Purpose

Finance to be extended for farm development activities

Eligibility

• Farmers owning land in their name as owners.
• Farmers cultivating registered leased land where lease period is substantially more than the repayment period.
• Land should be free from any encumbrance.

Nature of Facility

Term Loan

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 finance and;
  • 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 maximum 9 years with moratorium period of maximum 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.