Purpose

To purchase estates growing traditional plantation crops viz. Coffee, tea, rubber, cardamom, cashew, pepper, coconut and other perennial orchard crops.

Eligibility

• The Borrower should have yielding estates and should be in a position to rejuvenate the estate proposed to be purchased.
• The purchaser should be experienced in the line, financially sound and should be in a position to bring in margin and service the debt.
• The intending buyer should qualify the respective State Govt. norms of being an agriculturist / satisfy the income criteria stipulated by the State Government, if any.
• The estate should preferably be a neglected one and should have the potential for realizing higher yields.
• The total landholding including the land to be acquired should be within the land ceiling norms of respective state.

Quantum of Loan

• Shall be based on the lowest of (i) Market value (ii) Guidance value / Circle rate fixed by the state, or (iii) Purchase consideration
• The stamp duty and registration charges may also be considered.

Margin

50% on purchase consideration / registration amount OR value of the estate, whichever is lower.

Security

• Mortgage of estate proposed to be purchased. Also collateral security by way of mortgage of existing landed properties/including preferably residential property is to be obtained.
• Hypothecation of plantation crops on the land/ estate.

Repayment period

The loan should be repayable within maximum period of 09 years including a maximum moratorium period up to the stages of crops attaining productive stage.

Forms & Documents

Appropriate DPN note, Deed of Guarantee, Letter of continuity,  Hypothecation agreement, Mortgage deed ,Letter of general lien and setoff, declaration/undertaking for agriculture advance, declaration/undertaking From borrower/guarantor for disclosure to CIBIL and any other document stipulated in sanction.