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SUBRULE FOR GRANTING SHORT TERM AGRICULTURE CASH CREDIT ACCOMMODATION TO SHGs/NHGs FOR ADOPTING ORGANIC VEGETABLE CULTIVATION

The Bank The Kasaragod District Co operative Bank Ltd. No.4367
The Branch The Branch of Kasaragod District Cooperative Bank Ltd wherein the SHG/NHG apply for CC accommodation
SHG Self Help Group consisting of 11 to 20 members, residing nearby, satisfying all the criteria required for forming a Self Help Group as laid down by National Bank for Agriculture and Rural Development (NABARD)
NHG Neighbour Hood Group consisting of 11 to 20 members, residing nearby, satisfying all the criteria required for forming a Neighbour Hood Group as laid down by State Poverty Eradication Mission (Kudumbasree)
ADS Area Development Society of State Poverty Eradication Mission (Kudumbasree) meant for coordinating the activities of NHGs at ward level
CDS Community Development Society of State Poverty Eradication Mission (Kudumbasree) meant for coordinating the activities of NHGs at Panchayath/Municipality level
Executive Committee The Executive Committee constituted under the byelaws of the Bank
Board of Directors The Board of Directors constituted under the byelaws of the Bank
Act The Kerala Cooperative Societies Act 1969 as amended from time to time
Rules The Kerala Cooperative Societies Rules as amended from time to time

AIM

The scheme intends to provide Short Term Agriculture Loans to Self Help Groups (SHGs)/Neighbour Hood Groups (NHGs) of the Kasaragod District for adopting vegetable cultivation in organic farming mode

ELIGIBILITY

  • Members of a SHG/NHG should be permanent residents of the Kasaragod District
  • SHG/NHG should be homogenous in nature
  • SHG/NHG should consist not more than 20 members.
  • Members SHG/NHG shall be of similar socio economic back ground joined together with an intention of starting any income generating micro enterprise for obtaining sustainable income.
  • SHG/NHG grading must have been completed before applying for loan. Grading shall be done by the Branch Manager

PURPOSE

The Cash Credit accommodation sanctioned under this scheme has to be utilized for raising vegetables organically as pure crop or as inter crop

AMOUNT OF LOAN

The maximum amount of Cash Credit accommodation that can be sanctioned under this scheme is Rs.3 lakh (Rupees three lakh only). Cash Credit accommodation will be sanctioned based on extend of land and scale of finance fixed for vegetables every year by the District Level Technical Committee. Scale of finance of vegetable crop for the year 2016-17 is given below

Crop Unit area Pure crop Intercrop
Amount (Rs) Amount (Rs)
Vegetable (Pandal crop) One cent 4000-4100 3000- 3050
Vegetable (Non Pandal crop) Once cent 2700-2800 2050 - 2100

INTEREST RATE

Interest rate will be fixed by the Board of Directors time to time in accordance with the direction of RCS/NABARD. At present the rate of interest fixed is 9.50%

PERIOD OF LOAN

The Cash Credit accommodation will be sanctioned for a period of one year. Any number of drawals/remittances shall be made during the currency of Cash Credit accommodation wherein interest will be charged only for the outstanding portion. No drawal in the account will have to remain outstanding for more than 12 months.

SANCTIONING AUTHORITY

The loan will be sanctioned by the Branch Manager subject to ratification by the Executive Committee of the Bank

DOCUMENTS TO BE PRODUCED FOR AVAILING THE LOAN

  • Inter se agreement
  • Article of agreement
  • Declaration
  • Group photo
  • ADS/CDS recommendation in the case of NHG

OTHER TERMS AND CONDITIONS

  • Minimum area of land required for cultivation is one cent. Cultivation can be done in owned or leased land
  • Farmer should not use any chemical fertilizer/pesticide/growth hormone for raising the crop. But soil amendments like lime/dolomite can be used for rectifying soil salinity
  • Vegetables should be grown as pure crop as far as possible. If grown as intercrop, it should be ensured that the main crop is also grown organically
  • As far as possible adopt bio fencing to protect crop from stray dogs/wild animals
  • Pheromone traps /Bio pesticides shall be used for pest and disease management of the crop
  • Burning of planting pits using dried leaves/crop debris shall be done before planting so as to reduce the population of harmful soil microbes
  • Compost like vermi compost, coir pith compost etc: shall be prepared based on the package of practices recommendations of the Kerala Agricultural University
  • Good Agricultural Practices shall be adopted for raising the crop
  • Minimize the presence of wild/domestic animals in the field

ARBITRATION

The SHG/NHG should agree to be bound by arbitration provision in the Act and Rules

RIGHT OF THE BANK TO TAKE DECISION ON APPLICATION

Notwithstanding anything mentioned above, the Bank/its Authorized Officer has the absolute right to reject any application for Cash Credit accommodation under these sub rules without assigning any reason

The Board of Directors shall have the right to alter, modify and change these sub rules subject to the prior approval of the Registrar of Co operative Societies and it shall be binding on the SHG/NHG from the date of such approval by the Registrar

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