Agic Lending Hand Book

S

SYNDICATE BANK,

REGIONAL OFFICE, PANAJI-GOA

STRATEGIESFORAGRICULTURAL LENDINGA Ready Beckoner for Agricultural and Priority Sector Lending (AMRD/MRD Version)And

Guidelines for Retail CreditProducts and Process notesDISCLAIMER CLAUSE

All care has been taken to incorporate all the essential features and updated information of the products and services in the reading materials and in the work book as per circulars issued by the Head Office from time to time. However, readers/users/participants are advised to refer to the BC circulars/manuals of instructions and other guidelines in case of any clarification and what are contained therein shall be finally relied /acted upon.

CONTENTS

Sl.PARTICULARSPAGE

1. Documents to be obtained from farmers4

2. Application forms and Appraisal Forms for Different Agri Loan products6

3. Interest rates on Different Agri Loan products7

4. Repayment Periods for Different Agri Loan products8

5. Security, Margin & Guarantee9

6. Sanctioning Powers10

9.Tips for improving Agricultural Advances11

10.Farm House Scheme13

11.SyndKisanSathi- Revised Debt Swap Scheme17

12.Land Development Scheme23

13.Composite Fishculture Scheme27

14.Goat Breeding Unit32

15.Poultry Broiler Farm Scheme36

16.DEDS Scheme42

17.DRI Scheme50

18.SyndJaiKisan- Revised Scheme52

19.Tractor Finance Scheme55

20.Discrepancies in submission of requirement for review of sanctions above threshold limit 61

21.Single page LRF62

22.Three page Rating Chart for Agricultural loans63

23.Comprehensive guidelines on GCC66

24.SyndVidya-Education loan scheme70

25.SyndNivas-Housing Loa scheme80

26.SyndNivas Plus91

27.SyndMSE-Hassle free and customer friendly scheme92

28.Indirect Finance to Agriculture100

29.Opening of Settlement Accounts f BC/CSPs101

30.Credit facility to BC/CSPs for working capital & purchase of HHM103

31.Operational Guidelines for online interface104

32.Scheme for incentivizing BCs/CSPs105

33.ULTRA SMALL BRANCH CONCEPT- USB107

34.SyndSwarna & SyndSwarna Express109

35.Importance of Agri & Priority Sector Lending115

36.SyndVahan116

37.SyndSenior124

38.Financing Self Help Groups125

39.Central Sector Scheme for Pig Development135

40.Circulars for reference on important schemes139

41.Law of limitation141

42SyndMortgage guidelines and process Note144

IMPORTANCE OF AGRICULTURAL LENDING

At times we felt that why so much importance is being given by the Bank? to achieve agriculture lending. Here is answer to this why.A: Financial reasons:

As per RBI/GoI guidelines, it is mandatory for Banks to maintain total agricultural advances at a level not less than 18% of Total Credit of preceding March level. It is inevitable that Bank should grow-deposits should grow-total credit should grow, therefore agricultural advances should grow to maintain stipulated level of 18%. (There is no much difference between TC & ANBC in our Bank).

Total credit is contributed by all branches of the Bank-but agriculture credit should be contributed by rural and semi urban branches only. Hence, Rural & Semi urban branches have more responsibility to maintain stipulated level of 18% under agriculture advances of bank as a whole.

If fails to maintain 18% level under agriculture- Bank has to deposit the shortfall in RIDF of NABARD @ 3% to 6% depending upon the extant of short fall. There will be notional financial loss to the Banks which is enumerated below:

a) Imagine a situation that a particular branch has contributed for a shortfall of Rs. 1.00 lac due to non-achievement of target as at 31/03/2013

b) Bank should deposit Rs.1.00 lac in RIDF of NABARD @ 6% pa, the annual notional financial loss due interest difference between average yield on agriculture lending and RIDF rate will be say 12% minus 6% Rs. 6000

c) The above amount will have to be remaining with RIDF for a minimum period of 5 years. Hence, total loss will be Rs. 30000

d) Coverage of back log may not possible during next year, as Bank has to achieve 18% in proportion to increased Total Credit. Hence, again Rs. 1.00 lac is to be deposited, because RIDF deposit will not be treated as indirect finance to agriculture as per latest guidelines. Hence, the notional loss due to deposit made in RIDF during second year Rs. 30000

e) Once there is shortfall, it will be continued for long as 18% should to be maintained in parity with increased total credit. Hence, the total notional loss for 5 years cycle (RIDF funds will be released after 5 years) Rs. 150000

f) By failing to achieve agriculture target by Rs.100000, the branch has resulted a notional financial loss of Rs.150000 to the bank-

(Note-There is a further threat that the interest on RIDF may be further reduced)

B: Reputation loss:

Bank is known for agriculture lending from time before nationalization. Any failure to achieve 18% leads to loss of reputation earned all these years. Agriculture is growth engine of Indian Economy. Since, the cultivable land is almost a constant factor; growth comes from improvement in productivity only. The agriculture growth falls below 2.0% because of no improvement in productivity which depends mainly on capital formation. Our role is very important in encouraging capital formation in agriculture. PLEASE THINK A WHILE Why we should become accountable for above notional loss? DOCUMENTS/RECORDS TO BE OBTAINED FROM FARMERS

LOAN PRODUCTREQUIREMENT

Crop OD/SKCCLand Records

Land Revenue paid receipt, NOC

Minor Irrigation

Pump set, Pump House, Pipe line ,Well, Deepening of Well, Bore Well, Sprinkler Irrigation, Drip IrrigationLand Records

Eye sketch of field

Ground water survey Report

Cost estimates ,Quotation for tubewell/pumpset

Feasibility certificate from Electricity Board

Land Revenue paid receipt

Legal opinion in case of mortgage

Land Development Activities & Farm Structures Cattle shed, Farm House, Vermi- cultureLand Records


Eye sketch of field

Estimates & Plan for the proposed developmental works, Panchayat license /approval if any


Farm MechanizationTractor, Power Tiller,

2/3/4 Wheelers, Combine Harvesters,Land Records

Eye sketch of field

Quotation for the machinery/vehicle

Legal Opinion in case of mortgage


Poultry DevelopmentLand Records

Quotations for equipment, Feed ,Chicks


Panchayat license/ approval if any


A detailed project report

Dairy Development-

C.B.Cow, She Buffalo,

Calf Rearing, Sheep rearing, Goat RearingLand Records



Animal health certificate by doctor /valuation report

A detailed project report for big proposals

Gobar Gas PlantLand Records

Feasibility from KVIC


Quotation from supplier of gas holder

Horticulture and PlantationLand Records, Eye sketch of field


Cost estimates

A detailed project report for big proposals


Application/Appraisal/Agreement to be obtained for

Different Agricultural loan products

Farm loan purposeApplication/

AppraisalLoan Agreement/ Guarantee Agreement wherever stipulated Others

1: Crop Production Loans

Renewal of SKCCAF 656/ AF-657AF-668/ AF-669Record of rights/ Land revenue paid receipt

Fresh SKCCAF-656/ AF-658AF-668/ AF-669Record of rights/ Land revenue paid receipt

Pledge Loan facility to the farmersAF-656/ AF-671AF-668/ AF-669Record of rights/ Land revenue paid receipt

2: Short term/term loans up to Rs. 25000

Short term/term loans up to Rs.25000AF-656/ AF-667AF-668 Record of rights/ Land revenue paid receipt

Common for all purposes

3: Short term/ term loans above Rs. 25000 (other than SKCC)

Minor irrigation

(Pumpset/Submersible/Pipeline /Sprinkler /Drip irrigation/ Generator set/AF-656/AF-659AF-668/ AF-669Record of rights/ Land revenue paid receipt, Eye sketch of field, cost estimate, Quotations

Milch cattle & Livestock

(Sheep/goat/piggery)AF-656/ AF-660AF-668/ AF-669Record of rights/ Land revenue paid receipt, Animal Health certificate with valuation

PoultryAF-656/ AF-661AF-668/ AF-669Record of rights/ Land revenue paid receipt, quotations for equipment chicks,

Land Development/Farm House/Farm structuresAF-656/ AF-662AF-668/ AF-669Record of rights/ Land revenue paid receipt, Eye sketch of field, cost estimate,

Tractors/Power Tillers & Farm machinery/ vehiclesAF-656/ Af-663AF-668/ AF-669Record of rights/ Land revenue paid receipt, invoice for machinery/vehicles

Horticulture & plantationsAF-656/ AF-668AF-668/ AF-669Record of rights/ Land revenue paid receipt, Eye sketch of field, Project report

Fishery AdvancesAF-656/ AF-666AF-668/ AF-669Record of rights/ Land revenue paid receipt, Eye sketch of field, cost estimate, Quotations

In case of smaller dairy and other livestock units to the land less, it may be ascertained how the proposed livestock will be housed.

Project report is to be obtained in case of bigger dairy/ poultry/ fishery/other projects

Wherever lands are insisted as security, charge/UREM/SRM is to be created after obtaining legal opinion to confirm clear and marketable title of the applicant.

