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  • 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.


  • 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 (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%


  • 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.

Rate of Interest - Please click here to know our latest interest rates

Conditions apply.

For more details please contact our nearest branch