Finance for Agriculture
Eligibility
Individual as well as joint owner of Agriculture Land and having experience and satisfactory Market report.
(A). Scheme for Financing Minor Irrigation
Purpose
Purchase of pump sets, construction of Dug wells, deepening of Wells/Submersible pump/Repair to wells, Bore wells, shallow tubewells, deep Tubewells,installation of Persian wheels/Rehats, Sprinkler Sets, Drip Irrigation, Construction of Pump house, water tanks, laying of field channels, pipe lines and related activities.
Eligibility
A Farmer intending to implement a minor irrigation project must have a holding at least.5 acres of agriculture land. Project must be technically feasible and financially viable.
Nature of Loan
Medium Term Loan
Extent of Loan
Need based
Repayment of Loan
Ranges from 5-15 Years depending on individual activity.
(B) Mechanisation Scheme : Financing for Purchase of Farm Machinery & Repair / Renovation of Tractors & Power Tillers
(I) Purchase of Harvester Combine
Purpose
Loan is given for financing purchase of combine harvester.
Eligibility
- In case of farmers : Applicant should be able to maintain and run combine harvester or should make suitable arrangements for the same.
- In case of persons other than farmers : Applicant should be technically qualified having adequate know-how, skill and managerial ability to run custom service units.
- In case of State Agriculture Farms / Corporations : State Agriculture Farms / Corporations engaged land development activities should have adequate resources and command area to run and maintain combine harvesters.
Margin
25%
Security
Primary Security Hypothecation of Combine. Charge of Vehicle to be got registered in Bank’s favour, Collateral Security Equitable/Regular Mortgage of Property for the values per H.O. Guidelines
Insurance
The Combine will be kept insured for theft, Fire, Riot and Full Insurance with Bank clause.
Period of Loan
5 to 7 Years Half Yearly equated installments.
(II) Scheme for Financing of Self Propelled Combine Harvesters
Purpose
Loan is given for financing purchase of combine harvester.
Eligibility
- In case of farmers : Applicant should be able to maintain and run combine harvester or should make suitable arrangement for the same.
- In case of persons other than farmers : Applicant should be technically qualified having adequate know-how, skill and managerial ability to run custom service units.
- In case of State Agriculture Farms / Corporations : State Agriculture Farms/Corporations engaged it land development activities should have adequate resources and command area is run and maintain combine harvesters.
Extent of Loan
Need based.
Repayment of Loan
5 – 7 Years in Half Yearly equated installments.
(C) Scheme for Financing Farmers for Purchase of Trucks & Other Transport Vehicles
Purpose
Loan is given for purchase of New Trucks, other new motorized light/medium vehicles like tempo, Matador, Jeeps, pickup Vans, mini-Trucks, two-wheelers to farmers for transport of agricultural inputs/Produce.
Eligibility
Owners, Tenants or lessees of land and engaged in farming or allied agricultural activity for transporting agricultural inputs and farm products. Loan for purchase of Trucks shall be given to farmers whose land holding is 3 acres or more. Loans for purchase of light/medium vehicles like jeeps, pick-up vans, mini trucks, etc. To be used for transport of agricultural inputs and farm products shall also be made to farmers, whose land holding is comparatively smaller, i.e. 2 acres or more. Loan for two-wheeler is given to farmers having land holding of 1 acre or more.
Nature of Loan
Term Loan
Repayment of Loan
Loan with interest if repayable in maximum period of 4 – 5 years in suitable installments.
(D) Loan for Purchase of Tractor & Farm Machinery
Purpose
Loan is sanctioned for purchase of new tractors and matching implements/equipments, purchase of new power tillers purchase of second hand tractors with matching implements, purchase of agricultural machinery, repair/renovation of tractors.
Eligibility
- For Tractors : Farmer or a group of farmers holding land jointly should have a land holding either owned by them or held by them or held by them on perpetual leasehold rights of minimum 2.5 acres of perennially irrigated land or corresponded acreage. Economic viability of financing tractor in each case shall be worked out. Thus, financing of tractor shall be done after ensuring economic viability of the tractor loan proposal.
- For Power Tillers : Farmer or a group of farmers holding land jointly should have a land holding either owned by them or held by them on perpetual lease hold rights of minimum 1.5 acres of perennially irrigated land or corresponding acreage. Financing of power tiller shall be done after ensuring economic viability of the power tiller proposal.
- For other Farm Machinery / Equipments : No conditions of minimum land holding have been stipulated. Farmer should have proper scope for utilization of assets and based on economic should be in a position to conveniently repay loan.
Extent of Loan
Need based loan.
Insurance
The Tractor borrowers who have required to get their tractor and matching implements insured against “Liability” (third party) under the insurance Act to get insurance coverage.
Repayment of Loan
Repayment of Loan is to be made in half yearly installments as under
| Particulars | Repayment Period (Year) |
|---|---|
| Tractors | 7 |
| Second Hand Tractor | 5 |
| Power Tillers | 7 |
| Other Farm Machinery | |
| (a) Small & Marginal Farmers | 7* |
| (b) Other Farmers | 5 |
| Repair / Renovation of Tractor | 5 |
* Including Repayment Holiday of One Year
Note: Repayment period shall be fixed on a case-by-case basis depending on nature of repairs, category of farmer and his repayment capacity etc.
