Objective

• To mitigate the distress faced by the farmers due to debt burden from non-institutional sources.

Eligibility

• Farmers who avail Union Green Card (UGC) credit facility for either crop loan or investment purposes in Agriculture.
• Existing farmers whose accounts are regular in all respects and
• Those existing farmer borrowers whose advances have been restructured as per relief package announced by Finance Minister in 2004 or Prime Minister's Package in 2006 "Relief measures- Debt Stressed Farmers" or as per RBI Guidelines for relief measures by Banks in areas affected by natural calamities" and regular after restructuring.

Quantum of loan

• 25% of the new/renewal limit under UGC with maximum of Rs.1,00,000/- subject to repayment capacity of farmers.

Margin

• No margin

Security

• Extending Bank's charge over the assets owned by the borrower and created through UGC.
• Mortgage of properties and/or third party guarantee as per banks extant guidelines.

Repayment

Maximum 5 years with intimal moratorium period of max 12 months.

Forms & Documents

Appropriate DPN note, Hypothecation agreement, Deed of Guarantee, Letter of continuity, Mortgage deed,  Declaration /undertaking for Agriculture advance-AD-01,Letter of general lien and setoff, Undertaking from borrower/Guarantor for disclosure to CIBIL, and any other document stipulated in sanction