Agic Lending Hand Book

SYNDICATE BANK,
REGIONAL OFFICE, PANAJI-GOA
STRATEGIES
FOR
AGRICULTURAL LENDING
A Ready Beckoner for Agricultural and Priority Sector Lending
(AMRD/MRD Version)
And
Guidelines for Retail Credit

Products and Process notes
DISCLAIMER 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
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PARTICULARS
Documents to be obtained from farmers
Application forms and Appraisal Forms for Different Agri Loan products
Interest rates on Different Agri Loan products
Repayment Periods for Different Agri Loan products
Security, Margin & Guarantee
Sanctioning Powers
Tips for improving Agricultural Advances
Farm House Scheme
SyndKisanSathi- Revised Debt Swap Scheme
Land Development Scheme
Composite Fishculture Scheme
Goat Breeding Unit
Poultry Broiler Farm Scheme
DEDS Scheme
DRI Scheme
SyndJaiKisan- Revised Scheme
Tractor Finance Scheme
Discrepancies in submission of requirement for review of sanctions above
threshold limit
Single page LRF
Three page Rating Chart for Agricultural loans
Comprehensive guidelines on GCC
SyndVidya-Education loan scheme
SyndNivas-Housing Loa scheme
SyndNivas Plus
SyndMSE-Hassle free and customer friendly scheme
Indirect Finance to Agriculture
Opening of Settlement Accounts f BC/CSPs
Credit facility to BC/CSPs for working capital & purchase of HHM
Operational Guidelines for online interface
Scheme for incentivizing BCs/CSPs
ULTRA SMALL BRANCH CONCEPT- USB
SyndSwarna & SyndSwarna Express
Importance of Agri & Priority Sector Lending
SyndVahan
SyndSenior
Financing Self Help Groups
Central Sector Scheme for Pig Development
Circulars for reference on important schemes
Law of limitation
SyndMortgage guidelines and process Note
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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
Rs. 6000
annual notional financial loss due interest difference between
average yield on agriculture lending and RIDF rate will be say
12% minus 6%
c) The above amount will have to be remaining with RIDF for a
Rs. 30000
minimum period of 5 years. Hence, total loss will be
d) Coverage of back log may not possible during next year, as Bank
Rs. 30000
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
e) Once there is shortfall, it will be continued for long as 18% Rs. 150000
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)
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 PRODUCT
Crop OD/SKCC
Minor Irrigation
Pump set, Pump House, Pipe
line ,Well, Deepening of Well,
Bore Well, Sprinkler Irrigation,
Drip Irrigation
Land Development Activities &

Farm Structures Cattle shed,
Farm House, Vermi- culture
Farm Mechanization
Tractor, Power Tiller,
2/3/4 Wheelers, Combine
Harvesters,
Poultry Development
Dairy DevelopmentC.B.Cow, She Buffalo,

Calf Rearing, Sheep rearing,
Goat Rearing
Gobar Gas Plant
Horticulture and Plantation
REQUIREMENT
Land Records
Land Revenue paid receipt, NOC
Land 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 Records
Eye sketch of field
Estimates & Plan for the proposed developmental works, Panchayat license
/approval if any
Land Records
Eye sketch of field
Quotation for the machinery/vehicle
Legal Opinion in case of mortgage
Land Records
Quotations for equipment, Feed ,Chicks
Panchayat license/ approval if any
A detailed project report
Land Records
Animal health certificate by doctor /valuation report
A detailed project report for big proposals
Land Records
Feasibility from KVIC
Quotation from supplier of gas holder
Land 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 purpose
Application/
Loan Agreement/
Others
Guarantee Agreement
Appraisal
wherever stipulated
1: Crop Production Loans
Renewal of SKCC
AF 656/ AF-657
AF-668/ AF-669
Record of rights/ Land
revenue paid receipt
Fresh SKCC
AF-656/ AF-658
AF-668/ AF-669
Pledge Loan facility to the
AF-656/ AF-671
AF-668/ AF-669
farmers
2: Short term/term loans up to Rs. 25000
Short term/term loans up to
AF-656/ AF-667 AF-668
Rs.25000
Common for all purposes
3: Short term/ term loans above Rs. 25000 (other than SKCC)
Minor irrigation
AF-656/AF-659
AF-668/ AF-669
revenue paid receipt, Eye
(Pumpset/Submersible/Pipelin
sketch of field, cost
e /Sprinkler /Drip irrigation/
estimate, Quotations
Generator set/
Milch cattle & Livestock
AF-656/ AF-660
AF-668/ AF-669
revenue paid receipt,
(Sheep/goat/piggery)
Animal Health certificate
with valuation
Poultry
AF-656/ AF-661
AF-668/ AF-669
quotations for equipment
chicks,
Land Development/Farm
AF-656/ AF-662
AF-668/ AF-669
House/Farm structures
estimate,
Tractors/Power Tillers &
AF-656/ Af-663
AF-668/ AF-669
Farm machinery/ vehicles
invoice for
machinery/vehicles
Horticulture & plantations
AF-656/ AF-668
AF-668/ AF-669
sketch of field, Project
report
Fishery Advances
AF-656/ AF-666
AF-668/ AF-669
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 lakhs
BR +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:

Rating
Interest Rate
Up to 100 Lac
SYND
SYND
SYND
SYND
1 &2
3&4
5&6
7 & Below
BR +1.00%
BR +1.25 %
BR + 1.75%
BR +2.25 %
Above 100
lac
BR+1.75%
BR+2.25%
BR+2.75%
BR+3.25%
For Indirect agriculture

Up to100
lac
BR+1.25%
BR+1.50%
BR+2.00%
BR+2.50%
Above 100
lac
BR+2.00%
BR+2.50
BR+3.00
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 loan
Repayment period
Frequency of
Gestation period
Farm House constriction

Farm House Repairs
Tractor purchase
Power tiller
Purchase of land
Pumpset
Dug well with or without
20 years
5 years
9 years
7 years
7 10 years
9 years
11 15 years
installment
Half-yearly/yearly
Half-yearly/yearly
Half-yearly/yearly
Half-yearly/yearly
Half-yearly/yearly
Yearly
Yearly
18 months
5/11 months
5/11 months
5/11 months
24 months
11 months
23 months
pumpset
Deepening of well
Bore well
Sprinkler/drip irrigation
Soil conservation
Vermi Compost
Lift Irrigation
CB Cow/She buffaloes
5 years
11 15 years
7 years
9 15 years
5 years
11 15 years
5 years
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Monthly/quarterly
11 months
11 months
11 months
23 months
11 months
23 months
Linked with
6 7 years
4 years
5 years
4 5 years
Monthly/quarterly
Half-yearly/yearly
Half-yearly
Quarterly/
lactation period
12 months
5/11 months
12 months
12 months
Piggery
Pond fish culture
Solar lighting/Solar Water
4 5 years
5 8 years
5 years
Half-yearly/yearly
Yearly
Half-yearly
Monthly
12 months
11 months
1 month
Heating
Sericulture new plantation
Sericulture rearing shed
Cashew/Mango plantation
Coconut Plantation
Grape plantation
Farm Forestry
SyndJaiKisan
SyndKisanSathi
4 years
5 years
12 15 years
14 15 years
7 9 years
7 10 years
7 years
5- 7 years
Half-yearly
Half-yearly
Yearly
Yearly
Yearly
Yearly
Half-yearly/yearly
Half-yearly/yearly
11 months
11 months
6 7 years
8 9 years
3 years
6 years
11 months
11 months
Poultry
Bullocks
Sheep Rearing
Goat Rearing
Security, Margin & Guarantee (178/2010 dated 12/04/2010)

Type of loan
Security
Margin
Guarantee/Surety
SKCC /Crop Loan / Crop OD:
Up to Rs.1.00
Hypothecation of
No Margin need be
Guarantor/Surety need
Lac
crops
insisted on Scale of
not be insisted
Finance approved by the
DLTC.
Above Rs.1.00
Hypothecation of
No Margin need be
Third party
Lac
crops and Mortgage
guarantee/Surety need
of land.
not be insisted
DLTC.
Term loans where moveable assets are created:
UptoRs.1.00 Lac Hypothecation of
No margin.
not be insisted.
assets created out
of Bank loan
Above Rs.1.00
Hypothecation of
SF/MF/AL-5% margin
Where mortgage of land
Lac **
assets created out
Others-15-25% margin.
is not taken and the loan
of Bank loan and
Wherever subsidy is
is extended against
mortgage of land or
available, margin may be
other collateral security,
any other collateral
reduced to the extent of
third party guarantee
security acceptable
subsidy amount.
with adequate net
to the Bank.
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 Lac No security
No Margin need be
not be insisted
DLTC.
Above Rs.1.00
Mortgage of land
SF/MF/AL -5% margin
Third party guarantee
wherever required may
Lac
Others-15-25% margin
be
For loan limits of more
obtained at the
than Rs.2 Lac, uniform
margin of 15-25% shall be discretion of the branch
obtained for all
categories of farmers.
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.
Scale-III
ScaleII
Scale-I
1.00
1.00
1.00
b. On Hypothecation of Crops/ Livestock

including Fishery equipments/ vehicle/
machinery (other than tractor,
three/four wheelers)
1.00
1.00
1.00
c. On Hypothecation of tractor &

accessories/ Power tillers 3 wheelers/
4 wheelers under agriculture
5.00
4.00
3.00
d. On Mortgage/charge creation of
agricultural lands as collateral security
30.00
15.00
10.00
e. Cumulative per party limits for above

agricultural advances
50.00
20.00
10.00
2.
Purchase of Land for agricultural

purposes
10.00
5.00
2.00
3.
SyndKisan Swarna
15.00
10.00
4.00
4.
Loans for Agri clinic & Agri Business
15.00
10.00
5.00
5.
Pledge/Produce Marketing Loans
10.00
10.00
5.00
6.
Govt. sponsored schemes

30.00
10.00
5.00
1.
Nature of facility
Agricultural Advances
1. a. Clean basis where movable assets are

not created
a. Under PMEGP-Individuals
b. Under all other Govt. Sponsored
schemes
Up 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 BC
10.00
7.50
6.00
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.21810
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 groupsExample 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
11
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 supportIdentifying 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.
12
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.
13
SyndicateBank: Regional Office: Panaji

APPRAISAL/PROCESSING OF FARM HOUSE LOAN PROPOSAL
Branch: __________________________
01.
02.
Name & Address of the

applicant
Age of the applicant
Date: _______________________
_________________________________________
______ 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.
03
Purpose of the loan
Mark
to the
applicable purpose
04.
Income from the farm
Season Crops Area

acres
1
Construction of the Farm-House.
Acquisition of ready built Farm-House.
Repairs of existing farm house.
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.
Yield/
acre in
Quintals
Total
Yield
Quintals
Market
Rate
3=1X2
Gross
Cost of
Total cost
Production Cultivation/
of
Rs
Acre
Cultivation
5=3X4
7=1X6
Farm
Income
Rs.
8=5-7
Kharif
Rabi
Net income from allied activities like dairy, animal husbandry or any other activities:
Total
I:
5. LOAN AMOUNT:
Sl
Particulars
Amount
SL Particulars
Amount
A
Annual Income (I)
Rs.
D
Maximum for
Rs.20.00 Lacs
construction
B
Cost of construction X Rs.
Rs. 1.00 Lacs
Maximum for Repairs
0.75
C
Annual income X 6
Rs.
E
Amount applied for
Rs.
Amount Sanctioned least of BCDE
Rs.
Note: While sanctioning the loan Branches shall keep in mind the sanctioning powers as under:
Scale
New House
Repair of House
Scale III
Rs. 10.00 Lacs
1.00 Lacs
Scale II
Rs. 10.00 Lacs
0.75 Lacs
Scale I
Rs. 5.00 Lacs
0.75 Lacs
14
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 Amount of Installment:
repairs) shall be 15 years. However, the maximum repayment period may
be extended to 20 years based on specific request of the borrower No. of installment
keeping in view the cash flow & subject to the condition that the
persons having interest in the property join the transaction as co- Commencing from:
borrowers/sureties.
The Maximum repayment period for Farmhouse repairs: 5 years.
Periodicity:
The repayment in half-yearly or yearly installments along with interest.
8. RATE OF INTEREST: Linked to Repayment period on par with the SyndNiwas loans: 90/2011 BC
Loan amount
Repayment period
Rate of interest
Up to Rs. 25.00 lacs
Up to 10 years
BR
Above 10 years and up to 20 years
BR + 0.25%
9: PROCESSING CHARGES & DOCUMENTATION CHARGES: Rs.2500 flat or as applicable
to Farm loans which ever is lower
10. 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 Housesite 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:
Particulars
Third party Guarantor I
Third 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.
15
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).
Particulars
Party No. I
Party No. II
Party No. III
Name
Age
Address
Relation ship
Date:
AMRD/OFFICER
16
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
01 Name of the farmer
02 Address of the farmer
03
04
05
06
07
08
09
Age of the farmer as on date

General health condition
Land holdings
Purpose of the loan
Amount of loan
Proposed repayment period
Names of the legal hairs & relation
ship with the applicant
Satisfactory
Farm house construction/expansion/repairs
Rs.
Sl
01
02
03
04
05
10 Other persons having interest if any
Sl.
01
02
03
11
Persons who will join the transaction
Sl
01
02
03
04
05
Please permit us to consider the proposal relaxing
Place: ______________
Name
Age
Relationship
Name
Age
Relationship
Name
Age
Relationship
the maximum age criteria.
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 __________
17
Date:
Sr. Manager
Chief Manager/AGM
18
Dy. General Manager
SyndicateBank
PSCC: Regional Office: Panaji
SyndKisanSathi (SKS) - REVISED DEBT SWAP SCHEME FOR FARMERS INDEBTED
TO NON-INSTITUTIONAL SOURCES LIKE MONEY LENDERS-BC 75/2012
O
Our 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 3092010-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.
19
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.
20
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:
Appraisal for SyndKisanSati-Revised Debt Swap Scheme proposals
Branch: _________________________________
01
02
Name of the applicant
Address of the
applicant
Technical Feasibility
a. Purpose of the loan
Date: ________________
__________________________________________________
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 Criteria
Mark
items
applicable
d: Fulfillment of other
conditions
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
Mark
(To be eligible for loan
under SyndKisanSati
all these conditions are
to be fulfilled)
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 noninstitutional 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.
21
c. Land/farm particulars
Mark
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.
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.
03 Economic viability
:
Income from the farm during the post redemption period:
Season
Crops
Area
acres
1
Yield/
Total
Market
Gross
Cost of
acre in
Yield
Rate Production Cultivati
Quintals Quintals
Rs
on/acre
2
3=1X2
5=3X4
Total cost
of
Farm
Income
Cultivation
Rs.
7=1X6
8=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)
Total
A:
22
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
i
Indebtedness to the money lender
(As per documentary evidence or notarized affidavit)
ii
Margin
iii
Maximum Ceiling under the scheme
a.
If the applicant not availed facility under debt swap scheme earlier
b.
If the applicant availed facility under Debt Swap Scheme earlier
and the account is regular as on date:
iv.
v.
Loan Amount requested by the party vide application

Loan amount sanctioned (least of i. iii.a or iii b, iv)
Rs.
N I L
Rs.
Rs. 1.00 lac
Rs.1.00 lac (Minus)
Original Loan amount
already availed under
existing Deb Swap Scheme
Rs.
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
23
Amount of Installment:
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.
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
24
BRANCH MANAGER
ANNEXURE
AFFIDAVIT
(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
________________________________________
____________________________________________________________residi
ng 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...
25
SyndicateBank
Measures 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.
26
SyndicateBank:
Regional Office:Panaji
Appraisal for Land Development proposals
Branch: _________________________________
01
02
Date: ________________
Name of the applicant
: __________________________________________________
Address of the applicant
a. Purpose of the loan
: Party
would like to attend the following works in

___________acres of land to make it fit for cultivation/to
improve the productivity.
Mark
b. Applicant
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.
: 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.
c. Land/farm particulars
: 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)
Mark
In view of the above the proposal is technically feasible and there is sufficient scope to increase farm
income after the project.
:
a: Income from the farm before the project:
Season
Crops
Area
acres
1
Yield/
Total
Market
Gross
Cost of
acre in
Yield
Quintals Quintals
Rs
on/acre
2
3=1X2
Kharif
Rabi
27
5=3X4
Total cost
of
Farm
Income
Cultivation
Rs.
7=1X6
8=5-7
Total
b: Income from the farm after the project:
Season
Crops
A:
Area
Yield/
Total Market
Gross
Cost of
acres acre in
Yield
Quintals Quintals
Rs
on/acre
1
3=1X2
5=3X4
Total cost
of
Farm
Income
Cultivation
Rs.
7=1X6
8=5-7
Kharif
Rabi
Total
B:
c:
Incremental income from the farm = (B minus A) = _________minus_______
Rs. ______
d:
Amount available for repayment of the loan: 50% of C= __________ X 0.50
Rs. ______
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.
i
Cost of the project
ii
Less: 5to15% margin
Iii
Amount applied for vide the application
iv
Loan 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
Interest Rate (121/2013 BC)
Limit
(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/- &
BR + 0.75% + 0.25% tenor premium
up to Rs. 10.00 Lacs
Above Rs. 10.00 Lacs
Synd 1
Synd 2
Synd 3
Synd 4
Synd 5
Synd 6
& up to Rs.100 lacs
BR+1.00
BR+1.00
BR+125
BR+1.25
BR+1.75
BR+1.75
Present rate
Plus tenor premium of 0.25% for Term Loans repayable in above 36 months
C: Disbursement:
Rs.________________ Immediately.
Rs.________________ after I follow up
28
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.
E: Security & margin norms: Mark
Quantum of Loan Security
Up to Rs. 100000
No security.
Above Rs. 1.00
Lac.
Mortgage of land
Commencing from:
Periodicity:

Margin
Guarantee/Surety
No Margin.
Guarantor/Surety need not
be insisted.
SF/MF/AL -5% margin
wherever required may be
(For loans of more than Rs.2
obtained at the discretion of
Lac, uniform margin of 15-25% the Branch.
shall be obtained for all
categories of farmers.)
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
29
BRANCH MANAGER
SyndicateBank
Priority Sector Credit Cell: RO:Panaji
Scheme 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
30
Branches to exploit potential under the scheme as also to dispose off the
meritorious proposals sponsored by the department as per stipulated time norms.
31
SyndicateBank
APPRAISAL 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
a.
b.
c.
to the applicable item
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.
The applicant is having sufficient land with good source of water
wherein he proposed to develop pond for undertaking the activity.
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
a.
b.
to the applicable item
To be purchased from the repute suppliers available at ____________

