Purpose: This loan provides credit for farmers for various needs.
Eligibility: Farmers, who own land, or part holders of land, can avail this loan. Those who are joint owners of land can avail this loan, in the joint name.
Quantum of Loan: Up to maximum of Rs. 3 lakhs is granted as loan. The quantum of loan is decided based on the cost of cultivation of crops, and the land holding of the applicant.
Margin: There is a margin of this kind of loan extended is 15% to 25%.s
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 lakh, the rate of interest is 2% below PLR and for loans above Rs. 2 lakh the it is 0.5% below the PLR.
Repayment: The repayment has to be done in 3 years and this is subject to annual review.
Security: For loans up to Rs. 50,000/- hypothecation of movable assets and crops are only required. For loans above Rs.50,000/- mortgage or charge over land are also required as per the Agricultural Credit Operation Act of the state of MP.