1. P&SB Zimidara Credit Card (Kisan Credit Card) Scheme

Aim: Credit to farmers purchase of Fertilizers, Seeds, Pesticides etc., for crop production.

Eligibility: A farmer cultivating and owner of agricultural land.

Margin: No specific margin

Repayment: Limit is sanctioned for a period of 3 years and must be brought into credit balance at least once in a year

2. P&SB Credit to Small and Medium Entreprises

In India SMEs have an important role to play which is evident from their contribution to GDP, employment generation, reduction in regional disparities, export earnings etc. GOI/RBI has taken several initiatives to support the SME sector by formulating various schemes and policy guidelines for promotion and development of SME units. The Union Finance Minister announced certain measures in Parliament on Aug. 10,2005 for stepping up credit to small and Medium enterprises which is required to be implemented by all public sector banks.

In consonance with Govt. priority of growth of SMEs, the Bank has formulated its policy for stepping up credit to SMEs sector and chalked out the following operational guidelines :-

Eligibility and Definition of SME: “ A small scale industrial unit is an industrial undertaking in which investment in Plant & Machinery, does not exceed Rs.1.00 crores except in respect of certain specified items under hosiery, hand tools, drugs & Pharmaceuticals, stationery items and sports goods where this investment limit has been enhanced to Rs.5 crores. Units with investment in plant and machinery in excess of SSI limit and upto Rs. 10 crores may be treated as Medium enterprises (ME). The exact definition will be enacted after passing of the legislation of SME by the parliament. Only SSI financing will be included in Priority Sector.

”Credit Growth Targets & Channels of Finance:

1. Allocation of targets for SMEs.
2. Redesignation of SSI Branches.
3. Cluster Approach.
4. Other avenues for financing SMEs.

Risk Weight & Exposure Caps: Presently risk weight on exposure to this sector is 100%. The Bank would maintain an exposure cap on this portfolio of 10% of total advances plus non SLR portfolio for SMEs.

3. P&SB Tractor Finance & Tractor Welfare Fund Scheme

In the field of farm mechanisation Punjab & Sind Bank has adopted a very liberal policy for Tractor Financing.The salient features of the scheme are as under :-

Eligibility: A farmer cultivating a minimum of 8 Acres of irrigated agricultural land and Tractor should be used for 1000 productive hours in a year.

Margin: 15 to 25%

Repayment: In equated half yearly installments over a period of upto 9 years