To be supplied by the Fishery Development Department
32
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.
Sl.
Capital and recurring cost of the project:

Particulars
Model Scheme This Proposal
CAPITAL COST
I
1 Ha
____ Ha
i. 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
Lumbsum
3000
Diesel Pumpset- 3 HP
One
Inlet & outlet sluices/valves
Lumbsum
Store Room/ rest room (80 Sq. ft)
150/sq. ft
Nets and other implements
Lumbsum
Other Miscellaneous items
Lumbsum
TOTAL-I
II
OPERATIONAL COST FOR ONE CROP
Drying, desilting and plouging-
Lumbsum
3000
Lime application
500 Kg @ 250/Kg
2500
Single Super Phosphate
250 Kg @ 250/Kg
1250
Urea
125 Kg @ 5/Kg
Raw Cow Dung
10 ton @ 500/ton
Fish Seed 2 to 3 varieties
5000 @ 5/fish
25000
Fish Feed
6000 Kg @ 12/Kg
72000
Harvesting Charges
4000 Kg @ 0.50/Kg
2000
Miscellaneous
Lumbsum
1000
TOTAL-II
112375
TOTAL I+II
218875
______
48000
(Any one of
the this item
is applicable)
construction, compaction and consoli dation in

cases where the applicants want to develop
ponds in own lands to take fish culture
30000
30000
5000
5000
12000
12000
5000
5000
3500
3500
106500
3000
625
5000
(Cost of present proposal shall be ascertained by taking proportionate cost with reasonable variation required if any
into account)
ii.
Financial Analysis, IRR, BCR
A: Costs
Year-1
Amounts Rs. in lacs:
Year-2
Year-3
Year-4
Year-5
Year-6
Year-7
Year-8
1. Fixed Costs
1.065
2. Rec. Costs
1.124
1.124
1.124
1.124
1.124
1.124
1.124
1.124
Total costs
2.189
1.124
1.124
1.124
1.124
1.124
1.124
1.124
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
-0.189
0.876
0.876
0.876
0.876
0.876
0.876
0.876
B. Income from
sale of fish
C. Net Income
D. NPV of costs
7.444
E. NPV of
benefits
11.449
33
(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.
b.
c.
d.
e
Total Project cost

Margin
Subsidy, if available
Loan amount
Rate of interest
Size of the Credit

Limit
Up to Rs. 50000/Above Rs. 50000/- &
Above Rs. 10.00up to
Rs.100 Lacs&
:
:
:
:
:
Rs. __________________ as per Para 5-i-k

Rs. _________________ 5 to 15% depending on type of farmers
Rs.________________ (May be treated as margin)
Rs._____________________ (01-02-03 above)
Mark
to the applicable item.
Synd 1
BR+1.00
Synd 2
BR+1.00
Synd 3
BR+1.25
Synd 4
BR+1.25
Synd 5
BR+1.75
Synd 6
BR+1.75
Present rate
f. Disbursement:
If for pond cleaning
If for pond
_________ immediately
50% i.e. Rs. _______ immediately
construction
For Diesel Engine
Remaining 50% i.e. Rs. _______ after follow-up & ensuring utilization
Rs. _________ Specific release to the supplier against quotation. Invoice
For all other items
and bills are to be obtained and placed on record within a reasonable time
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)
Security
Guarantee/Surety
Up to Rs. 1.00 lac
Hypothecation of assets
No guarantor may be insisted.
Above Rs. 1.00 Lac.
created out of Bank loan

Third party guarantee wherever
created out of Bank loan and
required may be obtained at the
mortgage of land.
Extent and value of the property taken as
:
discretion of the branch.
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
34
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
C)
used to bring the pH to the desired level.

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 50100 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
E)
seed and market condition, stocking can be of 3, 4 or 6 species combination.

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
feeding tray or 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
F)
and reduce to 3.5% of body weight from 500- 1000 gm.

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 1 st 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 MANAGER
35
SyndicateBank
Scheme 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.
36
SyndicateBank:
Appraisal for Goat Breeding Unit proposals
Branch: _________________________________
01
02
Date: ________________
Name of the
applicant
: __________________________________________________
Address of the
applicant
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
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.
b. Applicant
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)
He is agricultural labourer having required infrastructure to

maintain the proposed Goat unit.
d.
e.
Place of purchase of
goats
: The party wishes to purchase good quality goats______+______
Shed
: Party is already having a simple shed /Party wishes to construct
(No) at ____________________ (Place of purchase).
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).
In view of the above the proposal is technically feasible and there is sufficient scope to increase
farm income after the project.
37
38
A.
Capital Expenditure:
Sl
Particulars
01
Cost of animals:
Amount (Rs)
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)
02
Enclosure/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.
03
Transportation: Transportation cost up to Rs.2000 shall be considered as project

cost for financing depending upon the place of purchase and distance
04
Insurance: 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.).
05
Medicines: @ Rs. 25 per animal shall be added on case to case basis.
06
Equipments: 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.
07
Feed: 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)
08
Total cost of project: (01+02+03+04+05+06+07)
09
Margin: 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/-).
10
Loan 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.
Particulars
Amt. Rupees
01 Sale 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)
02
Sale 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.
03
Total Income from the unit (01+02)

It is evident from the above that the project is economically viable.
39
Hence, the loan is sanctioned as per following terms & conditions.

i
Cost of the project (as per 03 A:08)
Rs.
ii
Less: 5 to 15% margin for loans above Rs. 1.00 lac only (as per 03 A:09)
Rs.
iii
Amount applied for vide the application
Rs.
iv
Loan 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.
Size of the Credit
Limit
Up to Rs. 50000/BR + 0.25% + 0.25% tenor premium
Above Rs. 50000/- &
Above Rs. 10.00 Lacs&
Synd 1
Synd 2
Synd 3
Synd 4
Synd 5
Synd 6
up to Rs.100 lacs
BR+1.00
BR+1.00
BR+1.25
BR+1.25
BR+1.75
BR+1.75
Present rate
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 Amount of Installment:
the income stream of the borrower. Maximum of 10 Commencing from:
Years.
Periodicity:
E: Security & margin norms: Mark
Quantum of Loan Security
Margin
Guarantee/Surety
Up to Rs. 100000 Hypothecation of
No Margin.
Guarantor/Surety need not be
insisted.
assets created out
of Bank loan
Above Rs. 1.00
Hypothecation of
SF/MF/AL -5% margin
Where mortgage of land is not
Lac.
assets created out of
taken and the loan is extended
Bank loan & mortgage
(For loans of more than against other collateral
of land or any other
security, third party
Rs.2 Lac, uniform
collateral security
guarantee with adequate net
margin of 15-25% shall
acceptable to the Bank. be obtained for all
worth acceptable to the Bank
categories of farmers.) shall be taken.
Collateral Security & its value
Third Party Guarantee, if obtained

5.
Other terms & conditions
Place:
40
Date:
AMRD/OFFICER
41
BRANCH MANAGER
SyndicateBank
Priority Sector Credit Cell: RO:Panaji
Model 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.
42
SyndicateBank
PSCC: Regional Office, Panaji
Appraisal Note for Poultry Broiler Farming
Branch: ________________________________
01
02
a.
Date: ________________
Name of the applicant :

Address of the
:
applicant
__________________________________________________
Date of visit to the

farm
_______________________
Purpose of the loan
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.
Mark
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.
c.
Land/farm particulars
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)
Purchase of day old

chicks, poultry feed
etc
Day old chicks 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).
Mark
d.
Feed available at ________________________________
In view of the above the proposal is technically feasible and there is sufficient scope to
43
increase farm income after the project.
44
03. Economic viability

A: Techno Economic Parameters adopted:
Sl
Particulars
1000
Present
birds proposal
01 Number of birds
1000
Sl
Particulars
12
02
Batch strength
1000
13
03
Birds purchased per

batch
1050
14
Medicines, vaccines,
labour and misc. charges
Insurance per bird (Rs.
per bird)
Insurance of sheds and
equipment (Rs. per
Rs.1,000/)
Live weight of bird (Kg
per bird)
Sale price (Rs. per kg)
04
Birds considered for

1020
recurring expenditure
05 Birds considered for
1000
selling
06 Floor space per bird
1
( s.ft)
07 Cost of construction of
120
shed (Rs. per sft)
08 Cost of equipment (Rs.
16.00
per bird)
09 Cost of day old chick
20
(Rs. per bird)
10 Feed requirement per
3.30
bird (Kg)
11 Cost of feed (average
17.00
price Rs. per kg)
(The costs adopted are indicative and Branches
basis taking into account the local conditions.)
B: Flock Chart:
Year
I
II
III
No. of batches
7
7
7
Rearing weeks
40
42
42
Batches sold
6
7
7
C Project Cost:
Sl
Particulars
I
CAPITAL COST
i. Construction of shed
ii.
II
i.
ii.
iii.
iv.
v.
15
16
17
18
19
20
Value of manure per

bird sold (Rs. per bird)
Sale price of gunny bags
(Rs. per bag)
Margin (%)
1000
birds
8.50
Present
Proposal
0.50
5.05
1.60
60.00
0.50
10.00
15
21
Interest on bank loan

(% p. a)
Rearing period
13.75
6 weeks
22
Cleaning period of shed
2 weeks
can make reasonable variations on a case to case
Cost of equipment
TOTAL CAPITAL COST
RECURRING EXPENDITURE
Cost of day old chicks
Cost of feed
Medicines, labour, miscellaneous charges
Insurance of birds
Insurance of sheds and equipment
TOTAL RECURRING EXPENDITURE
IV
7
42
7
V
7
42
7
VI
7
42
7
1000 broiler model

120000
16000
136000
21000
57222
8670
525
687
88104
45
VII
7
42
7
VIII
7
42
7
Present proposal
GRAND TOTAL (Rounded off)

224000
MARGIN SAY 15% (Branch may take 5-15%)
33600
BANK LOAN
190400
D: Income Expenditure Statement:
Sl
Particulars
1000 broiler model unit
Present proposal
Years
I
II-VII
VIII
I
II-VII
VIII
I
INCOME
i. Sale of birds
576000
672000
672000
ii. Sale of manure
3000
3500
3500
iii. Sale of gunny bags
2992
3142
3142
TOTAL INCOME
581992
678642
678642
II
EXPENDITURE
i. Cost of chicks
147000
147000
147000
ii. Cost of feed
381480
400554
400554
iii. Insurance for birds
3675
3675
3675
iii. Insurance for shed &
687
687
687
Equipment
TOTAL EXPENDITURE
590642
612606
612606
III SURPLUS
79454*
66066
66066
*Capitalized expenditure not taken into account while arriving the surplus.
E: Calculation of NPV, BCR & IRR
Sl. Years
I
II to VII
VIII
i. Capital Cost
136000
ii. Recurring Cost
590642
612606
612606
TOTAL COSTS
726642
612606
612606
iii Income
581992
678642
678642
iv Residual value of shed
72000
TOTAL BENEFITS
581992
678642
750642
NET BENEFITS
-144650
66036
13036
Discounted costs @ 15% DF
2848122
Discounted benefits @ 15%DF
2984778
NPW @ 15% DF
136656
BC Ratio
1.05
IRR
43.77%
(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:
01
Loan amount
Rs.____________ As per Para 3C
02
Margin amount
Rs.____________ as per Para 3C (If under PEDS margin is 10%)
03
Eligible capital subsidy
Rs. ____________ as per Para (General 25%, SC/ST 33.33%)

(Subsidy under PEDS available only on indicative project cost)
04
Rate of interest
Size of the Credit

Limit
Up to Rs. 50000/Above Rs. 50000/- &
Mark

46

& up to Rs.100 lacs
Present rate
Synd 1
BR+1.00
Synd 2
BR+1.00
Synd 3
BR+1.25
Synd 4
BR+1.25
Synd 5
BR+1.75
Synd 6
BR+1.75
(Note: If under PEDS, Branches shall charge interest on the full loan amt. till subsidy is received and
from then onwards interest shall be charged only on the loan portion i.e. excluding the subsidy amount)
5. Disbursement:
If a component
shed if included
for
For birds, feed

other items
and
6.
50% i.e. Rs. _________ immediately

At appropriate time after shed construction is completed.
Security and third party guarantee: Mark
to all applicable items.
(178/2010 BC)

Up to Rs. 1.00 lac
Security
Guarantee/Surety
Above Rs. 1.00 Lac.
mortgage of land.
Wherever collateral security obtained as per
:
guidelines Value and extent of property is to
be mentioned
Name, Address and Net Worth of the third
party guarantor
7. Claiming and administration of subsidy if the proposal is considered under PEDS:
Immediately after disbursement of the first installment, Branches shall submit the subsidy
claims to PSCC: RO: Ghaziabad without any delay as per Annex-1.
On receipt of subsidy from the RO, the same shall be credited to the subsidy reserve fund account.
Borrower-wise details shall be maintained in a separate register so that the details can be easily
located at any point of time. The register has to be preserved and kept under double lock. A copy of
the register where the details are mentioned shall be kept along with the loan document for future
reference and also for adjusting the subsidy amount at the time of closure of the loan.
The capital subsidy will be back ended with minimum lock-in period of 3 years.
The capital subsidy is liable for refund to NABARD one year after the account becoming NPA and
continues to be NPA as on date.
Branches should submit a Utilization Certificate as per Annex-2 to PSCC: RO: Ghaziabad to be
forward in turn to the Regional Office of NABARD. The utilization certificate should specify that
the subsidy amount has been fully utilized and credited to the subsidy reserve fund account.
The balance lying in Subsidy Reserve Fund Account will not form part of Demand and Time
Liabilities for calculation of CRR and SLR.
8. Repayment:
Repayable in ____________(No.) half yearly installments of Rs. __________ (Amount) each

commencing from _______________ (Date)
The repayment period will be up to a maximum period of 7years including grace period of one year.
If sanctioned under PEDS, the repayment schedule is to be fixed on the total amount of the loan
(including subsidy) in such a way that the subsidy amount is adjusted after liquidation of net loan
amount (excluding subsidy).
Note: Branches shall closely monitor the units to complete the project within the time limit stipulated
and to ensure regular repayment. The beneficiaries are to be properly educated in these aspects
47
otherwise will lead to forfeiture of the subsidy. The guidelines are as under:
Time limit for completion of the project would be as envisaged under the project, subject to a
maximum period of 9 months from the date of disbursement of the first installment of the loan.
However, Branches may consider extending the period by another 3 months provided they are
convinced with the reasons for the delay. The total time limit for completing the project should not
exceed 12 months from the date of 1st release. If exceeds, the subsidy must be returned.
9.
Other terms & conditions

Insurance
:
Inspection of the units
:
and submission of
reports
Refinance
:
Display of sigh board
Monitoring of the
scheme
Unit visits by NABARD
Place:
Date:
and guidelines.
Insurance for birds and shed and equipments with GIC
The Branches shall conduct periodical inspection and submit the copy of
the reports to the PSCC: RO: Ghaziabad enabling to give feedback to the
Joint Monitoring Committee of the PEDS on a consolidation basis.
Advances disbursed under the scheme are eligible for NABARD
refinance. Therefore, branches have to submit refinance claims as per
extant guidelines.
: Branches shall ensure that at the units financed under the PEDS sign
boards containing Assisted by Department of Animal Husbandry Dairying
and fisheries, Ministry of Agriculture, GOI through NABARD is to be
displayed.
: The Joint Monitoring Committee (JMC) consisting of representatives of
NABARD, Banks and State Secretaries-in-charge of Animal Husbandry
and Dairying under the chairmanship of Joint Secretary (DD) will review
the implementation of the scheme at regular intervals.
: The units set up under the scheme will be field monitored on a sample
basis by NABARD and major observations will be put up to JMC.
OFFICER
BRANCH MANAGER
48
SyndicateBank
PSCC: Regional Office:Panaji
Dairy Entrepreneurship Development Scheme (DEDS)- Capital Subsidy
Scheme
<<>>
The GoI has introduced DEDS scheme w.e.f. 01.09.2010 and eligible for implementation
through out the country. Bank has issued guidelines vide 23/2011 BC, advising the
branches to explore the potential under the scheme. The DEDS is more attractive with
Capital subsidy available for all components of dairy.
In addition to mini dairy units, the scheme provides capital subsidy for related
components like Vermi-compost, Calf Rearing, Dairy marketing outlet/ Dairy parlour,
Purchase of milking machines/ milk testers/ bulk milk cooling units, Purchase of equipment
for manufacture of indigenous milk products, Establishment of dairy product
transportation facilities & cold chain. Cold storage for milk & milk products, private
Veterinary Clinics, Dairy marketing outlet/ Dairy parlour. Since, our focus is on mini
dairy units of 2 to 10 animals, we have elaborated this aspect here. However,
branches shall explore potential in other components also, following the guidelines
detailed in 23/2011 BC.
The Dept. of Animal Husbandry, Dairying & Fisheries (DAHD&F), GOI is the focal
department for operating the scheme. The sanction and release of subsidy is subject to
availability of funds and adherence to the instructions issued by the DAHD&F, GOI and
NABARD from time to time. With the initiatives, we took up during second half of last
year and with the active involvement of the Branch heads, our Region could disburse 540
mini dairy unit loans under this scheme and made available subsidy of Rs. 2.50 crore to our
customers.
Farmers, individual entrepreneurs, NGOs, companies, groups of un-organized sector,

Groups of organized sector viz., SHGs, Dairy cooperative societies, milk
unions/federations etc., are eligible for capital subsidy under the scheme.
An individual will be eligible to avail assistance for all the components under the
scheme but only once for each component.
More than one member of a family can be assisted under the scheme provided they set
up separate units with separate infrastructure at different locations. The distance
between the boundaries of two such farms should be at least 500 meters.
All other aspects are included as notes in the model process note enclosed for ease in
processing of proposals and implementation scheme.
The scheme provides an excellent opportunity to promote development of dairy sector.

