Even as the rest of the country gloats over the success of the Kisan Credit Cards, one state, at least, is considering adding more value to it and changing the way farmers shop. Enter, the Gold Card.Ask Tukaram Dharmaji Kakade about the benefits. Kakade drives a new tractor these days, thanks to a Bank of Maharashtra (BoM) Gold Card. A wheat and jowar farmer from Chahur village in Satara district, he used the credit available on the card to dig a new well as well. As one of BoM’s priority clients, he has been provided BoM Gold Cards that allows a maximum loan of Rs 2.5 lakh in three years. ‘‘I have taken loans worth Rs 2 lakh,’’ Kakade says.The card is available to all farmers with good credit records, and can be used like a normal credit card to get long-term loans for buying implements, adding a pipeline, building a house or even for education of dependents. The vital difference between the BoM Kisan Credit Card and the Gold Card is that the later also takes care of farmers’ needs for non-agricultural finance. He can even go to a shop and get a consumer loan for buying a television.In the past four months, the bank has distributed gold cards to 259 farmers in Maharashtra, starting with seven in Satara district. Loans worth Rs 12.95 lakh have already been availed on these cards. The BoM, in fact, has taken on the task of identifying farmers who are eligible for this card from among the 65,000 holders of the Kisan Credit Card.Though successful so far as short-term credit for crops is concerned, ‘‘the Kisan Credit Card did not help farmers access large sums in an emergency — for example, when a pump burnt up or when a well needed to be dug,’’ says V A Deshpande, AGM (Planning), BoM. For these larger sums, the farmers were still dependant on the money-lender. They would also have to return empty-handed from agriculture fairs in big cities, as they would not have the cash to buy the latest implements on display.The BoM now is planning tie-ups with marketers of agricultural inputs (raw material like seeds, fertilisers, manure, tools etc), who will accept these cards as general purpose credit cards if a farmer wanted to buy an electric motor or fertilisers or seeds.With the Gold Card, farmers are not only able to upgrade facilities but also get insurance worth Rs 2 lakhs, a BoM ATM Card and a BoM India Card free with the Gold Card.One of its major benefits, according to BoM AGM (marketing) Shyam Bhurke, is the card’s ability to access loans through 1,235 BoM branches without necessitating reprocessing of documents, which are valid for three years under the Gold Card scheme. Also the card can be used for five different loan accounts simultaneously during its validity period.Farmers can avail of loans from a minimum of Rs 1 lakh to a maximum of Rs 3.5 lakhs for a period of 5 years to 20 years. Interest rates would be similar to the Kisan Credit Card — 12 per cent per annum up to Rs 2 lakh, 13 per cent up to Rs 5 lakh and 14 per cent per annum thereafter. The farmer then becomes a permanent account holder and depositor with the bank. ‘‘This card helps us in making the relationship with the farmer much stronger,’’ says Deshpande.Rural networking has always been the BoM’s strength, emphasises Bhurke. Eighteen per cent of the Bank’s total lendings, which amount to nearly Rs 9,000 crore, are in agriculture sector. Gold Card holders with good track records will get stars on their pass-books indicating that they are the most valued customers.
