Eligibility

• Farmers taking up plantation and Horticultural crops conversant with management techniques and should be otherwise eligible for finance. For large value proposals the promoter should possess the necessary experience or employ qualified personnel.
• Eligible Entities: Unless otherwise specified, organizations/promoters such as Association of growers, Individuals, Group of Farmers, growers/consumers, FPOs, Partnership/Proprietary firms, SHG, NGO, Companies, Corporations, Co-operatives, Co-operative marketing federations, APMCs, marketing boards/committees, municipal corporations/Committees, Agro Industrial Corporations, State Agriculture Universities, other R & D Organizations.
• Borrower should have agriculture land in his / her name.
• There should be assured & adequate perennial source of irrigation for the Plantation & horticulture crops.

Purpose

• To meet the following expenses for plantation & horticultural crops;
• Plantation Expenses
• Irrigation
• Cost of Drip/Sprinkler
• Infrastructure
• Land Development
• Land, if newly purchased: limited to 10% of the total project cost.

Nature of Facility

Term Loan

Quantum of loan

As per NABARD / NHB / NHM guidelines subject to economical viability of the project.

Margin

• Up to Rs.1.60 lakh: Nil.
• Above Rs.1.60 lakh : minimum 10%

Security

• Loans up to Rs.1.60 lakh –

Hypothecation of asset created out of bank finance.

• Loans above Rs.1.60 lakh-
• Hypothecation of asset created out of bank financeand;
• Mortgage of land (Accepted value of land should not be less than  100% of loan amount) &/ or third party guarantee (means should not be less than 100% of loan amount).

Repayment period

• However repayment period normally fixed will be around 8 to12 years based on NABARD guidelines.

Forms & Documents

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