INTEREST RATE ON AGRICULTURAL ADVANCES

All agriculture advances (Except two wheeler & Tractor finance)A: Up to Rs 10.00 lacs (Ref:Cir 121/2013 BC dt.14.05.2013 )Size of the credit limit Interest Rate

Up to Rs.50,000/-BR +0.25 %BR+0.50

Above Rs.50,000/- and up to Rs.10 lakhsBR +0.75 %BR+1.00

Tenor premium of 0.25 % on all term loans of 36 months and above to be added to the above rates

For short term loans up to Rs 3.0 lacs where subvention is available Interest at 9 % to be levied. 3% additional Incentive for prompt repayment of Crop Production loans disbursed during the year 2011-12 1% concession in applicable rate permitted for advances to Farmer Service Cooperative Societies subject to Minimum Base Rate.B: Above Rs 10.00 lacs:

RatingInterest Rate

For Indirect agriculture

Up to 100 LacAbove 100 lacUp to100 lacAbove 100 lac

SYND 1 &2BR +1.00%BR+1.75%BR+1.25%BR+2.00%

SYND 3&4 BR +1.25 %BR+2.25%BR+1.50%BR+2.50

SYND 5&6 BR + 1.75% BR+2.75%BR+2.00%BR+3.00

SYND 7 & BelowBR +2.25 %BR+3.25%BR+2.50%BR+3.50

C: Loans under SyndKisanSati

For loan amount up to 50,000/ - BR + 0.25% i.e. 10.50+ 0.25=10.75% p.a.

For loan amount 50,001 & up to 1.00 lac- BR plus 1.75% i.e. 10.50+ 1.75=12.25% p.a. The loan under this scheme is not to be aggregated with other loans and vice versa for determining the size of loan for application of rate of interest

Tenor premium of 0.25 % on all Term Loans of 36 months and above to be added to the above rates Repayment period for different agriculture loan products

Type of loanRepayment periodFrequency of installmentGestation period

Farm House constriction20 yearsHalf-yearly/yearly18 months

Farm House Repairs5 yearsHalf-yearly/yearly5/11 months

Tractor purchase9 yearsHalf-yearly/yearly5/11 months

Power tiller7 yearsHalf-yearly/yearly5/11 months

Purchase of land7 10 yearsHalf-yearly/yearly24 months

Pumpset9 yearsYearly11 months

Dug well with or without pumpset11 15 yearsYearly23 months

Deepening of well5 yearsYearly11 months

Bore well 11 15 yearsYearly11 months

Sprinkler/drip irrigation 7 yearsYearly11 months

Soil conservation9 15 yearsYearly23 months

Vermi Compost5 yearsYearly11 months

Lift Irrigation11 15 yearsYearly23 months

CB Cow/She buffaloes5 yearsMonthly/quarterlyLinked with lactation period

Poultry6 7 yearsMonthly/quarterly12 months

Bullocks4 yearsHalf-yearly/yearly5/11 months

Sheep Rearing5 yearsHalf-yearly12 months

Goat Rearing4 5 yearsQuarterly/ Half-yearly/yearly12 months

Piggery4 5 yearsYearly12 months

Pond fish culture5 8 yearsHalf-yearly11 months

Solar lighting/Solar Water Heating5 yearsMonthly1 month

Sericulture new plantation4 yearsHalf-yearly11 months

Sericulture rearing shed5 yearsHalf-yearly11 months

Cashew/Mango plantation12 15 yearsYearly6 7 years

Coconut Plantation14 15 yearsYearly8 9 years

Grape plantation7 9 yearsYearly3 years

Farm Forestry7 10 yearsYearly6 years

SyndJaiKisan7 yearsHalf-yearly/yearly11 months

SyndKisanSathi5- 7 yearsHalf-yearly/yearly11 months

Security, Margin & Guarantee (178/2010 dated 12/04/2010)

Type of loan SecurityMarginGuarantee/Surety

SKCC /Crop Loan / Crop OD:

Up to Rs.1.00 LacHypothecation of cropsNo Margin need be insisted on Scale of Finance approved by the DLTC.Guarantor/Surety need not be insisted

Above Rs.1.00 LacHypothecation of crops and Mortgage of land.No Margin need be insisted on Scale of Finance approved by the DLTC.Third party

guarantee/Surety need not be insisted

Term loans where moveable assets are created:

UptoRs.1.00 LacHypothecation of

assets created out of Bank loanNo margin.Guarantor/Surety need not be insisted.

Above Rs.1.00 Lac **Hypothecation of assets created out of Bank loan and mortgage of land or any other collateral security acceptable to the Bank.SF/MF/AL-5% margin Others-15-25% margin. Wherever subsidy is available, margin may be reduced to the extent of subsidy amount.Where mortgage of land is not taken and the loan is extended against other collateral security, third party guarantee with adequate net worth acceptable to the bank shall be taken

In case of tractor/4 wheeler loans up to Rs.4.00 lac, in addition to Hypothecation of tractor/4 wheeler, mortgage of land may be taken as security. If there are genuine difficulties in creating mortgage/charge, third party guarantee whose net worth is equal to loan amount or any other collateral security of adequate value should be obtained.

Term loans where moveable assets are not created:

Up to Rs.1.00 LacNo securityNo Margin need be insisted on Scale of Finance approved by the DLTC.Guarantor/Surety need not be insisted

Above Rs.1.00

LacMortgage of landSF/MF/AL -5% margin

Others-15-25% margin

For loan limits of more than Rs.2 Lac, uniform margin of 15-25% shall be obtained for all categories of farmers.Third party guarantee wherever required may be

obtained at the discretion of the branch

RBI has further clarified that the implementation of the provision of relaxed security, margin and guarantee norms for agricultural advances is mandatory for the banks.

SANCTIONNG POWERS (BC 003/2013 dated 01/01/2013)

Amounts Rs. in lacs:

Sl.Nature of facilityScale-IIIScale-IIScale-I

1.Agricultural Advances

1.a.Clean basis where movable assets are not created1.001.001.00

b.On Hypothecation of Crops/ Livestock including Fishery equipments/ vehicle/ machinery (other than tractor, three/four wheelers)1.001.001.00

c.On Hypothecation of tractor & accessories/ Power tillers 3 wheelers/ 4 wheelers under agriculture 5.004.003.00

d.On Mortgage/charge creation of agricultural lands as collateral security30.0015.0010.00

e.Cumulative per party limits for above agricultural advances50.0020.0010.00

2.Purchase of Land for agricultural purposes10.005.002.00

3.SyndKisan Swarna15.0010.004.00

4.Loans for Agri clinic & Agri Business15.0010.005.00

5.Pledge/Produce Marketing Loans10.0010.005.00

6.Govt. sponsored schemes

a.Under PMEGP-Individuals30.0010.005.00

b.Under all other Govt. Sponsored schemesUp to eligible loan limit depending on the unit cost subject to a maximum of 5..00 lac

c.Loans to SHGs (Both General as well as under Government. Sponsored Schemes) Revised vide 79/2012 BC10.007.506.00

The above sanctioning powers are subject to security norms for agricultural loans. The sanctioning authority shall satisfy about adherence to security requirements before exercising sanctioning powers. Overall cumulative per party limit (non-agricultural and agricultural advances, put together) should not exceed the limit indicated under item No. II (e). For security, margin and guarantee norm for agricultural advance, circulars No.178-2010-BC and No.218-2010-BC shall be referred.

087/2004/BC, 243/2006/BC, 059/2008/BC, 326/2010 TIPS FOR IMPROVING AGRICULTURAL ADVANCES Conduct Product Awareness Campaigns for specific target groups- Example Farm House, Land Development, Dairy-DEDS, Calf Rearing, Pipeline, Generator set, Farm mechanization, SJK-Revised, etc

Provide quick efficient and personalized service-Farmers will appreciate the quick and prompt service and respond with promptness in repayment.

Be on look out for business opportunities, for example meeting the credit needs of people who approach for NDC.

Up date village profiles for tapping full potential in the villages- Village profiles prepared long back will not indicate the realistic potential available at present.

Build Need Profiles of existing customers and meet all his banking needs- Organize door to door campaigns to canvass new customers and collect family wise investment profiles

Take up promotional and image building exercises like distribution of pamphlets of our schemes, display of banners, publicity through local media etc.

Contact and persuade big/medium famers in the villages who are yet avail loan facilities, to avail loan facilities from us by highlighting distinctive advantages of SKCC with staggered limits and other investment schemes.

VLCCs (Village Level Credit Camps)-Hold village level meeting in each service area village once in a month and mobilize at least 50 farmers to participate.

Organize Farmers weeks for marketing our farm loan products- This will facilitate the branches to give intensive publicity on farm loan products.

Improve rapport with Govt. Departments, dealers in irrigation equipments, Agriculture machinery, tractors and fertilizer, etc so that prospective farm loan clients can be identified through them.

Keep in touch with village Pradhans, NGOs and village level opinion leaders who can give useful information about the farmers and their needs besides influencing the farmers to bank with us.

Honor farmers with good repayment record and also good borrowers under Govt. schemes during customers meets or other such occasions.

Organize REEPs on identified key activities for financing. Building gap between Research stations and farmers fields

Utilize services of RUDSETI-Ghaziabad and SyndRSETI- to scout new and enterprising entrepreneurs so that credit quality can be improved by financing the trained candidates.

Creation of higher credit absorption potential by encouraging diversification to high value crops/ activities- Improved cropping pattern & package of practices.

Providing finance to share croppers, landless labourers through JLGs & SHGs by encouraging formation of JLGs & SHGs though NOGOs, Social Welfare dept

Rehabilitations to be promptly extended to farmers in case of crop failures- Facility of rephasement and reschedulement can be extended to the farmers facing genuine financial crisis. No need to weight for declaration of Annewari.

