Comprehensive Rural Development Through Credit

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The KSCARD Bank which initially and primarily focused on redemption of prior debts of the rural farmers later diversified its activities to cater to all the credit requirements of its borrowers to achieve the motto of “Comprehensive rural development through credit”. In addition to financing for traditional activities under Farm, Non farm and Rural Housing sectors, the Bank has also launched several new loan products to serve the members better.

  • FARM SECTOR (Agricultural Loans)

    • Ordinary Loans

      Under this scheme loans are provided for agriculture and allied activities which are not covered under Scheme loans such as levelling, bunding, reclamation, construction of farm house, cattle shed, compound wall, fencing etc. Maximum loan eligibility is 3 lakhs and period of repayment is 10 years

    • Scheme Loans

      The Bank provides long term loans for soil conservation/land development, Minor irrigation, farm mechanization, development of plantation and horticulture, Animal Husbandry like dairy, poultry goat, sheep and pig rearing, fisheries, processing of agricultural produce, purchase of land for agricultural purpose, financing of two wheelers to farmers, development of wasteland etc., Projects with a total financial outlay up to 50 lakhs can be financed, with repayment period of 15 years depending on the activity financed.


    • Enterprise Loan Scheme (ELS)

      This scheme intends to provide financial assistance to meet the credit needs of individual artisans, craftsmen, handicraftsmen and small entrepreneurs who undertake manufacturing and processing activities as approved by the Development Commissioner of SSI, Government of India or any service activity supporting industrial units. Projects with a total financial outlay up to 50 lakhs can be financed, which is to be repaid within 10 years

    • Small Road and Water Transport Operators Scheme

      This loan facility is restricted to the purchase of new vehicle subject to a maximum of Rs.30 lakhs irrespective of gross vehicle weight and is to be repaid within 5 years with a moratorium of 6 months. All public goods carriage and passenger vehicles/boats/launches are eligible to be covered under this Scheme.

    • Swarojgar Credit Card Scheme

      This Scheme envisages to provide timely credit for micro enterprises, small artisans, handloom weavers, service sector etc. as block capital or working capital or both along with a component for consumption credit where family labour is involved. The borrowers will be provided with a laminated credit card and pass book. The validity of the card is 5 years and the maximum borrowing limit per individual is Rs.50000/-. Repayment period is 5 years for block capital and 1 year for working capital from the date of drawal.

    • Education Loan Scheme

      Students of Indian Nationality who have secured admission to higher studies leading to post graduate, doctorate or job oriented courses in India or abroad for any recognized course of study in school/college/University/IIM/IIT approved by the Central and State Govts. /AICTE are eligible for educational loans. The maximum amount of loan is Rs.5 lakhs for study in India and Rs.10 lakhs for study abroad. The repayment of the loan commences only a year after completion of study or 6 months after securing a job whichever is earlier

    • Tourism Development

      The Bank provides credit for development of all tourism related activities to promote farm tourism, home stays etc. enabling the farmers to generate additional income


    The Bank has made major advance in the sphere of Rural Housing by availing refinance from NHB and NABARD. A maximum limit of Rs.15 lakhs is provided for construction or purchase of new house and Rs.5 lakh for renovation/ repair of existing houses. The maximum repayment period is 15 years.


    • Gold Loan Scheme

      The Bank is implementing Gold Scheme through the affiliated PCARDBs to provide production credit/working capital loan for agriculture and allied activities to the members against the pledge of gold ornaments for periods of 3 months, 6 months and one year. The maximum loan amount is Rs.10 lakh.

    • Kisan Credit Card (KCC)

      Kisan Credit Card Scheme is implemented under Farm sector utilizing NABARD refinance for advancing short term loans for seasonal agricultural operations through eligible PCARDBs. All farmers who have availed L.T. loan under schematic lending (FS) and prompt in repayment are eligible for KCC. The maximum loan limit is Rs.3 lakhs and validity of the card is for 3 years with annual renewal of the loan. The rate of interest is 7%. But unfortunately NABARD had withdrawn from providing refinance to this scheme from the year 2011-12. Hence the very useful scheme to farmers is not in operation.

    • Small Traders’ Loan

      This loan scheme aims at providing working capital credit to rural and semi urban traders. Individual maximum loan limit is Rs.2 lakhs and the maximum period of loan is 2 years collected on a daily basis. Security for the loan shall be either land, personal surety of two salaried persons for loans up to Rs.50000/- or personal surety of two established traders on mutual agreement.


    • Second Hand Vehicle Purchase Scheme

      The Bank has started a scheme for financing the purchase of second hand vehicles utilizing NCDC Fund. This scheme covers transport vehicles including light motor vehicles, auto rickshaws, two wheelers, water transport units such as boats etc. and the maximum limit advanced is Rs.5 lakhs.

    • Consumer durable purchase Loan

      Borrowers having good track record of prompt repayment for the last three years is eligible for loan for purchase of consumer durables. Maximum loan limit is Rs.1 lakh or 90% of the value of articles to be purchased, whichever is less. Maximum repayment period is 3 years.

    • Gold Purchase Scheme/Scheme for Marriage Assistance

      The scheme intends to assist borrowers to meet their future requirement of gold and also for marriage assistance. 75% of the market value of gold will be financed. Minimum loan amount is Rs.10000/- and maximum Rs.5.00 lakhs with a maximum repayment period of 60 months.

