Agriculture Finance

1. SBT KISAN GOLD CARD SCHEME (General purpose Agriculture Term Loan)
ELIGIBILITY
a.
Farmers having good track record of repayment for the last two years.
b. Farmers who have closed their loan account without default and not our current borrowers.
c. Farmers who have defaulted in repayment but closed the Loan within the stipulated repayment period.

d. Farmers who are maintaining deposits with the Bank.

e. Good borrowers of other banks provided they liquidate their dues with other banks.

f. Good farmers who have not availed loans from any bank.
PURPOSE

The borrower is at liberty to utilize 50% of the amount for any purpose, including consumption purpose and purchase of land.

AMOUNT OF LOAN

The amount of loan is limited to five times the annual farm income including income from allied activities or 50% of the value of the land offered as collateral security, whichever is less, subject to a maximum of Rs.10 lakh.

RATE OF INTEREST

Interest rate ranges from 1% below PLR.

SECURITY

       Hypothecation of crops and assets, if any, created out of bank finance and existing movable assets such as milch animals, pump sets etc.

       The loan will be secured by equitable mortgage of properties worth double the loan amount, or term deposit receipts, LIC policies of adequate surrender value, NSCs completed lock in period or more etc.

DISBURSEMENT

Cash disbursals are allowed to the full extent of the credit limit.

REPAYMENT

The repayment period shall be 10 years. The due date of the instalment shall be fixed in such a way to coincide with the date of generation of income.
2.
KISAN CREDIT CARD SCHEME

ELIGIBILITY

All agriculturists who are in need of short term production requirements. ATM facility and Personal Accident Insurance Scheme for life up to Rs.50000/- and permanent disability cover up to Rs.25000/- is available on request.

PURPOSE

To provide hassle free short-term credit to farmers on the basis of their land holdings for purchase of inputs and draw cash to meet their production needs. i.e. Cultivation expenses including allied activities with a consumption component.

AMOUNT OF LOAN

To be fixed on the basis of operational holdings and scale of finance with consumption component 15% (maximum Ra.10000/-) of production credit. The scale of finance to farmers who own cultivated land below one acre will be at the rate of Rs.40000/- (on pro rata basis) and farmers who own more than one acre with intensive farming of land be given at the rate of Rs.37500/- per acre and part thereof.

RATE OF INTEREST

Interest rate ranges from 2.50% below to 1.50% above BPLR for various limits.

REPAYMENT

Running Cash Credit account for 36 months subject to annual review and total annual credit should exceed annual debit. 

3. HOMESTEAD FARMING

PURPOSE

A scheme for financing farmers practicing mixed cropping / inter cropping along with allied activities to enable them to undertake cultivation of various crops in a more integrated way. The scheme provides the farmers with sufficient working capital required for their homestead farming (Mixed cropping along with allied activities) by fixing scale of finance based on land holding to meet the cost of entire farming activities.

AMOUNT OF LOAN

The farmers who own cultivated land below one acre be given the scale of finance on pro rata basis at the rate of Rs.40000/- and farmers who own more than one acre of land be given at the rate of Rs.37500/- per acre and part thereof.

RATE OF INTEREST

Interest rate ranges from 2.50% below to 1.50% above BPLR for various limits.

REPAYMENT

The facility will be sanctioned as an Agriculture Cash Credit limit (In case of Kisan Credit Card running cash credit). 

 

4. LOAN FOR ESTATE PURCHASE

ELIGIBILITY

The estate should be either in yielding stage with the crops in its prime yield age or capable of being developed in to a viable unit. The yield / net income of the estate should be sufficient to liquidate the proposed loan and interest accrued with in a period of 7 to 10 years. The proposed estate should be free from encumbrance and entire property should be offered as security to the loan.

PURPOSE

To encourage those who prefer to settle down in agriculture and are in the look out of good / viable estates for purchase and also to improve production in agriculture.

AMOUNT OF LOAN

The quantum of loan that will be considered for sanction will be 75% of the registered value or 50% of the market value whichever is low. In exceptional cases 80% of the registered value or 50% of the market share whichever is low is also considered. The loan for the development of the estate like land development including working capital can also be sanctioned.

RATE OF INTEREST

Interest rate same as BPLR

REPAYMENT

Repayment of loan will be in quarterly/half yearly / yearly instalments depending on the harvest of the crops and the loan shall be repaid within a maximum period of 7 to 10 years. 

5. SCHEME FOR FINANCING FARMERS FOR PURCHASE OF LAND FOR AGRICULTURAL PURPOSES

ELIGIBILITY

Small and Marginal farmers - land maximum upto 5 acres of non-irrigated land or 2.5 acres of irrigated land including the land purchased under the scheme.  Tenant, sharecropper and landless agricultural labourers with a good record of prompt repayment of our loans for the last 2 years are also eligible.

PURPOSE

To finance small and marginal farmers, share croppers, tenant cultivators for purchasing land to expand activities and to make existing small and marginal units economically viable to bring fallow lands and waste lands under cultivation to step up agricultural production as well as productivity     also    to finance share croppers / tenant farmers to enable them to diversify farming activities to allied areas to increase their income.

AMOUNT OF LOAN

Maximum loan under the scheme towards land cost shall not exceed Rs 5 lakh. Cost of development/economic activity shall be financed under the banks other financing schemes.

RATE OF INTEREST

Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.

REPAYMENT

Repayment of the loan will be 7 to 12 years in half yearly / yearly installments with maximum of 24 months moratorium period. Gestation period / repayment due dates etc will be fixed according to income generation from the activity.
6.
SCHEME FOR CULTIVATION OF MEDICINAL PLANTS

ELIGIBILITY

All agriculturists are eligible.