The earlier scheme came to an end on 31/03/2012. However, our enquiry with NBARD
Lucknow revealed that they may announce continuation of the scheme during 2012-13
shortly. Branches shall start identifying the potential beneficiaries to be financed under
this scheme so as to extend finance as soon as the scheme is announced by NAARD.
49
SyndicateBank:
Appraisal for mini dairy unit under Dairy Entrepreneur Development Scheme-23/2011 BC
Branch: ________________________
Date: _____________
(Note: Branch shall mobilize the proposal from the beneficiaries selected under the scheme taking into
consideration the financial resources of the applicant, quality of management being adopted by him, if
the borrower is already having an existing unit, progressiveness and capacity to bear the financial risk
etc. All the relevant information is to be collected from the applicant to prepare a project report on
behalf of him. The proposal shall be appraised as per the norms of the Bank and the scheme guidelines.
Technical feasibility and financial viability shall be ascertained as under.)
7. Name & address of the Applicant:
_____________________________________________
(Note: Farmers, Groups of organized sector viz., SHGs, Dairy cooperative societies, milk
unions/federations etc., are eligible for capital subsidy under the scheme).
8. Date of visit to the farm:
___________________
9. Purpose of the Loan:
To establish Dairy Unit to have sustainable income by maintaining

______ No. of animals of breed ___________________
(Note: crossbred cows/indigenous descript milch cows like Sahiwal, Red Sindhi, Gir, Rathi etc /
Graded buffaloes eligible for subsidy under the scheme. The minimum of 2 animal and maximum of
10 animal unit are eligible for subsidy under the scheme )
10. Technical Feasibility:
ix.
Experience
: The applicant belongs to farming family/acquired adequate knowledge in

rearing Dairy Animals. He is keen in taking up dairy activity to have
stabilized income and augment income. From the past dealings/Local enquiry
it is evident that he is a credit worthy party.
Other comments if any:_______________________________________
x.
Land holdings
: Total Land holdings: __________ acres of which, _______ acres are

irrigated and _______ acres are un irrigated.
xi.
Cropping pattern
: Kharif _______________________________ (crops & extent in acres)

Rabi __________________________________ (Crops & Extent in acres)
xii.
Source of
: _____________________________________________
irrigation
Water lifting devise: ____________________________.
xiii.
Place of purchase : Party wants to purchase, quality animals at_________________________
xiv.
Shed
: Party is already having a suitable shed/Party wishes to construct a cattle

shed /Party want to repair/expand the existing shed to house the animals.
xv.
Veterinary
: Veterinary facility available locally/at________________________ place

which is ______________________km from the village. Therefore, party
can made available timely veterinary aid to the animals. Artificial
insemination facility also available at the centre
facility
xvi.
Market for milk
: There is good demand for milk at the nearby centers viz., _____________
________________________________________________________
xvii.
Milk route/private : (If available indicate here) ____________________________________

________________________________________________________
collection centers
________________________________________________________
50
In view of the aforesaid facts the proposal is technically feasible.

5. Economic viability:
A. Capital Expenditure including initial period operating expenditure capitalized:
Sl. Particulars
01
Cost of animals: (No. of animals X _________ (Cost per animal Rs. 35000 to
40000) Branches should satisfy the cost proposed by the borrower/seller comparing
with the milk yield, No. of lactations already over, Stage of present lactation,
valuation by veterinary expert etc.
(Branch shall finance preferably animals of first & second lactation).
02. Cost of shed: The shed space required is 40 Sq. ft. per 1 adult animal, 20 Sq. ft. per
1 Calf & 30 Sq. ft. per 1 heifer. Branch may accept @ of 5000 per animal if shed is
not available. If existing shed is available then for cost of additions/repairs if any
may be considered based on reasonable estimate.
03 Feed Cost: Branches may allow feed cost for one month depending on whether the
animals have already calved or late pregnant. Branches may allow @ Rs. 1500 per
animal if the applicant specifically requests for the same.
04 Insurance: Branches should insure the animals under cattle policy of GIC. The
premium to be remitted is at applicable rates (5.25% of value of the animals). If
requested, insurance premium may be considered as a part of the project cost.
05 Equipment: Up to Rs.10000 for purchase of one chaff cutter may be included
06 Transportation: If party brings the animals from distant place & if the applicant
specifically requests for the same then Branches may allow transport cost up to Rs.
1000 per animal depending on the distance to the place of purchase.
07 Total Outlay: (01+02+03+04+05+06)
Note: The total project cost is subject to a maximum of Rs. 5.00 lac for 10 animal
unit and minimum should be 2 animal units subject to a maximum of Rs. 1.00 lac.
B:
Funding Pattern under the scheme:
a
Total outlay (07) above
b
Back ended Capital Subsidy
10 animal unit- Non SC/ST farmers: 25% of the outlay with cap at Rs.1.25 lacs
10 anima unit-SC/ST farmers- 33.33% of out lay with cap at Rs.1.67 lacs
Subsidy shall be restricted on a pro-rata basis depending on the size the unit.
c
Farmers contribution: A minimum of 10% of the outlay
d
Effective Bank loan: (a-b-c)
e
Loan to be arranged: (a-c) since, the capital subsidy is back ended
C:
Income & expenditure of the project:
Sl. Particulars
1st year
01
No. of lactation days= No. of animals X Lactation days per animal PA.
(255 days in case of buffaloes & 285 days in respect of CB cows.)
Further, No. of lactation days will be 75% for first year & 100% for 2 nd
year onwards as animals will be released in two batches. i.e.
For first year: (________X255/285)X75%
For 2nd year onwards: (_______X255/285)X100%
02 No. of Dry days= (365X No. Of animals) Minus (No. of lactation days as
per 01) i.e.
For first year (365X______= _______) - __________
For second year onwards (365X_______ = ______) - _________
03 Milk yield= No. of Lactation days as per 01Xmilk yield per day. i.e.
For 1st year: ______ X_________
51
Amount
2nd-5th yrs.
04
05
06
07
08
09
10
For 2nd year onwards: ________ X __________

Income from milk= Milk yield as per 03 X Selling rate per liter. i.e.
For 1st year: _______ X ________
For 2nd year onwards: _________ X __________
Income from manure @ Rs. 750 per animal per annum
Total income from the Dairy = 04 + 05
Green fodder @ Rs.1000 per animal per year.
Dry fodder @ Rs. 800 per animal per year.
Concentrate feed: Lactation period (@ 1 kg per every 2.5/3.0 liters of
milk + 1 kg ) X rate per kg.
For 1st year: (_______ X ______ X________)
For 2nd year onwards (______ X _______ X_______)
Concentrate feed: Dry period: Dry daysX2 kg per day X Rate per kg
For 1st year: (_______ X ______ X _________)
For 2nd year onwards: (_______ X ________ X _________)
11
Insurance & veterinary aid @ 1500 per animal per year (Lumbsum)
12
Total cost: (07+08+09+10+11)
13
Gross income: Total income(06) minus Total costs(12)
14
Repayment towards principle per annum: Loan amount / 5
15
Repayment towards interest:
16
Total repayment towards loan: (14 + 15)
17
Net income from the project: (13 16)
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:
01
Loan amount
Rs._____________________ as per Para 5. B (e)
02
Margin amount
Rs._____________________ as per Para 5. B (c)
03
Eligible capital subsidy
Rs. _____________________ as per Para 5. B (b)
04
Rate of interest
Mark
Size of the Credit

Limit
Up to Rs.50,000
BR+0.25 Cumulative (Irrespective of Rating )
Above Rs.50,000 &up

to Rs.10.00 lakhs
BR+0.75 (Irrespective of Rating )
Synd 1
Synd 2
Synd 3
Synd 4
Synd 5
Synd 6
To Rs.100 Lacs
BR+1.00
BR+1.00
BR+1.25
BR+1.25
BR+.1.75
BR+1.75
Present rate
(Note: The Branches shall charge interest on the entire loan amount till subsidy is received and from
then onwards interest shall be charged only on the loan portion i.e. excluding the subsidy amount)
Disbursement:
52
If a component
shed if included
for
For Animals
50% i.e. Rs. _________ immediately

For 50% of animals i.e. Rs. _______ after shed construction is completed
Remaining 50% animals Rs. ________ 6 months after first release of 1 st batch
or at appropriate time to have continuity in milk production
(Note: Amount for animals is to be released specifically along with proportionate margin to the vendors
after health and value of the animals are certified by a qualified veterinary doctor, acceptable to GIC)
If component for
Transport is included
1.
For Feed and insurance
2. Rs. _________ at appropriate time after purchase of animals
Rs._________ to be released to the credit of SB A/c of the beneficiary

along with first batch of animals. Transport cost is for 1 st batch only.
(Note: Feed and insurance component to be included only for 1 st batch.
The animals are to be purchased in two equal batches to have continuity in milk production.
However, while releasing amount for 2 nd batch, branches should ensure that the 1 st batch is
maintained well and activity is running successfully besides ensuring regular payment of loan
installments till that date.
Wherever loan for shed has been included in the sanction, the same should be released in 2 or 3
installments. The completion of shed is to be ensured before release of 1 st batch of animals.
The amount sanctioned towards insurance, feed should be released at the appropriate time.
Time limit for completion of the project: time limit for completion of the project would be as
envisaged under the project, subject to a maximum period of 9 months from the date of
disbursement of the first installment of the loan. However, Branches may consider extending the
period by another 3 months provided they are convinced with the reasons for the delay. The total
time limit for completing the project should not exceed 12 months from the date of 1 st release.
10. Security
and third party guarantee: Mark
to all applicable items.
(178/2010 BC)
Security
Guarantee/Surety
Up to Rs. 1.00 lac
Above Rs. 1.00 Lac.
mortgage of land.

Type of collateral security &

its value
Name, address and net worth

of the Third Party Guarantor
11. Claiming
and administration of subsidy:
Immediately after disbursement of the first installment, Branches shall submit the subsidy
claims to PSCC: RO: Panaji without any delay as per Annex-1.
On receipt of subsidy from the RO, the same shall be credited to the subsidy reserve fund account.
Borrower-wise details shall be maintained in a separate register so that the details can be easily
53
located at any point of time. The register has to be preserved and kept under double lock. A copy of
the register where the details are mentioned shall be kept along with the loan document for future
reference and also for adjusting the subsidy amount at the time of closure of the loan.
The capital subsidy will be back ended with minimum lock-in period of 3 years.
Branches should submit a Utilization Certificate as per Annex-2 to PSCC: RO: Panaji to be forward
in turn to the Regional Office of NABARD. The utilization certificate should specify that the
subsidy amount has been fully utilized and credited to the subsidy reserve fund account.
The balance lying in Subsidy Reserve Fund Account will not form part of Demand and Time
Liabilities for calculation of CRR and SLR.
12. Repayment:
Repayable in ____________(No.) monthly/ quarterly installments of Rs. __________ (Amount)

each commencing from _______________ (Date)
The repayment period will be up to a maximum period of 7years including grace period of 3 to 6
months in the case of dairy farms.
The repayment schedule is to be fixed on the total amount of the loan (including subsidy) in such a
way that the subsidy amount is adjusted after liquidation of net loan amount (excluding subsidy).
Note: Branches shall closely monitor the units to complete the project within the time limit stipulated
and to ensure regular repayment. The beneficiaries are to be properly educated in these aspects
otherwise will lead to forfeiture of the subsidy. The guidelines are as under:
Time limit for completion of the project would be as envisaged under the project, subject to a
maximum period of 9 months from the date of disbursement of the first installment of the loan.
However, Branches may consider extending the period by another 3 months provided they are
convinced with the reasons for the delay. The total time limit for completing the project should not
exceed 12 months from the date of 1st release. If exceeds, the subsidy must be returned.
13. Other
terms & conditions

Insurance
:
Inspection of the units
:
and submission of
reports
Refinance
:
Display of sigh board
Monitoring of the
scheme
Unit visits by NABARD
and guidelines.
Animals are to be insured under cattle insurance policy of GIC
The Branches shall conduct periodical inspection and submit the copy of
the reports to the PSCC: RO: Ghaziabad enabling to give feedback to the
Joint Monitoring Committee of the DEDS on a consolidation basis.
Advances disbursed under the scheme are eligible for NABARD
refinance. Therefore, branches have to submit refinance claims as per
extant guidelines.
: Branches shall ensure that at the units financed under the scheme sign
boards containing Assisted by Department of Animal Husbandry Dairying
and fisheries, Ministry of Agriculture, GOI through NABARD is to be
displayed.
: The Joint Monitoring Committee (JMC) consisting of representatives of
NABARD, Banks and State Secretaries-in-charge of Animal Husbandry
and Dairying under the chairmanship of Joint Secretary (DD) will review
the implementation of the scheme at regular intervals.
: The units set up under the scheme will be field monitored on a sample
basis by NABARD and major observations will be put up to JMC.
54
Place:
Date:
OFFICER
BRANCH MANAGER
55
Annexure- 1
FORMAT FOR CLAIMING RELEASE OF CAPITAL SUBSIDY IN RESPECT OF DAIRY
ENTREPRENEURSHIP DEVELOPMENT SCHEME
(To be submitted by the Branches to the concerned Regional Office & ROs to Regional Office of
NABARD, separately for each sanction. This claim should be submitted immediately after
disbursement of first release of the loan)
Name of the Branch/ Bank:___________________________
Date:__________________
Total amount of current claim: Rs. ________________________
Details of current claim:
(Amount in Rupees)
Sl.
Particulars
1
Name and Address of the entrepreneur
(Please indicate district without fail)
2
Location of the Project
(Indicate the District )
3
Whether SC/ST/Women
4
Branch address (indicate District also)
with BSR code
5
Loan A/c No.
6
. Date of sanction
7
Purpose of Loan
8
Unit size
9
Total Financial Outlay
10
Margin
11
Bank Loan
12
Repayment period prescribed
13
Rate of Interest
14
Date of release of 1st installment of
loan
15
Amount released
16
Capital Subsidy claimed
17
Any other information relevant to the
project
1. We undertake having complied with all the instructions contained in NABARD circular No.186/
TSD-03/2010 on operational guidelines of the scheme while sanctioning the above proposals.
2. We request you to release an amount of Rs.___________ (Rupees_____________________
________________________) as Capital Subsidy in respect of the above entrepreneurs.
Place:__________________
Date::____________________
Seal & signature of the

Branch Manager
Signature of the Regional Head
56
Annexure-2
Format for Utilization Certificate - Capital Subsidy
(To be submitted by the Branches to our Regional Office and Regional Office, in turn, to the
Regional Office of NABARD)
PIGGERY ENTREPRENEURSHIP DEVELOPMENT SCHEME
Sl
01
Particulars
Name, address of the beneficiary and
location of the project:
02
03
Name of the financing Bank:

Address of the financing Branch:
04
05
Date of sanction of loan:

Date of field monitoring of the unit by the
Branch:
Date of completion of the unit:
Other information:
Total financial outlay:
Margin Money
Bank loan:
Details of Subsidy received from NABARD:
Date of receipt:
Amount:
Date of credit to the "Subsidy Reserve Fund
A/C" of the Borrower.
Brief description of assets created:
06
07
i.
ii.
iii.
iv
08
09
10
11
Rate of interest charged:

The Bank has / has not availed refinance
Yes/ No
from NABARD
This is to certify that the full amount of capital subsidy received in respect of the above
project has been fully utilized (by way of crediting to the "Subsidy Reserve Fund Account borrower - wise) and adjusted in the books of account under the sanctioned terms and
conditions of the project within the overall guidelines of the scheme.
Place:__________________
Date:___________________
Seal & Signature of the

Branch Manager
Signature of the Regional Head
57
PRIORITY SECTOR CREDIT CELL: RO: Panaji
NEED FOR INCREASED LENDING UNDER DRI SCHEME

O
DRI is the important poverty alleviation scheme aimed to extend credit to the needy
persons at 4% p.a. GoI and RBI have initiated pro-active measures to ensure increased
flow of credit under DRI scheme and gave strict directions to the Banks to achieve
mandatory level of 1.0% of Total Credit. To ensure this, our bank, vide BC 19/2012
reiterated to strictly implement the following proactive measures:
Ceiling on DRI loan per borrower has been increased from Rs.6500 to 15000 for
general purposes and from Rs.5000/- to 20000 for housing purpose (BC-163/2007)
Annual family income to be eligible for DRI loan has been increased from Rs.6400
to 18000 in rural areas and from Rs.7200 to 24000 in SU & urban areas (BC 1122008)
Extension of Housing Loans (Top-UP loans) under DRI to beneficiaries under Indira
Awaas Yojana (IAY) (BC 189-2008).
In spite of the above measures and repeated directions, the performance in lending
under DRI scheme is far from satisfactory and far below the mandatory level of 1 %
of aggregate advance of previous year. In this background, Branches are once again
advised to make earnest efforts to increase the lending under DRI scheme by
identifying eligible customers thereby enabling Bank to achieve stipulated target.
It is observed that some of the Branches though have made some progress under
DRI, reported NIL or meager figures under code no. 5302 of ADV 21/49. Branch
Heads shall verify the correctness of data reported in ADV 21/49 statement before
escalating the same RO for consolidation. In order to have effective monitoring of
flow of credit under DRI, branches are advised to submit the monthly statement as
per annexure I (As per BC 19/2012) to RO: PSCC by 5 th of succeeding month to
submit the consolidated progress to CO: PSCD by 7th of succeeding month.
Branches shall take this is an opportunity to help the poor besides earning goodwill of
GoI and RBI. The performance under the scheme is being closely monitored by the
Top management. Bank vide BC 173/2008 has allocated Disbursement target of at
least 9 DRI loans each per quarter by rural and semi-urban branches and at least 6
DRI loans each per quarter by urban & metro branches. Please note that strict
compliance is essential to achieve mandatory level. In order to ease the process of
sanctioning of proposals under DRI scheme, a simplified process note developed by
RO-PSCC is enclosed. Branches may make use of the same wherever required.
SIMPLIFIED PROCESS NOTE CUM SANCTION LETTER FOR DRI LOANS
58
Name of the Branch: ________________________
BIC: ___________
Sl.
01
02
Particulars
Name of the party
Residential address
03
Type of activity
04
05
Whether the activity is existing

one or proposed one.
Address of the activity
06
Details of the family members
07
Annual family income

(Eligibility Rs. 18000 in rural & Semiurban & Rs. 24000 in urban areas)
Purpose for which credit is required
Rs._________ ((Note: Branches shall estimate

family income holistically taking into the present
sources of income)
Amount required and its item wise

break-up (Ceiling: Rs. 15000 for
general purposes & Rs. 20000 for
housing purposes)
Sl
01
02
03
Incremental income
(to be viable party should be in a
position to repay the installments out
of incremental income besides leaving
a reasonable surplus for his needs)
Monthly instalments
(Preferably EMIs may be fixed with
a provision to reasonable RH)
Security
Total
Rs.______________
(Branches shall arrive this holistically taking into
account the type of proposed investment and
impact of the same in improving income level of
the party)
Rs.____________
From_____________ (Date)
to _______________(Date)
______________________________________
(Hypothecation of assets created out Bank loan)
08
09
10
11
13
14
15
Tips
Details
Item
Amount ( Rs.)
Disbursement
(Shall customer friendly to ensure
smooth implementation with due care
to ensure end use)
Classification and reporting
(Wherever possible, disbursement may be

staggered)
Micro Credit within the purview of PSA. However,
it shall be invariably reported under code No.
5302 of ADV 21/49.
Vegetable vendors, Barbers, Cobblers, rural artisans, Cycle Rikshawwallas, petty tea shops,
other professionals and entrepreneurs of small means fulfilling the norms shall be
identified and financed under the scheme to achieve disbursement target of 20 proposals
per Branch by 31/03/2012.
In view of technical feasibility and economical viability DRI loan of Rs.________________ is

sanctioned to sri_____________________with terms and conditions mentioned above.
Date__________
59
Place__________
Signature of the Branch Head
SyndicateBank
PSCC: Regional Office, Panaji
Revised SyndJaiKisan- To improve Agricultural term lending

