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Priority Sector Schemes

1. PSB Scheme of Kisan Credit Cards

Kisan Credit Card Scheme aims at providing adequate and timely credit support from the banking system under a single window to the farmers for their cultivation & other needs as indicated below:

  • To meet the short term credit requirements for cultivation of crops
  • Post harvest expenses
  • Produce Marketing loan
  • Consumption requirements of farmer household
  • Working capital for maintenance of farm assets and activities allied to agriculture, like dairy animals, inland fishery etc.
  • Investment credit requirement for agriculture and allied activities like pumpsets, sprayers, dairy animals etc.

All Farmers - Individuals / Joint borrowers who are owner cultivators,ii. Tenant Farmers, Oral Lessees & Share Croppers, SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc.are eligible for KCC.

Credit limit may be fixed based on operational land holding, cropping pattern and ancillary & contingency needs of the farmer for the full year. For farmers raising more than one crop in a year, the limit is to be fixed depending upon the crops cultivated as per proposed cropping pattern. The criterion for fixing production credit limit is based on extent of cultivated area of the farmer. The appraiser/sanctioning authority shall exercise due diligence while working out the limit and the actual limits may be fixed on case to case basis and calculated separately for irrigated and un-irrigated land. There is no maximum loan limit under the KCC scheme. The fixation of credit limit is uniformlyapplicable to all categories of farmers.

2. PSB Tractor Finance & Tractor Welfare Fund Scheme

In the field of farm mechanisation Punjab & Sind Bank has adopted a very liberal policy for Tractor Financing. A farmer cultivating a minimum of 8 Acres of irrigated agricultural land is eligible for a tractor loan and his Tractor should have a potential for a use of 1000 productive hours in a year on his farm or for custom hire. The loan may be repayable in equated half yearly installments over a period of upto 9 years. The value of security offered by way of mortgage of land and Hyp. of Tractor should be double the value of Term Loan sanctioned.

Insurance of Tractor

To save the farmer from the burden of comprehensive insurance, Punjab & Sind Bank has waived the condition of comprehensive insurance. Now the farmer may opt for membership of Tractor Welfare Fund of the bank. Tractor is to be insured for Third party only. The farmer who has opted for Tractor Welfare Fund Scheme has to contribute only Rs.300/- per year in the Tractor Welfare Fund. In case of serious accident where the amount of loss is more than Rs.10,000, compensation to the extent of 50% of the assessed loss is provided from the Tractor Welfare Fund. By becoming member of Tractor Welfare Fund Scheme, the farmer saves Rs.15,000 to Rs.20,000 over a period of 9 years. The Tractor Welfare Fund is maintained by a Trust named " PSB Trust for Development of Agriculture & Rural Employment". The funds collected in Tractor Welfare Fund are utilized for the benefit of farming community.

3. PSB Scheme for Boosting Farm Machanization

An individual or group of individuals, institution or organization which has sufficient and regular income either from own Farm Activity and/or Custom Hiring Service are eligible for finance. Margin requirement is 15 to 25%

  • For tractors: Any individual or group of individuals jointly holding ownership of minimum of 2.5 acres of perennially irrigated agricultural land. Economic viability of financing tractor in each case shall be worked out keeping in view his total cultivation of agriculture land, income from custom hiring etc.
  • For Power tillers/ threshers/Reapers/Any other implement: Any individual or group of individual jointly holding ownership of minimum of 2.0 acres of perennially irrigated agricultural land. Financing of power tiller/thresher/reaper or any other implement like mechanized sprayer, laser land leveller etc shall be done after ensuring economic viability and demand in the area.
  • For bulldozers, JCBs, Well- Boring equipment etc: Any individual or group of individuals jointly holding ownership of minimum of 5 acres of perennially irrigated agricultural land. Farmer should have proper scope for utilization of assets and based on economics should be in a position to conveniently repay loan.
  • For repair/renovation of Farm Machinery:- Any borrower owning farm machinery in his name and, where agriculture land is mortgaged with the Bank is eligible for term loan for repair/renovation up to maximum of Rs. 50,000/- based on the estimate of authorized dealer.
  • For Combine Harvester: Any individual or group of individuals holding land jointly should have a land holding owned by them minimum of 5 acres of perennially irrigated agricultural land. Farmer should have proper scope for utilization of assets and based on economics should be in a position to conveniently repay loan.
4. PSB Kisan Suvidha Scheme

An Individual farmers/joint borrowers who are existing Kisan Credit Card (KCC) holders having satisfactory track record of one year are eligible for additional investment credit to farmers for agriculture purposes. Rs 50000/- per acre of owned land with maximum of Rs 5 Lacs. The Term Loan be sanctioned on the basis of risk assessment on case to case basis. This loan amount shall be in addition to existing KCC limit of applicant. Term Loan repayable within 3-5 years for undertaking activities like farm mechanization, land development, minor irrigation, allied activities, horticulture and all other agriculture related activities.

