The bank offers the loan to farmers to make the small and marginal holdings economically viable, 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
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
Margin – The margin will be minimum of 20% or as may be prescribed by RBI from time to time
Security – The land purchased out of the bank finance and mortgaged in favor of the bank will be the security for the loan from borrower.
Interest – As per the prevailing rate at that time
Quantum of Loan – It will depend on the area of the land to be purchased and its valuation and also development cost.
Repayment – Loan may; be repaid in 7 to 10 years in half yearly/yearly installment including a maximum moratorium period of 24 months.