Priority Sector & Lead Bank Division

HO: Atma Ram House, New Delhi

Ph: 011-23311998, 23350240

02.03.2015

TO ALL OFFICES:

In supersession of following Farm Credit Circulars:

Circular No. Date

PSLB Codified Farm Credit. Cir. No. 07/14 27.01.2014
PSLB Farm Credit Cir. No. 11/14 30.01.2014
PSLB Farm Credit Cir. No. 14/14 13.02.2014
PSLB Farm Credit Cir. No. 15/14 13.02.2014
PSLB Farm Credit Cir. No. 18/14 20.02.2014
PSLB Farm Credit Cir. No. 20/14 04.03.2014
PSLB Farm Credit Cir. No. 45/14 13.05.2014
PSLB Farm Credit Cir. No. 77/14 20.09.2014

PSLB/CODIFIED FARM CREDIT CIRCULAR NO. 07/15

REG: SCHEME FOR FINANCING SELF-PROPELLED COMBINE HARVESTERS.

Detailed guidelines for financing self-propelled combine harvesters were circulated to

all offices vide Codified Farm Credit Circular No. 07/14 dated 27.01.2014 followed by
several related circulars issued from time to time.

Guidelines on the captioned scheme have been consolidated by subsuming the

operative part of subsequently issued circulars as per Annexure.

Incumbent Incharge of the branches are advised to adhere to guidelines contained in

scheme for financing self-propelled combine harvesters and boost agriculture
advances.

DEPUTY GENERAL MANAGER

ANNEXURE TO CODIFIED FARM CREDIT CIRCULAR NO. 07/15 DATED
02.03.2015 REGARDING SCHEME FOR FINANCING SELF-PROPELLED
COMBINE HARVESTERS.

Technological improvements in the Indian Agriculture have brought about

revolutionary increase in the agriculture production especially food grain production.
However, to satisfy the increasing food demand of the country’s rising population the
cropping intensity has to be increased.

Increased cropping intensity implies quality and precision of agriculture operations

like quick harvesting and storage of grains to avoid loss from vagaries of weather,
pilferage, etc. As such combine harvester is a vital segment of farm mechanization.
Combine harvester helps the farmers to harvest certain crops and collect the grains
from stalks by undertaking all the harvesting operations from cutting of plants to
winnowing and bagging of grains in one assembly. Combine harvesters come to the
rescue of the farmers in days of labour paucity and likely adverse weather
conditions. Besides, it facilitates early taking of farm produce to the markets for
fetching better price.

Details of the Scheme for financing self-propelled combine harvesters are as under: -

1. PURPOSE:
Loan may be given for financing purchase of combine harvester to persons/ group of
farmers/individual farmers desirous of setting up of custom service units or for
custom hiring, State Agriculture Farms having larger area and intending to use the
combines in their farm area apart from such corporations which are engaged in land
development activities.

2. ELIGIBILITY:

(i) In case of farmers:

Intending borrowers should be able to maintain and run combine harvester or should
make suitable arrangements for the same.

(ii) In case of persons other than farmers:

Intending borrowers should be technically qualified having adequate know-how, skill

and managerial ability to run custom service units.

(iii) In case of State Agriculture Farms/Corporations:

State Agriculture Farms/ Corporations engaged in land development activities should

have adequate resources and command area to run and maintain combine
harvesters.

3. NATURE OF LOAN: Term loan.

4. EXTENT OF LOAN:
Need based. Cost of combine harvester should be verified to ensure that it is not
inflated.

5. MARGIN NORMS:

Amount of Loan Margin

(i) Upto Rs. 1.00 lakh NIL
(ii) Above Rs. 1.00 lakh to Rs. 2.00 lakh 5%
(iii) Above Rs. 2.00 lakh to Rs. 5.00 lakh 10%
(iv) Above Rs. 5.00 lakh 25%

NOTE:

(i) Where subsidy is available, the same should be treated as margin and no
further margin money should be stipulated unless subsidy falls short of requisite
margin.

(ii) Where scheme has been approved by NABARD, terms and conditions
stipulated by NABARD in respect of margin shall be followed.

(iii) In respect of Govt. sponsored schemes, the margin / security norms shall be
as per the respective scheme for agricultural advances or the above mentioned
margin whichever is lower.