<<>>
We are pleased to inform you that Bank has introduced :SyndJaiKisan revised
scheme with sufficient precautions to ensure development of quality portfolio
under Agricultural term lending. A copy of the detailed circular issued by CO:
PSCD dated 16/09/2011 is enclosed. The scheme provides good potential for
improving term lending under agriculture. The gist of the scheme guidelines are as
under:
Branches can extend the facility to the farmers

(1)
(2)
Who have availed loan under earlier SJK scheme and repaid fully or
partially as per the terms of sanction.
Others farmers with 3 years of proven track record in repayment
of farm loans are also eligible but in these cases sanctioning
powers vested with the Regional Office.
The quantum of the loan shall be decided based on the least of the following:
i.
Not more than 40% of the distress sale value of the land offered as
security (Valuation Report from the approved valuer of the Branch is to be
obtained)
ii.
Three times annual income of the farmer (income certificate from

competent Revenue Authority shall be obtained).
iii.
Maximum Rs. 5.00 lacs.
Branches are aware that SJK is a hassle free scheme and quality portfolio can be
developed with proper implementation. Hence, branches shall identify farmers
eligible to be financed under the scheme as per the guidelines contained in the
enclosed circular. A process note to ease the processing of proposals under the
scheme is also provided as an annexure to ease the task of the branches to
implement the scheme as per guidelines.
60
All our Branches shall take advantage of the scheme to identify the eligible
farmers and extend loans under the scheme to develop quality portfolio under
agriculture.
SyndicateBank
APPRAISAL FOR SYNDJAIKISAN PROPOSAL
Branch _______________
Date:____________________________
Name of the applicant: ____________________________

Address of the applicant: ____________________________________
.1.
Sl.
a.
b.
c.
d.
e.
f.
g.
h.
1. Purpose of the loan & estimated cost: Mark

to the applicable items.
Discussed in detail with the party and the party would like to attend the following works to
improve the farm productivity/ farm income
Purpose
Amt required
Land Development by leveling/bunding/soil
application/fencing/compound wall /construction of approach road
Extension/replacement of Pipe Line
Repair/replacement of Pump Set
Replacement of existing dairy/ farm animals
Replacements of spares for farm equipments / machineries
Farm ponds for rain water harvesting /recharging of bore wells
Repair of farm house/farm shed:
Any other purpose properly supported with invoice/ estimate
Total project cost= Sum of a to h
2.
a.
b.
c.
3.
a.
b.
c.
4.
Applicant: The applicant is from one of the service area village of the Branch. Mark
to the applicable items.
The applicant is our existing customer having good track record in repayment of farm loans
since last 3 years (in case of these cases sanction is at RO only)
The applicant had earlier availed SyndJaiKisan facility of Rs.________ lacs and same has
been fully closed as per term of sanction (In these cases Branch can sanction within their
sanctioning powers)
The applicant had earlier availed SyndJaiKisan facility of Rs.________ lacs and he has
partially repaid as per terms of sanction and present balance in the account is Rs.
__________ (In these cases Branch can sanction within their sanctioning powers)
Details of land holdings
Crops grown
Type of holding
Acres
Kharif
Rabi
Summer
With assured
irrigation
Other holdings
Annual income of the applicant Rs.______________
(Note: to be supported by the income certificate issued by the competent revenue authority)
61
5.
Details of property offered as security

Village
Sy. No.s
Extent in acres
5 a.
6
7.
a.
b.
c.
d.
Value
Rs.______________
(Distress value as per the
valuation report of the
approved valuer only).
Whether legal opinion from Panel Advocate is obtained

Indicative purposes and the amount required for each purpose
(as per para-1) minus margin @ 5% for SF/MF and 15 to 25% for OF
Assessment of loan amount
Amount equal to 40% of the distress value of the property offered as
security (Value as per the valuation report of the approved valuer)
(Note: If the security offered is common security for existing
facilities other than SJK also, then only residual value of the property
is to be taken in to account to arrive the eligibility)
Amount equal to 3 times annual income (supported by the income
certificate issued by the competent revenue authority)
Amount required as per para-6
Loan amount recommended i.e. least of above subject to a maximum
ceiling of Rs. 5.00 lacs
Date:
Place:
Yes
Rs.
Rs.
Rs.
Rs.
Rs.
Name/Signature & designation of

recommending officer
8. SANCTION (Note: In respect of proposals of the farmers whose track record in

repayment of farm loans since last 3 years is good but not availed facilities under SJK
earlier sanctioning powers vested with RO only)
1. In due consideration of techno economic viability of the proposal, credit worthiness of the
applicant
Sri______________________________
&
guarantor
Sri____
_________________________ and as per the norms of the revised SyndJaiKisan Scheme
which were explained to the customer, following credit facility is sanctioned.
2. Since, this proposal is from the farmer who is having proven track record in repayment of
farm loans since last 3 years but not availed SJK earlier, we are recommending for sanction
of
the
following
credit
facility
under
revised
SJK
to
the
applicant
Sri__________________ & guarantor Sri______________________ as per the norms
of the revised SyndJaiKisan Scheme which were explained to the customer.
Amount
Purposes
Rate of
Release
Repayment
interest
schedule
BR+____
Rs.__________ Immediately
Rs._____
Presently
Rs.________ After follow-up
______%
Rs.________ After follow-up
As per 7
As per Para (1)
As per BC
In 2 or 3 convenient
7 yearly/half
( d)
121/2013
installments according to
yearly based on
progress in work
income stream
62
9. Security: Creation of charge/SRM according to the legal opinion by the panel advocate of the
properties mentioned in para-5 above measuring _________________ acres valued at Rs.
_____________
10. Name and address and Net worth of the surety: _________________________
________________________________________________________________
Date:__________________
Signature/Name of Branch Head
SyndicateBank
Modified guidelines and proactive measures to increase tractor finance:

<<<>>>
Time and again we have been emphasizing need for increasing term lending to have
sustainable growth under direct finance to agriculture. Though there is
considerable improvement in disbursement of term loans during second half of
2011+12, we could post only a marginal growth in balance outstanding. Branches are
not giving required attention to increase balance outstanding, resulted in adverse
comments from our Corporate Office. There is immediate need to increase term
lending by initiating proactive measures, to achieve a desired level during the
current financial year.
Branches are aware that Bank had issued modified guidelines on tractor financing
especially with regard to considering lower margin for tractor loans with less
than the normal minimum acreage. The tractor loan proposals are being normally
of high value, this segment provides good potential for achieving higher growth
under agricultural term lending. Hence, Branch Managers and AMRDs (wherever
available) shall mobilize tractor loan proposals in good number from the potential
farmers identified either by short listing the SKCCs or by making local
enquiries and creating awareness.
To speed up the process by easing the job of AMRDs and the Branch heads, we
have developed a model process note incorporating up to date guidelines on tractor
lending. A copy of the same is enclosed. A separate format to seek permission
from RO to consider 20% margin for sanctioning of proposals with less than normal
acreage is also enclosed. We assure that RO will convey decisions on such cases
immediately.
Keeping in view the potential available for tractor financing, we are allocating
target to disburse at least -- tractor loans per quarter by each of our rural and
semi urban branches.
Note: As per latest guidelines branches in the Regions having more than 5.0% NPA
have to obtain prior permission from RO to sanction tractor loans at Branch level.
63
Though a very few branches in our Region are having NPAs under tractor loans,
since the same are exceeding 5%, all our Branches have to obtain prior permission
from RO for sanctioning of tractor proposals at Branch level. However, to ease the
process branches are advised to submit details as per annexure so that immediate
decision will be communicated by RO: PSCC.
64
SyndicateBank
Appraisal of Tractor Loan proposal

Branch:______________________
Date:___________________
1. Name of the applicant
___________________________________________________
2. Address of the applicant
___________________________________________________
___________________________________________________
3. Technical Feasibility
a.
Borrower
The party is a progressive farmer & exhibits keen interest in the

farming. He has the required financial sources and net worth to
meet the margin requirement for the proposed activity. It is evident
from the past dealings (existing customer)/from the local enquiry
(New customer) that he is credit worthy.
b.
Land holdings of the

applicant
The total land holding of the applicant is ____________ acres. (The

applicant wants to purchase __________________ (Brand) tractor
of ______________HP where the company. There is good source of
irrigation in the farm. The cropping pattern and soil condition is
suitable for effective use of the proposed tractor.
c.
Scope for achieving

minimum of 1000
operating hours PA
There is good potential to improve the farming by adopting intensive

cropping pattern after purchase of tractor. There is good potential
in the village & nearby areas to get custom hiring business as there
are many farmers engaging tractor on hiring for their farm
operations. Therefore, the farmer can achieve a minimum of 1000
hours of operation per annum.
d.
Infra structure
facilities
The proposed Brand of tractor is available at _________________

(Place of the dealer/ supplier) which is at a distance of __________
KMs from the Branch. There is easy access for Servicing, Spares
and fuel etc.
4. Economic Viability:
The additional income of owning a tractor comes from (I) incremental income from the farm & (II)
income from custom hiring of the tractor.
I: Calculation of additional Income from the farm:
A: Income from the farm before the project:
Season
Crops
Area
acres
Yield/
acre in
Quintals
Total
Yield
Quintals
Market
Rate
3=1X2
Kharif
Rabi
65
Gross
Cost of
Production Cultivation
Rs
/Acre
5=3X4
Total cost
of
Cultivation
Farm
Income
Rs.
7=1X6
8=5-7
Total
A:
B: Income from the farm after the project:

Season
Crops
Area
acres
1
Yield/
Total
acre in
Yield
Quintals Quintals
2
Market
Gross
Cost of
Rate
Production Cultivation
Rs
/Acre
3=1X2
5=3X4
Total cost
of
Cultivation
Farm
Income
Rs.
7=1X6
8=5-7
Kharif
Rabi
Total
B:
C: Incremental income from the farm = (A minus B = _________ minus _________ = Rs.__________
D: Usage of tractor in the own Farm as well as on custom hiring:
Sl.
Farm Operation
No. of hours per acre

(Approx)
01
Plowing
5-8 hrs./tillage
02
Leveling
20-25 hrs.
03
Pumping of water
04
Transporting
Hours of use in
Own Farm
Hours of use
on Hiring
Total use
8-10 hrs/irrigation
4 to 8 hrs./transport
Total hrs. of use

E: Operational & Maintenance cost of the tractor:
Sl
Fixed Cost Per Annum (FC)
Sl
Variable Cost Per Annum (VC)
Depreciation (D)=
Cost of Tractor /Life span
= (Rs.
/10 years)X70%*
Cost of fuel (A) = 0.112 X HP X

Rate of fuel X Annual Use in hours
(0.112 X
X
X
)
Interest (I) = P/2X I/100 where

P is Loan amount & I is ROI
Rs.
/2 X
/100)
Cost of Oil (Approximately 7.5% of

cost of fuel)
Insurance
Repairs & Maintenance (5% of cost)
Total Fixed cost per annum (FC)
Amt.
Amt.
Total Variable cost per annum (VC)
Total Cost (TC) = Total Fixed Cost + Total Variable Cost= (
Total Cost per operating hour (TCH) = TC/No. hours of usage= (
)
/
* Assumed that 30% compensated by value of the tractor after 10 years

F: Income from custom hiring of the tractor:
Sl
Particulars
Amount
01
Income from hiring of the tractor = (No. of Hiring Hours as per Para D X hiring
charges per Hour) = (
X
)
66
02
Total Cost on Hiring hours = ( TCH as above X No. of hiring hours as per D)
=(
Net Income from Custom Hiring of the tractor (01-02)

G: Total Incremental income from the project:
Sl
Particulars
Amount
01
Income from custom hiring of the tractor as per Para 4 F.
02
Net Incremental Income from the own farming as per Para C.
Total Incremental income from the project (01+02)

Amount available for repayment of the loan= Total Incremental Income X 0.50
The amount available for repayment is enough to cover the installment (Only principle as the interest
has been already taken into account in the fixed cost worked out as per Para E). Therefore, the proposal
is economically viable.
5. Terms of sanction :
A: Amount of loan
01 Cost of the tractor and accessories as per quotation submitted by the applicant
along with the application
02 15 to 25%
03 Amount applied for vide the application
04 Loan amount sanctioned = (01-02) or 03 which ever is less.
Size of the Credit
Limit
Up to Rs.50000/
BR + 0.25% + 0.25% tenor premium(Cumulative)(Irrespective of Credit Rating
Above Rs. 50000/- &
BR + 0.75% + 0.25% tenor premium(Cumulative) Irrespective of credit Rating)
Synd 1
Synd 2
Synd 3
Synd 4
Synd 5
Synd 6
BR+1.00
BR+1.00
BR+1.25
BR+1.25
BR+1.75
BR+1.75
Present rate
Plus tenor premium of 0.25% for
Term
Loans repayable in above 36 months
C: Service Charges: As per extant guidelines cir 134/2012

D: HP, Acreage, margin and security norms: Mark
Loan
Perennially irrigated
HP
Margin
Security
Third Party Guarantee
amt.
lands
35
6.00 acres
15 to 25%
4.00 acres & above but
35
40%
less than 6 acres
whose net worth is at
Hypothecation
20% with RO
least equivalent to the
35
Up to
of tractor &
less than 6 acres
permission
loan shall be taken in lieu
Rs.4.00
accessories
of mortgage if there is a
Above 35 8.00 acres
15 to 25%
lacs
and mortgage
genuine difficulty in
of land.
Above 35
40%
offering mortgage of
less than 8 acres
land as security.
20% with RO
Above 35
less than 8 acres
permission
Above
35
6.00 acres
15 to 25%
Hypothecation Third party guarantee
Rs,4.00
of tractor &
with adequate net worth
35
40%
lacs
accessories
acceptable to the Bank
less than 6 acres
and mortgage shall be taken.
35
20% with RO
67
less than 6 acres

permission
8.00 acres
15 to 25%
Above 35
40%
less than 8 acres
Above 35 6.00 acres & above but 20% with RO
less than 8 acres
permission
Details of the collateral security wherever obtained::
Above 35
of land.
Details of Third Party Guarantor, wherever obtained:
E: Disbursement:
Directly to the Supplier along with the margin amount. The DD/PO along with a covering letter
requesting them to send original Invoice, Stamped receipt, Duplicate switch Key along with ASD-13 duly
signed by the borrower and dealer shall be send to supplier besides including Banks Hypothecation lien
in RC and Banks interest in comprehensive insurance policy.
F: Repayment Schedule:
Repayable in 9 years in Half-yearly/Annual installments
depending on the income stream of the borrower & coinciding
the schedule of repayment with the marketing season.
Commencing from:
Periodicity:
G: Other terms & conditions:
Blank transfer forms duly signed by the borrower in whose name the tractor will be registered
should form the part of documentation.
The vehicle should be comprehensively insured with noting of Banks interest on the policy.
Banks Hypothecation lien should be entered in RC & certified copy of RC should be obtained &
kept with the loan documents with in a reasonable time after arranging the facility.
The Borrower should made available the stamped receipt, Duplicate Switch Key, Original Invoice,
ASD-13 duly signed by him and the supplier to the Bank with in a reasonable time (One week of
delivery of the vehicle), if not submitted by the dealer directly to the Bank.
The Borrower should produce the tractor for inspection at least once in a half year or whenever
called by the Bank for the same.
Loans sanctioned to tractors should be reported under code No.0605 & 2903 of ADV-21/49.
Recommended
68
Sanctioned
Place:
Date:
AMRD/OFFICER
69
BRANCH HEAD
SyndicateBank; Regional Office:Panaji

(This format is to be submitted to RO for prior clearance to sanction tractor proposal)
Branch: ________________________ BIC: __________ Date: _________________

Sub: Request for permission to consider the tractor loan proposal:
<<>>
We request you to permit us to consider 20% margin for sanctioning tractor loan with below normal
acreage in view of the merits as detailed below:
A: Proposal:
Amounts in Rs.
Cost of tractor
Acreage of
Margin
HP of
Tractor
with
Perennially
the
Loan amount
Brand
accessories if
irrigated
Amount
%age
tractor
any
lands
Mark
applicable
The proposal fulfills Margin and acreage norms for Branch level sanction.
Recommend for permitting for sanction with below normal margin but above
20% margin as per the modified guidelines of the scheme.
B: Borrower:
Sl. Particulars
01
Name and address of the
farmer
02 Whether existing or new
farmer. Mark
a. If existing dealings since
when
b. If new farmer how the
credit worthiness is
ascertained
03 Total holdings
a.
b.
c.
Source of irrigation
Mark
Water lifting devise
Mark
Cropping pattern
Existing / new farmer

