PURPOSE – To finance farmers to purchase, develop and cultivate agricultural as well as fallow and waste lands and also for purchase of land for other allied activities such as Dairy, Poultry etc
ELIGIBILITY – Small and marginal farmers who would own maximum of non-irrigated or irrigated land, including purchase of land under the scheme as stipulated by NABARD
QUANTUM OF LOAN – It depends on the area of the land proposed to be purchased and its valuation and also development cost. The project cost may include, besides cost of land, value of stamp duty, registration charges for sale or mortgage deed and other land development expenses.
RATE OF INTEREST – 11.50% per annum for loans up to Rs.2 lakhs and 13.00% per annum for loan above Rs. 2 lakhs
SECURITY – The land purchased out of bank loan shall be mortgaged in favour of the bank similar to home loan or other mortgage loans.
REPAYMENT – Loan may be repaid in 7-12 years in half yearly/ yearly installments including a maximum moratorium period of 24 months
MARGIN – No margin is stipulated for loans up to Rs. 50000/-. For loans above Rs. 50000/- , a minimum margin money at 10% of the project cost shall be met by the borrower.