Dena Kisan Gold Credit Card Scheme

(DKGCC)

Objective

The scheme aims at "Whole Farm Approach" in respect of farm loans. The scheme ensures flexibilty and choice in respect to the purpose, amount and timing of loan.

Eligibility

  1. Farmers, irrespective, of land holdings with
  2. Regular conduct of the existing loan accounts for last 3 years.

Purpose

Farmers are free to choose from various Investment Credit options like purchase of Milch animals, Bullock carts, digging of well, installation of electric motor, drip/sprinkler irrigation system, laying of pipe line, Purchase of Farm Machinery such as Tractors & Farm Equipment, farm buildings/houses.
Provision for domestic needs like medical treatment, children's education and family functions etc not exceeding 10% of the limit is there.

Nature of facility

Term Loans

Margins

The margins at a uniform rate of 15% is to be taken under the scheme

Disbursement

On request, the loan amount would be transferred to the S.B. Account of the borrower and the borrower is allowed to draw the loan amount by way of either issuing cheques to the supplier or withdrawing the money in cash. Disbursement upto Rs. 50,000/- or a maximum of 10% of the limit sanctioned may not require any quotation / bill. However, disbursement beyond 50,000/- will be supported by production of Quotations, Bills and Receipts to ensure proper end use of the loan. In case of loans for purchase of tractor, Dena Bank's charge is to be registered with RTO as per the usual practise.

Rate of Interest

Interest rate, prevaling from time to time, will be applicable for the loans financed under the scheme.

Process Fee

There is a concession of 50% in process fee available under the scheme and accordingly the process fee would be as under:

Size of Loan 

 

Process Fee 

 Upto Rs. 50,000/-

 

Nil 

 Above Rs. 50,000/- to Rs. 5.00 lakh-

 

 0.5% of the limit sanctioned (one time).

Beneficiaries belonging to SC/ST categories are totally exempted from levying of any process fee.

Supervision Charges

Regular farmers loyal to the Dena Bank would be rewarded with the concession in respect of levying of supervision charges which are proposed to be lowered down as per details given below:

Size of Loan 

 

 Supervision Charges

  (i) Upto Rs.50,000/-

 

 Nil

 (ii) Above Rs. 50,000/- to 2 lakh

 

 Rs.25/ per quarter

(iii) Above Rs. 2 lakh to 5 lakh-

 

 Rs.50/- per quarter.

Beneficiaries belonging to SC/ST categories are totally exempted from levying of any supervision charges.

Security

Primary- Hypothecation of the asset created out of Dena Bank finance.

Collateral- Mortgage/simple charge o­n the agricultural land with Sub-Registrar Office. Whenever, agriculture land can be mortgaged, branches can take security of corresponding value of liquid assets like NSC, KVP, Term Deposit Receipt or assignment of LIC Policies. However security should be properly charged to the Bank.

No guaranter is required.

Repayment Period

Each loan account under the scheme would have its own repayment period and maximum repayment available would be 7 years. However, maximum repayment period for tractor / farm equipment loans will be 9 years.

Penal Interest

Penal interest as per existing Dena Bank policy would be applicable in case of defaults.

Other Guidelines

On sanction of the facility, the borrower would be provided with an Identity Card cum Pass Book with his photograph. The pass book will have separate folios for different accounts. The facility will be valid for three years subject to yearly reviews. Any default in sub-limit/limit will render the farmer-borrower ineligible for further withdrawal. The disbursement of the facility would be as per the request of the borrower. The borrower may avail various facilities, as mentioned earlier, in phases or in o­ne go.