6. SECURITY NORMS:

1. Production Credit/ Security

Investment Credit
i) For loan upto Rs.1,00, 000/-
ii) Above Rs.1,00, 000/-
Hypothecation of assets created out of bank
loan.
a) Hypothecation of assets created out of
bank loan
AND
b) Charge on land as per Agricultural Credit
operations and Miscellaneous Provisions Act of
the State concerned/Mortgage of agricultural
land valued at 100% of amount of loan for other
farmers and 75% of the loan amount for small
farmers/marginal farmers.
OR
Alternate security viz. charge/lien over liquid
securities such as term deposits/NSC/KVP, etc.
which may be considered adequate.
OR
Suitable third party guarantee

NOTE:

(i) In States where legislation on the lines suggested by the Talwar Committee
has been passed, a simple declaration creating a charge on the land offered as
security will be sufficient. In such cases, mortgage of land may not be necessary.
(ii) While valuing land for the purpose of security, post development realizable
value of land shall be taken into consideration.

(iii) Branches are advised to ensure that value of security taken is commensurate
with size of loan and desist from asking additional collateral security by way of
guarantee where the land mortgaged is considered adequate. Also branches
should desist from the practice of taking collateral security/third party
guarantee/mortgage of land where it has been indicated that such security is not to
be taken.

(iv) Branches may not ask for mortgage of land in cases where the amount of
loan net of subsidy is upto Rs.1,00,000/-. In such cases where subsidy is not
received in advance or simultaneously at the time of disbursement of loan suitable
third party guarantee may be obtained.

(v) In case the land is on lease/rent basis or otherwise where borrower’s title to
land does not permit him to create a mortgage thereof, suitable guarantee may be
accepted as an alternative security.

7. RATE OF INTEREST:

The rate of interest should be charged as per IRMD Loans & Advances Circulars
issued from time to time. Presently as per, IRMD Loans and Advances Circular No.
48/2014 dated 23.04.2014.

NOTE:

(i) Both working capital and term loans are to be clubbed together to determine
the size of the loan for the purpose of fixing the rate of interest for all agriculture
borrowers.

(ii) Payment of interest should be insisted upon only at the time of repayment of
loan installments as fixed.

(iii) Interest on current dues should not be compounded.

8. LOANING POWERS:
As per Loans & Advances Circulars issued from time to time.

9. LOAN APPLICATION AND DOCUMENTATION:

 S. No. Particulars of the Form Form No.
(i) Simplified application cum sanction for loan upto Rs. 1 PNB 1175
lakh
(ii) Application for agricultural credit above Rs. 1 lakh PNB 762 R
(iii) Annexure for purchase of tractor/power tiller PNB 772 R
(iv) Hypothecation Agreement upto Rs. 1 lakh PNB 1087 (R)
(v) Hypothecation Agreement above Rs. 1 lakh PNB 1041 (R)
(vi) Deed of guarantee, wherever applicable PNB 1042(R)
(vii) Mortgage deed, wherever applicable PNB 1043(R)
(viii) Declaration regarding Agricultural land APPENDIX
(ix) Letter of hypothecation where delivery of vehicle is PNB 420
made subsequent to date of advance
(x) Certificate of Inspection of vehicle wherever PNB 551
applicable
(xi) Field visit report for verification of borrower & land
(xii) Consideration vouchers
(xiii) Proforma Invoice/Bill

10. CONFIDENTIAL REPORT (CR) ON BORROWER(S) AND

GUARANTOR(S):
(i) For loans No CR to be collected. However, information furnished
by borrower in loan application form must be verified by
upto Rs.50,000/- Incumbent Incharge/Agriculture Officers and they will
record their opinion to this effect.
(ii) For loan above A brief CR on PNB 539 (Simplified Confidential Report
Rs.50,000/- & on Borrowers and Guarantors in respect of Farm
upto Rs. 10 lakh Advances) may be obtained along with the information
furnished by borrower in Loan Application Form (PNB
762R) and here again, the information furnished by
borrower must be verified by Incumbent Incharge/
Agriculture Officer; besides their report on brief CR.
(iii) For loans above Regular CR may be compiled on bank’s prescribed
Rs. 10 lakh Form PNB 282 A/B depending upon constitution of
borrower.

11. LETTER OF SANCTION:

As soon as loan is sanctioned, letter of sanction shall be issued to borrower.

