Farmers looking for financial support for their daughter’s marriage, construction of their homes, or education of their child can now get help from the PNB Kisan Gold Scheme. Punjab National Bank or PNB has launched a Kisan Gold Scheme for farmers to increase their production and investment in the agriculture and allied sectors.
The government has started this scheme to also help farmers with financial requirements for rural housing-related activities and consumption needs as well, for example, marriage, education, and religious or family functions. So, if you want to take advantage of this scheme, keep on reading to know more.
Eligibility Criteria for PNB Kisan Gold Scheme:
Only existing good agricultural land owner borrowers who have been continuously availing of any loan and have no NPA record for the last two years as of the date of application will be eligible. New farmers with evidence of satisfactory dealing with other banks for a minimum period of 2 years will also be eligible. If the land mortgaged is in the name of more than one farmer then all will be eligible jointly.
The above condition track record of 2 years may be relaxed in case of new farmers having a good amount of deposit for the last 2 years provided:
The loan is secured by 100% liquid collateral security like deposits/NSCs, etc.
Or
The loan is secured by 50% liquid collateral security and 50% by mortgage of land (valued at 50% of Bank Loan for Small/Marginal farmers and 75% of bank loan for other farmers.
For housing, the required approval from the competent authority for the plan, etc., will have to be obtained. Other requirements of the bank’s housing loan scheme are to be filled as well.
The maximum age limit for rural housing at the time of the application submission is 60 years, up to 65 years, if legal heirs stand as guarantors.
The extent of the loan:
Maximum: Rs 50 Lakh. Minimum 75% of the limit for Productive Purposes. 25% of the loan amount or Rs 5 Lakh whichever is lower be given for non-productive purposes which may comprise Rs 3 lakh for Rural Housing and a maximum of Rs 2 Lakh for consumption.
Lower of: 5 times the average annual (2 years) total income of the borrower.
50% of the value of mortgaged land.
Repayment of loan:
Production Credit:
Cash credit limit: Aggregate credit (last 12/18 months) should be equal to outstanding
Working capital for allied activities: 12 months
Housing: 9 years (with gestation of 12 months)
Main agricultural activity: up to a maximum of 9 years
Allied agriculture activity: up to a maximum of 7 years
Note: To learn more about the PNB Gold Loan Scheme, please visit your nearest Punjab National Bank.
