47
Table- 3.10: The rate of Interest on KCC loans above Rs. 3.0 lakh
and agricultural term loan
Particulars/ Parameter
Assam Bihar
UP Punjab Maha Kar
Int rate (%) on
KCC loan above
Rs 3.0 lakh
Commercial
Banks
7
11.6 9.0
11.15-
12.1
12 10.7
RRBs
7
11.0-
13.0
13.5 12.5-13.5 12.0-
13.5
12.5
Coop Banks
7
NA 10.7
10.5
9.5 12.0
Agricultural
Term Loan (%)
up to Rs.3.0
lakh
Commercial
Banks
11.0-13.0
11.0
12.1 10.7
11.15-
12.1
12 10.7
RRBs
9.65-9.9 11.2-
13.0
12.5
-13.0
12.75-
13.5
13.0-
14.0 12.5
Coop Banks 12.5
NA 10.7 11.5-13.5 13-13.5 NA
Agricultural
Term Loan (%)
above Rs.3.0
lakh
Commercial
Banks
11.4-13.1
10.45-
12.4
11.15-
12.1
12 10.7
RRBs
11.0 12.5-
13.0 13.0 12.75-
13.5
13.0-
14.0 12.5
Coop Banks 12.5
NA 10.7 11.5-13.5 13-13.5 NA
Number of Kisan Credit Cards with a Farmer
3.44 During the field visit, it was gathered that some of the farmers had taken KCC
from more than one banks, normally one from cooperative banks and the other
from either a commercial bank or a regional rural bank. As such there is nothing
wrong in it since these farmers have offered a portion of their total land to one
bank and the other portion to the other bank. Such farmers, despite average loan
sanctioned by cooperative banks being quite less, still preferred to have KCC
from cooperative Bank just to get good quality fertilizer and seed, etc. However,
the farmers were reluctant in revealing their availment of KCC loan from multiple
sources. For example, 4 farmers having KCC with Sherghati branch of Magadha
DCCB, Bihar indicated that they had KCC from some other banks too -Mr. Manoj
Kumar (A/C 00515008000599) with MBGM, Karanauli branch; Mr. Shailesh
Kr Sinha (A/c 000515008000997) with Bank of Baroda; Mr. Dilip Kumar (A/c
000515008100277) with Bank of Baroda; Mr. Khairat Ahmad also with Bank of
Baroda.
3.45 Some farmers in Moradabad and Bijnore districts of UP who had large farm
holdings, were also having more than one KCC. For example, Ashok Kumar,
(DCCB, Surjannagar) who had 9 acres was eligible for loan of Rs. 4.5 lakh, but
since there was no interest subvention beyond Rs. 3 lakh, he had availed two
KCCs, one from HDFC Bank, Kashipur branch and another KCC from DCCB
Moradabad. In fact, the farmer indicated that the private bank disbursed the
loan in less than a fortnight whereas the DCCB took about six months, and
imposed additional conditionality of cash and kind component, and fixed the
repayment date as 30 June. Similarly, Naubhar Singh also had two KCCs, for
his 9 acre landholding, Rs. 3.00 lakh from Prathama Bank & Rs. 0.50 lakh from
DCCB Moradabad.