12. ISSUE OF LOAN PASS BOOK:

Branches shall issue loan passbook or Statement of Account, invariably, to all the
borrowers.

13. DISBURSEMENT OF LOAN:

Payment is to be made directly to the suppliers on behalf of borrower on the basis of
quotation of the approved model of combine harvester.

14. INSURANCE:

Combine harvester should be comprehensively insured at borrower’s cost in joint

names of borrower as ‘owner-hypothecator’ and Bank as “hypothecatee”.

15. GESTATION PERIOD:

Maximum six months linked with seasonal harvesting and marketing of crops.

16. REPAYMENT OF LOAN:

5-7 years in half-yearly/ yearly installments, depending upon income generation.

17. OTHER TERMS & CONDITIONS:

(i) Financing is to be done in respect of new combine harvester models which
are approved by Head Office.

(ii) Proposal should be from areas which offer good potential for custom hiring i.e.
a minimum of 1600 acres per year.

(iii) Proposal should be techno-economically viable and generate sufficient

incremental income to enable borrower to repay loan installments with interest.

(iv) Techno-economic feasibility of combine harvester shall be assessed on the

basis of checklist given in Appendix-II.

(v) Combine harvester should be registered with the concerned Registering

Authority with Bank's lien.

(vi) Borrower must give an Undertaking that combine harvester will be driven by
persons having regular and valid driving license.

(vii) Adequate spare parts and service/repair facilities should be available in the
area where combine harvester is to be operated.

(viii) Dealer will make available to the borrower, the combine harvester with good
machinery and in good working condition alongwith necessary matching accessories
and attachments (all in original makes).

(ix) Farmers shall have option to purchase combine harvester/

implements/accessories from any dealer/manufacturer of their own choice.
Incumbent Incharge will not insist on the farmers for purchase of machinery from a
particular dealer/manufacturer.

(x) In case of damage of any part through negligence of dealer(s)/his agents, or

employee while repairing machinery, cost of damage thereof should be borne by the
dealer(s) and damaged spare-parts should be replaced at dealer's cost with parts of
the same quality.

(xi) Dealer should render efficient after- sales service and maintain sufficient stock
of original spare-parts and other accessories required for combine harvester.
Manufacturer of combine harvesters will also provide list of approved dealers to
financing branch for the concerned area.

(xii) Since the use of combine harvesters restricted only to the harvesting season,
the density of population of such harvesters, scope of custom hiring, impact of
density on custom rates, etc., should be kept in view.

(xiii) Other guidelines issued by Head Office from time to time should be strictly
adhered to.

18. NABARD REFINANCE:

NABARD provides refinance to the extent of 90%-100% of Bank loan, depending

upon the agricultural activity and the geographic location of lending. Refinance from
NABARD is to be availed by Circle Heads in conformity with Head Office decision
taken from time to time.

List of approved models of self-propelled combine harvesters is given in

Appendix-I.

