Purpose: This loan finances farmers for mechanization process and also for minor irrigation schemes.
Eligibility: This loan can be availed by farmers.
Quantum of Loan: The maximum amount that is granted as loan depends on unit cost which is decided based on the crop pattern and the land holding of the applicant.
Margin: There is a margin of 15% to 25% of the process for this personal loan.
Rate of Interest: The rate of interest for loans up to Rs. 50,000/0 is 9.75% per annum. In case of loans above Rs.50,000/- up to Rs. 2 lakhs, the rate of interest is 2% below PLR and for loans above Rs. 2 lakhs up to Rs. 5 lakhs, the rate of interest is 0.5% below the PLR. For loans above Rs. 5 lakhs, the rate of interest is 0.5% above the PLR.
Repayment: The maximum period within which the repayment of loan has to be done is 9 years.
Security: Hypothecation of movable property and crops is taken as primary security. For loans up to amount of Rs. 50,000/- there is no requirement of collateral security. For loans above Rs. 50,000/- there has to be a collateral security given in the form of simple agricultural land mortgage.
Other features: There are processing charges as per the norms of the bank.