5. PSB Financing Commercial Dairy Units

Eligible farmers interested to take up Hi-tech Dairy Farming as commercial activity by adding more cross bred cows under the scheme. Preference is given to farmers supplying the milk through Cooperative systems/milk collection centres and/or are members of Dairy Farmers’ Association in the State. Credit facility under the scheme are available for

  • Term loan (85% of the total project cost) to set up of Hi-tech Commercial Dairy Unit, new as well as for expanding of existing dairy unit, which includes the cost of cattle, infrastructure such as sheds, feeds, cooling system, etc.
  • Working capital (Need based requirement as per size of the unit) by way of Over Draft limit to meet the recurring expenditure like feed, fodder, maintenance expenses and other inputs.
6. PSB Scheme of Financing Two Wheeler/Jeep/Car/SUV For Farmers

Though two wheelers/Jeep/Car/SUV are not directly engaged in farming operation but they have good use for a farmers in timely sourcing of various farm inputs and disposing of farm produce. The loan amount shall be 85% of the total cost of Two wheeler/Jeep/Car/SUV proposed to be purchased. The loan amount shall have a relationship with the projected net earning and the repayment capacity of the borrower.

7. PSB Scheme for Financing Farmers for Purchase of Land for Agricultural Purpose

The scheme aims at providing term loan to small/marginal farmers including share croppers/tenant cultivators to purchase agricultural land as well as fallow and wasteland production/to develop and cultivate it with a view to increase production/productivity. It also enables them to diversify the present activities and to take up allied activities. Small and Marginal farmers, Share croppers/tenant farmers Entrepreneurs with agricultural background are also eligible (Provided State laws permit purchase of agriculture lands by non-agriculturists) The total land holding of the borrower after the purchase of the land under the scheme should not exceed 2.5 acres of irrigated land or 5 acres of non-irrigated land or equivalent. The quantum of loan depends upon (i) Valuation as assessed by the Branch (ii) Guidance value/Circle rate fixed by the State or (iii) Registration value whichever is lower, plus value of stamp duty, registration charges for sale/ mortgage deed. Maximum amount Rs.10 lakhs.

8. PSB Estate Purchase Loans

To purchase estates growing traditional plantation crops viz. coffee, tea, rubber and cardamom cashew, pepper, coconut and other perennial orchard crops. The purchaser should have

  • yielding estates and should be in a position to rejuvenate the estate proposed to be purchased.
  • The intending borrowers should have with satisfactory past dealing with the Bank.
  • The purchaser should be experienced in the line, financially should and should be in a position to bring in margin and service the debt.
  • The intending buyers 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 form realizing higher yields. The estate should have the potential to absorb substantial credit for developmental activity.
  • The total land holding including the land to be acquired should be within the land ceiling norms of the respective State.
9. PSB Loans for Agricultural Purposes against Gold & Silver

To enable farmers to quickly meet their short-term agricultural credit needs and investment needs i.e.both for crop production needs and also for meeting investment needs of agriculture & allied activities.

Any person engaged in agriculture or allied activities as well as persons engaged in activities permitted by GOI/RBI to be classified under agriculture. The applicant should satisfy the KYC guidelines & loan shall be given based on declaration. Additionally, proof of pursuing the activity to be given for loans above Rs.1 lakh.

The purpose of the loan shall be for any one/various purposes for meeting the farm activity related expenses, including that for allied activities. The loan assessment shall be based on Scale of finance for crop production and actual credit requirement by farmers for other purposes. This shall be based on the declaration of the farmers in the application. However the limit shall be limited to value of pledged Gold Jewellery /Gold coins etc as permitted by RBI less the stipulated margin. In case of Silver, the loan shall be extended against silver jewellery only due to difficulties in handling of silver articles other than jewellery.

10. PSB Kisan All Purpose Term Loans

To Create a hassle free single term loan limit to farmers for all term loan requirements like farm Mechanization, Land Development, Minor Irrigation, Water Conservation, Horticulture, Allied activities and other Agri related activities etc.

However development projects with a long gestation period (say more than 3 - 4 years) may not be considered in view of the specific tenor of this credit product (eg. Mango plantation - requiring gestation of 6-7 years)

Quantum of loan/Ceiling

  • To be based on the investment plan given by the farmer to be undertaken in the next 2-3 years.
  • The plan may 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 which ever is lower, with a maximum Rs.20 Lakhs.
11. PSB Kisan Tatkal Scheme

An instant credit for farming community to meet the emergency requirements for Agriculture and domestic purposes for tiding over temporary difficulties. Individual farmers / joint borrowers (not exceeding 4 farmers) who are existing Kisan Credit Card (KCC) holders having satisfactory track record of at least two years are eligible under the scheme.