    • Cash Credit Scheme

      The Scheme enables the borrowers to meet their financial requirements. Maximum loan limit is Rs.5.00 lakh and repayment period is 1 year. 75% of the eligible limit only is allowed to be withdrawn and there should be at least one deposit transaction between two drawals. Security shall be land, personal surety of two salaried persons/self where the maximum loan eligibility will be Rs.50000/-, or pledging NSC, Govt. of India Bonds etc.

    • Rubber Slaughter tapping Scheme

      This scheme is intended to provide financial assistance to entrepreneurs who undertake slaughter tapping of rubber plantations. The maximum loan eligibility under the scheme is Rs 7.20 lakh and the loan will be repaid in 36 months. Interest will be collected monthly. The principal, along with current interest, will be collected in the last month.


The Government of Kerala has accorded sanction to the KSCARD Bank to mobilize fund from the members as term deposits and savings deposits, and we have entered in to the field of deposit collection from the members. The introduction of this scheme is a milestone in the history of the bank as this will help in becoming resource based organisation. We hope to function as a full fledged bank and getting banking license in the near future


KSCARDB is the pioneer institution to computerize its operations. The Bank provides Application software developed by one of the leading and reputed software development organisation (M/S CMC Ltd, now TATA Consultance Services (TCS), covering the entire functions of the Bank, free of cost, to the affiliated PCARDBs. The operation of the KSCARDB is online and a majority of PCARDBs are in online status.


The interest charged to ultimate Borrower is market driven.The present interest rate being charged on various loan schemes including housing issued by PCARDBs) are as follows

NABARD assisted Schemes

Sl No Scheme Rate of Interest
1 Up to Rs 50,000/- 12.35%
2 Above Rs 50,000/- 13.35%

NCDC assisted Schemes

Sl No Scheme Rate of Interest
1 Traders’ Loan 16.5%
2 All other Loans 15%
3 Gold Loan 13%


The Kerala SCARD Bank has been adjudged as the ‘Best performing Bank’ among all the State level Agricultural and Rural Development Banks by NABARD several times. The Bank won Government of India trophy for best all round performance during 2013-14 constituted by NCARDB federation.


The Kerala SCARD Bank from its very inception has generated operational surplus and has declared dividend regularly. The audit for the year 2012-13 has been completed and the net profit as per the Balance Sheet is Rs. 21.10 crores


The Bank has a membership strength of about 12 lakh consisting of both Borrowing and Non-Borrowing members, reaching out to about 13% of the State’s population, making an impact on estimated population of over 48 lakh ( considering an average of 4 members per family).


Disbursement during the last 5 years

(Rs in lakh)

LOAN TYPE 2010-11 2011-12 2012-13 2013-14 2014-15
AGRICULTURAL LOANS (LT) 12324.02 16209.34 18472.61 21447.95 21757.37
NON FARM SECTOR 12109.4 16867.46 20936.83 27297.90 29586.73
RURAL HOUSING 36095.79 55602.10 75595.43 103021.48 104914.24
NABARD KCC 9086.91 11839.27 4283.74 6009.07 4660.22
NCDC LOANS 19441.2 25911.92 34376.76 37503.51 36968.96
Personal loan 0.00 0.00 31.45 16.00 70.85
TOTAL 89057.39 126430.08 153696.82 195295.91

Projected lending for the year 2015-16

Rs 2200.00 Crores

Demand Collection and Balance during the last 5 years

(Rs in lakh)

  • At KSCARDB Level
  • PARTICULARS 2008-09
    (Including ST)
    (Including ST)
    (Including ST)
    (Including ST)
    (Including ST)
    Demand 65626.06 61180.26 68064.07 79146 98323.11
    Collection 58020.55 55980.10 64444.01 75940.49 93286.00
    Balance 7605.51 5200.16 3620.06 3205.67 5037.11
    % of overdues to demand 11.59 8.5 5.32 4.05 5.12
    % of recovery to demand 88.41 91.5 94.68 95.95 94.88
  • At PCARDB Level
  • PARTICULARS 2008-09
    (Including ST)
    (Including ST)
    (Including ST)
    (Including ST)
    (Including ST)
    Demand 81665.56 89041.09 96356.47 104492.18 129305.72
    Collection 49877.59 58291.17 69033.54 75496.69 93784.37
    Balance 31787.97 30749.92 27322.93 28995.49 35521.35
    % of overdues to demand 38.92 34.53 28.36 27.75 27.47
    % of recovery to demand 61.08 65.47 71.64 72.25 72.53

Loan Outstanding for the last 5 Years

(Rs in lakh)

Loan type 2008-09 2009-10 2010-11 2011-12 2012-13
AGRICULTURAL LOANS 53992.19 48861.28 47562.53 51833.11 57712.70
NON FARM SECTOR 24557.15 26422.78 30407.95 37965.03 46967.18
RURAL HOUSING 80780.04 90947.06 106011.95 136740.96 181420.23
URAL HOUSING 80780.04 90947.06 106011.95 136740.96 181420.23
NABARD KCC 7271.36 9431.95 12050.91 12463.35 7793.55
NCDC Loans 12443.15 15145.91 19316.1 24387.81 32554.95
Personal loan Nil Nil Nil Nil 22.18
TOTAL 179043.8 190808.9 215349.4 263390.26 32647.08