19. Opening of account in CBS:

Scheme Code – TLACH

Purpose of Advance – COMVH
Free code 10 – 1206 or 1208

LIST OF APPENDICES

(i) Appendix-I: List of approved self-propelled Combine Harvesters Models

(ii) Appendix-II: Check list for assessing techno-economic feasibility of

Combine Harvesters.
 APPENDIX–I

LIST OF APPROVED SELF-PROPELLED COMBINE HARVESTERS MODELS

S.No. Name of Manufacturers Combine Harvester Models

M/s. Punjab Tractors Ltd., SAS Nagar, Mohali
1. (Ropar), (Punjab) SWARAJ - 8100

M/s. Kartar Agro-Industries, KARTAR K-3500

2. Amloh Road, Distt. Bhadson, KARTAR K-350
Patiala - 147202 (Punjab) (TRACTOR MOUNTED)
KARTAR - 4000
KARTAR – 440
M/s. Jiwan Agricultural Implements Workshop
BHARAT – 730
3. Co-Op. Industrial Society Ltd.
(DELUXE)
Sangrur Road, Patiala - 147001 (Punjab)
4. M/s. Standard Combines, Bhatinda Road, STANDARD C-412
Handiaya, Distt. Sangrur – 148107 (Punjab)
STANDARD C-514
STANDARD C-412
(TRACTOR MOUNTED)
STANDARD 390 (TRACTOR
MOUNTED)
STANDARD S 8300
STANDARD S-365
(TRACTOR MOUNTED)
STANDARD TSC 513
(TRACTOR MOUNTED)
5. M/s. Preet Agro Industries, P.O. Rohta Patiala PREET 987
Road, Nabha – 147201 (Punjab). PREET 649
(TRACTOR MOUNTED)
PREET 949 Combine Harvester
PREET-749 Combine Harvester
Commercial (ICT)
PREET-7049 Combine Harvester
Commercial (ICT)
6. M/s. Dasmesh Mechanical Works Rajkot Road, DASMESH – 9100
Malerkotla Distt. Sangrur – 148023 (Punjab). DASMESH – 913
(TRACTOR MOUNTED)
 Combine Harvester DASHMESH-
726 (Track Type)
DASHMESH-7100 Self Propelled
combine Harvester comm. (ICT)
 

7. M/s. Sansar Combines, Patiala Road, Nabha,

SAMRAT 714 COMM. (ICT)
Distt. Patiala -147 201 (Punjab)
8. M/s. Sansar Industries Regd., V.P.O. Rohta,
Patiala Road, Nabha, Distt. Patiala -147 201 SANSAR 930-Comm.(ICT)
(Punjab)
9. M/s. Dev Agro Industries, Patiala Road, Nabha, DARSHAN 9000
Distt. Patiala -147 201 (Punjab) COMM. (ICT)
10. M/s. Dhiman Agro Industries, Patiala Road, RAMA 930
Nabha, Distt. Patiala -147 201 (Punjab) COMM. (ICT)
11. M/s. Manjit Agro Works, Patiala Road, Nabha, MANJIT 986
Distt. Patiala -147 201 (Punjab) COMM. (ICT)
12. M/s. Amar Engineering Works, Patiala Road,
AMAR 930
Nabha, Distt. Patiala -147 201 (Punjab)
13. M/s. Friends Agro Industries, By-pass Road, FRIENDS 813
Malerkotala, (Punjab). FRIENDS 840
14. M/s. Mahindra Engineering Works, Nabha
Road, Bhadson, Distt. Patiala -147 202 MAHINDRA 7700
(Punjab)
15. M/s. Panesar Agriculture Industries, Patiala PANESAR SC 514
Road, Nabha -147 201 (Punjab) PANESAR TDC 513
(TRACTOR MOUNTED)
16. M/s. Industrial Chains, Patiala (Punjab). IC 616 DELUXE
17. M/s. Bhodey Agro Industries, College Road, BHODEY 1070
Sunam, Distt. Sangrur, (Punjab).
BHODEY DELUXE 470
(TRACTOR MOUNTED)
18. K.S.Agricultural Industries Raikot Road,
Malerkota-148023 Distt. Sangrur (Punjab) KS 9300

KS 513 TD
(TRACTOR MOUNTED)
19. M/s. Hira Agro Industries, Cantt. Road, Nabha – HIRA 985
147 201 (Punjab) HIRA –785
Combine Harvester Comm.(ICT)
20. M/s. Vishal Agricultural Works (Regd.), Near
Grain Market, Sawana, Distt. Patiala – 147 101 VISHAL 408 SUPREME
(Punjab).
21. M/s. Guru Nanak Agro Industries, Patiala Road, GURUNANAK 985
Nabha (Punjab) GURUNANAK 785
22. M/s. Malkit Agro Industries, Cantt. Road, Nabha MALKIT 997
–147 201 (Punjab) COMM. (ICT)
23. Sonalika Agro Industries Corporation (SAIC), SONALIKA TDC 2000
Admin Off: Industrial Estate, Jalandhar Road, (TRACTOR MOUNTED)
 Hoshiarpur – 146001 (Punjab) SONALIKA 9614 Self Propelled
Combine Harvester (ICT)
24. M/s. Guru Nanak Agricultural Engg. Works, BALKAR 654
Bhatinda Road, Hardiaya, Distt. Sangrur –
BALKAR B-546
148107 (Punjab)
BALKAR B-525
(TRACTOR MOUNTED)
25. M/s. Matharu Engg. Works, G.T. Road, MATHARU 4600
Ferozepur Cantt. (Punjab) MATHARU M-350
(TRACTOR MOUNTED)
26. M/s Sant Engineering Works, Amloh Road,
SANT 5400
Bhadson, Distt. Patiala (Punjab)
27. Deosi Agro Industries (Regd.), College Road, VK 456
Sunam, Distt. Sangrur – 148028 (Punjab) (TRACTOR MOUNTED)
28. M/s. Saggu Engg. Industries, Patiala Road, SAGGU 630
Sunam (Punjab). (TRACTOR MOUNTED)
29. M/s Shaktiman Agro Industries. Outside AS- Shaktiman – 930
Bouran Gate, Near Shiv Mandir, Nabha COMM. (ICT)
147201, Distt. Patiala (Punjab).