12. PSB Loans to Farmers for Purchase of Renewable Energy Equipments (Solar Pumpsets/ Solar Water Heaters/ Solar lighting)

Under this scheme loan shall be granted for installation of Solar Water Pumping System. The proposed scheme shall help in harnessing the solar energy for pumping water by water pumps.

Eligibility condition under the scheme are as under:-

The farmers' land should have adequate source of water. In case any Public/ Government source is being used, water right certificate from the concerned authority should be produced. In case of wells they should have sufficient recouping capacity to irrigate area proposed to be brought under irrigation.

He/She should own an economic land holding with a minimum of 10 acres. However, loans may be considered even if the benefiting area is less than 10 acres provided the farmer is able to sell surplus water.

It is also possible that due to Technical limitation of solar pumpset that it can work at low Heads only (shallow water sources) and low capacity (2.50 HP pumpsets) & hence capacity to irrigate small area only (1- 2 Hectares) due to small discharge.

In such cases it should be ensured that viability is ensured and projected DSCR is not less than 1.60.

13. PSB Scheme for Financing Seed Production & Processing Units

Any individual, firms (Proprietorship/partnership), Private Ltd and Limited Companies having owned/leased land (Minimum one acre of land)can take benefit of this scheme. The maximum quantum of bank finance is fixed at Rs.2.00 crore (per borrower). Both term loan as well as working capital facilities are available under the scheme. The rate of interest to be charged shall be BR+1% for credit rating 1 to 4.In case of lease hold property, equitable mortgage of separate land and building is to be obtained in the name of borrower/Guarantors valued at minimum 100% of the loan limit.

14.PSB Scheme for Financing of Agriculture Inputs (Fertilisers/Pesticides/Certified Seed etc) Dealers/ Distributors/Stockist against stock and book debts.

Any firms (Proprietorship/partnership), Private Ltd and Limited Companies, Co-operatives/JLGs/SHGs who are involved in sale of agriculture inputs such as fertilizers, pesticides, seeds. Cattle Feed, Poultry Feed, Agriculture Implements, Farm Machinery etc. can avail Overdraft against Property /Cash Credit facilities under the scheme. The rate of interest to be charged shall be BR+1% for exposure less than Rs.500 lac irrespective of credit rating. Stock statement/Book Debt statement to be furnished by the borrower at the time of sanction and thereafter on yearly basis of the stocks not older than six months.

In case of Cash Credit facility, margin in the form of stock may be 20% and against Book Debts may be 50%.where as in case of ODP facility for fresh cases, margin of 35% shall be applicable and for renewal where revaluation of property is not due, margin of 25% is required. In case of renewal, where revaluation of property is due margin of 35% on revalued property shall be applicable.

15. PSB Scheme for Financing against Pledge of Warehouse Receipts

Farmers, Food Grain Dealers/Commission Agents/Millers are eligible for finance under the scheme. Besides this, those farmers, traders/millers who store their Agricultural produce in State Government/Central warehouses or those owned, leased, franchised by the NHBC/SAMC are also eligible.

The scheme is being implemented on all India basis. A short term finance upto 9 months is available for seeking finance under the Warehouse Receipts issued by M/s National Bulk Handling Corporation (NBHC) and M/s Star Agriwarehousing & Collateral Management Limited (SACM). The range of services for Collateral Management and the fee & charges for these services are available in the agreement with these companies.

16. PSB Scheme of Kisan Rahat Scheme for Financing to Aarhtias (Commission Agents)

Bank makes Cash Credit facilities available to Aarhtias (Commission Agents) on very liberal terms and conditions. Bank is charging rate of interest @ Base Rate + 0.50% p.a. irrespective of amount of credit limit (Max Rs.100 lac presently). The margin norms of 50% in the shape of Book Debt and collateral security valuing at least 100% of the limit sanctioned up to Rs.25 lac and 150% for limit above Rs.25 lacs in the shape of properties/FDR/NSC/LIC policy/ any other Government securities.

17. PSB ECO-RIDE’, scheme for financing of E-Rickshaws

E-Rickshaws are emerging as a new segment of commercial vehicles as a last mile connectivity option for general public. The PSB ECO-RIDE scheme envisages providing finance to Micro borrowers on easy terms and create employment opportunities for the poor strata of community. Loan is given for purchase of indigenous new Battery operated E-Rickshaw in form of TL repayable in monthly installments of 36 months. Quantum of Finance is upto 85% of the cost of E-Rickshaw (including Batteries) with a maximum of Rs.1.00 lac. Hypothecation of E-Rickshaw to be financed by the Bank is taken as security with no Collateral Security & Guarantee as the loans are covered under CGTMSE.

