8. P&SB Scheme for Financing of Commission Agents / Aahrtias

When Aahrtias, make finance to the farmers, "Book Debts" are created in the Aahrtias books of accounts. The Aahrtias require institutional credit against these book debts and the banks have started providing working capital limits for financing Aahrtias. The bank has also floated such a scheme since March 95 which has been amended from time to time. The salient features of the scheme are as under :

Maximum Loan/ Limit (Overdraft): Rs.10.00 lac per Aahrtia.

Security: Primary : Hyp. of Book debts (outstanding dues from the farmers) as per latest Balance Sheet, or Certificate from Chartered Accountant regarding book debts not older than six months.

Collateral : Adequate tangible/Intangible collateral security to be obtained, value of which should be at least twice the amount of limit sanctioned by the bank.

Margin: 50% in bank's favor.

9. P&SB Scheme for Financing of Harvestor Combines

With the harvester combine the farmer can harvest his crop quickly and also helps other farmers in timely harvesting their crops. Thus, a farmer can make the best use of combine commercially and thereby increasing his income manifold. The cost of machine varies from Rs.5.50 lac to Rs.9.00 lac. To save the farmers from natural calamities the machine is becoming popular and is being used by more farmers on commercial basis. The salient features of the scheme are an under:

Eligibility: The farmer should be able to convince that he can get sufficient work and is able to provide sufficient security.

Margin - 25%

Repayment: In equated half yearly installment over a period of up to 7 years.

10. Scheme for Financing for Self Help Groups (SHGS)

Self Help Group is an informal group of individuals having uniform socioeconomic status and living together homogeneously, whose members pool their savings and relending within the group on rotational or need basis. The size of group may range from 10 to 20 members and it should preferably be formed by NGO. These groups may be registered or unregistered.

Eligibility : The group should have

• existence for attest a period of 6 months
• opened S.B. A/c with bank
• successfully undertaken savings and credit operation
• democratic working, maintaining proper accounts and records
• genuine need to help each other homogeneous background and interest

Margin: A portion of saving of the group may be taken as margin

Purpose of loan: Loan may be given for any legitimate productive & consumption purpose as suitable to the group. The advances to SHGs form the part of Priority Sector and covered under Weaker Section of Society.