS (Landless Agriculturists Multipurpose Society). State minority
development corporations.
Scheme Code LA856

Circular Reference: CHO/PS/24 /2008-09 Dated: 16.02.2009

29. SELF HELF GROUP

OBJECTIVE SHG was evolved for meeting the economic & credit needs of the rural poor.
These are small normally homogenous group of poor people facing similar problems,
coming together to help solve problems by mutually helping each other.
FORMATION OF Ideal size is 10 to 20 members. Only one member from one family.It consists of either only
SHG men or only women. Women groups are generally found to perform better. Members
should have the same social and financial back ground. The members interact freely.The
group should meet regularly.Compulsory attendance –full attendance for large participation.
ACTIVITIES Collection of Savings Social pressure groups
On lending to members Impose fine to defaulters
Developing base funds Loans from Bank
Identification of Economic Activities Deposits to Bank
Impose fine to defaulters Earning interest
Undertake joint ventures Arranging collateral
Arranging raw materials Conducting regular meetings
Arranging for marketing produce Recovery of Loans
Arranging training for members
FUNCTIONING OF Members meet on regular intervals. Bye laws may be oral or written for membership,
SHG subscription, fines, donations, sanction of loans, interest on loans to members, periodicity of
meeting, place of meeting, savings, Penalties for default in Attendance etc. Savings must be
collected at meeting venue. Office bearers elected democratically, will keep books and
minutes. Discussion on problems of individual members should be encouraged and try to

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solve them.
Use Common Application form for SHGs for opening Savings A/C and Loan Documentation
including Grading of the group as per Circular No. CHO/ARBD/37/2014-15
Dated:03.03.2015.
RECORDS AND Attendance register, Minutes book, Savings register, Cash book, Loan register, Members
REGISTERS pass book
OPENING OF SB The SHG has to pass a resolution in the group meeting, signed by all the members, indicating
ACCOUNT their decision to open SB a/c with the bank. The SHG should authorise at least three
members, any two of whom, to jointly operate upon their account. Copy of the Rules and
Regulations of the SHG to be submitted to the Bank while opening of SB account. SHG to
deposit monthly savings into this account. Members may visit the bank by rotation. SHG can
withdraw from the SB as per their requirement and may utilize it for internal lending. After
successful running of SHG at least for six months, it can be considered for linkage with bank.
LOAN TO SHG Loan is provided directly to SHGs proportionate to their savings. ( 4 to 10 times) Loan always
sanctioned and issued in the name of the Group. The Group discusses and decides about the
purpose for which loans are to be given to its Members. No collateral security is taken and
no processing fee is charged.
Repayment schedule varies depending upon the nature of the loan. Small and frequent
instalment is preferred. A SHG having a defaulter as its member can avail finance from bank
but such defaulter should be devoid of any finance by the SHG.
CONSTRAINTS Lack of knowledge by branch personnel. Inadequate knowledge of banking procedures and
Illiteracy among SHG members. Difficulty in monitoring ultimate use of loans by members
for consumption/ production/investment purposes. Presence of defaulters in the group.
Interference by vested interest groups.
ADVANTAGE  Credit according to choice.
 High repayment performance.
 No material collateral.
 Appropriate rate of interest.
 Simple loan procedures.
 Net income from interest earning.
 Low transaction cost.
 Easy casa deposit for banks.
 Recognition and good will of rural people.

Circular Reference:

