Union Bank of India- Product


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  • The scheme aims at providing term loan to small marginal farmers including share croppers /tenant cultivators to purchase agricultural land as well as fallow and wasteland production/ to develop and cultivate it with a view to increase production/ productivity and also enables them to diverse the present activities and take up allied activities.
  • Small and marginal farmers i.e., those who would own maximum of 5 acres of non-irrigated land or 2.5 acres of irrigated land including the land to be purchased.
  • Entrepreneurs with agricultural background are also eligible (Provided State laws permit purchase of agriculture lands by non-agriculturists).
  • Share' croppers / tenant farmers cultivating upto 2.5 acres of irrigated land or 5 acres of unirrigated land as the case may be.
  • The total land holding of the borrower after the purchase of the .land under the scheme should not exceed 2.5 acres of irrigated land or 5 acres of non-irrigated land or equivalent.
Quantum of Loan & Ceiling
  • The quantum of loan will depend upon (i) valuation as assessed by the Branch (ii) Guidance value/Circle rate fixed by the State or (iii) the registration value whichever is lower, plus value of stamp duty, registration charges for sale / mortgage deed. Maximum amount Rs. 10.00 lakhs
Interest Rate:
Repayment Period:
  • Loan is to be repaid in 7-10 years in half yearly / yearly installments including a maximum moratorium period of 24 months.
Documents to be produced by the applicant
  • Copies of land records regarding land owned and to be purchased, certified by the concerned Revenue authorities
  • No due certificate from Co-operative Credit Society / Commodity Boards Financial Institutions. This can be waived provided sanctioning authority is satisfied that the applicant does not have Liability with society / financial institutions for loans upto Rs. 1 lac.
  • Documents of title and other relevant documents to establish the right over presently held landed property as well as lands to be purchased is to be produced.
  • Copy of sale agreement if entered into or offer letter by the vendor.
  • Simplified application for loans upto -Rs. 3 lakhs
  • The applications /documentation as applicable to agriculture Term loans as per respective Bank's guidelines
Processing /Inspection Charges
  • Up to Rs.25000/- Nil
  • In other cases it may be at the discretion of the Banks