Punjab Kisan Credit Limit Scheme 2021 for Pashu Palak to Promote Animal Husbandry (Pashupalan)

Punjab Kisan Credit Limit Scheme

It is a unique program that aims at providing problem-free, adequate and timely credit support from the banking system under a single door to the farmers for their cultivation and other requirements.

Punjab Kisan Credit Limit Scheme



Punjab Gramin Bank Kisan Credit Card do provide credit assistance for the following purposes:

  • To meet the tiny term credit requirements for cultivation of crops
  • Post-harvest expenses
  • Develop Marketing loan
  • Use requirements of farmer household
  • Working capital for support of farm assets and activities associated to agriculture, like inland fishery, dairy animals etc.
  • Investment credit requirement for allied and agriculture activities like dairy animals, pumpsets, and sprayers etc.


  • Progressive uneducated and literate farmers who are owner cultivators
  • Allottee, Tenants, or lessee farmers with recorded occupancy rights or farmers with ancestral/perpetual rights of cultivation
  • Joint Liability Groups(JLGs)
  • Oral residents can be allowed for loan only if land owners agree to become someone who apply for a loan or line of credit with another borrower.
  • In the accounts which are attached by liquid securities like KVP,NSC/FDR etc., the cards to oral tenants will be supplied without specified the situation of land owners to be made co-borrowers
  • tenant farmers, oral lessees, Landeless labourers and share croppers can be provided PNB Krishi Card upto limit of Rs 50,000 on the grounds of affidavit

Credit Limits

The credit provided will be based on individual farming requirements. There is no maximum credit limit.

  • Short term limit for the first year: Scale of finance for the crops (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards consumption requirements / household / postharvest (the premium for health insurance cover may also be covered with a maximum coverage of upto Rs. 3 lakh) + 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance, PAIS & asset insurance
  • Maximum Permissible Limit: The short term loan limit happened for the 5th year plus the estimated long term loan requirement will be MPL and treated as the KCC
  • Extent of Loan: Maximum Rs. 50 lakhs


  • For Production Credit: No margin
  • For Term Loan: Presently for loan above Rs. 1 lakh: 5%-25% and a loan up to Rs. 1 lakh margin requirement is NIL


For cards provided upto Rs.1 lakh: mortgage of crops/assets developed out of bank loan.
For cards provided above Rs.1 lakh: (i) mortgage of crops/assets generated out of bank loan.
(ii) Charge on land as per Miscellaneous (Provisions) Act of the State concerned and Agricultural credit Operations / Hypothecation of agricultural land valued at 150% of amount of loan for other farmers, 100% of the loan amount for marginal farmers /small farmers.
Alternate Security, viz., charge/lien over liquid securities such as term deposits/NSC/KVP, building and land placed outside village, etc., which may be considered sufficient.
Acceptable third party guarantee with adequate net means.


  • Proof of Identity (anyone): PAN Card / Driving License/ Voters ID card/ Passport
  • Duly filled Application Form with 2 recent passport size photos
  • Address Proof (anyone): Lease agreement/ Ration card Tel/ Sales Tax certificate / Passport/ Trade license/ Electricity bill
  • File of land holdings ownership
  • Proof of Income as needed by the bank
  • File pertaining to primary and collateral security, as needed by the bank

Interest Rate

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


All the Kisan credit card holders comes under PAIS and the premium annually of Rs.15/- per KCC holder pay to the Insurance Company under this program will be shared by the bank and its in the ratio of 2:1 of KCC holder.


The Kisan Credit Card is eligible for 5 years, subject to annual review.


Disbursement through different channels, including ICT driven channels like Mobile handsets/ ATM/PoS.

Processing Fee

  • Upto Rs. 25000/-: NIL
  • Above Rs.25000/- & upto Rs. 2 lakhs: Rs.500
  • Above Rs.2 lakhs: Rs225 per lakh

For KCC Holders, what is Personal Accident Insurance Scheme (PAIS)?

It is an accident insurance plan especially shaped up for KCC holders. NABARD has adviced the PAIS for KCC holders, so that it can be uniform implemented by the banks . It was initiated on 14 June 2001.

It covers risk of KCC holders against:

  • Death (or)
  • Permanent Disability

Death (within 12 months of the accident) or permanent disability should be result from accidents caused by visible, external, and violent means.

It gives following risk covers:

  1. Death within 12 months of the accident caused by outward, violent and visible means: Rs 50,000
  2. Permanent total disability: Rs.50,000
  3. Loss of one limb and one eye or two limbs or two eyes: Rs.50,000
  4. Loss of one limb or one eye: Rs.25,000

Do the farmers apply for the Punjab National Bank Kisan Credit Card online?

Yes, once they submit and fill their application, they will get an acknowledgement from the bank on their email address.

Do the farmers track the status of Punjab National Bank Kisan Credit Card application online?

Yes. Once they submit the application form, the bank will offer them with a serial number using which they can trace the application status.

Will the farmers get a pass book if they opt for a loan under yojana?


What is the maximum limit on loan that farmers can take under the scheme?

It is Rs.50, 000. Ii is a 50 % ceiling of the KCC Limit or 25 % of the annual income.

Do farmers take a loan for post – harvest expense purposes under the Punjab National Bank Krishi Card?

Yes. To get the loan, they have to meet the eligibility criteria specified for this yojana by the bank.

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