Bank of India Agriculture Loan

Bank of India, also known as BOI, is a commercial bank with 5315 branches across India and 56 branches in foreign countries. The bank is owned by the Society for Worldwide Interbank Financial Telecommunications, which provides cost-effective financial processing and communication services.

Amongst a wide number of services, Bank of India Agriculture Loan is a door to many possibilities for farmers of India. Right from farming requirements like the purchase of new Land, upgradation, buying farm machinery, constructing irrigation channels, building grain storage sheds, etc., the bank offers every need of a framer. The following sections will highlight key aspects of BOI agricultural loan, including interest rates, feature and more.

Types of BOI Agriculture Loan

1. BOI Kisan Credit Card (KCC)

Bank of India Kisan Credit Card scheme offers timely credit support to the farmers for their cultivation needs as well as non-farming activities in a cost-effective manner. One of the main features of the KCC scheme is to bring flexibility and operational freedom in credit utilisation.

Eligibility for BOI Kisan Credit Card

• The farmers are eligible for short-term credit for crop production, allied activities and other non-farm activities
• The farmers should come from the operational area of the branch
• An individual must be engaged in the fisheries, dairy and other animal husbandry activities

Annual Review

• The farmers will be allowed for any number of withdrawals and repayment within the limit
• The bank will conduct a review, which will help in deciding whether - the Facility shall be continued, the limit should be enhanced or withdrawal should be cancelled - depending upon the performance of the borrower
• The credits in the account during the 12 months duration should at least be equal to the maximum outstanding on the account
• No withdrawal in the account should remain outstanding for more than 12 months. For banana and sugarcane crops, the period is 18 months
• If the repayment period has been increased due to natural calamities, then the review will also get extended along with the limit
• After review, if the farmer has a good track record, then the bank may think of increasing the Credit Limit to suit the framer’s requirements

Margin and Loan Quantum

• Loans are given for production and short-term purposes. The amount would rely on the type of crop, the area under cultivation and scale of finance
• BOI will approve short-term working Capital for the ancillary activities and minor investment of medium-term tenure
• Short-term credit will also be provided for consumption or domestic needs up to 25% of the gross estimated Income of the farmer and a maximum of Rs. 50,000
• The bank will also finance for storage receipts and marketing produce up to 50% of the cost of the produce prevailing at the time of storage or when the loan was sanctioned.
• Loan limits can be extended up to Rs. 10 lakh per farmer to a maximum period of 12 months. Farmers can avail the loan up to the net loan amount.

2. Kisan Samadhan card

The Kisan Samabdhan Card scheme is based on the ‘Line of Credit’ concept. The bank offers each farmer with a package of ‘Kisan Samadhan’ that will enable the farmer to avail the short-term and long-term credit for a duration of 5 years with rollover arrangements.

The scheme will not only cover farming alone, but also for allied activities, repairs, purchase of consumer durables, maintenance of farming equipment, etc.

Note: BOI Kisan Samadhan Card will replace Kisan Suvidha Card and Kisan Gold Card.

Eligibility for Kisan Samadhan Card

• Farmers who are eligible for the Kisan Credit Card would be eligible for Kisan Samadhan Card
• Farmers seeking facilities under the Kisan Samadhan Card must avail the production credit and investment credit

Purpose of Kisan Samadhan Card

Production Line of Control

• The loan amount sanctioned would depend on the type of crop, the area under cultivation and the loan required for raising the crop
• The bank will extend loans for short-term requirements like maintenance of tractor or farm implements, allied activities like dairy, poultry, annual repairs, fuel, annual repairs, etc.
• Short-term credit will be provided for the consumption and domestic needs to the max - 25% of gross estimated income of the farmer - or - 20% to 25% of the loan - or maximum Rs. 50,000, whichever is lower
• Finance against the storage receipts or product will be offered by the bank. The maximum limit up to 50% of the type of produce prevailing at the time of storage or when the loan was. The loan amount should not exceed the limit of Rs. 10 lakh per farmer

Investment Line of Credit

This is for the purpose of investment for long-term development such as, - land or irrigation development, purchase of farming equipment, draught animals or carts, transport vehicles, pre-harvesting or post-harvesting process equipment and practising modern or hi-tech agriculture with farm infrastructure, plantation activities, etc.

The bank will also extend credit for allied activities like dairy, poultry, fisheries, piggery, sericulture, etc., in order to supplement the farm income and also ensure optimum utilisation of resources.

