Purpose: This loan finances transport operators related to agriculture.
Eligibility: Agriculturists with land holding or part land holding are eligible for this loan.
Loan can also be granted on joint name in case of the joint group holding the land.
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 to 9 years depending on the project.
Security: The hypothecation of crop and vehicle purchased by the finance provided by the bank is taken as primary security. Simple agriculture land mortgage is taken as the collateral security for the loan.