The farmer is having satisfactory dealings with the Branch since
____________ (Mention date or year)
Visited the farm on __________ date and collected first hand
information about the progressiveness in farming besides making
enquiries with reliable local people regarding credit worthiness.
_____________ acres of perennially irrigated lands
_____________ acres of other lands
Open well/ bore well/ channel irrigation/others to be
specified______________
Electric pump/diesel engine/submersible/
i. Kharif_______________________________
ii. Rabi _________________________________
iii. Perennial crops _________________________
d. Present farm income
Rs.
In view of the merits, we once again request you to permit us to sanction the above tractor loan.
Place: ____________
Date: ____________
AMRD/Officer
Branch Head
For the use at RO:
In view of the merits and recommendation of the Branch, we may permit the branch to arrange
Tractor Loan of Rs. _____________ (Rupee ____________________________) to Shri
___________________________ having _________ acres with _______ % Margin.
70
Date:
Sr. Manager
Chief Manager/AGM
Dy. General Manager
GUIDELINES FOR CENTRAL SECTOR SCHEME ON PIG DEVELOPMENT
Pigs are reared by the poorest of the rural population and provide meat, dung and byproducts.
Pigs have wide adaptability suiting different climatic conditions. Piggery can play an important
role in improving socio-economic status of this section, if existing constraints in economic
rearing are removed. However, Pig farming as a commercial venture is yet to be adopted in the
country.
Objectives of the Scheme
To encourage commercial pig rearing by farmers/laborers
To improve production performance of native breed through cross breeding by using
selected animals of high performing breeds and by providing incentives in terms of capital
subsidy for ensuring the viability of the pig breeding, rearing and related activities.
Implementation Period and Area of Operation: The scheme will be implemented during
2013-14) throughout the country. The high potential districts have been identified in 15
States. However the proposals received from other districts/States can also be considered
for subsidy assistance.
Eligibility: Producer companies, partnership firms, corporations, NGOs, SHGs, JLGs,
cooperatives and individual entrepreneurs.
Subsidy: Different activities and ceiling for subsidy are given below.
Sl. Component
01
Pig Breeding
farm
Unit size &

indicative cost
20 Female + 4
male
Rs. 6.00 lac
02 Pig rearing & 3 female + 1 male

fattening
Rs. 0.76 lacs
units
03 Retail
outlets
Rs. 10.00 lacs
04 Facilities for @ 2 per district

live markets
Pattern of subsidy
25% of the outlay (33 1/3 % in NE States
including Sikkim and hilly areas*) as back
ended subsidy subject to a ceiling of Rs 1.50
lakh (Rs 2.00 lakh in NE States including
Sikkim and hilly areas*)
ended subsidy subject to a ceiling of Rs
19000/- ( Rs 25,300/- for NE States
including Sikkim and hilly areas*)
ended subsidy subject to a ceiling of Rs 2.50
lakh ( Rs 3.33 lakh in NE States including
Sikkim and hilly areas*)
50% of the outlay as back ended subsidy
subject to a ceiling of Rs 2.50 lakh
71
Unit costs given above are indicative only. However, subsidy will be restricted in
proportion to indicative cost or actual cost whichever is less.
Funding pattern
Beneficiary contribution (margin) - 10 % of the outlay (minimum).
Back ended capital subsidy - as indicated at above
Effective Bank Loan - Balance portion
Linkage with credit: Assistance under the scheme would be purely credit linked and subject
to sanction of the project by eligible financial institutions.
Eligible Financial Institutions: Commercial Banks, Regional Rural Banks, State Cooperative
Banks, State Cooperative Agriculture and Rural Development Banks and Such other
institutions, which are eligible for refinance from NABARD.
NABARD would provide refinance assistance to these institutions considering their eligibility.
The quantum and rate of interest on refinance will be as decided by NABARD from time to
time.
Sanction by banks: The entrepreneurs/ eligible organizations shall apply to the banks for
sanction of the project. The bank shall appraise the project as per their norms and sanction
the total outlay excluding the margin as the bank loan. The loan amount is then disbursed in
suitable instalments depending on the progress of the unit. After the disbursement of first
installment of the loan the bank shall apply to the concerned Regional Office of NABARD for
sanction and release of subsidy in the format given in Annexure II.
State Level Sanctioning & Monitoring Committee (SLSMC): SLSMC will be chaired by the
Secretary, State Animal Husbandry Department with representatives from Department of
Animal Husbandry, Dairying and Fisheries (DADF), GoI, lead bank of the state, State Dept of
Local Administration, NGO in this field, an expert in the related field, and O-I-C of NABARD
as members. Initially NABARD shall convene the meeting as and when the projects are
received for sanction and later at quarterly intervals to review the progress of the scheme.
Banks that have submitted projects for sanction may be invited as special invitees.
Release of subsidy: After sanction of the subsidy by the SLSMC, the Regional Office of
NABARD shall release the subsidy amount after confirming the availability of funds from
NABARD Head Office. The subsidy shall be released on first come first serve basis subject
to availability of funds. After crediting the subsidy in the SRF account of the borrower, a
Utilization Certificate in the prescribed format (Annexure III) shall be submitted by the
participating bank to NABARD.
Repayment: Repayment period will depend on the nature of activity and will vary between 5 to
6 years. including grace period of one (1) year The repayment schedules will be drawn on the
72
total amount of the loan (including subsidy) in such a way that the subsidy amount is adjusted
after liquidation of net bank loan (excluding subsidy).
Rate of Interest: As applicable to agricultural loans. The bank may charge interest on the
entire loan amount till the subsidy is received and from the date of receipt of subsidy by the
implementing branch, interest has to be charged only on the effective bank loan portion i.e.
outlay excluding the margin and subsidy.
Security: As applicable for agricultural loans
Time limit for Completion of the project: Time limit for completion of the project would be
as envisaged under the project, subject to maximum of 12 months period from the date of
disbursement of the first instalment of loan which may be extended by a further period of 3
months, if reasons for delay are considered justified by the financial institution concerned. If
the project is not completed within the stipulated period, benefit of subsidy shall not be
available and advance subsidy placed with the participating bank, if any, will have to be
refunded forthwith to NABARD,
Adjustment of subsidy: The capital subsidy will be back ended with minimum 3 Years lock-in
period. The capital subsidy should be refunded one year after the account becoming NPA and
remaining NPA as on that date. The capital subsidy will be adjusted against the last
installments of repayment of bank loan. The balance lying to the credit of the SRF Account
will not form part of Demand and Time Liabilities for calculation of CRR and SLR.
Other Conditions:
The participating banks should adhere to the norms of appraising the projects regarding
technical feasibility and commercial/financial viability.
Financing bank should ensure that regulations /laws of Govt, Corporation/Municipality/
Local Self Government are complied with wherever necessary.
The participating banks should ensure insurance of the assets created under the project.
A signboard displaying Assisted by Department of Animal Husbandry Dairying and
Fisheries, Ministry of Agriculture, Government of India through NABARD will be
exhibited at the unit.
Pre and post completion inspection of the project shall be undertaken by the participating
bank to verify physical and financial progress as and when required.
DADF reserves the right to modify, add and delete any terms / conditions without
assigning any reason and its interpretation of various terms will be final. DADF reserves
the right to recall any amount given under the scheme without assigning any reason
thereof.
Any other pre and post inspection would be undertaken by DADF representative to find out
the physical and financial progress as and when required. Other operational instructions
issued by DADF / NABARD from time to time will be strictly followed.
73
ANNEXURE II
CLAIM FORM FROM THE CONTROLLING OFFICE OF THE BANK FOR RELEASE OF CAPITAL
SUBSIDY IN RESPECT OF SCHEME FOR PIGGERY DEVELOPMENT
(To be submitted to the concerned Regional Office of NABARD)
NAME OF THE BANK: SYNDICATEBANK
NAME OF THE BRANCH_____________________
DATE:______________
TOTAL AMOUNT OF CURRENT CLAIM: Rs._____________

DETAILS OF CURRENT CLAIM:
Particulars
Name and address of the Entrepreneur (Pl
indicate district also)
Amounts in Rs.
Location of the Project (indicate the district

and whether it is a hilly area)
Whether SC/ST/Women
Bank/Branch address (indicate district also)
with BSR code
Loan A/c No.
Date of sanction
Purpose of Loan
Unit size
Total Financial Outlay
Margin
Bank Loan
Repayment prescribed
Rate of Interest
Date of release of 1st installment of loan
Capital Subsidy claimed
Any other information relevant to the project
1. We undertake having complied with all the instructions contained in NABARD circular No.
dated regarding operational guidelines of the scheme while sanctioning above proposals.
2. We request you to release an amount of Rs.______________ (Rupees______
______________________) as Capital Subsidy in respect of the above entrepreneurs.
Place:
Date:
Seal and signature of the Branch

Manager (financing bank)
Authorised signatory
Controlling Office of the bank
74
75
Circulars for Reference on important schemes:

1: GREEN HOUSE TECHNOLOGY
CULTIVATION OF FLOWERS & VEGETABLES UNDER CONTROLLED ATMOSPHERE: HO
CIR 348/2010 Dated 23/12/2010
National Horticulture Board is providing Capital Investment Subsidy not exceeding 20% of the
total Project cost with a maximum ceiling of Rs 30 Lac in North Eastern /Tribal/Hilly areas.
And Subsidy not exceeding 20% with a maximum ceiling of Rs 25 Lac per project in other
areas. (Detailed Guide Lines along with model schemes given in HO Cir 174/2005 BC.).
2: Diary Entrepreneurship Development scheme: HO CIR 23/2011 dt 13/01/2011
The name of the Dairy Venture Capital Fund scheme (HO CIR 137/2005) was changed to Dairy
Entrepreneurship Development Scheme with effect from 01/09/2010 onwards. Interest free
loan was changed to Capital Subsidy Loan. The Department of Animal Husbandry, Dairying &
Fisheries (DAHD&F), Ministry of Agriculture Govt. of India is the focal department for
operation of the scheme.
The capital subsidy eligible is 25% of the total outlay (331/3% for SC/ST)
The branches have to sanction and release first instalment and apply for the release of
eligible subsidy. Advances are eligible for NABARD refinance and the back-ended capital
subsidy is to be adjusted at the end with a minimum lock-in period of 3 years.
3: COMPOSITE LOAN UNDER AGRICULTURE-HO CIR 155/2011 dt 08/06/2011
Financial assistance to farmers for combining different agricultural purposes can be done if
the activities are having uniform life span of Asset /repayment period and a single loan can be
arranged instead of Multiple loans..Sanction of the credit proposals shall be made within
overall per party sanctioning powers and other provisions mentioned in circular No 326/2010
dated 07/12/2010
4: GUIDELINES OF SYND JAI KISAN SCHEME REVIVED-HO CIR 271/2011 dated 1st
October 2011
Eligible Farmers: Those Borrowers who are having 3 years of proven track record of prompt
Repayment of earlier Farm Loans availed by them or farmers who have promptly repaid loans
availed under Synd Jai kissan scheme.
Quantum: Maximum Rs 5 Lacs. The quantum of fresh loan may be equal or less than the
amount of repayment already made, subject to an upper limit of Rs 5.00 Lac
Criteria for fixing the Loan Amount:
A)
40% of the distress sales Value or B) Three times annual income of the borrower
whichever is low.
Cutback norm: 50% of farmers annual income.
Repayment Period Maximum period of 7 years 11 months of repayment holiday
Security: The facility to be secured by creation of mortgage/charge on land.
76
5: SYND-RICE MILLS (HO CIR 368/2011): A special scheme for Financing RICE MILLS.
Types of Coverage:
A. Direct Agriculture: Finance to individual farmers for Pre and Post Harvest activites such as
spraying, weeding, grading sorting and processing and transportation undertaken by individuals,
SHGs and Co-Operatives in rural areas.
B. Indirect Agriculture: Loans to food and agro-based processing units with investment in
plant & Machinery up to Rs 10 Crores undertaken by those other than mentioned under A.
Eligibility: New units Hurdle rate of Synd 4 and above. Take over also permitted subject to
Credit Policy norms prevailing.
Purpose: Acquisition of Machinery, Construction of Factory building or for Expansion or
Modernization
Working Capital facility not available for Rice Millers doing activity on job work basis. Others
are eligible.
Nature of facility: Working Capital, Term loan and Non-Fund based Limits.
Quantum of Term Loan & Limits- As per guidelines prescribed for Micro Small & Medium
Enterprises.
Other Terms and Conditions:- Details furnished in HO CIR 368/2011.
6: LENDING UNDER DRI: HO CIR 19/2012
Limit of the Loan- - Rs 15000/- for General Purpose
Rs20000/- for Housing
Annual Family Income-Rs18000 in rural areas
Rs24000 in semi-urban and urban areas
7: CAPITAL INVESTMENT SUBSIDY SCHEME FOR CONSTRUCTION /RENOVATION
OF RURAL GODOWNS: (Revised Provision) HO CIR 14/2012
For go-downs up to 1000 tones capacity: Project Cost as appraised by financing bank or
Rs3500 per MT of storage Capacity whichever is less.
For go-downs exceeding 1000MT capacity: Project Cost as appraised by financing bank or
Rs3000 per MT of storage Capacity whichever is less. For NE region/Hilly areas normative
cost will be Rs4000/-per MT.
For renovation of go-downs by Co-operatives with assistance from National Cooperative
Development Corporation: Project Cost as appraised by financing bank or NCDC or actual cost
or Rs750/- per MT of storage Capacity whichever is lower.
8: REFINANCE SCHEME UNDER NABARD (WAREHOUSING) SCHEME 2011-12
Ho CIR 52/2012 DT 22/02/2012.
Eligible Borrowers: All loans extended to Individuals, Private entities, Co-operatives, Public
sector agencies etc
Purpose: Projects sanctioned by banks for creation of large sized storage infrastructure for
agricultural Commodities (Warehouses, go-downs, Silos, cold storage etc)
Quantum of refinance- 100%
Rate of interest on refinance-8% from NABARD per annum Interest rebate of @1.5% for
prompt repayment
Repayment: Repayable in annual instalments over a period of seven years including a
moratorium period of 2 years.
77
SyndicateBank: PSCC: Regional Office: Panaji

DISCREPANCIES IN SUBMISSION OF REQUIREMENTS FOR REVIEW OF SKCC
AND OTHER FARM LOAN SANCTIONS AND USE OF TOO MUCH STATIONARY
<<>>
Certain repetitive discrepancies are observed in submission of Process Notes, LRFs and
Rating Charts causing delay of Review Process and wastage of stationary. These
observations are enlisted to enable the branches not repeat the same in future
1. Use of AF-658 instead of Annexure-2 as per BC-247/2008- Branches shall use only
Annexure-2 as per BC 247/2008
2. Sending LRF & Rating chart without PN in Annexure-2- This will cause unnecessary
delay and some times the sanctions remain not-reviewed when branches fail to attend
the correspondence promptly. A few branches are having practice of submitting only
one page of annexure-2.
3. Half filled & unfilled PN - In Annexure 2-undated sanction, No mention of Extent and
value of SRM property, mismatch of limit sanctioned and estimated crop income,
unmarking of yes/No in observations of appraising officer, not signed by the
applicant. In LRF- No mention of date, not signed by the processing officer etc. are
observed.
4. Use of LRF-1 instead of LRF-101: Since, threshold limit is Rs. 2.00 lacs, all farm loans
including SKCCs needs to be reviewed are to be invariably secured by the collateral
security. Hence, Branches have to use only LRF-101 only.
5. Wastage of too much stationary to be avoided not only to save cost but also to
protect the environment-Please implement the following measures to save 16-A4
sheets in each A/c.
a. Some branches are sending individual covering letters causing wastage of 2-A4
sheets + Xeroxing cost for each A/c- NO NEED TO SEND INDIVIDUAL
COVERING LETTERS.
b. Branches are using 5 page Rating Chart format Xeroxed as it is from the BC causing
wastage of 4-A4 sheets + Xeroxing cost for each account-USE ONLY 3 PAGE
RATING CHART A FORMAT OF WHICH IS ENCLOSED, WITH IMMEDIATE
EFFECT.
c. Branches are using two page LRF format Xeroxed as it is from the BC causing
wastage of 2-A4 sheets + Xeroxing cost for each A/c- USE ONLY THE SINGLE
PAGE LRF-101 FORMAT ENCLOSED, WITH IMMEDIATE EFFECT.
d. Some branches are sending copies of ADV 80A of borrowers & Guarantors causing
wastage of 8-A4 sheets+ Xeroxing cost for each A/c- BRANCHES NEED NOT
SEND COPIES OF ADV-80A-However,
Net worth shall be mentioned at
appropriate column. Branches are advised to strictly adhere to the above to
enableus to complete the review process within stipulated time frame of 30 days.
Also adopt the measures suggested with immediate effect to save as may as 16A4 sheets + Xeroxing cost in each account noonly to reduce cost of Stationary
& Xeroxing but also to save the ENVIRONMENT.
78
LRF-101: Loan Review format for Credit Sanctions up to Rs. 25.00 lacs
Ref. No.:
Branch Name
Process Note No. & Date
Name of the Borrower
Constitution
Banking arrangements
Dealing with our bank since
Limits renewed up to
Names of Directors /partners
Details of credit limits sanctioned:

Credit
Existing
Limit
facility
limit
sanctioned
Credit Rating
Asset Classification
Date:
Net worth (Rs in lakh)
Increase/decreas
e (+) or (-)
Balance
(Rupees in lacs)
Over dues
Security & its
value
Whether limits sanctioned are within delegated powers

Whether Rate of Interest stipulated is as per Policy.
(If finer rate is permitted, Rate of interest permitted, Competent Authority permitting
finer rate and the office letter No. to be furnished).
Whether the assessment of credit limits reasonable
Method of assessment:
Holistic Method:
Whether value of collateral securities is at least 125% of the loan amount.
Turn over Method:
Whether the achievability of projections is discussed and found reasonable.
OR
EWCL method Whether the holding levels projected are reasonable.
Whether Prudential Exposure norm is complied.
(If deviation is permitted, Competent Authority permitting deviation and the office letter
No. to be furnished.).
Whether working results are satisfactory.
(If the reply is negative, please furnish the specific areas, which need improvement and
steps taken by the branch to improve the same).
Whether Basic Financial Parameters are complied with.
(If deviations are permitted Competent Authority permitting deviations and the office
letter No. to be furnished.).
Whether collateral security coverage ratio is adequate w r t rating ( In case of CR 04 &
below if collateral security coverage is less than 50% explore taking additional collaterals)
Whether inspection comments, if any, rectified
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
No comments
Yes/No
Yes/No
Yes/No
Whether Credit Rating chart is submitted ( for Rs.10 lacs & above)
Weakness captured in rating & steps for mitigation initiated
Whether documentation is in order
Whether relevant Policy guidelines applicable for this type of advance are followed.
Yes/No
(If deviations are permitted, Competent Authority permitting deviations and the office
letter No. to be furnished.).
Whether the dealings of the party/ their sister /associate concerns are satisfactory
Yes/No
(If the reply is negative justification for sanction of limits to be furnished.)
If dealing with other banks, whether latest liability position /Confidential opinion obtained
Yes/No
If the borrower is new or is a take over from other bank, whether KYC NORMS/DUE
Yes/No
DILIGENCE norms/Guidelines of take over are followed.
Whether observation /directions of the competent authority at the time of earlier noting
Yes/No
are complied with
Specific Recommendation:
We may take above sanction as reviewed. However sanctioning authority to address the following
observations made by the reviewing authority
Senior Manager
Chief Manager
79
Placed before the competent authority: for orders
80
RATING CHART FOR AGRICULTURAL ADVANCES

BIC:
BRANCH
NAME & ADDRESS OF THE BORROWER:
REGION: Panaji
CUSTOMER ID:
LOAN A/C NO:
DATE OF RECIEPT:
DATE OF SANCTION:
AGRICULTURE LOAN MODEL