(E) Agriculture & Allied Activity
Purpose
Bank will provide loan to the farmers for undertaking various agricultural and allied activities for production as well as besides, loan is also provided for processing storage/value addition activities post harvest technology.
Eligibility
Farmers who are owner-cultivator, tenants, and lessees of allotted-farmers with recorded occupancy rights or farmers with ancestral/perpetual rights of cultivation, individual farmers or joint farmers.
Extent of Loan
Need based. The farmer shall draw out his plan encompassing all agricultural activities on the basis of which extent of loan is determined subject to exposure name.
Nature of Loan
Cash Credit / Term Loan / Overdraft depending upon the requirement of the farmers.
Repayment of Loan
The repayment period is fixed as per the individual scheme. But not exceeding 10 Years. Cash credit limit repayable on demand.
Rural Housing Loan
If the land for which the house related loan is given is in the name of spouse then spouse will be co-borrower.
Maximum age limit at the time of sanction of loan is 65 Years. Applicants above 60 Years but maximum 65 Years may be considered for sanction of loan if all the legal heir join as guarantors. Required approval from competent authority for plan, etc. will have to be submitted. Other requirements of Bank’s Housing Loan Scheme are to be fulfilled.
(F) Scheme for Financing Farmers for Purchase of Land Agricultural Purpose & It’s Development
Purpose
The objective of the scheme is to finance the farmers to purchase, develop and cultivate agricultural land
Eligibility
Individual / Farmers having sufficient land to cover the required security norms.
Extent of Loan
It will depend on the area of the land to be purchased and its valuation and also development cost.
Repayment of Loan
Loan is to be repaid in 7-10 Years in half Yearly/yearly installments including maximum moratorium period of 24 months.
(G) Scheme for Financing Mushroom Cultivation
Purpose
Loan is considered for investment credit and working Capital (For initial one crop only)
Eligibility
Loan is considered for individuals as well as for large sized units possessing adequate experience of mushroom cultivation.
Extent of Loan
Need based
Repayment of Loan
Maximum 7 Years including gestation period depending upon repaying capacity of borrower.
(H) Scheme for Financing Mushroom Spawn Production
Purpose
Financial assistance for spawn production is considered for the purpose of investment as well as recurring expenditure.
Eligibility
Individual as well as large sized units possessing qualification in plant pathology or having proper background and training for spawn production.
Extent of Loan
Need based
Repayment of Loan
Maximum 7 Years
(I) Finance to Arthiyas / Commission Agents / Dealers engaged in distribution of Agriculture Inputs such as Seeds, Pesticides, Fertilizers etc., against their paid-up stock and book-debts and Commission Agents / Arthiyas who are extending credit to farmers for purchase of Agriculture Inputs but are not exclusive dealers of these inputs
Eligibility
Individual / Firm / Private or Public Limited Company / Corporate Body or Co-operative Society registered under any law relating to Co-Operative Societies working as Arhtiyas / Commission Agents / Dealers, enjoying good reputation in the area, having sound financial position, having sufficient experience in distribution of agriculture inputs to agriculturists and having satisfactory turn-over.
Nature of Facility
- Cash Credit (Hypothecation)
- Term Loan
Extent of Loan
Need Based
Period of Loan
Period of Loan should coincide with marketing of produce of current crops (Kharif / Rabi) Account to be brought into credit balance at least once in a year. Account to be renewed annually.
(J) Scheme for Financing Dairy Development Programmes
Dairy projects are financed for the following activities
- Financing individuals for purchase of good quality high yielding milt animals, viz, cows/buffaloes or crossbred cows for milk production.
- Financing individuals for purchase and rearing of calves’ upto the stage of first lactation.
- Financing for other innovative animal husbandry activities, namely cattle breeding, salvaging of dry pregnant cattle, milk-processing facilities, construction of milk houses, etc.
(K) Financing for Milk Production Activity i.e. Purhcase & Maintenance of Milch Animals (Lactating Cows / Buffaloes) for Milk Production
Purpose
Bank provides loan for following purposes
- Purchase of good quality high milk cows / buffaloes.
- Construction of shed(s) for keeping the animals.
- Purchase of Dairy machinery or other equipment’s of dairy business.
- Providing fodder for the animals.
- Cost of transportation of animals from cattle market.
- Composite loans are also given for purchase of milk cattle and one month concentrate feed requirements as also for cultivation of fodder crops in integrated manner.
Eligibility
- Individuals undertaking dairying as subsidiary activity.
- Individual undertaking commercial dairy as main activity.
Extent of Loan
Need based loan is provided. A unit of 2 milk animals is considered viable minimum size for such an activity for continuous production of milk
Repayment of Loan
Loans for purchase milk animals should be repaid as under
| Type of Investment | Repayment Period (Including Gestation Period) | Loan Installment Period | Gestation Period |
|---|---|---|---|
| Cross Bred Cow(s) | 5 Years | Monthly / Quarterly | Repayment to be linked with lactation period |
| Buffaloes | 4 – 5 Years | Monthly / Quarterly | Repayment to be linked with lactation period |
| 2 Graded Murrah Buffaloes | 4 – 5 Years | Monthly / Quarterly | Repayment to be linked with lactation period |
| Cross Bred Calf Rearing | 5 – 6 Years | Monthly / Quarterly | 30 Months |
