APCOB is one of the major Banks which meets the Short Term Production credit requirements of the farming community in the state through its network of 22 District Cooperative Central Banks (DCCBs) and 2428 Primary Agriculture Cooperative Credit Societies (PACS) particularly the small and marginal farmers. The share of cooperatives among all the Commercial, Rural and Cooperative Banks is 22.76%.
The Short Term Agriculture Credit is given for the following purposes:
1. National Oilseeds Development Programme (NODP or OPP)
2. Development of Tribal Population (DTP)
3. Other Crops (Seasonal Agriculture Crops)(SAO)
APCOB obtains refinance from the NABARD for on lending to the DCCBs based on its policy guidelines issued every year. The crop loans are provided to the farmers based on Scales of Finance/Individual Maximum Borrowing Power. The Scales of Finance for various agriculture and horticulture crops will be finalized by the State Level Technical Committee (SLTC), the convener of which is APCOB. The SLTC before finalization, takes into consideration the recommendations of the District Level Technical Committees (DLTCs) convened by the DCCBs in each district. In the post implementation of Vydyanathan Committee recommendations the DCCBS are permitted to fix the Individual Maximum Borrowing Power, which was hither to fixed by the State Government.
The crop loans are provided through the Cooperative Kissan Credit Cards (CKCC) issued to each borrowing member of the PACS. The Farmer has to pay a share capital of 10% on the loan drawn by him and become the borrowing member of the PACS. The CKCC acts as pass book to the farmer. Investment credit is also provided through these cards. As per revised guidelines the credit limit to a farmer is fixed once in 5 years taking into consideration the incremental growth in the cost of cultivation each year, the consumption requirements of the farmer and the need for asset acquisition/replacement etc. The farmer is at liberty to draw and repay into his CKCC account any number of times. The credit balance in the CKCC account carries interest equivalent to Savings Bank account. The CKCC also facilitates the farmer to operate upon his loan account at PACS either at PACS or at the branch concerned. Thus CKCC facilitates hassle free loans to the farmers.
As per the new CKCC guidelines the lending institutions may prescribe the due date for the amount drawn based on the seasonality of the crops raised by the farmer. Focus is given to financing of small and marginal farmers and other weaker sections of the farming community in providing production credit for agriculture
As per the initiatives taken by the Government of India the farmer is provided crop loan at 7% p.a. upto a loan of Rs.3.00 lakhs. Further the State Government has announced 0% interest to the farmers with effect from Rabi season 2011-12 up to crop loan of Rs. 1.00 lakh. Above Rs.1.00 lakh and upto Rs. 3.00 lakh the State Government stipulated â€œPavala Vaddiâ€ under which the farmer need to pay interest only at 3% p.a.. The Government of India shares 3% Interest (Incentive) Subvention in both the cases.