- A unique Scheme to provide adequate and timely credit support under a single window to the farmers for their cultivation and other needs.
- All Farmers – Individuals/ Joint borrowers who are owner cultivators.
- Owner cultivator cultivating leased land along with self cultivated land.
- Tenant Farmers, Oral Lessees & Share Croppers.
- SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc
Crop Loan Component :
Calculation of Production Credit requirement is based on DLTC approved Scale of finance. The loan amount shall be arrived at by further adding the following:
Term Loan :
- Contingencies: 30% of production credit.
- Domestic purpose expenses: 30% of production credit.
- Another separate limit for working capital for allied activities: 30% of production credit, wherever the applicant is pursuing other activities under allied agriculture.
- For purchase of Farm equipment, transport vehicles, pick up van/ truck. The limit will be assessed on case to case basis. Maximum Term Loan limit under the scheme will be limited to Rs.20.00 lac
- On Debit balances: As applicable to agricultural advances. Interest subvention announced by Central Government and/or State Government from time to time is also available to crop loan borrowers. (click here for Rate of Interest)
- On Credit Balances in AKCC a/cs : The interest as applicable to S/B account (presently 4%) shall be paid on Credit balance on daily basis.
- 50% of usual charges under processing fee, documentation charges & upfront fee.
- For loans up to Rs. 1,00,000.00 – Hypothecation of crops/movable assets.
- For loans above Rs. 1,00,000.00 – Hypothecation of crops/movable assets
Mortgage/Charge Creation of land as per Agricultural Credit Operation Act of the states concerned.
Charge/lien over liquid securities in the form of Fixed Deposit/NSC/KVP etc. and gold, providing full cover to the limit granted.
Guarantee from two persons of adequate means and repute – acceptable to the Bank.
- Above Rs.4 Lac – (depending on the Course / Institutes) security varies from third party guarantee, co-obligation of parents, full collateral security
- Specified crops grown in notified areas will be covered under Rashtriya Krishi Bima Yojna / Modified National Crop Insurance Scheme/ Weather Based Crop Insurance Scheme as operated by concerned State Government.
- Personal Accident Insurance Scheme (PAIS) is also available.
- Optional Health Insurance for famer customers is available.
- Crop loan limit is sanctioned for a period of 5 years, subject to renewal of the limit each year.
- The Term loan component under the scheme is designed to meet the capital expenditure where the asset life is such that repayment is ensured within 9 years.