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Agriculture Loans

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