18. PSB Pradhan Mantri Mudra Yojana

Micro Units Development & Refinance Agency Ltd (MUDRA) was launched by Hon’ble Prime Minister on April 8, 2015 as new financial entity for developing and refinancing last mile financial intermediaries like Banks, NBFCs, MFIs etc. PMMY loans are classified into 3 categories as:-

  • Shishu : loans upto 50,000/-
  • Kishore: loans above 50,000/- and upto 5 lakh
  • Tarun : loans above 5 lakh to 10 lakh

Any Indian Citizen who has a business plan for income generating activity such as manufacturing, processing, trading or service sector and activities allied to agriculture and services allied to it, whose credit need is less than 10 lakh can approach either a Bank, for availing of MUDRA loans under PMMY.

In respect of Shishu category, IBA approved one page application & for Kishore and Tarun categories, 4 page application forms are available on the Bank’s Intranet site. Branches have been mandated not to insist for collateral security & guarantee in the case of loans under Pradhan Mantri Mudra Yojana. Currently our Bank is charging the following rates for MUDRA loans:-

19. PSB Stand Up India scheme

SUI is a flagship program of Govt. of India launched on 5th April, 2016 for facilitating credit to SC/ST and Women entrepreneurs. The objective of the scheme is to facilitate bank loans between 10 lakh and 1 Crore to at least one SC/ST borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise (Manufacturing, Services & trading).

The credit facility is extended is the form of composite loan (inclusive of term loan and working capital) upto 75% of the project cost. Mortgage/hypothecation of Primary Asset acquired out of loan is taken as primary security and the loan may also be secured by collateral security. Guarantee Cover is available under “Credit Guarantee Scheme for Stand Up India” managed by NCGTC Ltd.

20. PSB Scheme on Financing Food and Agro Processing Units

Any individual or group of individuals/producers group/organization/ institution which are dependent upon agriculture/allied/marine produce are eligible for finance under the scheme except Rice Shellers.

Both Funded and non funded credit facilities shall be available to agro and food processing units.

Units with total exposure from Banking industry upto Rs.100 crore will be covered under Agriculture and above Rs.100 crores are to be classified in MSME on the basis of prescribed investment in Plant and Machinery.

Credit Rating as per Bank’s Credit Rating Model and Framework. However, rating shall be only for the purpose of considering the proposal and not for fixing the Rate of Interest up to a sanctioned limit of Rs.100.00 crore.

21. PSB Policy For Financing Rice Shellers

The advances to rice shellers may be for term loans, working capital and/or export finance. The credit limits are self liquidating as the processed / shelled stocks are sold off during /by the end of the season itself. The season of the Rice Shellers generally commences from August – Sept. and end by May – June next year. At the end of operations, the units are serviced / repaired to be ready for use during the next year.

Adequate and timely working capital is made available to rice shellers as per laid down instructions (given hereunder again) and the Nayak Committee Recommendations. The assessment of W.C. limits is to be made both as per traditional method and on turn over basis (as per Nayak Committee Recommendations). The higher of the two limits will be allowed as permissible Bank finance for the shellers availing working capital limits unto Rs.5 Crores. For limits above Rs. 5 crore, the assessment shall be based on the MPBF method as per rice sheller policy of the Bank.

An ODP limit of upto Rs.2 crore is allowed under the scheme and is governed as per terms and conditions ( including rate of interest ) contained in Bank’s Multipurpose Mortgage Loan Scheme. No CC limit to be allowed where ODP limit is sanctioned.

The request of the parties for issue of Bank guarantees in favour of Govt. agencies such as FCI, MARKFED, PUNSUP, NAFED, etc can be considered for purchase, processing, supply for paddy and rice with at least 25% margin in shape of FDR (un-encumbered) besides collateral security of such other assets already charged / mortgaged with the Bank.

The sanctioning authorities are allowed to sanction temporary facilities 3 times during the year in emergent cases for total of 180 days maximum, for main activity only i.e. rice shelling and not for other purposes.. Further , the maximum period will be 120 days where inventory norms are relaxed while calculating MPBF.

22. PSB Agri-Produce Pledge Loan (against warehouse receipt) Scheme

Farmers (Individual and group/associations of Farmers i.e. SHGs/JLGs/FPOs), individuals or groups engaged in agricultural allied activities, food and agro processing units, food grain dealers/commission agents/millers are eligible for loan against pledge of agri- produce upto 65% of the value of farm produce.

The extent of facility is need based with Individual up to Rs.0.50 crore, Firm/Company up to Rs.10.00 crore and Groups up to Rs.25.00 crore.

The maximum period of advances under the scheme is SIX (6) months or the due date mentioned in the warehouse receipt, which ever is earlier. Rollover for a maximum period of 6 months is permitted only when fresh warehouse receipt is issued with fresh quality certificate.


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