CREDIT SECTION
TO ALL OFFICES
REG: SCHEME FOR FINANCING SELF-PROPELLED COMBINE HARVESTERS.
Detailed guidelines for financing
self-propelled combine harvesters were circulated to all offices from time to time.
Guidelines on the captioned scheme have
been consolidated by subsuming the operative part of subsequently issued
circulars as per Annexure.
Incumbent
Incharge of the branches are advised to adhere to guidelines contained in scheme
for financing self-propelled combine harvesters and boost agriculture advances.
GENERAL
MANAGER
Annexure to
Credit Circular No.10 dated 16.11.2005
SCHEME FOR FINANCING SELF-PROPELLED COMBINE HARVESTERS
Financing combine
harvester is a vital segment of Farm Mechanization Scheme of the Bank. Cultivation
of multiple crops necessitates quick harvesting and storage of grains of crops
to avoid loss from vagaries of weather, pilferage, etc. Combine harvester helps
the farmers to harvest certain crops and collect the grains from stalks by
undertaking all the harvesting operations from cutting of plants to winnowing
and bagging of grains in one assembly. Combine harvesters come to the rescue of
the farmers in days of labour paucity and likely adverse weather conditions.
Besides, it facilitates early taking of farm produce to the markets for
fetching better price.
Details of the Scheme for financing self-propelled combine
harvesters are as under: -
1.
PURPOSE:
Loan
may be given for financing purchase of combine harvester to persons/ group of
farmers/individual farmers desirous of setting up of custom service units or for
custom hiring, State Agriculture Farms having larger area and intending to use
the combines in their farm area apart from such corporations which are engaged
in land development activities.
2.
ELIGIBILITY:
(i)
In case of farmers:
Intending borrowers should be able to maintain and run combine harvester
or should make suitable arrangements for the same.
(ii)
In case of persons other than farmers:
Intending borrowers should be technically qualified having adequate
know-how, skill and managerial ability to run custom service units.
(iii)
In case of State Agriculture Farms/Corporations:
State Agriculture Farms/ Corporations engaged in land development
activities should have adequate resources and command area to run and maintain
combine harvesters.
3.
NATURE OF LOAN:
Term loan.
4.
EXTENT OF LOAN:
Need based. Cost
of combine harvester should be verified to ensure that it is not inflated.
5.
MARGIN NORMS:
Amount of
loan
Margin
(i)
Upto Rs.50,000/-
Nil
(ii)
Above Rs.50,000/- to Rs.2 lakh
5%
(iii)
Above Rs.2 lakh to Rs.5 lakh
10%
(iv)
Above Rs.5 lakh
25%
NOTE:
Where subsidy is available, the same should be treated as margin and no
further margin money should be stipulated unless subsidy falls short of
requisite margin.
6.
SECURITY NORMS:
Investment Credit:
(a) Hypothecation of combine
harvester together with tools/ accessories/ assets created out of Bank loan;
AND
(b) Charge on land as per
Agricultural Credit Operations and miscellaneous (Provisions) Act of the State
concerned/Mortgage of agricultural land valued at 150% of amount of loan for
other farmers and 100% of the loan amount for small farmers/marginal farmers;
OR
Alternate security, viz., charge/lien over liquid securities
such as term deposits/NSCs/KVPs, etc., which may be considered adequate.
OR
Suitable third
party guarantee.
NOTE:
(i) In
States where legislation on the lines suggested by the Talwar Committee has been
passed, a simple declaration creating a charge on the land offered as security
will be sufficient. In such cases,
mortgage of land may not be necessary.
(ii) While
valuing land for the purpose of security, post development value of land shall
be taken into consideration.
(iii) Branches
may not ask for mortgage of land in cases where the amount of loan net of
subsidy is upto Rs.50,000/- or subsidy is not received in advance or
simultaneously at the time of disbursement of loan.
(iv) Branches
are advised to ensure that value of security taken is commensurate with size of
loan and desist from asking additional collateral security by way of guarantee
where the land mortgaged is considered adequate.
Also branches should desist from the practice of taking collateral
security/third party guarantee/mortgage of land where it has been indicated that
such security is not to be taken.