VARIABLES
Age of the applicant

a)
Less than 25 years
3
4
0
b)
25 & above up to 45 years
4
c)
45 & above up to 60 years
2
d)
60 & above
0
No. of working adult family members
* Working family memb in farms/field activity
a)
Nil or 1
0
6
0
b)
2 or 3
4
c)
3, 4 or 5
6
No. of dependents (Not earning & not contributing in the
* Not available for working in farms/filed activity
work)
a)
0, 1 or 2
4
4
0
b)
3, 4 or 5
2
c)
6 & above
0
Applicants experience in the activity applied for
a)
>10 yrs or>5 yrs & belongs to traditional farm family
13
13
0
b) 5 to 10 yrs or>2 yrs belongs to traditional farming family
6
c)
c) <5 yrs and does not belong to traditional farm family
0
Medical History
Main Earning family member (Responsible for most of the
a)
-2
4
-2
work) suffered with major illness in the past
b)
Past record of serious illness in the family
0
c)
No health related problems
4
Social Status
a) Position holder in any public/civic body e.g. panchayat
10
10
0
b)
Borrower/Family well respected in the village
6
c)
Others
0
Credit history (Repayment history with other Banks)
a)
Nil Defaults from any Bank/Co -Op Bank /RRB
8
8
-8
b)
Past Credit History is not available.
0
c)
Defaulters of other banks/society
-8
d)
Account adjusted through Compromise write-off
-4
Credit History (Repayment history with our Bank)
a)
Regular repayment for our dues for > 3 years
12
12
-13
b)
Past Credit History is not available/New customer
0
c)
Repayment after default of 1 or more years
-10
d)
Account adjusted through Compromise write off
-13
Activity to be financed
a)
Direct Farming operations
6
6
0
b)
Allied activities
0
Type of crop
a)
High value Crops/cash crops
5
5
0
b)
Hybrid High yielding varieties of traditional crops
3
c)
Traditional crops
0
Support price availability
a)
Yes
5
5
-5
b)
No
-5
10
11
Sl
Score
VARIABLES
Score
81
Explanation
Explanation
Max
Max
Min
Score
allotted
Sl
Min
Score
allotted
12
13
14
15
16
17
18
19
20
21
22
Cropping pattern
Multiple cropping (more than two crops in an year)
a)
10
and two or more crops in a single season
Multiple cropping (more than two crops) but single
b)
8
crop in a single season
c) Double Cropping
4
d) Single cropping
0
Farming Practices
Scientific farming (Level of farm mechanization,
a)
6
usage of fertilizer and pesticides)
Traditional farming (Mostly dependent on man
b)
0
power or animal power)
Availability of irrigation water
Perennially irrigated / irrigated (not perennially
a)
16
but with ground water support).
Irrigated (not perennially & without ground water
support i.e. irrigation is available through river/
b)
12
canal but it may not be sufficient throughout
year).
c) Rain-fed
8
d) Dry Land
0
Land Ownership
a) Owner &cultivator
5
b) Recorded Tenancy
3
c) Oral tenants/share cropper
0
Natural calamity records
a) Frequent
0
b) Occasional
5
c) Seldom/None
10
Net means of the applicant
a) Equal to or more than5 times the loan amount
10 NW/Loan (NW=
b) 3 and above up to 5 times the loan amount
5
Movables+
Immovablesc) 2 and above up to 3 times of loan amount
2
liabilities)
d) Others
0
Projected income over annual repayments including interest
a) Four times
15 Income from
b) Three times
12 farming &
other sources/
c) Two times
6
repayment of
d) Less than two times
0
all loans
Net worth of the Guarantor
a) More than 2 times of the loan amount
4
b)
above1 and not more than 2 times of loan amount
2
c) Equivalent to loan amount
-3
d) Others / No Guarantor
-7
Type of collaterals
a) >50% Liquid
15
b) Mortgage of landed property
7
c) Charge over the land
2
d) Others
0
Margins being provided
a) 50% & above
5
b) 25 and above up to 50%
2
c) 0 and above up to 25%
0
Borrowers are guarantor to other facilities
a) No guarantee to other facilities
0
82
10
16
10
10
15
-7
15
-3
b)
c)
Up to 2 A/Cs-liability not exceeding 25% of NW

More than 2 accounts
-1
-3
Sl
VARIABLES
23
Percentage of crops insured:

a
80% and more
15
b) 60% and above up to 80%
8
c) 40% and above up to 60%
6
d)
20% and above up to 40%
2
d) Less than 20%
0
Comprehensive Insurance available?
a) Yes
4
b) .) No
0
Stability of income
a) Income steadily increasing over the last 3 years
10
b) Income almost the same over the last 3 years
8
c)
Income unstable over the last 3 years
-2
d) Income steadily decreasing over the last 3 years
-10
Presence in income generating allied activities
Last year's income generated by the allied
a)
9
activities > 30% of the total income
b)
3
activities is in range of 10%- 30% of total income
c)
1
activities is < 10% of the total income
d) No presence in income generating allied activities
0
Availability of government subsidy (Power/fertilisers /pesticides etc.)
Subsidies are equal to or more than 25% of the
a)
9
expenses incurred.
subsidies are less than 25% of the expenses
b)
3
incurred but equal to or more than 10%
c) subsidies are less than 10% of expenses incurred
1
d) No subsidy
0
Availability of storage space / market yard
Farmer has own storage space for produce and
a)
5
produce can be stored for long time
Farmer has access to storage space for produce
n)
3
and produce can be stored for long time
Farmer has access to storage space for produce
c)
1
for a short period
d) Farmer does not has access to storage space
0
GRAND TOTAL OF SCORE ALLOTTED
24
25
26
27
28
Score
AGRICULTURE LOAN-GRADE
LOWER LIMIT
136
126
116
106
101
96
91
81
71
Synd-1
Synd-2
Synd-3
Synd-4
Synd-5
Synd-6
Synd-7 (Cut off range)
Synd-8
Synd-9
83
Explanation
Max
Min
15
10
-10
SCORE RANGE
UPPER LIMIT
>136
135
125
115
105
100
95
90
70
Score
allotted
Synd-10
<70
Name & signature of sanctioning authority
70
Name & signature of Confirming authority
PRIORITY SECTOR CREDIT DEPARTMENT
Comprehensive Guidelines on Syndicate General Credit Card Scheme(SGCC).

<<<>>>
Attention of Regional Offices/ Branches is drawn to Circular No.032-2006-BC-PSC dated 2102-2006 communicating detailed guidelines on Syndicate General Credit Card Scheme.
Based on the suggestions and representations received from Regional Offices/ Branches, it
is decided to modify and simplify the existing guidelines of SGCC scheme so as to extend need
based financial assistance to deserving persons at our rural/semi-urban branches.
This circular is issued in supersession of earler circular under the scheme. Branches/ Regional
Offices are advised to follow the guidelines given below for extending financial assistance
under the scheme.
The Scheme:
The scheme shall cover general credit needs of the constituents of rural and semi-urban
Branches. The scheme shall be implemented by rural and semi-urban branches only.
Objective of the scheme:
The objective of the scheme is to provide hassle-free credit to Banks customers based on the
assessment of cash flow without insistence on security, purpose or end use of the credit.
Eligibility:
The applicants should be credit worthy customers of rural and semi-urban branches
of the Bank and having definite source of income.
The applicants should be permanent residents of the place and produce proof of
address such as ration card copy, driving license, voter identification card etc.
They should not be defaulters to any financial institution in the area and they should
hail from the service area of rural / semi-urban Branch.
Women customers who are engaged in income generating activities having

identifiable source of income may be given special preference while implementing
the scheme.
In case of existing SKCC account holders, where the need based consumption
requirement of the farmer has not been included as a component of the SKCC limit
as per extant guidelines, facility under Syndicate General Credit Card may be
extended to such card holders based on cash flow / income stream of the farmer.
In case of new SKCC applicants, provision for consumption purpose may be included
as a component of SKCC limit or a SGCC may be granted taking into consideration
the income stream of the farmer.
In case of beneficiaries of other products like Synd Saral, Syndicate Kisan Samruddhi
Credit Card and Synd Swarojgar Credit Card etc., SGCC may be granted on merit duly
assessing the income stream of the borrowers provided the existing loans are regular.
84
Nature of facility:
SGCC shall be arranged as overdraft or cash credit for meeting general credit requirements
of the customers of small means without insistence on purpose or end use of the credit . The
borrower is allowed the flexibility to withdraw / credit into the account any number of times
within the sanctioned limit. The limit is permitted to be operated in the form of an overdraft.
Quantum of limit: A suitable limit under SGCC may be fixed for each borrower subject to
the ceiling of Rs.25,000/- prescribed under the scheme.
Criteria for selection and fixation of the limit:
The following criteria/factors shall be taken into account for selection of the borrower and
fixation of the limit under the scheme:
The applicants/customers who have satisfactorily operated Bank account such as
saving / deposit /loan accounts.
The applicants/ customers should have positive net worth and adequate earnings to
service the facility.
The limit may be fixed based on assessment of income and cash flow of the entire
household and the extent of surplus income available to service the existing/ proposed
debt.
The branch should make independent assessment of the income in respect of
borrowers other than salaried class and record the income while appraising the
proposal. The aspects such as net worth of the borrower, outstanding liabilities if any,
of the applicant and other family members shall also be looked into while deciding on
the eligible limit.
Interest Rate:
The interest rate for GCC is Base Rate plus 0.50 % (floating), presently 10.75%.
Margin and Security:
No margin or security shall be insisted. However, borrowers may be encouraged to open
Pigmy / Cumulative Deposit accounts subject to availability of adequate surplus income.
Sanctioning Powers:
Branch Heads in scale I, II and III are empowered to sanction up to Rs.25,000/ per
borrower under Syndicate General Credit Card Scheme. However, need based limit taking
into consideration of the cash flow and repaying capacity of individual borrower is to be fixed
not exceeding the prescribed limit of Rs.25,000/-.
Service charges:
At present Service charge is not applicable as GCC is classified under Priority Sector
Advances.
Issue of credit card:
Under the scheme, the beneficiaries will be issued credit card (in the form of pass book)
incorporating name, address, employment details if any, borrowing limit, validity of the card
etc. The borrower would be required to produce the card whenever he/she operates the
account. Withdrawal in the account will be through withdrawal slips accompanied by SGCC pass
book.
85
Validity of the limit:The SGCC will be valid for 3 years subject to annual review. Interest
should be serviced every month.
Review and Renewal of the limit:
The loan account shall be reviewed at the end of first year to satisfy that the conduct of the
account is satisfactory such as regular servicing of interest and regularity of other liabilities
with the Bank, if any, and that the income derived by the borrower is sufficient to service the
debt. If these three conditions are complied, the account may be allowed to be operated in
the following year after obtaining balance confirmatory. If balance confirmatory in the
prescribed format is obtained every year, it will amount to acknowledgement of debt and
hence the documents can be kept alive for a period of three years from the date of obtaining
balance confirmatory.
Acknowledgement of debt shall be obtained during the third year, at least 6 months prior to
the expiry of documents under law of limitation, if balance confirmatory could not be obtained
as stipulated above for any reason.
If the interest is not serviced for over 90 days, immediate steps shall be taken to initiate
recovery measures and no further operation should be allowed in the account.
At the end of the third year, fresh assessment of the limit shall be undertaken and fresh
documentation shall be obtained.
Application cum Appraisal form:
A simplified application cum sanction format is appended (Annexure -1) to this circular and
Branches are advised to make use of the format for sanctioning proposals under Syndicate
General Credit Card Scheme. Branches shall ensure that signature of the borrower/ guarantor
is obtained in the application cum appraisal form indicating the acceptance of the terms and
conditions of the sanction.
Documentation:
Along with the above format, Demand Promissory Note (DPN-ASD-I) & ASD- 2 shall be
obtained.
Coverage under CGTMSE:
In eligible cases, GCCs sanctioned for Micro and Medium Enterprises are to be covered under
CGTMSE invariably.
Other terms & conditions:
In case of salaried class, as far as possible, it should be ensured that salary is credited
to his SB Account with the Branch.
A credit worthy person shall join the transaction as surety when the limit exceeds
Rs.10,000/-. In respect of women beneficiaries, there is no need to obtain surety.
Classification and Reporting:
Branches may note that 100% of the credit limit sanctioned and outstanding under the scheme
is eligible for classification as indirect finance to agriculture and therefore, Branches are
advised to report both disbursement and outstanding under the scheme in AR-1106(ADV
21/49) statement under new code 0216.
86
Asset classification:
Asset classification will be as per prudential norms applicable to overdraft scheme and the
same shall be scrupulously followed.
APPLICATION FOR SYNDICATE GENERAL CREDIT CARD

The Sr./Branch Manager
SyndicateBank
_________________________Branch.
Photo of the
Applicant
I /We hereby apply for a limit of Rs. __________ (Rupees ____________________

_____ only) under Syndicate GCC Scheme and furnish below the necessary particulars.
1. Applicant/s Name & Address :Date of
Fathers/Husbands
Name
Sex
Occupation
Birth & Age
Name
i)
ii)
Door
No.
Village
Post & Pin

Code
Taluk
i)
ii)
2. Details of Co-obligants/Guarantor/s :Name
Age
Fathers/Husbands Name
District
Occupation
State
Contact No.
Full Address & Contact

No.
Place:
Date:
Signature of Applicant/s.
---------------------------------------------------------------------------------------------SANCTION
We have verified the identity and other details given in the loan application.
A limit of Rs.________ (Rupees ____________________________only) is sanctioned
to Sri /Smt__________________________ under Syndicate General Credit Card with
Sri/Smt __________________________________ as Guarantor/Surety, at _______
% interest taking into consideration the cash flow & repaying capacity of the applicant.
Signature of the Appraising Officer
Signature of the Sanctioning Authority
(Name of the Officer)

Place:
(Name of the Sanctioning Authority)

Date:
87
---------------------------------------------------------------------------------------------Accepted the terms and conditions of sanction.

Place:
Date :
Applicant/s
Guarantor/Sure
FINANCING OF SELF HELP GROUPS

REVISED GUIDELINES ON SHG BANK LINKAGE PROGRAMME
O
GoI and RBI have been emphasizing on SHG Bank Linkage as it is a means to facilitate Financial
Inclusion and access of banking credit to economically and socially weaker section of the
society. Based on various studies by RBI/NABARD, linking of SHGs with banks is found to be a
cost effective, transparent and flexible approach to cover larger number of rural poor in lesser
number of transactions. Experience has shown that the group dynamics and peer pressure have
brought in excellent recovery from members of SHGs. Government sponsored schemes like
SGSY and PMRY included SHGs for assisting the weaker section and unemployed.
Banks were advised to meet the entire credit requirements of SHG members namely,
(a) Income generation activities,
(b) Social needs like housing, education, marriage, etc. and
(c) Debt swapping in consonance with the policy announcement in Union Budget for the year
2008-09.
Keeping in view the guidelines issued by RBI and to give a major thrust to formation and linkage
of SHGs, GoI has now decided to do away with the practice of sanctioning term loans to SHGs
to further reduce the transaction cost to the Banks, save the time of Bank staff as well as to
reduce the cost, time and inconvenience to SHG members.
In tune with the decision, GoI has directed the Banks that:
1. Henceforth, all SHGs will be sanctioned only Cash Credit Limit to enable them to deposit
their surplus money in the Bank as and when they have.
2. In so far as existing SHG term loans are concerned, it was directed that all these term
loans are to be converted into cash credit limit by 31st December 2011.
3. The guidelines laid down by the RBI permits sanction of credit in the ratio of 1:4. To
simplify procedures, the Banks will sanction cash credit limit for the amount which a Group
will be entitled to have in the ratio of 1:4 after savings of 5 years (i.e. based on the
projected savings for 5 years at the prevailing rate). However, disbursement limit would
be sanctioned after six months and thereafter reviewed each year in the ratio of savings
as prescribed by RBI. This will help to avoid repeated documentation which involves lot of
activity for the Group as well as for the branch of the Bank.
4. Wherever internal guidelines of the Bank permits to go beyond the ratio of 1:4, the same
will be applied in all cases-existing and new.
However, as permitted by DFS, MoI, GoI, vide BC-153/2012, the following category of SHGs
are to be sanctioned term loans only.
88
i.
Credit facilities sanctioned to Self Help Groups under Government

