Purpose

• finance can be extended to small and marginal farmers, other farmers, individual or corporate entrepreneurs for establishing suitable units to produce vermicomposting

Eligibility

Small Farmers & Marginal Farmers / other farmers/Individuals/Corporate entrepreneurs /Association of persons/Companies who possess adequate experience in the line and are desirous of taking up the activity on commercial basis.

Nature of Facility

Term Loan only

Margin

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

Quantum of loan

As per NABARD unit cost & guidelines subject to economical viability of the project.

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

Term loan to be repaid in monthly/quarterly/half yearly/yearly instalments in maximum 7 years with moratorium period of maximum 12 months.

Forms & Documents

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