Purpose: This loan finances agriculture graduates to set up an agri-clinic or agri-business.
Eligibility: The applicant should be an agriculture graduate.
Quantum of Loan: The maximum amount that can be granted as loan is decided based on the unit cost of the project as decided by the governing norms of the bank.
Margin: There is a margin of 15% to 25% in case of this 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 has to be done is 5 years depending on the project.
Security: The hypothecation of objects purchased by the finance provided by the bank is taken as primary security. In case of loans above Rs. 50,000/- simple agriculture land mortgage is taken as the collateral security for the loan.
Other features: There are processing fee charged for this loan just like the home loan or any other loan from the bank.