Bank of India will finance a loan up to Rs. 1 lakh as a personal loan to farmers for the purchase of consumer durables.

Loan Quantum

The quantum of loan is calculated on the Basis of a farmer's income and the value of securities to charged in the account.

• 1) 10 times of expected net annual income from the farm (average for next five years) taking into consideration the area under cultivation, types of crops, the scale of finance and income from proposed new activities/ allied services

• B) 100% value of land mortgaged as Collateral security and other securities like the assignment of LIC policy (Surrender Value), pledge of NSCs/ Bank’s TDRs/Gold ornaments (movable asset are created out of bank finance)

Note- Either A or B, whichever is lower will be considered where movable assets are created.

• C) 70% of the value of land mortgaged as collateral security and 100% value of other securities such as the assignment of LIC policy, pledge of NSCs/Bank’s TDR/Gold ornaments

Note- Either A or C whichever is lower will be considered where movable assets are not created.

3. Shatabdi Krishi Vikas Card

Way back in 1980s, BOI was the first bank to introduce ‘Indian Green Card’ for the farmers in the banking Industry. Currently, the product has been further upgraded with value additions as Kisan Gold Card, Kisan Suvidha Card and Kisan Samadhan Card. The additions are in line of credit for farmers with components of consumption credit, emergency loan, production credit, and investment credit requirements of farmers for 3 to 5 years.

Features of Shatabdi Krishi Vikas Card

• Farmers who have fairly conducted agricultural loan account with crop loan facility or CC facility of Rs. 50,000 and above are eligible for this scheme
• 50% of crop cash credit or CC limit is sanctioned to the farmers. The spending limit under this scheme is a minimum of Rs. 25,000 and a maximum of Rs.50,000
• Framers can a maximum Rs.10,000 per day
• The Cash withdrawals can be made at BOI bank branches, BOI ATMs under “BANCS” as well as “CASH TREE”. Withdrawals in Visa ATMs are permitted with on-line authorization

4. Star Bhumiheen Kisan Card

This Bank of India Agriculture Loan aims to provide easy access of credit for short-term production and consumption so that the farmers can meet requirements of tenant farmers, share croppers and oral lessees. This will help farmers to increase their income from agriculture production activities.

The main purpose of Star Bhumiheen Kisan Card is to offer plant protection materials, improved seeds, manures and fertilisers, payment of hire charges for tractors, electricity charges irrigation charges, etc., and also meeting part of consumption needs.

Eligibility

• The bank will extend credit to the tenant farmers, share croppers and oral lessees who are eligible for short-term credit for crop production
• The applicant applying for this scheme should either come from the operational area of the Branch sponsored by an SHG (Self Help Group), Farmers’ Club or a reputed NGO who is on the approved list of NABARD.
• Migratory tillers are not eligible under the scheme

While applying for Star Bhumiheen Kisan Card ensure you have documents related to house of the applicant, Ration Card and Voters Identity card.

Loan Quantum

• A maximum of Rs. 24,000 credit will be extended based on the land area taken on the tenancy for sharecropping or on oral Lease and scale of finance
• The bank will also provide an additional Rs.1000 for consumption needs
• In case if the cardholder requests for a loan extension, then the bank may consider it. However, there must be satisfactory conduct of the account for three years

Annual Review

• The farmers will be allowed for any number of withdrawals and repayment within the limit
• The bank will conduct a review, which will help in deciding whether - the facility shall be continued, the limit should be enhanced or withdrawal should be cancelled - depending upon the performance of the borrower
• The credits in the account during the 12 months duration should at least be equal to the maximum outstanding on the account
• At the time of review, if the cardholder performs well then the bank will enhance the credit limit to take care of increase in the cost of inputs or labour, change in cropping pattern, etc. The credit limit will be a maximum limit of Rs. 25000

5. Bank of India Gold Loan for Farmers

Bank of India provides the gold loan to the farmers to meet the farming needs and off-farming needs.

The following table provides overall information about the gold loan for farmers-

Bank of India Agriculture Loan Customer Care

Bank of India provides 24x7 customer service for the customers.

• Toll Free Number - 18001031906
• Chargeable Number - 022 40919191

Helpline for COVID-19

The above toll-free number supports COVID queries.

You can email your queries to: BOI.COVID19AFD@bankofindia.co.in.