Purpose: This loan finances the farmers for purposes like Crop Production & also to meet out their personal & consumption needs to some extent.
Eligibility: All categories of farmers, who are permanently residing within the radius of 10 kilometers of the branch and owning any size of Agricultural land, according the land ceiling act approved by the state Government, are eligible to avail loan under this scheme. The share croppers, Oral lessess & tenant farmers may also be covered under the scheme with certain restrictions.
Quantum of Loan: Total loan requirement for the crop production is arrived on the basis of agricultural land available for crop production, cropping pattern, proposed by the farmers & the existing scale of finance for the proposed crops. 20% of the total requirement for crop production arrived in this way and the remaining may be sanctioned for the personal/consumption needs of the applicant farmers.
Rate of Interest: For loans up to Rs. 3 lakhs, the rate is 7% p.a. and PLR i.e.11.50% p.a. for loans above Rs.3 lakhs.
Security: For loans upto Rs.50000/- hypothecation of crops is only required. If loan amount exceeds Rs.50000/- creation of charge on the agricultural land, proposed for loan, is required in addition.
Repayment: Credit Card is offered for a period of 3 years, subject to annual review.