Kisan Loan System

Crop loans are originated, approved and maintained in the cooperatives using intricately formulated rules and guidelines that encompass multiple schemes under multiple lines of credit having multiple durations and satisfying varied sets of norms, convergent in a single loan account. KLS can process all crop loans end-to-end. KLS captures all the nuances of crop loan processing as practiced by the CCS. The solution encompasses the entire cycle of crop loan processing including credit limit application, drawals and repayments capturing various global, district and sub-district parameters for members, schemes, seasons, crops, crop insurance, scales of finance, due dates, interest rates etc.

Benefits of Kisan Loan System

Addresses Regulatory Concerns

Although PACS are not directly a part of the banking system and are not allowed to issue KCCs, KLS offers a compliant handshake between the banking technology network available at the DCCB and the frontline logistics network managed by the PACS.

One Account for All Loans

KLS has the capability to accurately and efficiently handle multiple concurrent loans with different durations, interest rates, repayment schedules, insurance premiums and so on. KLS links each line of credit with a single Savings cum KCC account.

Real-Time DCCB & PACS Interface

KLS interfaces with the ATM Switch to facilitate on-demand validation of loan transactions through the Savings account. Loan withdrawals are validated and the requested amounts are swept into the Savings accounts, in real-time.

No Interchange Charges

KLS facilitates loan account operations through the Savings account. Because the transactions are effectively happening on a Savings account, the bank and the farmer are not liable to pay the Credit Interchange charges.

Multiple Channels of Delivery

Rural areas have a very low penetration of brick and mortar branches. One of the most unique feature of KLS is that it enables loan repayments through a self-service channel such as a Micro ATM, POS or through an ATM that can take cash deposits.

Unlimited Loan Products

The parameterized design of the IRIS KLS allows banks to set up innovative, localized loan products. For example, a Loan Product can have a unique Interest Category that decides how much interest should be charged and when.

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