Chikmagalur Kodagu Grameena Bank – Purchase of Land for Agriculture Purpose

By Pradeep Yuvaraj | July 4, 2011

The loan is offered by the bank to make the small and marginal holdings economically viable, to bring fallow lands and waste lands under cultivation, to step up agricultural production and productivity and to finance the share croppers /tenant farmers to purchase land to enable them to increase their income.

The loan portfolio of the bank includes home loan, personal loan, vehicle loan, business loan, educational loan, agricultural loan etc.

Purpose –           The objective of this scheme is to finance the farmers to purchase, develop and cultivate agricultural as well as follow and waste lands.

Eligibility –           Small and marginal farmers i.e. those who would own maximum of 5 acre of non-irrigated land or 2.5 acres of irrigated land including the purchase of land under the scheme; Share Croppers/Tenant farmers

Quantum of Loan –           Depends on the area of the land to be purchased and its valuation and also development cost.

Margin –           The margin will be minimum 20% or as may be prescribed by RBI from time to time

Security –           The land purchased out of the bank finance and mortgaged in favour of the bank will be the security for the loan from borrower.

Interest –           As per the prevailing rate at that time

Repayment –           Loan may; be repaid in 7 to 10 years in half yearly/yearly installment including a maximum moratorium period of 24 months.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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