Purpose
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To finance share croppers / tenant farmers/ Small and Marginal farmers to purchase land for cultivation or for other allied activities to Agriculture.
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Eligibility
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Small and Marginal farmers, share croppers/ tenant farmers are eligible. Total land owned by the borrowers including the land to be purchased under the scheme should not be more than 5 acres of un-irrigated land or 2.50 acres of irrigated land.
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Amount of Loan
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Maximum of Rs 10 lacs
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Margin
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A minimum of 10 % margin for loan amount exceeding Rs 1.60 lac.
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Security
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The land purchased out of Bank finance, mortgaged in favour of the Bank.
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Repayment
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Maximum of 12 years in half yearly or yearly instalments, including a maximum moratorium period of 24 months.
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Rate of Interest
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Varies from time to time. Presently
Upto Rs.5 lacs: One year MCLR+1.40%
Above Rs.5 lacs upto Rs.10 lacs- One year MCLR+2.25%
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Other details
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Project cost may include besides cost of land, value of stamp duty, registration charges for sale/ mortgage deed and other land development expenses.
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For other details, please contact your nearest IOB branch.
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