Eligibility

• Any person desirous of rearing silk and having the necessary technical know-how can be considered for the loan for development of sericulture.
• Individual farmers cultivating own land/registered leased land with irrigation facilities for cultivation of mulberry, SHGs, Firms and companies engaged in sericulture activities.
• Improved mulberry cuttings, suitable hybrid disease free layings (DFL), silk worm, rearing equipments, other inputs and labour, and adequate facilities for marketing of cocoons to be available in the locality.

Purpose

• To meet the expenditure in respect of cultivation of mulberry plantation as crop loan.
• To purchase silk worm rearing equipments like wooden stands, bamboo trays, chandrikas, knife, ant well, paraffin, wax etc.,
• Construction of rearing house;
• Rearing of silk worms up to cocoon stage
• Processing of cocoons and reeling out silk and its weaving and printing.

Quantum of loan

As per latest NABARD guidelines subject to economical viability of the project.

Margin

• Margin (for crop loan-mulberry cultivation as per scale of finance): Nil
• For Term Loan:
• 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

• Short term loans: to be repaid within 12 months from the date of availing the loan depending on harvest of mulberry crop.
• Term loans: within maximum period of 07 years for tray system and 06 years for shoot rearing system and moratorium of one year may be allowed for term loans.

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 advance and any other document stipulated in sanction.