Introduction to the Pashupalan Loan Yojana
The Government of India has introduced a highly ambitious loan scheme for animal husbandry, known as the Pashu Kisan Credit Card Yojana. Recognizing that India is an agricultural nation where nearly every household is connected to farming, this scheme aims to provide financial support to farmers. It is common for farming households to own livestock such as buffalo, cows, or goats. This scheme provides loans for those looking to purchase new animals as well as for those who already own livestock and need financial assistance. This article will provide all the details, from loan amounts and interest rates to the application process and required documents.
Loan Amounts and Guarantee-Free Financing
A key feature of this scheme is the provision of financial aid with minimal barriers.
Guarantee-Free Loan
Under the Pashu Kisan Credit Card scheme, animal farmers can get a loan of up to ₹1,60,000 without needing to provide any guarantee or collateral. This is designed to give farmers easy access to economic assistance.
Maximum Loan Limit
While the guarantee-free limit is ₹1.60 lakh, farmers can apply for a maximum loan of up to ₹3 lakh. For loans exceeding this amount, the interest rate becomes higher at 12%.
Loan Amount Per Animal
The scheme has specified loan amounts based on the type of animal:
- For each Cow: ₹40,783
- For each Buffalo: ₹60,249
- For each Goat/Sheep: ₹4,063
- For each Egg-Laying Hen: ₹720
Interest Rates and Repayment Details
The scheme offers significant relief on interest rates to encourage timely repayment. The standard interest rate is 12%, but farmers can get substantial discounts. The government offers an additional 3% subsidy, and by repaying on time, the final effective interest rate for the farmer comes down to just 4%.
The repayment period for the loan is set for five years. To be eligible for subsequent installments and interest rebates, the interest for the year must be paid back within one year.
Eligibility Criteria for Applicants
To be eligible for the Pashu Kisan Credit Card loan, applicants must meet the following criteria:
- The applicant must be a resident of India.
- The applicant must be over 18 years of age.
- The applicant should not have defaulted on any previous bank loans.
Certain individuals are not eligible for this scheme, including government employees, income-tax payers, and large business owners.
Required Documents for Application
Applicants need to prepare the following documents to apply for the loan:
- Aadhaar Card
- Bank Account Details
- PAN Card
- Proof of Residence (Mool Niwas Praman Patra)
- Caste Certificate (not required for the General category)
- An affidavit stating the number of animals owned or to be purchased.
- Land-related documents (to show you have arrangements for fodder).
- Passport-sized photograph
- Mobile Number
- Animal Health Certificate (from a government veterinary doctor if you already own animals).
How to Apply for the Pashu Kisan Credit Card
Unlike many other government schemes, this loan does not have a dedicated central online portal for applications. The process is handled directly through banks.
- Visit Your Bank: The first step is to go to the bank branch where you hold an account. All nationalized banks offer this loan.
- Request the Application Form: Ask the bank staff for the Pashu Kisan Credit Card or Animal Husbandry Loan application form. Bank employees can assist you in filling it out.
- Submit Documents: Submit the completed form along with all the required documents.
- Verification: The bank will verify your application and documents, a process that typically takes a maximum of two to three days.
- Receive Your Credit Card: Once approved, you will be issued a Pashu Kisan Credit Card. This card works like an ATM card, allowing you to withdraw funds up to your sanctioned loan limit whenever you need them.
By making timely repayments, the bank may also increase your credit limit on the card, providing you with more financial flexibility in the future without needing to reapply.
