Objective

Need based credit scheme for all Agriculture and allied activities excluding Food and Agro processing units

Nature and Purpose of Advance

• Purchase of fixed assets such as machineries, equipment /construction of factory/ warehouse/ cold storage/ poly house/ rural godown/ office and its interior decoration & furnishing/installation of solar systems/ Agri clinic and Agri Business centers etc.
• Purchase of Commercial vehicles/ tractors / power tillers /other farm equipment's, all activities related to farm mechanization etc.
• For raising kitchen/flower gardens, small orchards, roof gardens and landscaping etc.
• Purchase of land for the purpose of cultivation alone to Small/Marginal/Tenant/Sharecroppers.
• Establishment of fruit orchards, plantations, and cultivation of vegetables/flowers in farm and under controlled condition like greenhouse/poly house, integrated farming etc. including purchase of implements/tools/equipment's etc.
• Farm development activities such as Land levelling, bench terracing in Hills, terracing/bunding, land reclamation, fencing etc.
• All the activities supporting above including pre- and post-harvest activities.
• All irrigation activities such as digging of well/construction of pump house/sprinklers/drip irrigation/lift irrigation etc. and services supporting all the above activities.
• Hi tech Agri projects including purchase of drones etc.
• The lists mentioned above are indicative and all other activities related to agriculture can be considered under this scheme.
• Food and Agro Processing Units are not eligible under this scheme.

Quantum of Loan

Minimum - No Minimum

Maximum - No Minimum

Eligibility

Project should generate sufficient income such that loan can be repaid from the financed activity, without relying on other income.

The projects/ activities considered under the scheme should have all requisite permissions/ licenses/ approvals from competent authorities wherever applicable.

Applicant should have sufficient knowledge/ experience in the activity undertaken.

For projects related to irrigation, minimum land of 3 acres should be available in case of individuals.

In case or purchase of tractors, minimum 2 implements to be purchased for effective use of tractors. However, if the applicant is already possessing 2 or more implements, then purchase of new implements need not be insisted.

Purchase of land for cultivation purpose under this scheme should not be more than 2.5 acres of irrigated and 2.5 acres of unirrigated land with a maximum ceiling of 5 acres.

Maximum finance for purchase of land for cultivation purpose is restricted to Rs.20 Lakhs.

Security

Up to Rs. 1.60 Lakhs

Prime security:

Hypothecation/mortgage of assets created out of bank finance

Collateral Security: Nil

Above Rs.1.60 Lakhs

Prime Security:

Hypothecation/mortgage of assets created out of bank finance.

Collateral Security:

Mortgage of Immovable property or any other security acceptable to bank where overall collateral coverage should not be less than 100% of loan amount.

Deviation in collateral coverage is permitted on case-to-case based on discretionary power.

Margin

Minimum 20% irrespective of the quantum.

Relaxation in margin is permitted on case-to-case basis based on discretionary power.

Repayment

Maximum 7 years for purchase of tractors/ commercial vehicles/power tillers/other farm equipment's and all activities related to raising kitchen/flower gardens/roof gardens etc.

For all other activities maximum repayment period can be considered up to 12 years depending upon the repaying capacity.

Holiday Period

New cultivation of long-term crops i.e, Mango, Citrus, Papaya, Coconut, Rubber, Tea, Pepper alone will have maximum holiday period of 5 years to achieve their economic yield.

In all other cases, maximum holiday period will be 24 months.

Rate of Interest

Externally rated accounts:

*1 Year MCLR - 9.00% at present

Interest Concession

Interest concession can be considered on case to case based on the merits depending upon the discretionary power of sanctioning authority.

Processing Charges

Processing charges @ 0.40% of limit + GST to be collected for cash credit and NFB limits.

Upfront fees @ 0.71% of term loan amount + applicable GST to be collected.