(iv)
In case the land is
on lease/rent basis or otherwise where borrower’s title to land does not
permit him to create a mortgage thereof, suitable guarantee may be accepted as
an alternative security.
The
rate of interest should be charged as per Loans & Advances Circulars issued
by Head Office from time to time. Presently,
rates of interest for agriculture advances are as under:
|
Extent of Loan |
Rate of Interest (per annum) |
|
Investment
Credit: (i)
Upto Rs.2 lakh (ii)
Above Rs.2 lakh |
10.50% 11.50% |
As per HO
instructions, both working capital and term loans are to be clubbed together to
determine the size of the loan for the purpose of fixing the rate of interest
for all agriculture borrowers.
NOTE:
(i)
Payment of interest should be insisted upon only at the time of repayment
of loan instalments as fixed.
(ii)
Interest on current dues should not be compounded.
(iii)
Application of interest:
Interest on agricultural loans should be applied at
the end of half-year but it should not be debited to borrower’s account.
Instead, it should be debited to a separate account opened in Subsidiary
General Ledger – “Interest Accrued on Advances to Farmers”.
On the date fixed for repayment of each instalment towards adjustment of
loan, interest due for previous half-year or part thereof should be debited to
borrower’s account by corresponding credit to the “Interest Accrued on
Advances to Farmers” head.
In
terms of H.O. Circular No. 2/2005 dated 14.9.2005,
Note: It
is reiterated that the rate of interest and loaning powers should strictly be as
per Loans and Advances Circulars issued from time to time.
9.
LOAN APPLICATION AND DOCUMENTATION:
(i) Application for
Agricultural Credit
PNB 762 (R)
(ii) Annexure for
purchase of tractor/power tiller PNB
772 (R)
(iii) Hypothecation
Agreement
PNB 1041
(iv) Deed of
guarantee, wherever applicable
PNB 1042
(v) Mortgage deed,
wherever applicable
PNB 1043
(vi) Hypothecation
Agreement for loan upto Rs. 1 lakh PNB
1087
(vii)
Consideration vouchers.
(viii)
Proforma invoice/bills.
(ix)
Rule based lending proforma
10.
CONFIDENTIAL REPORT (CR) ON BORROWER(S) AND GUARANTOR(S):
|
(i) |
For loans upto Rs.50,000/- |
No CR to be collected. However, information furnished by the applicant in the
Application for Agricultural Credit must be verified by Incumbent
Incharge/Agriculture Officer and they will record their opinion to this
effect. |
|
(ii) |
For loans above Rs.50,000/- and upto Rs.10 lakh |
A brief CR on PNB-539(Simplified Confidential
Report on Borrower(s) and Guarantor(s) in respect of Agricultural Loans)
may be obtained alongwith the information furnished by the applicant in
the Application for Agricultural Credit PNB 762 (R) and here again, the
information furnished by the applicant must be verified by Incumbent
Incharge/Agriculture Officer; besides their report on brief CR. |
Branches
shall issue letter of sanction on PNB 850, invariably, issued to the borrowers
availing loan.
Branches
shall issue loan passbook or
Statement of Account, invariably, to all the borrowers.
13.
DISBURSEMENT OF LOAN:
Payment is to be made directly to the suppliers on behalf of borrower on
the basis of quotation of the approved model of combine harvester.
14.
INSURANCE:
Combine
harvester should be comprehensively insured at borrower’s cost in joint names
of borrower as ‘owner-hypothecator’ and Bank as “hypothecatee”.
15.
GESTATION PERIOD:
Maximum six months linked with seasonal harvesting and marketing of
crops.
16.
REPAYMENT OF LOAN:
(i)
Repayment Period:
5-7 years in half-yearly instalments, depending upon repaying capacity
of the borrower(s).
(ii)
Fixing due date of repayment:
Due date of
repayment should be fixed on annual basis.
However, if borrower(s) desire(s) to repay the annual instalment at
shorter intervals of month, quarter or a half-year, in equal or unequal parts,
in accordance with a prior agreement with Bank, he/she/they should be allowed to
do so.
In such
cases, only that part of annual instalment will be considered overdue which
remains unpaid after annual due date (being the part of annual instalment over
and above the sum total of payments made towards adjustment of loan during the
year).
17.