CHO/ARBD/06/2018-19 dt.06/07/2018
CHO/FI/03/2017-18 dt.03/02/2018

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30. JOINT LIABILITY GROUP

OBJECTIVE Credit to small, marginal, tenant farmers, oral lessees, share croppers / individuals taking
up farm activities.
Credit to micro entrepreneurs/ artisans /individuals in nonfarm sector.
To build mutual trust and confidence between bank and the target group.
To minimize the risks in the loan portfolio & to provide food security.
ELIGIBILITY  It is a group comprising of 4 to 10 individuals for availing bank loan either singly or
through the group mechanism against mutual guarantee.
 The members would engage in a similar type of activity in the Agriculture and Allied
Sector/Non Farm Sector.
 The members would offer a joint undertaking to the bank to avail loans.
 JLG members provide support to each other in carrying out occupational and social
activities.
 JLG group up to 20 members could be considered but may not be effective.
 No financial administration within the group.
 Similar socio economic status and background and activities ·
 The members must be likeminded farmers and not imposed by others.
 The members should be residing in the same village/area and know each other.
 The members must be engaged in agricultural activity for a continuous period of not
less than 1 year.
 The JLG members should not be a defaulter to any other financial institution.
 JLG should not be formed with members of the same family & more than one person
from the same family.
 Selection of one good/able/active member of the group is needed to take the
leadership role and ensure the activities of the JLG.
 Care should be taken to ensure that benami loans are not cornered by the group
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leader.
 JLGs scoring 6 out of 10 marks will be eligible for Credit linkageas per Suggested
norms for assessing Joint Liability Groups (JLGs) by Banks
FORMATION OF JLG JLGs can be formed by NGOs, Farmers’ club and Vikas Volunteer Vahini or Agriculture
department of State Govt.
The branch officials need to discuss with the JLG members the bank’s regulations, lending
procedures, services etc.
Savings by the JLG members are voluntary. Members may be encouraged to open an
individual “no frills” account. The group also allowed to open account to be operated by
any two members.
JLG MODEL-A Financing individuals in the group:
Members would be eligible for individual loans from the financing bank.
All members would jointly execute one inter-se document.
There should be a mutual agreement and consensus among all members about the amount
of individual debt liability.
The financing bank should assess the credit requirement, based on the product/enterprise/
activity to be undertaken and the credit absorption capacity of the individual.(both farm &
non-farm sector)
JLG MODEL-B Financing the JLG as a group:
The group would be eligible for accessing one loan, which could be combined credit
requirement of all its members.
All members would jointly execute the document and own the debt liability jointly and
severally.
The credit assessment of the group could be based on the micro enterprise/ activity to be
undertaken.
All members would jointly execute the document and own the debit liability jointly and
severally.
Any change in the composition of the group, a new document has to be registered by the
group.
TYPE OF LOAN Cash credit, short -term loan or term loan depending upon the purpose of loan.
&SCHEM CODE Farm activities : Scheme Code: LA 904 : RBC Code – 13010
Non-farm activities: Scheme Code: LA 905 : RBC Code - 13022
LOAN AMOUNT Maximum amount of loan per individual both under Models A & B:
Farm sector :Rs.50,000/-
Non-farm sector :Rs.25,000/-
RATE OF INTEREST The rate of interest for Short Term production credit for Agriculture purpose is 7%.
Branches should claim for 2% Interest Subsidy as per the existing guidelines.
For term loans the rate of interest will be as per Loan Policy Document.
MARGIN AND No Margin and no collaterals.
SECURITY Only mutual guarantees offered by the JLG members .Loan amount can covered under
CGTMSE.
SERVICE CHARGE NIL
REPAYMENT Production credit (Crop loan) loan will be repaid as per our existing KCC norms.
Term loan will be repaid as per extent guidelines for particular scheme / activity opted.
INSURANCE The individual farmers are eligible for Personal Accident Insurance Scheme as per MOU
signed with Bajaj Allianz General Insurance Company Ltd.
National Agricultural Insurance Scheme (NAIS) i.e. RashtriyaKrishiBimaYojana of Agriculture
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Insurance Company of India extends crop insurance cover to all farmers growing notified
crops in the country.
DOCUMENTATION Composite loan document PSLD 1 For Farm Activities
Simplified MSE loan application form For Non-Farm Activities.
 Introduction form (Annexure-II),
 Application cum appraisal form (Annexure-III),
 Joint Liability Agreement (Annexure-IV),
 Letter of Undertaking (Annexure-V), Demand Promissory Note, Letter of Waiver, and
Guarantee (Mutual) in Bank,s standard document forms to be executed by the
individual member.
 Inter-se Agreement (Annexure-VI) to be executed by them in favour of the bank.
Circular Reference:

CHO/PS/01/2010-11 Dated: 01.04.2010

CHO/ARBD/57/2013-14 Dated: 05.10.2013

31. FARMER’S CLUB

MISSION Development through credit technology transfer, awareness and capacity building.
HOW TO FORM A  Minimum size of the Farmer’s Club should be 10 and there is no upper limit.
FARMERS CLUB  Members should be preferably in one village or group of 2-3 villages on continuous
basis.
 All villagers except willful defaulters can become members of the club.
 There will be only two office bearers elected by club members for a term of two
years, such as Chief Co-ordinator and Associate co-ordinator of the club.
 The office bearers must be residents of the area of operation of the club.
 The office bearer should be a progressive farmer and must not belong to any
political party.
 Defaulters would not be eligible to be the office bearer of the club.
 All the clubs should have saving bank account with the bank in the joint name of the
office bearers.
 No NGO representative can be office bearer of the Club.
BOOKS OF ACCOUNTS  Membership Register
 Minutes Book of the meetings
 Cash Register
 If required they can maintain Visit Register, Library Register.
FUNCTIONS OF THE a) Enroll the farmers in the village as club members, maintain club accounts, draw up
CLUB annual calendar of various agriculture events.
b) Hold minimum one meeting per month. Non members can also be invited to attend
the meetings.
c) Co-ordinate with banks to ensure credit flow among its members and facilitate
better borrower relationship.
d) Interface with subject matter specialists in the various fields of Agriculture and

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allied activities etc., extension personnel of Agriculture universities, Development

