Purpose: Providing short term working capital for agriculture and allied activities, other domestic consumption requirements and other term credit needs, this loan can be utilized. To meet financial requirement for rural housing also this loan can be taken.
Eligibility: Only the existing land owned borrowers, who have been availing any farm advance against mortgage of agricultural land and having no NPA record for last 3 years are eligible for the loan.
Quantum of Loan: 5 times average annual income from agriculture and allied activity or 50% of value of land to be mortgaged which ever is lesser is granted as loan. This is subject to a maximum of Rs.10 lakhs.
Margin: Up to Rs. 2 lakh there is no margin. Above Rs.2 lakhs loan there is a margin of 10% (Cost of labour may be treated as margin in C/C Limit only)
Rate of Interest: Up to loans of Rs.50,000, the rate of interest is 9%. Above loans of Rs.50000 up to Rs.2 lakhs, the rate of interest is 11%. In case of loans above Rs.2 lakhs, the rate is 12%.
Security: Up to Rs.25000/-, Hypothecation of crop / Assets created out of loan amount is the primary security. For loans above Rs.25000/- Hypothecation of crop/ Assets created out of loan amount along with mortgage of agricultural or suitable Third party guarantee is the security.
Repayment: Aggregate credit into the account during 12 months period should be equal to maximum outstanding. No drawl should remain overdue for more than, 12 months.