30. M/s Roop Mechanical Works, Patiala Road, ROOP – 887

Nabha-147201, District Patiala, Punjab. Self Propelled Combine Harvester.
31. M/s HIND Agro Industries, Outside Alhoran HIND – 999 Self Propelled Combine
Gate, Nabha- 147201, District Patiala, Punjab Harvester
32. Manufactured by :
BCS-S.P.A. Viale Mazzini, 161
20081 Aabbiate Grasso, Milano, Italy.
BCS Reaper Binder
Assembled by : BCS India Pvt. Ltd., Village
Mangarh, Kohara Machiwara Road, PO Kohara,
Distt. Ludhiana 141 112.
33. M/s Rajarh Agricultural Works
Near Sran Hospital, Ludhiana Road, Mandi RAJARH -5113 (TDC)
Mullanpur, Dakha (LDH) 141 101(Punjab) Combine Harvester – Comm.(ICT)

34. M/s Manku Agro.Tech.Pvt.Ltd., Vishal-435

Sehajpur Road, Samana-147101, Self Propelled Combine Harvester
Distt. Patiala (Punjab) Comm. (ICT).
Vishal Multiland-368
Self Propelled Combine Harvester
Comm.(ICT)
35. M/s Roop Rai Agro Industries, Roop Rai-930
Patiala Road, NABHA-147201 (Punjab) Self Propelled Combine Harvester
Comm.(ICT)
36. Syan Agro Industry, Near GSK Limited, Patiala Combine Harvester Model Syan
Road, Nabha 147201 998
37. M/s Ramchand & Sons, Patiala Road, Nabha -
147201, Distt. Patiala( Pb) NEW HIRA 985
38. M/s N.S. Agroworks, Patiala Road, Near Octroi
N.S. 929
Post, Nabha -147201(Pb)
39. M/s Punjab Agro Implement Industries,
Opposite HMM Ltd., Near Octroi Post, PUNJAB 930
Nabha -147201( Pb)
40. M/s Harmeet Agriculture Works, Cantt. Road,
Near 66 KVA Grid, NBHA – 147201 (Pb)
41. M/s Dhiman Agricultural Works, Patiala Road,
BBalbehra-147101, Dist Patiala (PB)
42. M/s Vishavkarma Agro Industries (Regd) Kdaial
Road, Dirba Mandi- 148035 (Sangrur)-PB
43. M/s Maa Vaishno Agro, Nichlaul Road,
Manupakar, Dist Maharanganj
44. M/s Gurdeep Engineering Works, Nabha Road,
Village Chaswal, Distt. Patiala (PB)-147202
45. M/s Pardeep Agro Industries, Village Assarpur,
Seel Road, PO Jogipur, Nea Sannaur-147001,
Distt. Patiala (PB)
46. Gill Agriculture Works Patiala Road, Ghagga-
147102 Distt. Patiala (Punjab) India
47. M/s North Agro Industries, Sangrur Road, Dirba
mandi, Sangrur 148035
48. New Gurdial Agro Industries Pvt. Ltd. Patiala
Road, Newa Rohit Pul, Nabaha.
49. M/s Rattan agro Industries, C-68 to 69, Focal
Point, Moga-142001, Punjab
50. M/s Claas India Pvt. Ltd., 15/3, Mathura Road,
Faridabad – 121003, Haryana
M/s John Deere India Pvt. Ltd., Pune-Nagpur
51.
Road, Sanaswadi, Pune- 412208
M/s Bharat Agro Industries, Sanaur Road, Near
52.
Rai Majra, Patiala- 147001
M/s Action Construction Equipment Ltd.,
53. Dudhola Link Road, Dudhola, Palwal – 121102
(Haryana)
M/s Gill Preet Agro Industries, Patiala Road,
54.
Ghagga-147102, Patiala (Punjab)
Harmeet 985
Dhiman-930
Vishavkarma -841
MVA 4300
Combine Harvester-Comm (ICT)
Gurdeep 527 (Self Propelled)
Combine Harvester-Comm. (ICT)
PAL-977 (Self Propelled)
Combine Harvester BAKSHISH-
930 (Self Propelled)
Combine harvester Comm. (ICT) “
North-749 (Self Propelled)”
Combine Harvester Gurdial-651
(Self Propelled)
Jhandeana-4512 Tractor Powered
Combine Harvester
Claas Crop Tiger Wheel
Claas Crop Tiger 60
Claas Crop Tiger 40 Self Propelled
Combine Harvester Wheel Type
(Comm. ICT)
Claas Crop Tiger 40 Terra Trac
Self Propelled Combine Harvester
Track Type (Comm. ICT)
Claas Crop Tiger 30 Self Propelled
Combine Harvester (Comm. ICT)
John Deere W-70 Self Propelled
Combine Harvester (Comm. ICT)
New Bharat 930 Self Propelled
Combine Harvester
ACE, ACT 60 Self Propelled
Combine Harvester (Track Type)
Comm. (ICT)
Gill Preet 962 Self Propelled
Combine Harvester (ICT)
 APPENDIX – II