Departments and other related agencies for technical know-how up gradation. For
guest lectures, even experienced farmers who are non members from the village/
neighboring village could be invited.
e) Liaison with co-operative input suppliers to purchase bulk inputs on behalf of the
members.
f) Organize /facilitate joint activities like value addition, processing, collective farm
produce marketing etc. for the benefit of the members.
g) Undertake socio-economic developmental activities like community works,
education, health, environment and natural resource management etc.
ANNUAL The cost sharing between NABARD and sponsoring bank is 50:50 for three years.
MAINTENANCE However, for NER (including Sikkim) and Andaman and Nicobar Islands to be share by
EXPENSES only NABARD
Annual Maintenance: Rs.3,000/- per year.
(Five year for NER by NABAED, three years for other areas shared by NABARD and the
sponsoring bank)
Inauguration and to educate the members: Rs.5,000/- Once
Meet with Experts for 4 meets per year for three year: Rs.1,250/- per meet To
NGOs/KVKs/AUs assisting to promote Farmer’s Club: Rs.2,000/- per year for three
years.
BUILDING UP  The club can raise contribution from members in the form of annual
RESOURCES membership and/or monthly subscription. The quantum of amount can be decided by
each club.
 The clubs can undertake certain business activities such as bulk procurement of
agriculture inputs and collective marketing of their agriculture produce etc. and earn
income by way of commission/better prices.
 The clubs can raise grant and donations.
 The club can promote formation and nurturing of SHGs by obtaining grant from
NABARD/other institutions.
 The clubs can render miscellaneous services to the villages on a payment Basis.
 The club can explore the possibilities of Contract Farming and keep apart a
limited portion of additional income earned as Common Fund.
 Each club is expected to take an independent view in the matter. However, only
those clubs that have put in place a mechanism for raising resources would be
considered for providing maintenance grant.
Circular Reference:

CHO/PS/14/2006-07 DATED: 10.07.2006

CHO/PS/12/2007-08 DATED: 30.06.2007

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Different Purpose Application Forms

Form "A" (A-116) Application for Agricultural Credit (General Master Application Form)
Composite loan document for all Agricultural loans upto ₹ 1.00 lac (₹ one lac) in form No. PSLD-1
Production Credit (A-117) Crop Loan
Investment Credit (A-118) Purchase of pump set
Investment Credit (A-119) Construction, deepening & repair of wells
Investment Credit (A-120) Construction of Tube-well
Investment Credit (A-121) Purchase of tractor/other agricultural machinery.
Investment Credit (A-122) Reclamation of land &bunding.
Investment Credit (A-123) Purchase of bullocks
Investment Credit (A-124) Purchase of buffaloes,cows & goats for milk production as subsidiary occupation.
Investment Credit (A-125) Development of Pisiculture
Investment Credit (A-126) Poultry
Investment Credit (A-129) Repairs of well
Investment Credit (A-130) Development of Inland River Water/Marine Fisheries
Investment Credit (A-131) Installation of Gobar Gas Plant
Investment Credit (A-132) Horticulture/Plantation Crops
Investment Credit (A-133) Renewal of Agrl. Credit (Short-term)
Investment Credit (AG2HO)Application form for Agro-service Centre.

UCO Agro & Food Processing UCO Two-Wheeler, UCO Kisan Tatkal
Cash Credit Term Light
Loan & Medium Vehicle
 A1 or A2  A109  A1 or A2  A1 or A2
 A3  Composite Deed of  A47  A47
 A47 Hypothecation  A36C  A116
 Composite Deed  A21/A21A (for  Letter  A107

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of Hypothecation Promoters from Branch  Creation of charge on

 A21/A21A (for Guarantee) to Dealer/Supplier the Land Records and the
Promoters  EMTD/Registered  Declaration cum same should be reflected
Guarantee) Mortgage Documents Undertaking- as in online.
 EMTD/Registered Where applicable. UCO Car – for
Mortgage Documents furnishing details of
Where applicable. vehicle
 A21A
 Creation of
charge on the Land
Records and the
same should be
reflected online.

UCO FPC & UCO NFPC

Cash Credit Term Warehouse Receipt Financing
Loan
 A2  A109  A2
 A3  Composite Deed  A3
 A47 of Hypothecation  A47
 Composite Deed  A8
of Hypothecation  A21/A21A  Composite Deed of Hypothecation
(for Promoters  A21/A21A (for Promoters Guarantee)
 A21/A21A Guarantee)  Pledge of warehouse receipt duly Discharged
(for promoters by the borrower/ depositor.
Guarantee)  EMTD/Registered  An undertaking from the borrower authorizing
Mortgage Documents the Bank to recover the advance through the sale
 EMTD/Registered Where applicable. of the stored commodities on behalf of the
Mortgage Documents borrower and to bear the expenses for marketing
where applicable.  Charge creation of the commodities if the repayment is not made
with ROC (Registrar on due date.
 Charge creation of companies).  EMTD/Registered Mortgage
with ROC(Registrar of Documents where applicable.
companies)  Charge creation with ROC(Registrar of
companies)

84
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106
 A Handbook on Agriculture Credit Scheme

85
यूको बैंक,सेंट्रल स्टाफ कॉलेज, जी.ई.-8, सेक्टर -III,सॉल्ट लेक,कोलकाता - 700106
UCO Bank, Central Staff College,GE-8,Sector-III, Salt Lake, Kolkata -700106