Sponsored Schemes, which have back ended subsidy and release of subsidy is contingent on
repayment of term loans, can be extended in the form of term loans.
ii.
Similarly, term loans can be extended to those Self Help Groups who
undertake a group activity and the loan is taken from the Bank for such group activity.
iii.
In all other cases, credit facilities to Self Help Groups will be sanctioned
in the form of cash credit only. However, the members, inter-se, will get a term loan from
the group. All other extant guidelines on SHG-Bank Linkage programme shall remain
unchanged.
In view of the above directive, revised operational guidelines on SHG-Bank linkage programme
are furnished below for implementation by Branches/Regional Offices:
Lending Norms:
o To ensure quality of lending to SHGs, the grading/rating system and processing of the SHG
loan proposal as prescribed vide our Cir No.137/2006/BC shall be adhered to.
o SHGs which have satisfactorily functioned for six months or more and secured A or B
rating, as per the grading/rating system, shall be given a limit up to 4 times the savings to
begin with.
o Repeat finance i.e. second and subsequent dose of assistance to the same group, relaxation
in savings to credit ratio is permitted up to 1:10 for A or B grade SHGs having a good track
record and working satisfactorily. Branches shall exercise due care to make a thorough
study and satisfy the quality of the group and its sincerity in implementing Micro credit Plan
(MCP) in the past.
o Only need based credit limit shall be extended within the prescribed ceiling as above.
o Purpose of loan to be availed should be decided by the SHG through democratic manner /
consensus of its members in the group meeting. However, the SHGs should be encouraged to
use the bank loan for productive purposes and to use the internal savings for issuing loans to
the needy members for meeting their emergent needs.
o The credit needs of its members has to be assessed by the SHG in the group meeting and
the purpose, loan amount member wise is recorded down as Micro Credit Plan(MCP) in the
minutes of the meeting. The specimen of a simple MCP is furnished in Annexure. The copy of
MCP so prepared and resolution passed to avail bank loan shall be obtained along with the
loan application.
o The loan applications from SHGs promoted by intermediary agency like NGO/VA/SHPI shall
be obtained with the sponsoring letter as prescribed vide Annexure.
o The antecedents/credentials of intermediary agencies shall be properly verified and
accepted for collaboration, if they satisfy the following:
a) Good track record
b) A proper system of book keeping and audited balance sheets for last three years
c) Basic financial management capability
d) Approach of promoting and working with groups of people belonging to weaker sections.
Rate of Interest:
Bank to SHGs As per Cir No.177/2011/BC i.e. BR+1.50% p.a. presently 12.0%. Rate of Interest
to be charged by SHGs to its members is as decided by the SHGs.
Margin:
i) Up to 3.00 lakh NIL.
ii) Above 3.00 lakh 5 10% of Project Cost.
Project Cost is total credit requirements of the group as per resolution/Micro Credit Plan
89
Security:
i) Up to 5.00 lakh Group guarantee or assets created out of bank loan as primary security.
ii) Above 5.00 lakh In addition to the primary security as above, other collateral security of
adequate value in the form of Insurance Policy, other marketable security, mortgage of other
property etc. shall be taken. Net loan limit after deducting margin and subsidy if any from the
project cost shall be reckoned for the purpose of deciding limit for obtaining security.
Repayment of Loan:
If extended in the form of cash credit: The bank loan extended to SHG as cash credit is
valid for 3 years and subject to annual review. However, Branches shall take fresh documents at
the end of the third year. On verifying and ensuring the satisfactory performance, branch shall
decide to permit withdrawal up to the staggered limit determined for each year against actual
savings held at the time of annual review. Interest shall be serviced by the SHGs as and when
due on half yearly rests if it is under Agricultural Credit or monthly rests in other category.
The SHG would free to prescribe appropriate repayment period as determined by the group for
the loan availed from SHG by its members.
If extended in the form of term loan: In monthly/ half-yearly/ yearly installments depending
upon the activity.
Sanctioning Powers: As per Cir No.79/2012/BC.
Loans to SHGs (Both General as well as under
Government. Sponsored Schemes)
10.00 lac
7.50 lac
6.00 lac
Application/Documentation:
i) Application AF 675
ii) Documents AF 676 - Common Inter-se-Agreement (To be executed by all members of
SHG), AF 677 Articles of Agreement for financing SHGs.
Service Charges: As per extant guidelines.
Classification & Reporting: As per Cir No.311/2009/BC.
For farm loan cash credit- Reporting code in 21/49 is 0118.
For non-farm loan cash credit-Reporting code in 21/49 is 0601.
Existing Term Loans to SHGs:
As per Govt. of India directive, all existing term loans to SHGs (other than excluded category
of SHGs) have to be converted into cash credit limit. As a one time measure, all existing term
loans to SHGs excluding NPA accounts shall be converted by arranging fresh cash credit limits
adhering to the above lending norms subject to the following:
o Purpose of loan shall be mentioned as For closure of existing term loans as a one time
arrangement as per the direction of Govt. of India in application and documents wherever
applicable. SHGs shall be advised to pass a resolution requesting the Bank to convert their
existing term loan into a cash credit limit and a copy of the resolution shall be obtained
along with the application. The copy of the resolution shall be kept with loan documents.
o If the SHG is unable to pass a resolution due to the demise of members/ entry of new
members or any other reasons, the a/c shall not be converted into cash credit limit.
o In case of SGSY/SJSRY/PMRY loans, cash credit shall be arranged and the subsidy in
reserve fund account shall be adjusted to the cash credit account only after the prescribed
repayment period for the term loan is over.
o In case of NPA accounts, efforts shall be made to upgrade the account and fresh cash
credit limit as above shall be provided only after the account is upgraded to PA status.
90
New Products for SHG-Cash Credit Limits:

Branches are advised to make use of the following newly created products for arranging cash
credit limits to SHGs.
1. Non-farm loan-Secured Cash Credit-SHG: 137
2. Non-farm loan-Clean Cash Credit- SHG: 138
3. Farm loan-Cash Credit-SHG: 139
All other extant guidelines of SHG-Bank Linkage programme shall remain unchanged.
ANNEXURE I
RATING CHART FOR SELF HELP GROUPS (SHGs)
Name of the Branch:
Name of the SHG:
S
N
1
1
Category
2
3
Composition Members are
(a) homogenous
b) No homogeneity
Age of the a).One year and above
Group
b)Six months and above but
less than a year
(marginal shortfall up to one
month may be ignored)
Weekly
a) Four meetings per month
Group
Meetings
b) 2-3 meetings per month
Attendance
Minutes
Book
Members
participatio
n in group
discussions
Criteria
Marks
Key
5
The rating is based on the
judgment of assessing
official.
There is no need to evaluate
an SHG if it is less than six
month old
10
3
10
5
10
8
c) 1 meeting per month
a).More than 90%

b) Between 70% and 90%.
c) Less than 70%
a) Written in detail
b) Maintained (but not in
detail)
Participation by
a) More than 75%
b) between 50 to 75%
c) Less than 50%
10
5
3
10
5
10
8
5
Savings
a).4 times a month
(Frequency) b) 2-3 times a month
c) Once a month
Savings and a) Collected in group
10
8
5
10
91
The total number of

meetings conducted during
the last 3 months may be
divided by 3 to arrive at
average number of group
meetings.
See explanation 1 at the
end.
Peruse minutes book
pertaining to meetings held
during the last 3 months.
1. Peruse minutes book (If
rating is 10 for item 5)
2. Observe during a couple
of group meetings.
3. Interact with members
This can be verified by
referring to Minutes book &
savings ledger
Ascertain from group
Marks
Scored
6
1
10
11
Loan
recovery
(mode of
collection)
Style of
functioning
and group
decisions
meetings.
b) House to house collection.
a) Democratic and transparent

b) Decisions taken by few
dominant members / group
leaders.
10
2
Sanction
and
Disbursement of
internal
lending
3
Whether Sanction/
disbursement of loans and its
terms & conditions are
discussed in group meetings
and recorded in minutes book?
a) Yes
b) No
Interest on
internal
lending
a) Uniform rate irrespective of

source of funds.
b) Different rates depending
on source of funds.
a) Interest rates vary according to the purpose of loan.
b) Uniform interest rate for all
purposes.
a). Above 80%
b) Above 50% and up to 80%
c) Less than 50%
12
Turn over of
savings for
internal
lending
13
Recovery of
internal
loans.
14
15
Books of
accounts
Bylaws /
group rules
a)
Dues not
recovered in respect of
10% or less of the total
number of loan
accounts
b) Dues not recovered
between 10% and 30% of
the total number of loan
accounts
a). Attendance cum minutes
book
b) Savings Register
c) Loan ledger
d) Bank passbook
a) Framed and known
to all members.
b) Framed and known to some
of the members (Less than
50% of the members)
c) Not framed
10
0
5
3
5
leaders and members in this

regard. Also peruse
minutes book
Peruse minutes book.
Interact with members.
Observe in few group
meetings. Ascertain whether
periodical elections are
conducted for the leadership
and whether all decisions are
in-group meetings and on
democratic lines.
5
a) Ascertain the position from
group leaders / members.
b) Peruse minutes book (each
item will get marks shown
against it, if the conditions
are satisfied)
Peruse loan registers.

Ascertain from group
leaders / members.
3
10
5
3
10
5
3
3
3
1
10
Compare savings outstanding on a given date with loans

outstanding on the same date
to obtain the percentage.
Even one instalment unpaid
without authorization by the
group is to be treated as dues
not recovered. Count such
accounts and compare them
with total number of loan
accounts. Also peruse
minutes book for
authorization for nonpayment.
Each record / register if
maintained properly and up to
date will get marks shown
against each.
Ascertain from the members
through interaction.
0
150
Total Marks
Selection Criteria of SHG for Linkage to Bank Loan:

1.
Grade A: SHGs scoring more than 120 marks can be selected for
finance without any reservation.
2.
Grade B: SHGs scoring between 100 to 120 marks can be selected
with caution.
3.
Grade C: SHGs scoring less than 100 marks need improvement
before linkage. The areas of improvement may be apprised to leaders/ members of the group and
evaluation may again be taken by after three months.
92
Explanation 1: Formula for calculation of percentage of attendance:

(Total No. of Members attending meetings during last three months)
X 100
(Total No. of Members in the group) X (No. of meetings held during the last 3 months)
Date:
ASST./MANAGER
93
BRANCH HEAD
ANNEXURE - II
CHECK LIST FOR MEASURING THE MATURITY AND ELIGIBILITY OF SHG
Sl.
No.
1
2
3
4
5
6
7
8
10
11
12
13
14
Yes/
No
Rating Parameters
Remarks
Is the Group more than six months old?

Does the SHG meet regularly i.e.,
weekly/fortnightly/monthly?
Whether the attendance in the group
meetings is more than 90%?
Whether the attendance/minutes book is
written in detail?
Whether all the members of the SHG
participate in group discussions?
Whether all the members save regularly i.e.,
weekly/fortnightly/monthly?
Whether the savings and loan recovery are
collected in group meetings?
Whether the SHG is functioning on
democratic lines and decisions are
transparent?
Whether sanction and disbursements of loans
done in group meetings after discussions and
based on group decisions?
Whether the SHG charges uniform interest
rates on loans irrespective of source of funds?
Whether the SHG has utilised more than 80%
of the savings for loaning?
Whether the defaults in the loan accounts are
less than 10% of total number of loans?
Whether all the books of accounts are written
properly and upto date?
Whether the SHG has formed its own byelaws
and the contents are known to all members?
HOW TO RATE THE SHG
If answers to all or most of the above questions is
YES, then the SHG can be considered a matured
group.
The questions responded with answers NO, are the
areas the group needs to improve.
DATE:
ASST./ MANAGER
94
BRANCH HEAD
ANNEXURE III
Process note for Self Help Groups under General Category
BIC: _________
Date on which the Manager/Asst. Manager attended the Group meeting: ________
Sl
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Particulars
Remarks
Name of the SHG

Village / Block
Office bearers of the Group
(Names of the Representatives )
Date of formation of the Group
Number of members
Category
Membership consists of
Whether all members are in the BPL list.
No. of members who are in the APL category
Date of opening SB A/c with the Bank and SB
A/c No.
Frequency of the group meetings
Regular day/date of meeting
Whether byelaws of the group are finanalised
and the Branch has the copy of the same
Amount of savings fixed
15
16
17
Total No. of meetings conducted so far

Whether meetings conducted as per schedule
No. of meetings attended by the Branch
Manager
18 Amount of total savings made so far
19 Whether savings contributed by the members
regularly?
20 Internal lending
a) Total amount lent to members so far
b) Amount outstanding with the members
c) Recovery performance in percentage
d) How many members have availed loan so far?
e) Managers observations on recovery of internal
lending
21 Maintenance of records by Group
a) Meeting proceedings recorded
b) Savings and Loan Registers maintained up-todate
c) Byelaws formed and recorded
d) Bank SB Pass Book maintained up-to-date
e) Managers comments on the maintenance of
95
1.
2.
3.
SC/ST/OBC/General
Men/Women/Mixed
Yes/No.
Weekly/Fortnightly/Monthly
Yes/No.
Rs.
per week /fortnightly/
monthly.
Yes/No.
Rs.
Rs.
Rs.
Yes/No.
Yes/No.
Yes/No.
Yes/No.
records
22 Name of the NGO promoting the group and its
background
Sl.
23
a)
b)
i)
i)
iii)
iv)
v)
vi)
vii)
b)
c)
d)
e)
f)
Particulars
About the new loan proposals submitted
Date of receipt of loan applications
Whether applications accompanied by
Relevant resolutions to avail loan
Interse agreement executed by all members
Whether grading exercise completed
Grade obtained (Whether A or B)
Purpose of loan
Amount of loan applied for
Assessment of loan requirement:
Balance in SB A/c of the Group:
Amount outstanding with the members out of
internal loaning:
Cash in hand:
Grant/ aid received from outside agency, if
any:
Total savings
Loan eligible: (Up to a maximum of 4 times the
total savings)
Recommendations on the loan:
Amount of loan recommended/ sanctioned:
(The amount shall be up to a maximum of 4 times
the total savings or amount applied for whichever
is less)
Rate of interest:
Release schedule:
Repayment Schedule:
Security:
Other terms and conditions:
g)
Specific remarks / opinions:
24
a)
Date:
96
Remarks
Yes/No
Yes/No
Yes/No
On lending to members
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
ASST. MANAGER
SANCTIONING AUTHORITY
ANNEXURE IV
Process note for Self Help Groups under Govt. Sponsored Schemes
BIC: _________
Date on which the Manager/Asst. Manager attended the Group meeting:_______

Sl.
1
2
3
Particulars
Remarks
Name of the SHG

Village / Block
Office bearers of the Group (Names of the
Representatives )
4
5
6
7
8
9
10
11
Date of formation of the Group

Number of members
Category
Membership consists of
Whether all members are in the BPL list.
No. of members who are in the APL category
Date of opening SB A/c with the Bank & SB A/c No.
Frequency of the group meetings
12
13
Regular day/date of meeting

Whether byelaws of the group are finanalised and
the Branch has the copy of the same
Amount of savings fixed
14
15
16
17
18
19
20
a)
b)
c)
d)
e)
21
a)
b)
Total No. of meetings conducted so far

Whether meetings conducted as per schedule
No. of meetings attended by the Branch Manager
Amount of total savings made so far
Whether savings contributed by the members
regularly?
Internal lending
Total amount lent to members so far
Amount outstanding with the members
Recovery performance in percentage
How many members have availed loan so far?
Managers observations on recovery of internal lending
Maintenance of records by Group
Meeting proceedings recorded
Savings and Loan Registers maintained up to date
97
1.
2.
3.
SC/ST/OBC/General
Men/Women/Mixed
Yes/No.
Weekly/Fortnightly/Mon
thly
Yes/No.
Rs.
per week
/fortnightly/monthly.
Yes/No.
Rs.
Rs.
Rs.
Yes/No.
Yes/No.
c)
d)
e)
22
Byelaws formed and recorded

Bank SB Pass Book maintained up to date
Managers comments on the maintenance of records
Name of the NGO promoting the group and its
background
Sl. No.
Particulars
23
For SGSY/SJSRY Group loans
a)
Date of first grading
b)
Grade obtained
c)
Date of release of revolving funds
d)
Balance in revolving funds
e)
Operations in revolving funds (Whether
briskly operated or not)
f)
g)
h)
24
a)
b)
i)
ii)
iii)
iv)
c)
d)
Date of second grading

Grade obtained
Date of orientation/skill training imparted to
the group
About the new loan proposals submitted
Date of receipt of loan applications
Whether applications accompanied by
Relevant resolutions to avail loan
Interse agreement executed by all members
Whether Grading chart enclosed
Whether Micro credit plan / Project report
enclosed (for SGSY/SJSRY/RMGs) if so,
Project cost
Subsidy
Margin
Bank loan
Purpose of loan
Amount of loan applied for:
25
Comments on technical feasibility and viability of the project in

the case of SGSY/SJSRY/RMG group loans - enclose separate
sheet and work out economic of the project
26
Recommendations on the loan:

Amount of loan recommended/ sanctioned:
Rate of interest:
Release schedule:
Repayment Schedule:
Security:
Other terms and conditions:
Specific remarks / opinions:
a)
b)
c)
d)
e)
f)
g)
Date :
98
Yes/No.
Yes/No.
Remarks
Rs.
Yes/No
Yes/No
Yes/No
Yes/No
Rs.
Rs.
Rs.
Rs.
Rs.
ASST. MANAGER
SANCTIONING AUTHORITY
99
Indirect finance to agriculture:

Indirect finance to agriculture provides good potential for increasing total credit to
agriculture. This plays a major role in fulfilling 18% stipulation for bank as a whole, as 4.5%
out of 18% is allowed to bridge by indirect finance to agriculture. With a view to augment the
credit disbursal under this important segment, Bank vide 304/2010 BC dated 20/11/2010
communicated separate interest rates for the advances coming within the purview of this
segment. The gist of the circular reproduced below for immediate reference of the branches
to explore the potential effectively.
A: Activities which can be financed under Indirect Finance to Agriculture:
1. Credit for purchase and distribution of fertilizers, pesticides, seeds, etc.
2. Loans up to 40 lacs granted for purchase and distribution of inputs for the allied
activities, such as, cattle feed, poultry feed, etc.
3. Loans to food and agro based processing units with investments in plant and machinery up
to 5.00 Crore.
4. Finance extended to dealers in drip irrigation/sprinkler irrigation system/ agricultural
machinery, irrespective of their location, subject to the conditions: (i) the dealer should
be dealing exclusively or if dealing with other products should be maintaining separate
and distinct records and (ii) A ceiling of up to 30.00 lac per dealer
5. Finance for setting up of Agri-clinics and Agri-business Centres.
6. Finance for hire purchase schemes for distribution of agricultural machinery and
implements.
7. Loans for construction and running of storage facilities (warehouse, market yards,
godowns and silos), including cold storage units designed to store agriculture
produce/products, irrespective of their location.
8. Advances to Custom Service units managed by individuals, institutions or organizations
who maintain a fleet of tractors, bulldozers, well-boring equipment, threshers, combined
harvesters etc. and undertake work for farmers on contract basis.
B: Rate of interest for indirect finance to agriculture:
Size of limit
Interest Rate (121/2013 )
Upto Rs.50000
BR+0.50
Up to Rs. 10 lacs
BR + 1.00%
Above Rs.10.00
Synd 1
Synd 2
Synd 3
Synd 4
Synd 5
Synd 6
Lacs
Upto Rs.100 lacs
BR+1.25 BR+1.25
BR+1.50
BR+1.50
BR+2.00
BR+2.00
Above Rs.100 lacs BR+2.00 BR+2.00 BR+2.50
BR+2.50
BR+3.00
BR+3.0
We come across dealers/ traders in fertilizer & pesticides, input for allied activities,
pumpsets, sprinkler & drip irrigation in all major centers including rural and semi urban
areas. Therefore, while there is a little scope in Rural centres, Branches in urban and
semi urban centers have to play a major role under to achieve higher targets. crore
under Indirect Finance to agriculture. Branche are aware that Balance outstanding
under GCC are also part of Indirect Finance to agriculture.
100
SyndicateBank
Regional Office, Panaji
Financial Inclusion Programme Opening of settlement accounts of BC Agents (BCA).
<<>>
HO cir. No. 73/2011/BC dated 21.03.2011 issued detailed guidelines on the implementation
of Financial Inclusion Programme. In this regard, we wish to inform that ___ FI Villages in
our Region having population over 2000 have been selected under FI in the first phase.
Out of these, _ FI branches have been opened and in the remaining villages Customers
Service Providers (CSPs) are appointed by the Technology Service Providers (TSPs) viz.
Smart Chips Ltd.) and Bartronics India Ltd.
FI Branches are aware that the TSPs have already appointed the Customer Service
Providers (CSPs) at the village level and started opening of No Frills Accounts (NFAs) in
these villages. Further, the TSPs have also prepared smart cards in many of these
accounts. The transactions have to take place between the customer and the bank
through CSP using Biometric based smart cards. For this purpose each CSP will be
provided with funding of initial cash limit of Rs.10,000/-. In order to segregate BCA
accounts for MIS purpose and also to enforce better control, a separate product is
created under which settlement accounts of BCAs are opened. The salient features of
the product are as under:
Name of the product
Product Code
Minimum Average Balance (MAB)
Charges
for
non-maintenance
Minimum Average Balance
Cheque Book facility
Charges for ledger folio
Cash handling charges
Service Charges
Internet Banking facility
of
Settlement Account of BCA