OTHER TERMS & CONDITIONS:
(i)
Financing
is to be done in respect of new combine harvester models which are approved by
Head Office.
(ii)
Proposal
should be from areas which offer good potential for custom hiring i.e. a minimum
of 1600 acres per year.
(iii)
Proposal
should be techno-economically viable and generate sufficient incremental income
to enable borrower to repay loan instalments with interest.
(iv)
Techno-economic
feasibility of combine harvester shall be assessed on the basis of check list
given in Appendix-II.
(v)
Combine
harvester should be registered with the concerned Registering Authority with
Bank's lien.
(vi)
Borrower
must give an undertaking that combine harvester will be driven by persons having
regular and valid driving licence.
(vii)
Adequate
spare parts and service/repair facilities should be available in the area where
combine harvester is to be operated.
(viii)
Dealer
will make available to the borrower, the combine harvester with good machinery
and in good working condition alongwith necessary matching accessories and
attachments (all in original makes).
(ix)
Farmers
shall have option to purchase combine harvester/ implements/accessories from any
dealer/manufacturer of their own choice. Incumbent Incharge will not insist on
the farmers for purchase of machinery from a particular dealer/manufacturer.
(x)
In case
of damage of any part through negligence of dealer(s)/his agents, or employee
while repairing machinery, cost of damage thereof should be borne by the
dealer(s) and damaged spare-parts should be replaced at dealer's cost with parts
of the same quality.
(xi)
Dealer
should render efficient after- sales service and maintain sufficient stock of
original spare-parts and other accessories required for combine harvester.
Manufacturer of combine harvesters will also provide list of approved dealers to
financing branch for the concerned area.
(xii)
Other
guidelines issued by Head Office from time to time should be strictly adhered
to.
LIST OF APPENDICES
(i)
Appendix-I :
List of approved models of self-propelled combine
harvesters.
(ii)
Appendix-II:
Check list for assessing techno-economic feasibility of
combine harvesters.
APPENDIX–I
|
S.No. |
Name of
Manufacturers |
Combine
Harvester Models
|
|
1. |
M/s. Punjab Tractors Ltd., SAS Nagar, Mohali (Ropar), (Punjab) |
SWARAJ - 8100 |
|
2. |
M/s. Kartar Agro-Industries, Amloh Road, Distt. Bhadson, Patiala - 147202 (Punjab) |
KARTAR K-3500 |
|
|
As above |
KARTAR K-350 (TRACTOR MOUNTED) |
|
|
As above |
KARTAR - 4000 |
|
|
As above |
KARTAR – 440 |
|
3. |
M/s. Jiwan Agricultural
Implements Workshop Co-Op. Industrial Society Ltd. Sangrur Road, Patiala - 147001 (Punjab) |
BHARAT – 730 (DELUXE) |
|
4. |
M/s. Standard Combines, Bhatinda Road, Handiaya, Distt. Sangrur - 148107 (Punjab) |
STANDARD C-412 |
|
|
As above |
STANDARD C-514 |
|
|
As above |
STANDARD C-412 (TRACTOR MOUNTED) |
|
|
As above |
STANDARD 390 (TRACTOR MOUNTED) |
|
|
As above |
STANDARD S 8300 |
|
|
As above |
STANDARD S-365 (TRACTOR MOUNTED) |
|
|
As above |
STANDARD TSC 513 (TRACTOR MOUNTED) |
|
5. |
M/s. CLASS OHG P.O. Box - 1140 W-4834, HARSEWINKEL GERMANY and marketed by M/s. Escorts Limited 25, Mathura Road, Faridabad - 121002 (Haryana) |
CLASS CROP TIGER SELF PROPELLED, AXIAL FLOW, TRACK TYPE |
|
6. |
M/s. Preet Agro Industries, P.O. Rohta Patiala Road, Nabha – 147201 (Punjab). |
PREET 987
|
|
|
As above |
PREET 649
(TRACTOR MOUNTED)
|
|
7. |
M/s. Dasmesh Mechanical
Works Rajkot Road, Malerkotla Distt. Sangrur – 148023 (Punjab). |
DASMESH
–
9100
|
|
|
As above |
DASMESH
–
913
(TRACTOR
MOUNTED) |
|
8. |
M/s.
