Purpose: This loan aims at proving financial assistance to small and marginal and tenant farmers with focus on women folk under group approach, to improve rural economy through employment opportunity and to increase milk production through organized sector.
Eligibility: The loan may be given to small homogenous groups of 5 to 15 members or existing SHG with good track record or groups with minimum thrift of Rs. 100 per month per member. The group should have 2 to 5 acres land and must be willing to raise green fodder on collective basis. The quality of animals to be purchased is also specified by the bank. Only graded buffaloes are to be purchased. The group shall have a tie up with a milk processing unit.
Quantum of Loan: The maximum amount granted as loan will not exceed Rs 60000/- per member in a group and aggregate group loan limit shall not be more than Rs 9 lakhs
Repayment: The repayment has to be done within 60 monthly installments. Repayment is to be insisted through issue of cheques by milk processing units.
Security: Hypothecation of animals, lien on group corpus is required. In case of loan limit exceeding Rs 5 lakhs, a collateral security of land by way of mortgage is to be obtained.
Other Documents Required: Insurance of the animals is essential.