Purpose
To enable general public to purchase agricultural lands with a view to make agricultural holdings economically viable, to improve agricultural production & productivity and to take up additional agricultural & allied activities.
Eligibility
- Small/Marginal farmers & other farmers irrespective of land holding
- Applicants without agricultural land holding are also eligible
- Minimum age: 18 years & Maximum exit age at the time of loan closure is 75 years
Loan Quantum
- Minimum loan quantum is Rs.1.00 lakh
- Lowest of A or B or C:
- A:- SRO certificate value of the agricultural land to be purchased inclusive of registration charges after deduction of applicant’s margin
- B:- 5 times the agricultural income of the applicant farmer assessed based on existing land holding
OR- 5 times the average annual income as per ITRs of the applicant for the last 2 years
- C:- Purchase consideration evidenced by sale agreement with vendor of the agricultural land after deduction of applicant’s margin
- Total expenditure of the applicant for existing/proposed credit facilities should not be more than 70% of overall income
Margin
Loan Quantum |
Margin % |
Upto Rs.10.00 lakh |
10.00% |
Rs.10.01 lakh – Rs.25.00 lakh |
15.00% |
Over & above Rs.25.00 lakh |
20.00% |
Rate of Interest, Processing Charges & Other Charges
As per Bank’s internal guidelines issued from time to time
Security
Simple/Equitable Mortgage of agri land to be purchased out of the loan subject to minimum coverage of 100% of the loan quantum
Guarantee
Third party guarantee from a person with worth more than 100% of the loan quantum
Repayment
Upto a maximum of 15 years in yearly installments
Moratorium
- Minimum: 6 months
- Maximum: 12 months