Adoption of villages on model village concept for all round development of selected villages-Three villages are identified by the Bank in the Region.

Development of minor irrigation by extending loans for wells, bore wells, etc., and utilization of existing irrigation potential by extending loans for pump sets, submersible pump sets, generator sets, pipelines etc.

Promotion of land development activities by extending finance for land leveling, land reclamation, trenching to increase productivity

Promotion of cultivation of unutilized and under-utilized wastelands and degraded lands.

Thrust on seed production-breeder, foundation and certified dealers to achieve the desired seed replacement rate.

Encouragement of private sector for effective extension input and services support- Identifying and extending finance to Agri-clinics and Agri-business centres

Promotion of organic farming with the use of organic waste etc.

Strengthening of marketing, processing and infrastructure for value addition

Upgradation of indigenous cattle and buffalo using certified semen/ pedigreed bulls by ensuring services locally

Ensuring adequate availability of fodder seeds and improvement of pasture lands.

Increase inland fish production from both culture capture resources.

Collect information on the economic activities carried out in the operational areas and prepare suitable schemes.

FARM HOUSE SCHEME

Scope for expansion of credit under Farm house construction and repairs

129/1999 BC, 146/2004 BC . 90/2011& 230/2012 BC

Our Farm house scheme is the most attractive scheme in the market, which provides good potential for expansion of credit under Agricultural term lending. While there is immense potential in the command area, our coverage under this scheme is very NOMINAL. There is an immediate need to highlight the following leverages/advantages of our Farm House scheme to mobilize considerable business under this important segment of agriculture term lending segment:

seek RO permission in such cases is enclosed to ease the process.1. Branches need not insist for mortgage or charge on land There is a provision to relax entry level age of the farmers up to 60 years in deserving cases at branch level itself. Also there is a provision to relax beyond 60 years in deserving cases by the next higher authority subject to condition that the persons who have/may have interest in the property join the transaction as borrowers & execute mortgage. A format to for loans up to Rs.50000 where there is genuine difficulty in creation of mortgage.2. Normally most of the farmers may not have clear title deeds for that piece of land where they propose to construct farm house. In such cases, our Bank has permitted the Branches to accept security of Agricultural lands (having clear title) by way of mortgage whose value is adequate to cover the farm house loan.

3. In most of the cases farmers might have already created SRM or charge on their agriculture land towards existing SKCC and/or other farm loan facilities. Therefore Branches can easily identify needy farmers by short listing and mobilize good number of proposals for purposes viz., farm house construction, farm house expansion and farm house repairs.

4. The rate of interest is on par with the other Housing loans, which is just Base Rate for loans up to Rs.25.00 lacs at present.5. The processing charges and documentation charges are minimized at Rs.2500 (flat) per account irrespective of the loan amount.6. Depending upon the age of the farmers, there is a provision to extend repayment period up to 20 years. Branch should realize and persuade the farmers that the repayment capacity required for a loan of Rs. 2.50 lacs repayable in 5 years is same as that of 10.00 lacs of farm loan repayable in 20 years. 7. Maximum eligible loan for construction /acquiring a New Farm house is reduced to R.15.00 lakhs and for repirs to damaged housees in rural and semi urban areas is enhanced to Rs.2.00 lakhs or 75% of estimated cost of construction or repairs. Which ever is less.Keeping in view the potential available for expansion of credit under farm house scheme, all our rural and semi urban branches are advised to disburse good number of loan under this scheme. A two page format for processing farm house proposals is enclosed herewith. This will enable the branches to speed up the processing of the proposals without difficulty.

SyndicateBank: Regional Office: PanajiAPPRAISAL/PROCESSING OF FARM HOUSE LOAN PROPOSAL

Branch: __________________________Date: _______________________

01.Name & Address of the applicant:_________________________________________

02.Age of the applicant:______ Years. Age is important eligibility factor as under

The applicant should be major & not more than 55 years of age as on the date of application.

Maximum eligible age can be relaxed from 55 to 60 years in deserving cases by the sanctioning authority.

Beyond 60 years may be relaxed in deserving cases by the next higher authority subject to condition that persons who have/may have interest in the property join the transaction as borrowers & execute mortgage.

03Purpose of the loan

Mark to the applicable purpose: Construction of the Farm-House.

Acquisition of ready built Farm-House.

Repairs of existing farm house.

04.Income from the farm:This is one of the bases to fix quantum of loan & to asses the repayment capacity as well as to fix repayment schedule. The income from the form is depending upon the land holding and season wise cropping pattern of the holdings.

SeasonCropsArea acresYield/ acre in QuintalsTotal Yield

QuintalsMarket RateGross Production RsCost of Cultivation/AcreTotal cost of

CultivationFarm Income

Rs.

123=1X245=3X467=1X68=5-7

Kharif

Rabi

Net income from allied activities like dairy, animal husbandry or any other activities:

TotalI:

5. LOAN AMOUNT:

SlParticularsAmountSLParticularsAmount

AAnnual Income (I)Rs.DMaximum for construction

Maximum for RepairsRs.20.00 Lacs

BCost of construction X 0.75Rs.Rs. 1.00 Lacs

CAnnual income X 6Rs.EAmount applied forRs.

Amount Sanctioned least of BCDE Rs.

Note: While sanctioning the loan Branches shall keep in mind the sanctioning powers as under:

ScaleNew HouseRepair of House

Scale IIIRs. 10.00 Lacs1.00 Lacs

Scale IIRs. 10.00 Lacs0.75 Lacs

Scale IRs. 5.00 Lacs0.75 Lacs

6. DISBURSEMNT: In 3 or 4 installments according to progress in work:

1) Rs.2) Rs.3) Rs.4) Rs.

7. REPAYMENT SCHEDULE: (Mark to the applicable items in the following):

Normally, the repayment period for Farmhouse loans (other than repairs) shall be 15 years. However, the maximum repayment period may be extended to 20 years based on specific request of the borrower keeping in view the cash flow & subject to the condition that the persons having interest in the property join the transaction as co-borrowers/sureties.

The Maximum repayment period for Farmhouse repairs: 5 years.

The repayment in half-yearly or yearly installments along with interest.Amount of Installment:

No. of installment

Commencing from:

Periodicity:

8. RATE OF INTEREST: Linked to Repayment period on par with the SyndNiwas loans: 90/2011 BC

Loan amountRepayment periodRate of interest

Up to Rs. 25.00 lacsUp to 10 yearsBR

Above 10 years and up to 20 yearsBR + 0.25%

9: PROCESSING CHARGES & DOCUMENTATION CHARGES: Rs.2500 flat or as applicable

to Farm loans which ever is lower10. SECURITY & VALUE OF THE SECURITY:

Security & Value of the security:________________________________________________ __________________________________________________________________________

Normally shall be secured by mortgage or charge on Agricultural land on which the farm house will be constructed subject to clear title to the property.

If there is no clear title to the farm house-site, Branches are permitted to accept security of Agricultural lands (having clear title) by way of mortgage whose value is adequate to cover the loan. However, Branches shall satisfy themselves that the House-site belongs to the borrower.

Branches are permitted not insist mortgage of lands as security up to a loan amount of Rs.50000/- if there is genuine difficulty in offering mortgage of lands as security, subject to the condition that a credit worthy party acceptable to the Bank joins the transaction as surety.

11. Third Party Guarantee:

ParticularsThird party Guarantor IThird party Guarantor II

Name & Age of the TPG

Address of the TPG

SB account Number

Movable assets

Immovable assets

Liabilities with the Branch

Outside liabilities

Net worth of the TPG

Note: Branch shall obtain one or two credit worthy party/s to join the transaction as Third Party Guarantor.

12. Details of persons who have/may have interest in the property join the transaction as borrower & execute mortgage: (Only in cases where age criteria has been relaxed above 60 years with the permission of next higher authority & repayment period has been fixed above 20 years).

ParticularsParty No. IParty No. IIParty No. III

Name

Age

Address

Relation ship

Date: AMRD/OFFICER Sr/BRANCH MANAGER

SyndicateBank

Regional Office: Panaji(This format is to be submitted in duplicate so that one copy will be returned to the Branch with decision)

FORMAT FOR SEEKING ENTRY LEVEL AGE RELAXATION FOR FARM HOUSE LOANS

Branch: __________________ BIC: _______________ Date: _________________

Sub: Request for relaxation in entry level age beyond 60 years for farm house loan

The applicant/Farmer aged above 60 years approached for Farm House loan. On scrutiny of the proposal, we found that the farmer is healthy and offering all those who have/ might have interest in the property to join the transaction and execute mortgage along with him. Hence, we request you to permit us to entertain the proposal under the following circumstances:

Sl.Particulars

01Name of the farmer

02Address of the farmer

03Age of the farmer as on date

04General health conditionSatisfactory

05Land holdings

06Purpose of the loanFarm house construction/expansion/repairs

07Amount of loanRs.

08Proposed repayment period

09Names of the legal hairs & relation ship with the applicantSlNameAgeRelationship

01

02

03

04

05

10Other persons having interest if anySl.NameAgeRelationship

01

02

03

11Persons who will join the transactionSlNameAgeRelationship

01

02

03

04

05

Please permit us to consider the proposal relaxing the maximum age criteria.

