OBJECTIVE: 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 to develop and cultivate it with a view to increasing production/ productivity
EXTENT OF LOAN: Rs. 20 lakh. The Extent of loan will depend upon (i) valuation as assessed by the Branch (ii) Guidance value/Circle rate fixed by the State or (iii) Registration Value whichever is lower, plus value of stamp duty, registration charges for sale / mortgage deed.
ELIGIBILITY: Small and marginal farmers/ Share croppers/tenant farmers/ Entrepreneurs with agricultural background. 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.
SECURITY NORMS: Following will form the security for the loan:
• The land presently owned, if any and also the land to be purchased out of the bank finance to be mortgaged in favor of the Bank.
• Hypothecation of Crops grown from time to time on the land.
REPAYMENT: 7-12 years in half yearly/ yearly instalments including maximum moratorium period of 24 months.
Note: Applicant farmers may be allowed to purchase agriculture land within a radius of 15 kms from the existing land owned by him/her or from the residence or within the command area whichever is higher.