Purpose- 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; The objective of the Scheme is to finance the farmers to purchase, develop and cultivate agricultural as well as fallow and waste land.
Eligibility – Small and Marginal farmers who would own maximum of 5 acres of non-irrigated land or 2.5 acres of irrigated land including purchase of land under the scheme.
Margin- The Margin will be minimum 20% on the project cost unlike other personal loan.
Security – The land purchased out of the bank finance and mortgaged in favor of the bank will form the security for the loan from borrowers. Legal clearance of the title deed as per procedure in force required. In addition, collateral security of land property with value equal to the loan amount, national savings certificate or LIC policy with surrender value equal to loan amount.
Repayment Period- Loan shall be repaid in 7-10 years in half yearly or in yearly installments including a maximum moratorium period of 24 months. The moratorium period is fixed taking into account the gestation period of the project and cash flow.