KISAN POWER – Brief Introduction

Loans to Individual Farmers for the purpose of cultivating

agriculture/horticulture crops and other development activities

Types of crops

Field crops Horticulture crops

Cat 1 : Multiple Harvesting Cycle in

Term Loan a year (e.g. Banana)

Cash Credit Overdraft

Cat 2 : Single Harvesting Cycle in a
year (e.g. Mango, Grapes)

Facilities
Provided:
 KISAN POWER – Eligible Borrowers

Age: 18 Years - 75 years (Max. 80 yrs with deviation)

If borrower is >60 years: Co borrower less than 60 years is mandatory, should be a legal heir or
immediate family member (siblings/spouse/children).

Joint holding: Max 5 members permitted.

Min. Land Holding should be 1 acre for KCC, For ODCON: 0.5 Acres

CIBIL SCORE:

For salaried & Self employed (Professionals and non professionals): 720+ (For any applicant)

For household business activities holding applicants: 750+

 KISAN POWER – Loan Limit

Facility Min Amount Max. Amount

Production Credit 25,001/- 2,50,00,000/-

Term Loan 25,001/- 2,50,00,000/

Overdraft 1,00,000/- 1,00,00,000/-

Overdraft $ 1,00,00,000/ 2,00,00,000/

Above 1 Crore, the limit will be classified as other PSL/ non PSL

For availing OD limit, availing a CC facility is compulsory

The overall schematic exposure of a particular borrower should not exceed Rs.2.50
Crores
KISAN POWER – Purpose of loan

Cash Credit TL General TL Horticulture ODCON

• For meeting Cost of • For meeting • For meeting specific • For meeting other
cultivation and post- investment needs other investment needs of household
harvest expenses than production Horticulture crops, consumption needs of
including general expenses for improving plantation crops & Hi- the farmers such as
consumption and farm farm productivity - tech farming - education of children,
assets maintenance Fencing, Irrigation Establishment of marriage expenses,
needs facility, Storage unit orchards, Green House/ hospitalization
construction, Farm Poly House expenses
infrastructures, Land installation, Fencing,
development, Purchase Land Development
of farm machinery and
equipment
KISAN POWER – Assessment (Contd..)

(B) ODRUL ASSESSMENT : Example for farmer with 12 acre of agriculture land and eligible
for 175% SOF

1 Proposed ODRUL 12,00,00 (As requested by the customer)

Crop Loan limit (CCAGR ODRUL(Old-Crop loan)

Old SOF logic
Assessment) (B-A)
2 SOF Assessment - New DLTC
5,61,000 (A)
16,82,900 11,21,900

ODRUL Constant Land*ODRUL

Area Name Land (Acre)
As per ODRUL (175%) Constant
3
Constant(OCV)
xxxxx 99,700 12 11,96,400

ODRUL LOGIC – Minimum of : 1. Proposed ODRUL/ 2. SOF Assessment – New DLTC / 3. As

per ODRUL Constant(OCV)

Component Scheme Eligibility

CC DLTC CCAGR/CCHRT/ISKCC 5,61,000

Final Eligibility 11,21,900 (B)

ODRUL ODRUL ( Just half if new DLTC
is 20% of ODRUL eligibility)

Total Limit 16,82,900

KISAN POWER – Assessment (Contd..)

ODCON Assessment

A Annual documented Other Income 10,00,000

B FOIR 3,00,000
C Annual obligation 1,00,000
Standard ODCON Limit 6x{A-(B+C)} 36,00,000
Maximum ODCON limit 8x{A-(B+C)} 48,00,000

Term loan Assessment

A Annual Net Farm Income 6,00,000
B Annual Net Non-farm Income 5,00,000
C Existing Annual Obligation 1,00,000
D Eligible Income : {(A+B)-c} 10,00,000
Term Loan limit : 2.5xD 25,00,000

Note:-
• Limit assessed > 4 times of documented other income, No TL to be sanctioned
• TL installment obligation to be considered under annual obligation for ODCON LIMIT calculation
KISAN POWER – Income Consideration ( CC & TL)

Source of Income Proof to be obtained Maximum Income to be considered

ITR with computation of income of last 2
years. Entire income appearing in ITR to
be considered.
Business/ Other Income   As Per ITR
The latest ITR income subject to
maximum upto 150% of previous year’s
ITR income to be considered.
ITR or Form 16 for two years with latest
3 salary slips with SB statement of
Salary Income As Per ITR/Form 16/Salary Slip
accounts for last 6 months in which
salary is credited

Income from assets &

machinery owned by the RC of the machineries (it should be in the
Max. Rs 3.00 lac per year
farmer (harvester combine, name of the primary applicant)
JCB etc.)

As per the declaration by the borrower Rs. 25,000 per milch animal subject
Allied Income
and to be cross checked by the FCU to Max. Rs 3 lac per year
 KISAN POWER – Income Consideration (OD)

Source of Income Proof to be obtained Max Income to be considered

Business/ Other Income All income reflecting in ITR (Net of As per ITR
Taxes) including exempted income if
appearing in ITR can be considered.
The latest ITR income subject to
maximum upto 150% of previous year’s
ITR income to be considered.

