Purpose: This loan finances cultivation of various crops.
Eligibility: All categories of farmers – Small/Marginal (SF/MF) and others including Tenant farmers and Share Croppers who actually cultivate the lands are eligible to get this personal loan.
Quantum of Loan: The loan amount depends up on the crop cultivated on the land.
Rate of Interest: In case of the loans disbursed during the subvention period, the rate of interest for loans up to Rs. 3 lakhs is 7% per annum and 14% per annum for the loans above Rs. 3 lakhs. In case of the loans disbursed after the subvention period the rate of interest is 14% per annum.
Security: Hypothecation of crop is necessary in case of all crop loans. For loans above Rs. 50, 000/- up to Rs. 1 lakh, mortgage of land or third party guarantee is also required along with the hypothecation of crops. In case of loans above Rs. 1 lakh mortgage of land is necessary.
Other Documents Required: The documents of proof for the following are also required to be submitted along with the loan application.
a) Land records to ascertain cultivation rights.
b) Acreage under different crops.
c) Sources of other borrowings e.g. Co-operative Societies and Banks.