Sansar Combines, Patiala
Road, Nabha, Distt.
Patiala -147 201 (Punjab) |
SAMRAT
714 COMM.
(ICT) |
|
|
As above |
SANSAR
930 (TRACTOR
MOUNTED) |
|
9. |
M/s. Dev Agro Industries, Patiala
Road, Nabha, Distt.
Patiala -147 201 (Punjab) |
DARSHAN
9000 COMM.
(ICT) |
|
10. |
M/s. Dhiman Agro
Industries, Patiala
Road, Nabha, Distt.
Patiala -147 201 (Punjab) |
RAMA
930 COMM.
(ICT) |
|
11. |
M/s. Manjit Agro Works, Patiala
Road, Nabha, Distt.
Patiala -147 201 (Punjab) |
MANJIT
986 COMM.
(ICT) |
|
12. |
M/s. Amar Engineering
Works, Patiala
Road, Nabha, Distt.
Patiala -147 201 (Punjab) |
AMAR
930 |
|
13. |
M/s. Friends Agro
Industries, By-pass Road, Malerkotala, (Punjab). |
FRIENDS
813 |
|
|
As above |
FRIENDS
840 |
|
14. |
M/s. Mahindra Engineering
Works, Nabha
Road, Bhadson, Distt.
Patiala -147 202 (Punjab) |
MAHINDRA
7700 |
|
15. |
M/s. |
PANESAR
SC 514 |
|
|
M/s. |
PANESAR
TDC 513 (TRACTOR
MOUNTED) |
|
16. |
M/s. Industrial Chains, Patiala (Punjab). |
IC
616 DELUXE |
|
17. |
M/s. Bhodey Agro
Industries, College Road, Sunam, Distt. Sangrur, (Punjab). |
BHODEY
1070 |
|
|
As above |
BHODEY
DELUXE 470 (TRACTOR
MOUNTED) |
|
18. |
M/s. |
KS
9300 |
|
19. |
M/s. Hira Agro Industries, Cantt. Road, Nabha –147 201 (Punjab) |
HIRA
985 |
|
20. |
M/s. Vishal Agricultural
Works (Regd.), Near Grain Market, Sawana, Distt. Patiala –
147 101 (Punjab). |
VISHAL
408 SUPREME |
|
21. |
M/s. Guru Nanak Agro
Industries, Patiala Road, Nabha (Punjab) |
GURUNANAK
985 |
|
|
As Above |
GURUNANAK
785 |
|
22. |
M/s. Malkit Agro
Industries, Cantt. Road, Nabha –147 201 (Punjab) |
MALKIT
997 COMM.
(ICT) |
|
23. |
M/s. |
SONALIKA
TDC 2000 (TRACTOR
MOUNTED) |
|
24. |
M/s. Guru Nanak
Agricultural Engg. Works, Bhatinda Road, Hardiaya, Distt. Sangrur - 148107 (Punjab) |
BALKAR
654 |
|
|
As above |
BALKAR
B-546 |
|
|
As above |
BALKAR
B-525 (TRACTOR
MOUNTED) |
|
25. |
M/s. Matharu Engg. Works, G.T. Road, Ferozepur Cantt. (Punjab) |
MATHARU
4600 |
|
|
As above |
MATHARU
M-350 (TRACTOR
MOUNTED) |
|
26. |
M/s. |
ESCORT
CLASS CROP TIGER |
|
27. |
M/s. |
SANT
5400 |
|
28. |
M/s. |
VK 456 (TRACTOR
MOUNTED) |
|
29. |
M/s. Saggu Engg.
Industries, Patiala Road, Sunam (Punjab). |
SAGGU 630 (TRACTOR
MOUNTED) |
|
30. |
M/s. |
KS 513 TD (TRACTOR
MOUNTED) |
APPENDIX – II
NOTE:
Tick (Ö) the relevant information given in the Scheme.