Place: ______________ AMRD/Officer

Branch Head

For use at RO:

In view of the merits of the case and recommendation of the branch, we may permit the branch to consider the farm house proposal of Shri ____________________ aged __________

Date: Sr. Manager Chief Manager/AGM Dy. General ManagerSyndicateBank

PSCC: Regional Office: PanajiSyndKisanSathi (SKS) - REVISED DEBT SWAP SCHEME FOR FARMERS INDEBTED

TO NON-INSTITUTIONAL SOURCES LIKE MONEY LENDERS-BC 75/2012OOur Bank had earlier introduced SyndKisanSathi to extend credit up to Rs.50000 to the farmers including tenant cultivators, share croppers and oral lessees vide 330-2008-BC. Further, as per 309-2010-BC SKCC holders belonging to SF/MF category were made eligible to avail debt swap facility subject to a ceiling of 25% of the SKCC limit or Rs.25000 whichever is lower, with a condition that total SKCC limit and facility under Debt Swap Scheme should not exceed 3.00 lacs. Due to certain features such as (1) loan should be released directly to the creditor (2) facility to be arranged only after getting clearance from the ROs etc., the scheme has not made much progress. Therefore, in supersession of the existing schemes detailed above, Bank has introduced a revised easy to implement Debt Swap Scheme with the following friendly features.

Purpose: To provide financial assistance to farmers to redeem their dues to non-institutional sources like money lenders and to free them from the clutches of such lenders.

Eligibility: The eligibility criterion has been revised as under:

All farmers including tenant cultivators/ share croppers/ oral lessees from the service area villages, including existing as well as prospective SKCC borrowers drawing SKCC limit up to 3.00 lacs, who are indebted to non-institutional money lenders.

The existing SKCC holders, who have already availed loan under debt swap scheme as per 309-2010-BC can either continue the same facility or opt for a higher loan not exceeding Rs.1.00 lac including loan already availed, subject to regularity of the existing loans and production of a notarized affidavit as per annexure for having higher debt from non-institutional money lenders without any additional security. The fresh loan under SyndKisanSathi shall be a separate loan in cancellation of existing loan availed under debt swap scheme in terms of 309-2010-BC, if any.

Quantum of loan: Need based credit against the indebtedness of the farmer from money lenders with a maximum of 1.00 lac per farmer.

Margin: - NIL -

Security: No separate security will be insisted upon since the farmers including tenant cultivators/share croppers/oral lessees are already availing SKCC/crop loan from us and the security taken for SKCC/crop loan will be taken as security for this loan.

Release: Loan amount, wherever possible, be released directly to the creditor/money lender against a suitable discharge from the creditor. However, at the request of the borrower, if the Branch Head is convinced about proper utilization of the loan proceeds, then, the loan amount may be credited to the borrowers SB account and the receipt for payment to the money lender need not be insisted. However, a notarized affidavit, as per annexure, should be obtained to ensure that the money lent will be utilized for repayment of the debt with the non-institutional lenders.

Repayment period:

The loan shall be repaid in 5 to 7 years, including a moratorium period of not exceeding 12 months. The repayment schedule may be fixed in half yearly/yearly basis synchronizing with the harvesting season of crops grown/proposed to be grown, after consultation with the borrower. Wherever possible, the borrowers may be encouraged to open a Pigmy Account to enable them to pool their savings, if any, which can be utilized for repayment of the loan.

Rate of interest: As per 121-2013-BC dated 14.05.2013 and revised from time to time. The interest rate, at present, is as under:

For loan amount up to 50,000/ - BR plus 0.25% i.e. 10.25+ 0.25=10.50% p.a.

For loan amount 50,001 & up to 10.00 lac- BR plus 0.75% i.e. 10.25+ 0.75=11% p.a.

Applicable tenor premium shall be loaded to the above rate.

The loan under this scheme is not to be aggregated with other loans and vice versa for determining the size of loan for application of rate of interest.

Sanctioning Powers: Within the sanctioning powers as per 003-2013-BC (If the total limit exceeds the sanctioning powers of the Branch, RO sanction shall be sought).

Documentation: As applicable to agriculture advances.

NABARD Refinance: Loans under the scheme are eligible for refinance from NABARD. Therefore, Branches shall report the disbursements made under the scheme to respective RO as per extant guidelines. Branches shall maintain proper records in this regard.

Classification & Reporting:

The advances under the scheme shall be classified under direct finance to agriculture and reported under code number 0123 of ADV 21/49 (S.No.1(W)-Advances to Debt Swap)

Loans sanctioned under the scheme shall be arranged under product code 840- FL Debt Swap. Branches shall not use any other code to arrange the facility.

Other conditions:

Branches should discuss with identified farmers to assess their credit requirement and repaying capacity etc.

Farmers are required to satisfy the branch regarding their indebtedness to money lenders. The apprising officer shall prepare a note for having got convinced about such debt and the same shall be countersigned by the Branch Head.

Defaulters with other Banks or other financial institutions are not eligible.

Wherever possible branches may take the help of Farmers Clubs / SHGs /JLGs /NGOs etc. for identification of eligible farmers who are indebted to money lenders

Sanctioning authority should thoroughly assess requirement and clearly establish genuine need, repaying capacity & credit absorption capacity before lending under the scheme.

Installments may be fixed based on income of farmer, savings in terms of reduced interest burden during post redemption of high cost debt and future farm income. The branches shall exercise caution to ensure genuineness/ correctness of the claim of the high cost indebtedness so that there shall not be any misuse of the facility.

Branches shall educate the farmers not to fall into clutches of money lenders again.

The farmers, who approach the Bank/are identified for loan under this scheme, shall produce a notarized affidavit, as per annexure, indicating the debt taken from the money lender(s).

The sanctioning authority should satisfy about the income stream of the borrower, which should be sufficient to liquidate the existing as well as proposed one under SyndKisanSathi before sanctioning any facility under debt swap scheme.

Branches shall ensure that interest and installments of debt swap facility granted to the farmers are recovered while renewing/reviewing the SKCC facility.

Branches shall take advantage of the revised scheme to help the farmers to get released from the clashes of the money lenders and develop quality portfolio under the scheme. SyndicateBank:

Regional Office: PanajiAppraisal for SyndKisanSati-Revised Debt Swap Scheme proposalsBranch: _________________________________Date: ________________

01Name of the applicant:__________________________________________________

Address of the applicant:

02Technical Feasibility:

a.Purpose of the loan :To provide financial assistance to redeem high cost debt and to free them from the clutches of money lender.

b.Name and address of the Money lender:

(Note: The name of the money lender shall be as per the documentary evidence, if any, produced by the applicant or as per the affidavit produced in terms of the scheme.)

b.Applicant:The applicant is from one of the command area village of the Branch. It is evident from past dealings (existing farmer)/local enquiry (new farmer) that he is credit worthy & capable of generating sufficient income to repay the proposed SyndKisanSathi loan besides servicing other liabilities, if any.

c:Eligibility CriteriaMark applicable items: The applicant is a prospective SKCC farmer cultivating own land/tenant cultivator/share cropper/oral lessee from the service area village of the Branch indebted to non-institutional lenders like money lenders and having SKCC requirement up to Rs. 3.00 lac only.

The applicant is an existing SKCC holder drawing SKCC up to a limit of Rs.3.00 lac only, already availed/not availed loan under debt swap scheme as per 309-2010-BC. The account availed, if any, is regular. He intend to avail higher loan not exceeding Rs.1.00 lac, including loan already availed, The above applicant has produced documentary evidence/ a notarized affidavit as per annexure for having debt/ higher debt from non-institutional money lenders.

d:Fulfillment of other conditions

Mark (To be eligible for loan under SyndKisanSati all these conditions are to be fulfilled): Thoroughly discussed with farmer to assess their credit requirement and repaying capacity etc and satisfied about the income stream of the borrower which is sufficient to liquidate the existing as well as proposed one under SyndKisanSathi.

During the discussions, the applicant has satisfied us regarding his indebtedness to money lenders. A brief note on the discussion held is provided else where in this appraisal note

The applicant is not a defaulter with any other Banks or other financial institutions.

The requirement of the applicant is thoroughly assessed and established clearly the genuineness, repaying capacity & credit absorption capacity before taking sanction decision.

Installments are fixed based on present income, savings in terms of reduced interest burden during post redemption period and future farm income.

Exercised caution in ensuring genuineness/correctness of the claim made by the applicant regarding high cost indebtedness to avoid any misuse of the facility.

Educated the farmer not to fall into clutches of money lenders again by explaining the huge loss incurred by them.

The applicant has produced notarized affidavit, as per annexure, indicating the debt due to the money lender(s).

Noted to recover interest and installments of debt swap facility granted under this scheme renewing/reviewing the SKCC facility.

c.Land/farm particulars

Mark :Total Land holdings: _________acres. Irrigated lands: ______ acres. Source of Irrigation: Open well/Bore well/Canal irrigation. Water lifting devise: Electric/Diesel Pump set. Cropping pattern: Kharif __________________________ (crops & extent in acres) Rabi ___________________________ (Crops & Extent in acres)

In view of the above the proposal is technically feasible and there is sufficient scope to increase farm income after the project.

03Economic viability :

Income from the farm during the post redemption period:


QuintalsMarket RateGross Production RsCost of Cultivation/acreTotal cost of


Rs.