Salary Income ITR or Form 16 for two years with latest As per ITR/ Salary Slip
3 salary slips with SB statement of
accounts for last 6 months in which
salary is credited

The Gap between filing of 2 ITRs should be minimum 6 Months

KISAN POWER – LTV Norms (As per KISAN POWER policy 2018)

Security Type Loan to Value ( LTV)

Agriculture land with Govt. Value 70%

Agriculture Land with Market Value 50%

Liquid Security: FDs (with our Bank), NSCs, surrender value of LIC
100%
policies

NA Property

a. Residential Property
70%

b. Commercial Property 60%

c. Open Plots Within Municipal Limits And properly Demarcated With Fence
At Distress Value 50%
KISAN POWER – Lease Land Funding

The finance will be allowed only against registered lease land with maximum
ratio of 1:5 (Own land to registered leased land ratio).

The lease deed has to be registered in the SRO Office in registered lease land
cases.

The said transaction is reflected in the land records such as 7/12 extract, patta,
chitta, adangal etc

The oral lease will be allowed in case of renewal of accounts at existing level.
KISAN POWER – ODCON ADDITIONAL GUIDELINES

NA Property is Mandatory for ODCON Facilities

ODCON Cases with only Open Plots as collateral security to be restricted to 5% of the sourcing

Single valuation is stipulated for exposure up to Rs. 1.00 Crore and two valuations are to be insisted
for exposure above Rs.1.00 Crore

Type of property Building Plot

Residential Yes Within Municipal Limit

Commercial Yes Within Municipal Limit

Industrial No No
 Negative profiles for ODCON

Sand Mining
Money Lenders
Advocates
Police Officers (Without Axis Salary Account)
Politicians/ Any applicant with political links
Lawyers (Except solicitor firms)
DSA’s
Antique dealers
Money exchangers’
Offensive & warfare products
Liquor/wine stores
Fire cracker shop owner
Builder
 KISAN POWER – Negative list of properties

HUF owned properties

Age of Building/ Collateral should not be more than 40 years
Properties located in cantonment areas
Properties in the name of minor
Offices/ shops forming part of mall structure
Up to three (3) multitenant properties are allowed. Under construction properties**
Properties under Pagadi/ Salami system should not be taken as security
Hospital/Doctor’s Clinic with beds
School/ Education institute
Properties given on lease to government establishments
Trust and Religious institutions

Pub, Bar and wine shop

**However the property which has mortgaged should have separate & unhindered entrance. Properties where one unit has more than
one tenant needs to be avoided. E.g., One floor having one unit and having more than one tenant should not be funded. In case of
multitenant properties, NOC from existing lessees should be taken.
 KISAN POWER – Negative list of properties

Cinema Hall, hotel

Function halls often found with pub, club, hotels, restaurants cannot be considered

Barat Hall, Community hall, Marriage hall, Kalyan Mandapam & other halls where general public at large
holds the interest should not be considered
Properties near riverbanks

Landlocked property

Industrial property

Hostel

Leisure Township/ Properties at Hill station

Properties where hazardous chemicals are traded

Studio Apartments
 Kisan Samarth

Household business/ rental income

Self Employed (Professionals/ Non-
Product Variants Salaried holders (Beauty parlor/ Boutique
professionals like CA/Dr/Er)
with a vintage of min. 2 years)

Min Land holding: 3 acres Min Land holding: 3 acres Min Land holding: 5 acres

Min Income: 3 lacs/annum (With

Min Net Income: 25000/month Min Income: 3 lacs/ annum (With ITR)
ITR)
Eligibility CIBIL score: 720+ for any
CIBIL score: 720+ for any applicant CIBIL score: 750+ for any applicant
applicant
• Customer needs to reside in the current address for at least one year. (To be confirmed by RM visit/FCU)

• Min Amount :Rs.1,00,001/-

Overall Exposure &
• Max Amount :Rs. 25,00,000
Amount of Loan

Rate of Interest and

• As per Farm Funding Pricing Circular issued from time to time. Same as applicable for ODCON
Processing fees
• Govt. Value of agri land with an LTV of 70% to be considered.
Property Valuation norms
• Entire land to be mortgaged for this facility

Tenure • Maximum for 5 years. To be reviewed on a yearly basis and renewed at 5 year interval
 Kisan Samarth

Household business/ rental

Self Employed (Professionals/
income holders (Beauty
Product Variants Salaried Non-professionals like
parlor/ Boutique with a
CA/Dr/Er)
vintage of min. 2 years)

• ITR or Form 16 for last

two years along with latest • Proof of Business: GST/Shop
3 month salary slips. establishment/Registration
Certificate /Any other proof • No business document
• Bank Statement: last 6 which establishes business required
months latest Bank existence.
statement for account
Documents to be where salary is credited
collected

• ITRs with Computation of income of last 2 years. Entire

Income appearing in ITR to be considered
• The latest ITR Income Subject to maximum up 15to 150% of
previous year's ITR income to be considered.
• Min Gap of 6 months between ITRs.
 
FOIR Applicable 70%