Purpose: This loan finances minor irrigation schemes of farmer individually or as a group.
Eligibility: Farmers having agricultural land and are part holders of land can avail this loan. The loan could also be granted in joint names where land is owned jointly.
Quantum of Loan: The maximum amount that is granted as loan is fixed based on the unit cost of the project.
Rate of Interest: The rate of interest for loans up to Rs. 5, 000/- is 9.75% per annum (This is a fixed rate). For Loans above Rs. 50,000/- up to Rs. 2 lakhs, the rate of interest is 2% below PLR. In case of loans of Rs. 2 lakhs to Rs. 5 lakhs, the rate of interest is 0.5% below PLR. Similarly, in case of loans above Rs. 5 lakh also the rate of interest is 0.5% below PLR.
Margin: There is no margin for loans of value up to Rs. 50, 000/-.
Repayment: The period for the repayment of the loan is 5 to 15 years.
Security: No primary security is required for loans of up to Rs. 50,000/-. In case of loans above Rs. 50,000/-, collateral security is required in the form of simple land mortgage.
Processing Charges: There are processing fees for the loan as per the norms of the bank.