123=1X245=3X467=1X68=5-7

Kharif

Rabi

Savings on account of redemption of high cost debt to the money lender

(Branches shall ascertain the same based on the debt to be redeemed and interest rate charged by the money lender)

TotalA:

The income as above is carefully assessed after having thorough discussion with the applicant on cropping pattern, savings in interest due to redemption of high cost debt etc. The income is sufficient to service excising liabilities as well as installment of the proposed loan under Debt Sap Scheme. 04: Brief Note on genuineness of the claim made by applicant regarding his high cost private debt.

We had a thorough discussion with the applicant on the claim made by him regarding high cost debt. We had also made an enquiry with the following reliable farmers in the area and from the discussions we had with them, we are convinced about the genuineness of the claim.

(1) (Farmer No. (1)__________________________________________________________

(2)(Farmer No. (2)___________________________________________________________

Any other details:____________________________________________________________

04: Terms & conditions of the loan:

A: Loan amount and margin

iIndebtedness to the money lender(As per documentary evidence or notarized affidavit)Rs.

iiMarginN I L

iiiMaximum Ceiling under the scheme Rs.

a.If the applicant not availed facility under debt swap scheme earlierRs. 1.00 lac

b.If the applicant availed facility under Debt Swap Scheme earlier and the account is regular as on date:

Rs.1.00 lac (Minus) Original Loan amount already availed under existing Deb Swap Scheme

iv.Loan Amount requested by the party vide applicationRs.

v.Loan amount sanctioned (least of i. iii.a or iii b, iv)Rs.

B: Rate of interest

i.For loan amount up to 50,000/ - BR plus 0.25% i.e. 10.75+ 0.25=11.00% p.a.*

ii.For loan amount 50,001 & up to 1.00 lac- BR plus 1.75% i.e. 10.75+ 1.75=12.50% p.a.*

Note: Applicable tenor premium shall be loaded to the above rate.

The loan under this scheme is not to be aggregated with other loans and vice versa for determining the size of loan for application of rate of interest.

C: Disbursement:Mention as applicable

Note: Loan amount, wherever possible, be released directly to the creditor/money lender against a suitable discharge from the creditor. However, at the request of the borrower, if the Branch Head is convinced about proper utilization of the loan proceeds, the loan amount may be credited to the borrowers SB A/c and the receipt for payment to the money lender need not be insisted. However, a notarized affidavit, as per annexure, should be obtained to ensure that the money lent will be utilized for repayment of the debt with the non-institutional lenders.

D. Repayment Schedule

The loan shall be repaid in 5 to 7 years, including a moratorium period of not exceeding 12 months. The repayment schedule may be fixed in half yearly/yearly basis synchronizing with the harvesting season of crops grown/proposed to be grown, after consultation with the borrower. Wherever possible, the borrowers may be encouraged to open a Pigmy Account to pool their savings, if any, which can be utilized for repayment.Amount of Installment:

Commencing from:

Periodicity:

E: Security & margin norms:

No separate security is insisted upon since the farmers including tenant cultivators/share croppers/oral lessees are already availing SKCC/crop loan from us and the security taken for SKCC/crop loan will be the security for this loan.

Details of the existing security:Hypothecation/SRM/charge creation etc.

Name, address and net worth of the Third Party Guarantor.:

6. Other terms & conditions:

Place:

Date: AMRD/OFFICER BRANCH MANAGERANNEXUREAFFIDAVIT(To be stamped and notarized)I, ____________________________ Son/Daughter/Wife of ______________ _______________________________residing at _______________________ Village _______________________ Tehsil ____________________________ District __________________________ State hereby solemnly declare and affirm that:

1. That I am a farmer.2. That I have raised a debt of Rs.____________ (Rupees _________________ from money lender(s) Shri ________________________________________ ____________________________________________________________residing at ___________________________ for the purpose of Agriculture activity/family consumption.3. That I have to repay the aforesaid debt and it is due with an outstanding of Rs.______________ (Rupees ____________________________________) including interest as on date.4. That I have a request to Syndicate Bank _____________Branch to grant me a loan of Rs. _________________(Rupees _________________________only) for repayment of the above debt.5. That on sanction of the same, I request/authorize the Syndicate Bank ___________ Branch to debit my loan account and credit the proceeds of the above referred loan to my Savings Account with you or make the payment directly to the above said money lender on my behalf.I hereby expressly declare and affirm that the loan sanctioned by the Syndicate

Bank________________________ Branch, as referred to above shall be utilized by me only to repay and settle the dues with the money lender(s) mentioned above and shall not be utilized for any other purpose whatsoever.

Signature of the Deponent

The above said deponent, knows (Language he knows), solemnly affirmed on oath and executed before me on this dayof 20...

SyndicateBank

Regional Office: PanajiMeasures to exploit credit potential available under Land development activity

Land development activity is essential part of agriculture. It plays a major role in improvement of farm productivity-yields-farm income. Land development is a collective term includes a group of activities viz., leveling, bunding, fencing, compound wall, trenching, mulching, FYC application, Soil application, development of threshing yards, drying yards, ground water recharge pits/ trenches etc. Though farmers are aware that these land development works will result in higher yields for several years, often they postpone undertaking these works because of non availability of financial resources.

Therefore, it is very essential to create awareness on our scheme for financing these activities and help the farmers by extending need based and timely credit. This is also essential for us to increase term lending under agriculture which will remain with the Branches for several years. Therefore HELPING FARMES IS NOTHING BUT HELPING OURSELVES to achieve targets.To ease the processing of proposals at the Branches, a three page process note is developed incorporating up to date guidelines. A copy of the same is enclosed to enable the branches to increase business under Land Development activities. As already mentioned, there is huge potential under this activity; this niche in the field should be effectively tapped. We advise that each of our rural and semi urban branch shall create awareness of our scheme for financing Land Development activities to achieve a targets allocated to them without fail.

SyndicateBank:

Regional Office:Panaji

Appraisal for Land Development proposals

Branch: _________________________________Date: ________________




a.Purpose of the loan

Mark :Party would like to attend the following works in ___________acres of land to make it fit for cultivation/to improve the productivity.

Leveling/Bunding of farm lands.

Fencing with live edged plants/barbed wire with stone pillars/Barbed wire with wooden pillars/compound wall

Application of tank silt or special variety of soil to improve the productive potential of the soil.

Development of threshing & drying yards.

b.Applicant:The applicant is from one of the command area village of the Branch. It is evident from past dealings (existing farmer)/local enquiry (new farmer) that he is credit worthy & capable completing the project with in time and also capable of bringing stipulated margin for proposed project.


Mark :Total Land holdings: ________acres. Irrigated lands: ______ acres. Source of Irrigation: Open well/Bore well/Canal irrigation. Water lifting devise: Electric/ Diesel Pump set. Cropping pattern: Kharif __________________ ________ (crops & extent in acres) Rabi ______________ ___________________________(Crops & Extent in acres)


03Economic viability :

a: Income from the farm before the project:




Rs.

123=1X245=3X467=1X68=5-7

Kharif

Rabi

TotalA:

b: Income from the farm after the project:SeasonCropsArea acresYield/ acre in QuintalsTotal Yield



Rs.

123=1X245=3X467=1X68=5-7

Kharif

Rabi

TotalB:

c:Incremental income from the farm = (B minus A) = _________minus_______Rs. ______

d:Amount available for repayment of the loan: 50% of C= __________ X 0.50Rs. ______

The above amount is enough to repay the installments due in one year. Therefore, the proposal is economically viable.

Hence, the loan is sanctioned as per following terms & conditions.



iCost of the project

iiLess: 5to15% margin

IiiAmount applied for vide the application

ivLoan Amount sanctioned. (A-B) or C which ever is less.

Note: i. Branches need not insist margin for loans up to Rs. 100000.

ii. Branches may obtain rough estimate of the works indicating the number of man days of labour required, wage rate & cost of implements required if any etc.

B: Interest Rate: Mark to the applicable item in the following.

Size of the Credit LimitInterest Rate (121/2013 BC)

(Subject to change from time to time based on the guidelines issued)

Up to Rs. 50000/-BR + 0.25% + 0.25% tenor premium

Above Rs. 50000/- & up to Rs. 10.00 LacsBR + 0.75% + 0.25% tenor premium

Above Rs. 10.00 Lacs

& up to Rs.100 lacsPresent rate

Synd 1Synd 2Synd 3Synd 4Synd 5Synd 6

BR+1.00BR+1.00BR+125BR+1.25BR+1.75BR+1.75

Plus tenor premium of 0.25% for Term Loans repayable in above 36 months

C: Disbursement:

Rs.________________ Immediately.

Rs.________________ after I follow up

Rs.________________ after II follow up

Note: In two or three installments (depending on the loan amount) to the credit of the account of the applicant. The second & subsequent installments to be released after follow-up & after ensuring end utilization of the earlier releases made.


Repayable in Half-yearly/yearly installments based on the income stream of the borrower. Maximum of 10 Years.Amount of Installment:

Commencing from:

Periodicity:

E: Security & margin norms: Mark to the applicable item in the following.

Quantum of LoanSecurityMarginGuarantee/Surety

Up to Rs. 100000No security.No Margin.Guarantor/Surety need not be insisted.

Above Rs. 1.00 Lac.Mortgage of landSF/MF/AL -5% margin


(For loans of more than Rs.2 Lac, uniform margin of 15-25% shall be obtained for all categories of farmers.)Third party guarantee wherever required may be obtained at the discretion of the Branch.

