Purpose: This is yet another loan scheme to finance the needs of farmers.
Eligibility: Any farmer who is a Sharda Kisan Credit Card Holder, and has been regularly repaying the loan for last 3 years is eligible for this scheme of loan.
Quantum of Loan: The maximum amount that can be granted as loan under this scheme is Rs. 3 lakhs.
Margin: There is no margin amount 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 lakh, the rate of interest is 2% below PLR and for loans above Rs. 2 lakh the rate of interest is 0.5% below the PLR.
Repayment: The repayment has to be done within a maximum period of 7 years.
Security: Hypothecation of the crop is taken as primary security for the loan. The simple mortgage of agricultural land is taken as the collateral security.
Other features: There is a processing fee involved in this loan scheme as per the norms of the bank.