CHECK LIST FOR FINANCING COMBINE-HARVESTORS

NOTE: Tick ( ) the relevant information given in the Scheme.

1. BACKGROUND OF THE SCHEME:

(i) Whether villages (in cluster) to be covered are YES NO
specified.
(ii) Whether sufficient number of eligible borrowers, viz. YES NO
individual farmers/group of farmers/ State Agricultural
Farm/Corporation are available for implementation of
the Scheme.
(iii) Whether the borrowers are technically skilled or YES NO
experienced.
2. TECHNICAL ASPECTS
(i) Whether local survey of each village/enquiry with the YES NO
farmers about the use of machinery is done.
(ii) Whether soil type (texture, structure, fertility, Water YES NO
Holding Capacity, etc., is suitable for the use of
machinery.
(iii) Whether the area is prone to flood or drought. YES NO

(iv) Whether suitable irrigation facility is available. YES NO

(v) Whether crop rotation is suitable for the efficient use of YES NO
machinery.
If so, specify the suitable crops.
(vi) Whether the operational area is under double YES NO
cropping.

(vii) Whether the area is prone to any epidemic/endemic YES NO

crop pests and diseases.

(viii) Whether complete details of cluster villages collected YES NO

with the help of State Government Officials/ Patwari/
village leaders.

If yes, furnish the following information:

Name of No. of farmers with land Total Area Area

Village holding area in under under
Less 5-10 10 the irrigation double
than acres acres village (acres) cropping
5 and (acres) (acres)
acres above
(a)
(b)
(c)
 (ix) Whether the area to be covered under harvest by the YES NO
machine is sufficient to justify financing of combine
harvester.
If yes, mention the total potential area likely to be
covered. ___acres

(x) Whether adequate service and repair facilities are YES NO

available in the area.

(xi) Whether skilled personnel is available for supervision/ YES NO

monitoring.
(xii) Whether any other harvester combine operating in the YES NO
area.
(xiii) Whether harvester combine is tractor driven or self- YES NO
propelled.
3. ECONOMIC ASPECTS:
(i) Whether the area offers good potential for custom YES NO
hiring, i.e., minimum of 1600 acres per year
(ii) Whether financial returns to the beneficiaries (Cost of YES NO
Operation, Custom Service Income, Benefit-Cost
Ratio) are worked out.

(iii) Whether financial position/repayment capability of the YES NO

borrower is satisfactory.

4. OTHER ASPECTS:
(i) Whether any licence is required from District Industries YES NO
Centre.
(ii) Whether any Agency is available in the area for YES NO
providing crop loan.
(iii) Whether harvester combine is on approved list for YES NO
financing.
(iv) Whether any other special schemes in the command YES NO
area are to be introduced which may affect the use of
machinery.
(v) Whether waiting time for delivery of harvester combine YES NO
after placing the order is reasonable.