Discretion and value of collateral security wherever applicable:

Name, address and net worth of the Third Party Guarantor.:

6. Other terms & conditions:

Place:

Date: AMRD/OFFICER BRANCH MANAGER

SyndicateBank

Priority Sector Credit Cell: RO:PanajiScheme for financing Composite Fish Culture

Many of our Branches have expressed that they are getting enquiries about scheme available for taking up Composite Fish Culture, but they could not attend to them as they do not have enough exposure under the scheme. Hence, requested us to provide a model scheme so as to entertain proposals from the interested customers besides creating awareness in their command area. To enable the Branches to exploit the potential under this segment of Direct Lending to agriculture, we have formulated a model scheme.

Branches are aware that Fish being the cheapest and easily digestible animal protein, there is huge demand for fish and fish products in India as also aboard. However, due to over exploitation, the availability of fish in natural waters has declined forcing to adopt other methods to increase production. Hence, Fish farming under artificial conditions has become more popular. Farmers can easily take up fish culture in village ponds, tanks or new water body developed in low laying water lagged and waste lands not good for cultivation. It also creates gainful employment for skilled and unskilled youths in rural areas. Composite Fish Culture is the technology in which more than one type of compatible fishes can be cultured. Any perennial water pond/tank retaining water depth of 1 to 2 meters can be used for fish culture. Seasonal ponds can also be utilized for short duration fish culture

The area under tanks and ponds available for fresh water fish culture is estimated to be 2.41 million ha. Apart from this, low lying water logged area not good for cultivation and any land where there is sufficient water resource can be converted for fish farming. Only 15 % of the potential area of tanks and ponds available is developed so far, showing immense possibilities for expansion of composite fish culture. The average productivity from ponds at present is to the tune of 2500 kg/ha/year.

The Fishery Development Department is promoting Fish Culture by providing subsidy and technical knowhow to the identified beneficiaries and sponsoring proposals to the concerned branches. Therefore, Branches shall have liaison with the Department to identify and finance potential borrowers under this scheme. We hope that this model scheme cum appraisal note will be of much helpful to the Branches to exploit potential under the scheme as also to dispose off the meritorious proposals sponsored by the department as per stipulated time norms.

SyndicateBank

PSCC: Regional Office: PanajiAPPRAISAL FOR COMPOSITE FISH CULTURE

Branch: ________________________ Date: _____________

(Note: Branches shall mobilize the proposals from the beneficiaries having waste land wherein he can develop water body required for fish culture, taking into consideration the resources of the applicant to bring required margin, managerial capabilities and Capacity to bear the risk etc. Borrowers having valid lease for public water bodies like village ponds/tanks may also be entertained. Beneficiaries sponsored Fishery Development Department may also be appraised using this format. All the relevant information is to be collected from the applicant to process the proposal. Technical feasibility and financial viability shall be ascertained as under.)

1. Name & address of the Applicant:_____________________________________________

2. Date of visit to the farm:___________________

3. Purpose of the Loan:To establish Composite Fish Culture farm in ______ Hectare to have sustainable. Fish breeds proposed _________________________

(Note: Depending on the compatibility and feeding habits, certain types of fishes of Indian as well as Exotic varieties have been identified and recommended for culture in the composite fish culture technology. Indian Breeds are 1) Catla- Surface feeder, 2) Rohu- Column Feeder, 3) Mrigal- Bottom Feeder and Exotic Breeds are 1) Silver Carp-Surface Feeder, 2) Grass Carp-Surface-Bottom and marginal feeder, 3) Common Carp-Bottom Feeder. However, other suitable breeds recommended by Fishery Development Department may also be accepted)

4. Technical Feasibility:

i. Experience:The applicant belongs to farming family/acquired adequate knowledge in Composite Fish Culture. He is keen in taking up the activity to have stabilized income. From the past dealings/Local enquiry it is evident that he is a credit worthy party.

Other comments if any:_______________________________________

ii. Water body to undertake the activity:Mark to the applicable item

a. The applicant is holding valid lease deed for the village pond/tank and the u expired lease period is more than the repayment period proposed.

b. The applicant is having sufficient land with good source of water wherein he proposed to develop pond for undertaking the activity.

c. The proposal is recommended/ sponsored by the Fishery Development Department and fulfilling the norms.

iii. Land holdings:Total Land holdings: __________ acres of which, _______ acres are irrigated and _______ acres are un irrigated.

iv. Cropping pattern of the farm:Kharif _______________________________ (crops & extent in acres) Rabi __________________________________ (Crops & Extent in acres)

v. Source of irrigation:____________________________ This is essential if the applicant proposed to take up activity in his own farm.

Water lifting devise: ____________________________.

vi. Place of fish Seed:Mark to the applicable item

a. To be purchased from the repute suppliers available at ____________

b. To be supplied by the Fishery Development Department

vii. Veterinary facility:Veterinary facility available locally/at________________________ place which is ______________________km from the village.

viii. Market for fish:There is good demand for fish at the nearby centers viz., _____________

5. Economic Viability of one Hectare project:

(The costs adopted are indicative and the economics worked out taking into account the average situation. Branches are permitted to vary the costs reasonably on a case to case basis to suit to local conditions)i. Capital and recurring cost of the project:

Sl.ParticularsModel SchemeThis Proposal

CAPITAL COST1 Ha____ Ha

Ii. Site Clearance in cases where the applicant is having valid lease for taking up fish culture in public village ponds/tanks.

ii. Construction of pond including digging bund construction, compaction and consoli dation in cases where the applicants want to develop ponds in own lands to take fish cultureLumbsum3000

48000

(Any one of the this item is applicable)______

aDiesel Pumpset- 3 HPOne3000030000

bInlet & outlet sluices/valvesLumbsum50005000

cStore Room/ rest room (80 Sq. ft) 150/sq. ft1200012000

DNets and other implementsLumbsum50005000

eOther Miscellaneous itemsLumbsum35003500

fTOTAL-I106500

IIOPERATIONAL COST FOR ONE CROP

aDrying, desilting and plouging- Lumbsum30003000

bLime application500 Kg @ 250/Kg2500

cSingle Super Phosphate250 Kg @ 250/Kg1250

dUrea125 Kg @ 5/Kg625

eRaw Cow Dung10 ton @ 500/ton5000

fFish Seed2 to 3 varieties 5000 @ 5/fish25000

gFish Feed6000 Kg @ 12/Kg72000

hHarvesting Charges 4000 Kg @ 0.50/Kg 2000

iMiscellaneousLumbsum1000

jTOTAL-II112375

kTOTAL I+II218875

(Cost of present proposal shall be ascertained by taking proportionate cost with reasonable variation required if any into account)

ii. Financial Analysis, IRR, BCR

Amounts Rs. in lacs:

A: CostsYear-1Year-2Year-3Year-4Year-5Year-6Year-7Year-8

1. Fixed Costs1.065

2. Rec. Costs1.1241.1241.1241.1241.1241.1241.1241.124

Total costs2.1891.1241.1241.1241.1241.1241.1241.124

B. Income from

sale of fish2.002.002.002.002.002.002.002.00

C. Net Income-0.1890.8760.8760.8760.8760.8760.8760.876

D. NPV of costs7.444

E. NPV of benefits11.449

(It may not be necessary for the Branches to workout this table as there is enough cushion to absorb minor variations allowed if any, in cost factor)

It is evident from the above that the proposal is technically feasible and financially viable.

6. Therefore, the proposal is recommended for sanction/sanctioned with the following terms & conditions:

a.Total Project cost :Rs. __________________ as per Para 5-i-k

b.Margin:Rs. _________________ 5 to 15% depending on type of farmers

c.Subsidy, if available:Rs.________________ (May be treated as margin)

d.Loan amount:Rs._____________________ (01-02-03 above)

eRate of interest:Mark to the applicable item.





Above Rs. 10.00up to Rs.100 Lacs&Present rate Synd 1Synd 2Synd 3Synd 4Synd 5Synd 6

BR+1.00BR+1.00BR+1.25BR+1.25BR+1.75BR+1.75


f. Disbursement:

If for pond cleaning _________ immediately

If for pond construction 50% i.e. Rs. _______ immediately

Remaining 50% i.e. Rs. _______ after follow-up & ensuring utilization

For Diesel EngineRs. _________ Specific release to the supplier against quotation. Invoice and bills are to be obtained and placed on record within a reasonable time

For all other items At appropriate time. Amounts may be released towards credit of partys account. However, end use shall be ensured by visiting the farm periodically

g. Security and third party guarantee: Mark to all applicable items. (178/2010 BC)

Quantum of Loan (Cumulative)SecurityGuarantee/Surety

Up to Rs. 1.00 lacHypothecation of assets created out of Bank loan No guarantor may be insisted.

Above Rs. 1.00 Lac.Hypothecation of assets created out of Bank loan and mortgage of land.Third party guarantee wherever required may be obtained at the discretion of the branch.

Extent and value of the property taken as collateral security wherever obtained:

:

Name & address of the Third Party Guarantee wherever obtained:

h. Claiming and administration of subsidy:

If subsidy available, Branches shall claim and account the subsidy as per the provisions of the scheme under which he subsidy is available.

i. Repayment:

8 yearly installments of Rs.______ each with one year grace period

(Note: if the proposal is to take up activity in public pond/tanks, the repayment shall be based on the unexpired lease period of the pond as per the original lease deed submitted by the party. However, it shall be ensured that the repayment period shrunken to match with the unexpired lease is viable.)

j. Important Technical parameters for the benefit of the Branches to have better supervision:

Pond Management plays a very important in fish farming before and after the stocking of fish seed. Various measures in pre and post stocking practices are as below:

A) Prestocking:

In case of new ponds, pre stocking operations starts with liming and filling of the pond with water.