1. BACKGROUND
OF THE SCHEME:
|
(i) |
Whether villages (in cluster) to
be covered are specified. |
|
YES |
NO |
||
|
|
||||||
|
(ii) |
Whether
sufficient number of eligible borrowers, viz. individual farmers/group of
farmers/ State Agricultural Farm/Corporation
are available for implementation of the Scheme. |
|
YES |
NO |
||
|
|
||||||
|
(iii) |
Whether the borrowers are
technically skilled or experienced. |
|
YES |
NO |
||
|
|
||||||
2. TECHNICAL
ASPECTS
|
(i) |
Whether local survey of each
village/enquiry with the farmers about the use of machinery is done. |
|
YES |
NO |
|||||||||
|
|
|||||||||||||
|
(ii) |
Whether soil type (texture,
structure, fertility, Water Holding Capacity, etc., is suitable for the
use of machinery. |
|
YES |
NO |
|||||||||
|
|
|||||||||||||
|
(iii) |
Whether the area is prone to
flood or drought. |
|
YES |
NO |
|||||||||
|
(iv) |
Whether suitable irrigation
facility is available. |
YES |
NO |
||||||||||
|
(v) |
Whether crop rotation is suitable
for the efficient use of machinery. If so, specify the suitable
crops. |
|
YES |
NO |
|||||||||
|
|
|
||||||||||||
|
|
|
||||||||||||
|
(vi) |
Whether the operational area is
under double cropping. |
|
YES |
NO |
|||||||||
|
|
|
||||||||||||
(vii) |
Whether the area is prone to any
epidemic/endemic crop pests and diseases. |
|
YES |
NO |
|||||||||
|
|
|
||||||||||||
|
(viii) |
Whether complete details of
cluster villages collected with the help of State Government Officials/
Patwari/ village leaders. |
|
YES |
NO |
|||||||||
|
|
|
|
|||||||||||
|
|
|
|
|||||||||||
|
|
If yes, furnish the following
information: |
|
|
||||||||||
|
|
Name of
Village |
No. of farmers with land holding |
Total area
in the village (acres) |
Area under
irrigation (acres) |
Area under
double cropping (acres) |
||||||||
|
Less than 5
acres |
5-10 acres |
10 acres
and above |
|||||||||||
|
(a) |
|
|
|
|
|
|
|
||||||
|
(b) |
|
|
|
|
|
|
|
||||||
|
(c) |
|
|
|
|
|
|
|
||||||
|
(ix) |
Whether the area to be covered
under harvest by the machine is sufficient to justify financing of combine
harvester. If yes, mention the total
potential area likely to be covered. |
|
YES |
NO |
|
|
|
|||
|
___acres |
||||
|
(x) |
Whether adequate service and
repair facilities are available in the area. |
|
YES |
NO |
|
|
|
|||
|
|
|
|||
|
(xi) |
Whether skilled personnel is
available for supervision/ monitoring. |
|
YES |
NO |
|
|
|
|
|
|
|
(xii) |
Whether any other harvester combine operating in the area. |
|
YES |
NO |
|
|
|
|
|
|
|
(xiii) |
Whether harvester combine is
tractor driven or self-propelled. |
|
YES |
NO |
|
|
|
|
|
|
3.
ECONOMIC ASPECTS:
|
(i) |
Whether the area offers good
potential for custom hiring, i.e., minimum of 1600 acres per year |
|
YES |
NO |
|
|
|
|||
|
|
|
|||
|
(ii) |
Whether financial returns to the
beneficiaries (Cost of Operation, Custom Service Income, Benefit-Cost
Ratio) are worked out. |
|
YES |
NO |
|
|
|
|||
|
|
||||
|
(iii) |
Whether financial
position/repayment capability of the borrower is satisfactory. |
|
YES |
NO |
|
|
|
|
|
|
4.
OTHER ASPECTS:
|
(i) |
Whether any licence is required
from District Industries Centre. |
|
YES |
NO |
|
|
|
|
||
|
(ii) |
Whether any Agency is available
in the area for providing crop loan. |
YES |
NO |
|
|
|
|
|
||
|
(iii) |
Whether harvester combine is on
approved list for financing. |
|
YES |
NO |
|
|
|
|
|
|
|
(iv) |
Whether any other special schemes
in the command area are to be introduced which may affect the use of
machinery. |
|
YES |
NO |
|
|
|
|
|
|
|
(v) |
Whether waiting time for delivery
of harvester combine after placing the order is reasonable. |
|
YES |
NO |
|
|
|
|
|