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of the KCC (fresh loans and renewals) applications from
physical mode to digital mode.
Y Banks like State Bank of India, Punjab National Bank,
Union Bank of India, Bank of India, and Punjab & Sind
Bank have online tracking facilities for application status
and loan status.
Y Some banks are having a Straight Through Process (STP)
for crop loans up to 1.60 lacs, wherein the farmer can
directly get the loan without visiting the branch. The
digital documentation with e-signature will ensure
seamless processing and disbursement of the loans.
The major objective of STP in agriculture
lending:
Y The details of farm financing given on the websites are The automation in lending has been launched for agriculture
as follows:
lending (KCC) by many public sector banks and the private
o Eligibility and KYC norms
banks also. Farmer-friendly on-boarding is currently available
o Quantum of finance through the bank's website and mobile banking applications
o Rate of Interest also. These are the following major objectives of the STP.
o Margin norms 1. No document submission or branch visit is required for
o Service charges farmers.
o Security features 2. Reduced TAT, sanction, and loan account opening within
o Documentation a few minutes.
o Repayment period 3. Online farmland verification
o Interest subvention 4. Use of satellite imagery and mapping to verify cropping
o Whether application forms are available online or information, geotagging, etc.
not 5. Read bureau integrations for a credit history check.
Y The online application forms with the required details 6. Automated decision on loan, basis land ownership,
are to be submitted online. cropping, bureau data
Y The officers sitting in the branches will have access to 7. Option for execution of loan documentation digitally
the pre-filled loan application. After approving the through Aadhar-based e-signing integration done with
application, the loan can be sanctioned. NeSL
Y Applications and other related forms for agriculture Conclusion:
lending are given in PDF format and made available on It is to be mentioned that the digitalization of agriculture is
the websites, where they can be downloaded and still in its nascent stages in the Indian banking system. The
further submitted at a nearby rural branch. digital India initiative of the central government has been
Y Documents needed for farm loans in PDF formats to well received in the village areas too. There is proper
facilitate banks taking of proper documents have been infrastructure available in the rural part of the country
made available on the websites. through internet-enabled mobile phones. On the other hand,
Y Some of the banks have given clear Check lists for all the PSBs and private banks are aggressively shifting their
individual agriculture products. lending styles from physical to digital. It will be a win-win
situation for the farmers and the banks as well, as it will
Y Most of the banks have computerized the processing save time and money when lending or obtaining loans from
of loan applications through processing centres or the banks. Therefore, it is very important to make the
"hubs," and a specific time frame for such processing initiative of changing the face of agriculture banking more
has been fixed. popular through a process of aggressive financial literacy and
Y Most of the banks are phase wise shifting the processing awareness camps. T

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