However, the first step for existing pond will be clearing the unwanted weeds and fishes either by manual, mechanical or chemical means.

B) Liming - The soils/ tanks which are acidic in nature are less productive than alkaline ponds. Lime is used to bring the pH to the desired level.

C) Fertilization/ Manuring: Fertilisation of the pond is an important means for intensifying fish culture by increasing the natural productivity of the pond. A combination of both Organic and Inorganic fertilisers may be used for best results. Organic manure to be applied after a gap of 3 days from the date of liming. Cowdung @ 5000 kg/ha or any other organic manure of suitable quantity, Inorganic fertilization to be undertaken after 15 days of organic manuring.

D) The pond will be ready for stocking after 15 days of application of fertilisers. Fish fingerlings of 50- 100 gm size (approx) should be used for stocking @ 5000 nos. per hectare. However, if fingerlings of smaller size are used, suitable allowance may be made accounting for mortality. The present model envisages stocking of advanced fingerlings and rearing for 10-12 months. Depending on availability of seed and market condition, stocking can be of 3, 4 or 6 species combination.

E) Fishes need much more food than what is available naturally in the pond. Fishes can be fed with a mixture of rice bran and oilcakes in the ratio 4:1. Due to the high cost of Ground nut Oil Cake or mixture of Groundnut oil cake & Cotton seed oil cake in equal proportions and fed to the fish and is reported to give almost the same growth rate as that of GOC. The feed should be placed on a feedingtrayor in feeding bags and lowered to the pond bottom or it can be dispersed at the corners of the pond. The recommended feeding rate is 5 - 6 % of the body weight up to 500 gm size of fish and reduce to 3.5% of body weight from 500- 1000 gm.

F) Organic manuring may be done in monthly instalments @ 1000 kg/ha and Inorganic fertilization may be done at monthly intervals alternating with organic manuring. However, the monthly rate of fertilisation will depend on pond productivity and the growth of the fishes

G) Harvesting is generally done at the end of 1st year, when the fishes attain average weight of 800 gm to 1.25 kg. With Proper management a production of 4 to 5 tons/ha can be obtained in a year. Harvesting is done by partial dewatering and repeated netting. In some cases complete dewatering of ponds is resorted to. Some farmers resort to partial harvesting also depending on the season and demand

H) Vertical expansion of fish culture: A number of measures are being employed by the entrepreneurs to increase the per hectare production of fish. Important measures adopted are stocking of advanced fingerlings / yearlings by stunning the growth of fish seed during first year, heavy stocking and multiple harvesting after the fishes attain a size of 500 gms., multiple stocking and multiple harvesting, use of aerators, integrated fish farming with animal husbandry activities like dairy, poultry or piggery to get daily organic manuring to the pond thus increasing its fertility. It is possible to increase the per hectare production of fish to 7 to 10 tonnes per ha per year by employing different methods as indicated above.

Place:

Date: OFFICER BRANCH MANAGERSyndicateBank

Regional Office: PanajiScheme for financing goat breeding unit

Goat breeding is an important Animal Husbandry activity next to dairying. Some of our branches in the Region have expressed that there is good potential for this activity in their command area and requested that if a separate scheme/process note is made available, a good progress can be made under this investment activity. Accordingly, we have prepared a separate scheme cum process note based on the information collected from NABARD. A copy of the same is enclosed to enable the branches to speed up the process and extend finance to good number of farmers/ entrepreneurs villagers during the year.

Branches are aware that animal husbandry activities not only economical on their own but also provides scope for improvement in farm productivity because the byproducts can be effectively utilized as FYM. Learned have felt that these activities will provide steady income which acts as a cushion during crop failures. When there were huge number farmers suicides during the distress period, our bank has opened many counseling centers and advised the farmers to take up animal husbandry activities especially dairying and goat breeding to save from such untoward situations.

The most suitable goat units are 10 does + 1 buck and 20 does + 1 buck commonly called as 10 + 1 goat unit and 20 + 1 goat unit. A provision is made in the process note to process any of these units. Our sincere appeal to all our branches is that let us standby our tradition and help the farming community by creating awareness and extending timely credit.

SyndicateBank:

Regional Office: PanajiAppraisal for Goat Breeding Unit proposals

Branch: _________________________________Date: ________________



Date of visit to the farm:_______________________


a.Purpose of the loan Mark :To establish Goat Unit/to augment Farm income by maintaining Goat unit of ________ + ________ (No.) Size

b.Applicant:The applicant is from farming family/Agricultural Labourer, is experienced in Goat farming and having adequate knowledge about the maintenance of Goats. He is showing keen interest in taking up the activity. From the past dealings/Local enquiry it is evident that he is a credit worthy party and capable.


Mark : Total Land holdings: ________acres. Irrigated lands: ______ acres. Source of Irrigation: Open well/Bore well/Canal irrigation. Water lifting devise: Electric/ Diesel Pump set. Cropping pattern: Kharif ___________ (crops & extent in acres) Rabi ____ ___________ (Crops & Extent in acres) He is agricultural labourer having required infrastructure to maintain the proposed Goat unit.

d.Place of purchase of goats:The party wishes to purchase good quality goats______+______ (No) at ____________________ (Place of purchase).

e.Shed:Party is already having a simple shed /Party wishes to construct s simple shed/party wishes to repair the existing shed to house the proposed animals. (Strike whichever is not applicable)

d.Fodder & grazing facility:Available in the area.

e.Veterinary facility:Veterinary facility available locally/at____________________ place which is _________KMs from the village. Therefore, party can ensure timely veterinary aid to the animals.

f.Marketing:There is good demand for grown up Goats locally as well as in the nearby areas such as _______________________ __________ (Name of near by cities where demand is available).


03Economic viability

A.Capital Expenditure:

SlParticularsAmount (Rs)

01Cost of animals:

Does (female Goats) __________(No.) X _________ (Cost per animal).

Bucks (Male Goats)___________(No.) X___________(Cost per animal).

(The prevailing market rate/indicative cost: Rs.2500 per doe & Rs.2500 per buck. Branches are advised to compare the rates proposed by the applicant with these indicative costs to avoid price escalations. However, variation on cases to case basis is permitted to a reasonable extent)

02Enclosure/open shed: wherever party wants to construct enclosure/open shed or repair the existing one, same may be considered on case to case basis based on the economic viability.

(Note: 15 to 20 Sq. Ft. per adult, 4 Sq. Ft. per kid is required). Cost of enclosure for 20+1 unit (2020 sq. ft) recommended by NABRD is Rs.13200.

03Transportation: Transportation cost up to Rs.2000 shall be considered as project cost for financing depending upon the place of purchase and distance

04Insurance: Branches shall insure the animals under live stock policy of GIC. The premium to be remitted is @ 4.0% or prevailing rate. (Branches shall include the cost of insurance in the project cost & consider as item of finance.).

05Medicines: @ Rs. 25 per animal shall be added on case to case basis.

06Equipments: A lump sum of Rs. 50 per animal may be added depending on the requirement. Purchase of feed troughs, Sickles, milking pails, cans etc shall be included under this on case to case basis.

07Feed: Feed for adults for 3 months @ Rs. 150 per adult & feed for kids for 7 months @ Rs. 50 per kid shall be added based on the requirement on case to case basis.( Feed for kids shall be added only when kids are coming with the mothers at the time of purchase)

08Total cost of project: (01+02+03+04+05+06+07)

09Margin: No margin for loans up to Rs. 100000/-. 5% in case of SF/MF/AL & 15% in case of other farmers where the loan amount exceeds Rs. 100000/-).

10Loan amount sanctioned: (08-09) or amount applied for which ever is lower.

B.Income from the project

Kidding internal: 8 to 9 months, Twinning (Calving): 2 kids per animal (normal average).Sex ratio of kids: Male: Female = 1:1, Sale of animals: at the age of 8 to 9 months.

Weight of adult body: 35 to 40 Kg, Approximate Market rate of meat per KG: Rs.40 to 50.

ParticularsAmt. Rupees

01Sale of matured kids at the age of 8 to 9 months:

No. of kids @ 2 kids/Doe X Weight/Goat X market rate/KG X Calving Weightage*______________X___________X__________X 1.10 Branches may worked out based on the No. of goats & average selling rate of each based on the practice prevailing in the area.

(Calving weightage- The actual number of calvings/year will be 1.33. However, we have loaded 1.10 only leaving 0.23 mortality in kids)

02Sale of milk if the practice of milking & sale of goat milk prevailed in the area.

5 months location period X 1.5 to 2.0 liters per day X Rs. 10.00 per liter.

03Total Income from the unit (01+02)

It is evident from the above that the project is economically viable.

Hence, the loan is sanctioned as per following terms & conditions.



iCost of the project (as per 03 A:08)Rs.

iiLess: 5 to 15% margin for loans above Rs. 1.00 lac only (as per 03 A:09)Rs.

iiiAmount applied for vide the applicationRs.

ivLoan Amount sanctioned. (i-ii) or iii which ever is less.Rs.