318
Zero
Zero
No
Nil
Nil
Nil
To be provided and branches should ensure
to provide only enquiry facility and NOT to
provide transaction password.
Branches are advised to note the following guidelines1. FI branches shall use this product to open Settlement Accounts of BCAs exclusively.
2. Only FI transactions initiated through Hand Held Machines (HHMs) and cash
deposits/ withdrawals are permitted in these accounts.
No other types of
transactions are permitted to be posted to these accounts.
3. To facilitate dispensation of cash to the customers at field level, cash limit of Rs.
10,000/-is to be created in BCAs account by following the guidelines and also after
observing the KYC requirements.
Immediately after opening the Settlement Account, branches are advised to create a
limit with the following values.
101
(i) Limit amount

(ii) Start date
(iii) End date
(iv) Internet Index code
(v) Fixed rate
(vi) Interest variance
(vii) Effective rate of interest
Rs. 10,000/Date of limit creation

31.12.2050
Zero having 0%
0%
0%
0%
It may please be noted that a limit of Rs. 10,000/- only need to be created
though system permits to create limit for any amount. If the amount exceeds the
limit, system during the validity of the limit, charges interest at 2%. If the limit is
expired or no limit is created, the system will charge interest at Base rate plus 8.75%
on the entire debit balance. Hence, always the balance in the account shall be well
within the limit to avoid charging of the interest.
4. No personal transactions of BCA are permitted through the Settlement A/c.
5. As informed, branches are advised to take a term deposit of Rs. 10,000/- at the base
branch for a period of 3-5 years from BCA, which will earn interest as per prevailing
deposit schemes of the Bank. This deposit of BCA will be lien marked by the bank for
the cash limit to be extended through the settlement account. A letter indicating the
willingness of BCs, for offering his deposit for lien marking towards the cash limit to
be extended, is to be held on records by the branch. For convenience and easy
identification, the account may be titled as Name of the TSP-village name e.g.
Bartronics-xyz Village BC or Integra-xyz Village BC etc.
6. The Settlement Account may be opened by TSP itself, with an authority to operate
the account executed in favour of BCA. Alternatively, the account may be opened by
BCA himself with the written consent by the TSP giving the particulars of the BCA
appointed by them.
7. Initial funding is made, by the branch by debiting the Settlement account of BCA to a
maximum extent of Rs. 10,000/-. However, if the entire limit of Rs. 10000 at once,
BCA will not be able to accept further deposits from the customers, since the
maximum cash holding limit crosses cumulative limit of Rs.10,000/-. It is therefore
recommended that only about 50% i.e. about Rs. 5000/- is drawn from the account to
facilitate acceptance of deposits from the customers. However, this proportion can be
decided based on the deposit/withdrawal pattern at the individual village.
8. Nomination facility is not permitted to Settlement A/c. of the BCA.
9. Branches are advised to open the settlement account of the BCAs under the above
mentioned product unfailingly.
Branches shall take immediate action to open settlement accounts in respect all the
BCs attached to them.
102
SyndicateBank
Extending Credit Facility to the CSPs/BCAs for purchase of Micro ATM Kit and
working capital to facilitate customer transactions
<<>>
Branches are aware that the TSPs have engaged CSPs/BCs in all the FI villages allocated
to various base branches in the Region. Though Bank has no direct relationship with CSPs,
they may request for credit facility for purchase of Micro ATM Kit and to meet the
working capital expenses. In order to entertain the request for credit facilities of
CSPs/BCs, our bank has issued guidelines as under:
01
02
03
04
Scheme/ Product
Quantum of loan
Classification
Rate of interest
:
:
:
:
05
06
07
Margin
Processing Charges
Security
:
:
:
08
09
Application
Process Note
:
:
10
Other terms
SyndMSE Scheme (Product Code-791)

Rs. 20000
Micro (Service) Enterprises under Priority Sector
BR + 0.50 (Tenor premium of 0.25% shall be added for loans
repayable beyond 36 months)
No margin since loan is for less than Rs. 25000
No processing charges since the loan is less than Rs. 25000
Only assets created out of Bank loan.
No collateral and no guarantors shall be obtained to be
eligible for coverage under CGTMSE.
AF-708, a copy of the same is enclosed
Simplified process note as per Annexure to 287/2011 shall
be used for processing. A copy of the same is enclosed.
1. The TSP shall give an introduction cum recommendation
letter to the disbursing branch along with an
undertaking letter to buyback the equipment and to
repay the entire loan amount in the event of
resignation/ termination of the TSP.
2. TSP shall give an undertaking letter to remit the
commission/remuneration payable to the CSP to the
Branch directly towards the credit of his account and
CSP shall give an authorisation to the Bank to deduct
the loan instalment and interest from this account.
3. Advances granted under this scheme are to be
invariably covered under CGTMSE.
4. It is optional for the CSPs/BCs whether to avail the
loan or not.
5. Branches are permitted to arrange facilities only to the
CSP/BC of FI villages allocated to that branch only.
Branches are advised to provide the required facilities to the CSPs/BCs as per the
provisions of the above scheme for smooth implementation of Financial Inclusion
Programme.
103
SyndicateBank: Regional Office, Panaji

Financial Inclusion Plan Operationalisation of Online Interface
Branches are aware that FI Plan is implemented in all villages of more than 2000 population. Presently, FI
transactions, done by customers at field level, are uploaded to Banks CBS system at the end of the day
through GEFU. Once day-end routine is completed at the Technical Service Providers (TSP) end, they
provide a list of transactions to the Bank. Transaction file received by the Bank is then used to prepare
the branch-wise GEFU files for uploading.
In the above process, it is observed that some branches down load GEFU files on the same day but upload
to CBS on the following day or some times branches are not receiving GEFU files due to non-availability of
IP or at times, branches have already completed the Branch Batch (BB) closure etc. This is leading to
mismatch of closing balances available with the Bank and TSPs which may result in the accounts going
to debit balance etc.
In order to automate the process and to account FI transactions to CBS System online, an online interface
module is developed and will be put in place soon. Suitable checks and balancings are also incorporated so
that the transactions are validated before accounting the same in the Banks CBS system. The following
points may please be noted in this regard:
1.
2.
3.
4.
5.
6.
7.
8.
Front end screens are provided for registration of

(a) BC like Bartronics, Smartchips etc, (b) BCA/CSP i.e. Agents appointed by BC,
(c) FI Customers, (d) Hand Held Terminals (HHM) of BCA/CSPs.
Each BCA/CSP appointed is to be linked to their respective BCs with details of Settlement A/c of
BCA/CSP.
Each HHM held by BCAs is to be registered with its Terminal-ID and Name of the Village, Base Branch etc.
Each Customer account is linked to a BC and his appointed BCA/CSP. Smart card number of the
account holder is to be captured during customer registration.
Settlement A/c of BC has to be necessarily opened under Product Code 318 and a debit limit of
Rs.10,000/- is to be created, to fund physical cash to BCA/CSP for field operations, after obtaining
security in the form of a lien marked Term Deposit or a Bank Guarantee in favor of the Bank etc. Also,
personal transactions of BCA/CSP shall not be routed through Settlement A/c and is to be strictly used
for accounting FI related transactions only. If Settlement A/c is opened in any other product code, the
same needs to be closed or product modified, in consultation with CO:DIT:CASA Team and to ensure that
the Settlement A/c is under product code 318 only.
Necessary checks have been incorporated in online interface module and if Settlement A/c is not
under product code 318, the transactions done by the customers at the field level will not be
accounted in Banks CBS system. Since most transactions take place in offline mode, due to nonavailability of network; and that BCA/CSP could have already accepted/paid cash to customers and issued
printed receipts; disallowing such transactions for want of Settlement A/c under product code 318 may
lead to financial loss to the Bank, apart from inviting customer complaints, queries from RTI, Ombudsman
etc.
Since Bank has already issued smart cards and commenced field transactions, it is absolutely
necessary to populate requisite details of BC, BCA, Terminal-IDs and customer registration as a
onetime measure. In respect of enrolments to be done henceforth, branches are advised to complete the
above mentioned process once customer accounts are opened in Banks CBS system immediately after
GEFU upload.
Up-to-date information, as on a particular cutoff date is to be updated in the CBS system so
that none of the field transactions are declined. Hence, requisite caution is to be exercised and correct
details are populated. For guiding the branches in this regard, CO:DIT:ATM Group will be issuing detailed
operational guidelines, with screen shots, to complete the process in a time bound manner.
All FI Branches are advised to take immediate steps to complete the task mentioned above in a time bound
manner so that online interface module can be operationalised. It may be noted that once cut off date is
announced by DIT there will not be any modification as it may affect functioning of other branches. We
got information that CO: DIT will be announcing cut off date shortly.
SyndicateBank
104
Scheme for Incentivising BCs/CSPs

<<>>
Our CO: FID vide their letter No. 110/FID/2044/CO/2012 dated 03/02/2012 informed
that the Board of Directors of our Bank has approved a scheme extending incentives to the
BCs/CSPs engaged by our Bank/ TSPs in implementation of Financial Inclusion Programme of
the Bank.
The scheme has been devised to motivate them to get actively involved not only in the
functions that they are presently engaged in but also to cover other related functions such
as promoting and nurturing SHGs/JLGs, recovery of NPAs and written off accounts, assist in
processing of loan applications, mobilizing savings and credit products, etc by broadening
their existing roles. The Scheme aims at supplementing their income and give them regular
source of income so that their services will be available continuously to the Branches.
As per the scheme, the following incentives are made available to the BCs/CSPs:
Sl Type of activity
Quantum of Incentive
01 For approved/ disbursed loans
0.50% of loan amount
02 Rejected loan applications
Rs. 10/- per application
(on technical grounds)
03 For promoting SHGs/JLGs and their
Rs. 500 per SHG/JLG
credit linkage
04 Recovery of written off accounts
10% of the amount recovered
05 Recovery of NPAs
a. For substandard assets
1.0% of the amount recovered
b. For doubtful assets
3.0% of amount recovered
c. For loss assets
5.0% of the amount recovered
Mechanism for payment of incentive:
The Branches shall prepare a schedule every month indicating the BC/CSP wise activities
completed and compute their eligibility for incentive and submit the same to RO as per the
format in Annexure-1.
RO shall verify the correctness of the eligible amount and accord sanctions. As regards
mode of release of payment to BC/CSP, further instructions will be communicated shortly.
RO will fix targets to BC/CSP and communicate the same to the Branches shortly.
Branches shall extend required guidance to the BC/CSPs to achieve good turn out of work
under various parameters and achieve the targets.
This scheme provides good scope for the branches to utilize the services of the BC/CSP in
exploring the business potential in FI villages. Branches shall brief the scheme details to the
BC/CSPs of FI villages attached to them and take full advantage of the BC/CSPs to implement
explore potential under various FI products.
105
ANNEXURE-1
CLAIM FOR SANCTION OF INCENTIVE AMOUNT TO BC/CSP FOR THE MONTH OF
________________
NAME OF THE BRANCH
BIC NO.
Name of the business correspondent
Mobile /Phone No.
SB A/c Number
Working as BC at the Branch since
Name of the FI village/ village attached
Particulars of the work done during
the month qualifying for incentive
a.
b.
c.
d.
e.
h.
i.
j.
Incentive payable
Total amount
of incentive
payable (Rs.)
For approved/ disbursed loans

Rejected loan applications
(on technical grounds)
For promoting SHGs/JLGs and their
credit linkage
Recovery of written off accounts
Recovery of NPAs
i. For substandard assets
ii. For doubtful assets
iii. For loss assets
Total amount of communication
payable as claimed by BC/CSP
Total amount payable as per eligibility
Any Extraordinary work done during the month (other than the specified
above)
Recommendation of the base Branch Manager

We have verified the above details and confirm that the Bc/CSP is eligible for
the amount claimed as per the guidelines. His/her work, attendance and conduct
during the month are SATISFACTORY. We recommend payment of Rs. ________
as above.
Date:
Signature of the Branch Head
RO Observations and amount sanctioned
Nodal FI Officer
Nodal Executive
106
Regional Head
ULTRA SMALL BRANCH

The Scheme of Ultra Small Branches has been introduced to facilitate increased Banking
transactions amongst the customers of villages already covered and to be covered under
Financial Inclusion, where opening of brick & mortal branch is not viable. The Banking
services shall be rendered through a Business Correspondent or Business Correspondent
Agent appointed for this purpose. The USB will be attached to the FI Base Branch located
in the Service Area and responsible for Financial Inclusion of the village. All types of
banking services will be made available to the residents of the village.
The norms for USB issued by GoI, Ministry of Finance, DFS are as under:
1. USB will be set up in all the villages covered and to be covered under FI including the
villages of below 2000 population. No BIC Code will be allotted to USB, as the data base
of the USB is to be attached and available with FI Base Branch.
2. A place having an area approximately 100 to 200 sq. ft. shall be identified to enable
functioning of the USB from the concerned village. Initially local bodies may be
requested to provide such a place free of cost till such time the Business grows to a
viable level justifying setting up of a regular branch.
3. The BC/BCA shall be responsible for the cash transactions, while the Bank Officer will
provide other services.
4. The base Branch would designate a specific officer to visit such villages on pre-notified fixed day
and time every week. The officer visiting the village shall carry a laptop which should have VPN
(Virtual Private Network) connectivity to CBS so that various services such as account balance etc
could be offered. The official would also clear applications for opening of accounts, loans, attend
to recovery, follow up and other business developments.
5. The periodicity and the duration of the visit by the officer can be progressively enhanced
depending upon business potential after periodical review.
6. The FI Base Branch with whom the USB is attached should ensure that the officer to whom the
village is allocated for weekly visit shall be punctual in visiting the village as per schedule and
extend various services to the customers of the village besides attending business development
works.
7. With increase in volume of business at the USB, the visits by Bank officials should be increased
till such time setting up of a regular brick and mortal branch is considered feasible.
MoF, GoI and RBI is closely monitoring the progress in opening of USBs. As per guidelines, the USBs
are to be opened in all FI villages by 30/06/2012. All our FI base branches are therefore, advised to
take immediate steps to open USB at all FI villages attached to them. They shall discuss with the local
Panchayats for allotment of a suitable place as mentioned above. Branches may take assistance and
guidance from the concerned LDM to complete the process at the earliest. RO will take up with CO:
FID for supply of Laptop on hearing from the branches about the completion of formalities for opening
of USB.
107
Report to be submitted by the branches in connection with beginning of USBs in

FI Villages attached
Name of the Branch:

Branch Heads Mobile:
_____________
_____________
Name of Branch Head: ______________

Branchs land line No:
No. of FI Villages attached:

(1)
(2)
(3)
(4)
Name of FI village
Name of BC
Mobile No. of BC
Name of the officer
designated to visit the
village weekly on a fixed day
Mobile No. of the officer
No. of House holds in the
village
No. of farm house holds
No. of Non-farm house
holds
No. of NFS A/Cs
opened/enrolled by BC
No. of offline transactions
conducted till date
Place from which the is
operating at present
No. of Smart Cards issued
Settlement A/c of BC
opened under 318 product
GCC issued Number
In village
Amount ( 000s)
SKCC s in Number
village
Amount (000s)
SB OD in
Number
village
Amount (000s)
Whether any public building
is available to open USB
Name of village Pradhan
Mobile No. of V- Pradhan
When the pradhan was
contacted for requesting
space for opening of USB
What is the response/
assurance of Pradhan
Whether BDO/ LDM
consulted seeking their help
Any other relevant
information
Date:
Branch:
AMRD/Officer
108
Branch Head

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SYNDICATE BANK,

REGIONAL OFFICE, PANAJI-GOA

Guidelines for Retail Credit

IMPORTANCE OF AGRICULTURAL LENDING

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

Land Development Activities &

Dairy DevelopmentC.B.Cow, She Buffalo,

Horticulture and Plantation

Application/Appraisal/Agreement to be obtained for

INTEREST RATE ON AGRICULTURAL ADVANCES

B: Above Rs 10.00 lacs:

For Indirect agriculture

C: Loans under SyndKisanSati

Repayment period for different agriculture loan products

Farm House constriction

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

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

b. On Hypothecation of Crops/ Livestock

c. On Hypothecation of tractor &

e. Cumulative per party limits for above

Purchase of Land for agricultural

Loans for Agri clinic & Agri Business

Pledge/Produce Marketing Loans

Govt. sponsored schemes

1. a. Clean basis where movable assets are

Up to eligible loan limit depending

c. Loans to SHGs (Both General as well

2010-BC shall be referred.

TIPS FOR IMPROVING AGRICULTURAL ADVANCES

needs besides influencing the farmers to bank with us.

Increase inland fish production from both culture capture resources.

FARM HOUSE SCHEME

SyndicateBank: Regional Office: Panaji

Name & Address of the

Age of the applicant

Purpose of the loan

Income from the farm

Season Crops Area

Construction of the Farm-House.

Acquisition of ready built Farm-House.

Repairs of existing farm house.

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

10. SECURITY & VALUE OF THE SECURITY:

house will be constructed subject to clear title to the property.

Age of the farmer as on date

the maximum age criteria.

For use at RO:

Dy. General Manager

Name of the applicant

a. Purpose of the loan

To provide financial assistance to redeem high cost debt and to

b. Name and address of :

The applicant is from one of the command area village of the

Thoroughly discussed with farmer to assess their credit

During the discussions, the applicant has satisfied us

The applicant is a prospective SKCC farmer cultivating own

The applicant is not a defaulter with any other Banks or

The requirement of the applicant is thoroughly assessed

Installments are fixed based on present income, savings in

Exercised caution in ensuring genuineness/correctness of

Educated the farmer not to fall into clutches of money

The applicant has produced notarized affidavit, as per

Noted to recover interest and installments of debt swap

Total Land holdings: ___acres. Irrigated lands:

I, ______________ Son/Daughter/Wife of

: Total Land holdings: __acres. Irrigated lands:

Incremental income from the farm = (B minus A) = ___minus_

: Total Land holdings: ____ acres of which, _ acres are