SCHEME FOR FINANCING ESTATE/ ORCHARD PURCHASE (ESTATE/ ORCHARD PURCHASE LOANS)

  • PURPOSE:
    • a. To purchase estates/ orchards growing traditional plantation crops viz. coffee, tea, rubber and cardamom.
    • b. To purchase Areca garden.
    • c. To purchase estates/ orchards growing high value crops like cashew, pepper, coconut, and other perennial orchard crops.
    • d. To pay stamp duty and registration expenses involved in purchase of estate/ orchards.
  • ELIGIBILITY:
    • Only individuals/ joint borrowers and proprietorship firms will be financed.
    • The purchaser should qualify the respective State Government norms for being an agriculturist/ satisfy any criteria stipulated by State Government.
    • The purchaser should have good track record and have existing yielding estates/ orchards.
    • Non estate/ orchard owners may also be financed provided that they will be able to develop the estate/ orchards on the desired lines (subject to State Laws permitting such purchase).
    • The purchaser should be experienced in the line and financially sound.
    • The purchaser should be in a position to bring margin and service the debt.
    • Intending buyer should qualify the State Government norms of being an agriculturist/ satisfy the income criteria stipulated by the state government in case where loan is considered for purchase of areca gardens.
    • Normally, purchaser(s) and seller(s) should not be close relatives.
    • The total land holding including the land to be acquired should be within the land ceiling norms of the respective state.
    • The estate/orchard should have the potential to absorb substantial credit for other developmental activities.
  • EXTENT OF LOAN: Maximum up to Rs. 2.00 Cr.
  • NATURE OF LOAN: Term Loan
  • MARGIN: Minimum 40%
  • REPAYMENT: Within 7-10 years