Note: i. Branches need not insist margin for loans up to Rs. 1.00 lac ii. Branches may obtain rough estimate of the works indicating the number of man days of labour required, wage rate & cost of implements required if any etc if loan for enclosure/ open shed is included.

B: Interest Rate: Mark to the applicable item in the following.





Above Rs. 10.00 Lacs& up to Rs.100 lacsPresent rate


BR+1.00BR+1.00BR+1.25BR+1.25BR+1.75BR+1.75


C: Disbursement:

Rs.________________ immediately, Rs.________________ after follow up

Rs.________________ after second follow up

Note: Branch shall first release the loan component for construction of enclosure/shed in 2 installments according to progress in work. The loan for animals shall be released specifically along with to the vendor against production of a letter intending to sale the animals from the vendor. Branch to arrange for tagging and insurance immediately on acquiring the animals. The component for insurance, transport and other items at appropriate time.


Repayable in Half-yearly/yearly installments based on the income stream of the borrower. Maximum of 10 Years.Amount of Installment:

Commencing from:

Periodicity:

E: Security & margin norms: Mark to the applicable item in the following.

Quantum of LoanSecurityMarginGuarantee/Surety

Up to Rs. 100000Hypothecation of

assets created out

of Bank loanNo Margin.Guarantor/Surety need not be insisted.

Above Rs. 1.00 Lac.Hypothecation of assets created out of Bank loan & mortgage of land or any other collateral security acceptable to the Bank.SF/MF/AL -5% margin


(For loans of more than Rs.2 Lac, uniform margin of 15-25% shall be obtained for all categories of farmers.)Where mortgage of land is not taken and the loan is extended against other collateral security, third party guarantee with adequate net worth acceptable to the Bank shall be taken.

Collateral Security & its value

Third Party Guarantee, if obtained

5.Other terms & conditions

Place:

Date: AMRD/OFFICER BRANCH MANAGERSyndicateBank

Priority Sector Credit Cell: RO:PanajiModel Scheme for financing Poultry Broiler Farming:

Poultry meat is a good source of high quality proteins, minerals and vitamins to balance the human diet. Specially developed varieties of chicken are now available with the traits of quick growth and high feed conversion efficiency. Depending on the farm size, broiler farming can be a main source of family income or can provide subsidiary income provides gainful employment to farmers throughout the year. Poultry manure is of high fertilizer value which can be used for increasing crop yield.

Branches are aware that the Govt. of India has introduced the PEDS scheme in place of earlier Poultry Venture Capital Fund (PVCF) Scheme. Bank has issued guidelines vide 326/2011 BC dated 24/11/2011, advising the branches to take pro active action to explore the potential under the scheme. The PEDS is more attractive with Capital subsidy available for various components of poultry. Indicative costs & pattern of back-ended subsidy available for various components under the scheme have been communicated to all our Branches in the Region vide our circular No. GRO/PSCC/1315 dated 12/12/2011.

GOI is implementing revised scheme with the following objectives:

To encourage poultry farming activity especially in non-traditional States and provide employment opportunities in backward areas.

Improve production of poultry products which have ready market all over the country.

To improve productivity in unscientifically managed units through technology upgradation.

Provide quality chicken to consumers in hygienic conditions, and improve hygienic sale of poultry meat and products in urban areas and neighborhood societies through poultry dressing and marketing outlets.

Facilitate rearing of other poultry species like quails, ducks, turkeys etc which have good potential and improve their productivity.The model scheme cum appraisal note enclosed is for Broiler Farm of 1000 birds so that Branches can easily process the proposals for units of any size by proportionately modifying the figures, however with reasonable variations on a case to case basis. This model scheme also enables the Branches to process proposals irrespective whether the proposals are under PEDS or not. We advise all our Branches to earnestly implement the scheme to develop quality portfolio under direct agriculture.

The PSDS scheme comes to an end by 31/03/2012. NABARD has informed that they may announce extension of scheme for the current financial schemes. However, Branches use the enclosed appraisal note for processing proposals outside the purview of the scheme with a suitable change in the margin contribution.

SyndicateBank

PSCC: Regional Office, PanajiAppraisal Note for Poultry Broiler Farming

Branch: ________________________________ Date: ________________



Date of visit to the farm:_______________________


a.Purpose of the loan Mark :To establish Poultry Broiler farm Unit of ________ birds to augment Farm income and to employ the family labour gainfully besides providing employment to few unskilled labourers.

b.Applicant:The applicant is from farming family, experienced in Poultry farming and having adequate knowledge in the activity. He is keen in taking up the activity. From the past dealings/Local enquiry it is evident that he is a credit worthy party and capable of bringing require margin & required infrastructure is available to complete the project within a reasonable time.


Mark :Total Land holdings: _______acres, of which Irrigated lands: _____________ acres. Source of Irrigation: Open well/Bore well/Canal irrigation. Water lifting devise: Electric/Diesel Pump set. Cropping pattern: Kharif ____________________ (crops & extent in acres) Rabi ______________________ (Crops & Extent in acres)

d.Purchase of day old chicks, poultry feed etc:Day old chicks Available at _________________________Feed available at ________________________________

e.Shed:Party would like to construct which is included as one of the item to be financed under the present proposal

d.Availability of water:Available in the farm.

e.Veterinary facility:Veterinary facility available locally/at__________________ place which is _________KMs from the village. Therefore, party can ensure timely veterinary aid to the birds.

f.Marketing:There is good demand for broiler birds locally as well as in the nearby areas such as ______________________________ (Name of near by cities where demand is available).


03. Economic viability

A: Techno Economic Parameters adopted:SlParticulars1000 birdsPresent proposalSlParticulars1000 birdsPresent Proposal

01Number of birds100012Medicines, vaccines, labour and misc. charges8.50

02Batch strength100013Insurance per bird (Rs. per bird)0.50

03Birds purchased per batch105014Insurance of sheds and equipment (Rs. per Rs.1,000/)5.05

04Birds considered for recurring expenditure102015Live weight of bird (Kg per bird)1.60

05Birds considered for selling100016Sale price (Rs. per kg)60.00

06Floor space per bird

( s.ft)117Value of manure per bird sold (Rs. per bird)0.50

07Cost of construction of shed (Rs. per sft)12018Sale price of gunny bags (Rs. per bag)10.00

08Cost of equipment (Rs. per bird)16.0019Margin (%)15

09Cost of day old chick (Rs. per bird)2020Interest on bank loan (% p. a)13.75

10Feed requirement per bird (Kg)3.3021Rearing period6 weeks

11Cost of feed (average price Rs. per kg)17.0022Cleaning period of shed2 weeks

(The costs adopted are indicative and Branches can make reasonable variations on a case to case basis taking into account the local conditions.)

B: Flock Chart:YearIIIIIIIVVVIVIIVIII

No. of batches77777777

Rearing weeks4042424242424242

Batches sold67777777

C Project Cost: SlParticulars1000 broiler modelPresent proposal

ICAPITAL COST

i.Construction of shed120000

ii.Cost of equipment16000

TOTAL CAPITAL COST136000

IIRECURRING EXPENDITURE

i.Cost of day old chicks21000

ii.Cost of feed57222

iii.Medicines, labour, miscellaneous charges8670

iv.Insurance of birds525

v.Insurance of sheds and equipment687

TOTAL RECURRING EXPENDITURE88104

GRAND TOTAL (Rounded off)224000

MARGIN SAY 15% (Branch may take 5-15%)33600

BANK LOAN190400

D: Income Expenditure Statement:

SlParticulars1000 broiler model unitPresent proposal

YearsIII-VIIVIIIIII-VIIVIII

IINCOME

i.Sale of birds576000672000672000

ii.Sale of manure300035003500

iii.Sale of gunny bags299231423142

TOTAL INCOME581992678642678642

IIEXPENDITURE

i.Cost of chicks147000147000147000

ii.Cost of feed381480400554400554

iii.Insurance for birds367536753675

iii.Insurance for shed & Equipment687687687

TOTAL EXPENDITURE590642612606612606

IIISURPLUS79454*6606666066

*Capitalized expenditure not taken into account while arriving the surplus.

E: Calculation of NPV, BCR & IRR

Sl.YearsIII to VIIVIII

i.Capital Cost136000

ii.Recurring Cost590642612606612606

TOTAL COSTS726642612606612606

iiiIncome581992678642678642

ivResidual value of shed72000

TOTAL BENEFITS581992678642750642

NET BENEFITS-1446506603613036

Discounted costs @ 15% DF2848122

Discounted benefits @ 15%DF2984778

NPW @ 15% DF136656

BC Ratio1.05

IRR43.77%

(It may not be require for the Branches to workout this table for the size of the present proposal as there is sufficient cushion to absorb reasonable variations if any, made in the costs on a case to case basis)

E: It is evident from the above that the project is economically viable. Therefore, the proposal is recommended for sanction/ sanctioned with the following terms & conditions:

01Loan amount:Rs.____________ As per Para 3C

02Margin amount:Rs.____________ as per Para 3C (If under PEDS margin is 10%)

03Eligible capital subsidy:Rs. ____________ as per Para (General 25%, SC/ST 33.33%)

(Subsidy under PEDS available only on indicative project cost)

04Rate of interest:Mark to the applicable item.





Above Rs. 10.00 Lacs

& up to Rs.100 lacsPresent rate


BR+1.00BR+1.00BR+1.25BR+1.25BR+1.75BR+1.75


(Note: If u