PURPOSE

Scheme for financing cultivation of 22 medicinal plants cultivated extensively and also in great demand in the local as well as foreign market.

AMOUNT OF LOAN

Depending on the area of cultivation / project cost

RATE OF INTEREST

Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.

REPAYMENT

Repayment should coincide with harvesting and marketing or at the time generation of income from the scheme.
7.
SCHEME FOR CULTIVATION OF VANILLA

ELIGIBILITY

All agriculturists are eligible.

PURPOSE

Scheme for financing cultivation of Vanilla, a cash crop, gaining ground in the State of Kerala.

AMOUNT OF LOAN

Amount of finance will be Rs.250000/- per hectare for pure crops and Rs.210000/- per hectare for intercrop.

RATE OF INTEREST

Normal rate of interest as applicable to ATL

REPAYMENT

The loan shall be repaid within a period of 7 years, in yearly instalments. Farmers eligible for two years gestation period and interest is repayable on the 3rd and 4th year and the principal from the 5th to 7the year.
8.
SBT RAIN WATER HARVESTING SCHEME

ELIGIBILITY

Farmers having land holding of 0.50 acre or more are eligible to be considered for finance under this scheme.

PURPOSE

Scheme envisages construction of low cost tanks for collecting and storing rainwater and using it for irrigation, by siphon arrangement, utilizing gravitation flow or by installing motor pump.

AMOUNT OF LOAN

Maximum amount of finance will be Rs.88000/- per acre. Scheme can be adopted in smaller areas also by reducing the cost proportionately.

RATE OF INTEREST

Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.

REPAYMENT

Repayment based on the income generated from the crops raised and and cropping pattern. The maximum period eligible for repayment is 8 years in annual instalments. 

9. PRODUCE MARKETING LOAN (Advance against Warehouse Receipt)

ELIGIBILITY

a. Farmers / traders depositing farm produce in the warehouses of the central / state warehousing corporations.

a. Scheme will be operative in Karnataka, Andhra Pradesh, Tamilnadu & Kerala.

PURPOSE

a. To protect the farmers from the compulsion to sell their produce immediately after harvest of produce despite an adverse market.

b. To finance farmers and traders against warehouse receipt.

AMOUNT OF LOAN

70% of the value of the warehouse receipt, valued at the market value or 70% of the market price advised by Agri. Dept, HO whichever is less.

RATE OF INTEREST

Farmers

Up to Rs.3 lakh - 3.50% below PLR 9.50%

Above Rs.3 lakh - 2.50% below PLR 10.50%

Traders

2.50% below PLR 10.50% (Irrespective of the limit)

REPAYMENT

On demand / 6 months which can be extended up to 12 months subject to satisfactory shelf life / market condition. 

10. AGRI. LOAN TO NON-RESIDENT INDIANS

ELIGIBILITY

Agricultural advances are available to the resident family members (means spouse, father, mother, brother, sister etc.) of Non-Resident Indians for land-based activities in respect of the land held by them in India subject to:

a.      the loan should be need based and the total land holding of the Non-Resident Indian, in individual name or jointly with others, should not exceed 5 ha.

b.      The loan amount shall not be used for acquiring any additional land.

PURPOSE

To finance farmers only for land-based activities and to carryon agricultural activities on the existing land.

AMOUNT OF LOAN

The maximum amount of the loan will be need based.

RATE OF INTEREST

Interest rate ranges from 2.50% below to 1.50% above BPLR for various short-term limits and from 1.75% below to 2.00% above BPLR for various long-term limits.

REPAYMENT

The loan can be repaid out of the income generated from the agricultural activities or remittances from abroad or by debit to their NRE/NRO/FCNR accounts.
11.
MINOR IRRIGATION

Projects with cumulative command area of less than 2000 ha are called minor irrigation projects

ELIGIBILITY

The beneficiary should have a minimum of 50 cents of land to be brought under irrigation to ensure viability and repayment of loan.

PURPOSE

Scheme for developing irrigation potential, Minor Irrigation, Installation of Pump set Drip Irrigation etc.
AMOUNT OF LOAN

As per the project submitted.

RATE OF INTEREST

Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.

REPAYMENT

The loan shall be repaid within a period of 9 years, in yearly instalments.
12.
FARM MECHANISATION

Loan for Farm Mechanisation, Purchase of tractors, Power Tillers, etc.

ELIGIBILITY

a.      Tractors with engine capacity up to 35 HP The applicant should own / cultivate six acres of perennially irrigated land.

b.      Tractors with engine capacity above 35 HP The applicant should own / cultivate eight acres of perennially irrigated land.

c.      Power Tillers the applicant should own / cultivate four acres of perennially irrigated land.

PURPOSE

To purchase tractor / power tillers for agricultural activities.

AMOUNT OF LOAN

Amount of advance will be the investment cost of tractor / power tiller and implements less margin @15%.

RATE OF INTEREST

Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.

REPAYMENT

The period of repayment shall be 9 years for tractors and 7 years for power tillers. 

13. AGRICULTURE GOLD LOAN

ELIGIBILITY

All individual farmers undertaking cultivation or other activities including allied activities are eligible for short-term finance.

PURPOSE

To meet genuine credit requirements of farming including allied activities, repairing of equipments and consumption needs etc.

AMOUNT OF LOAN

The eligible loan amount should be assessed based on the area under cultivation, crops(s) raised, scale of finance and not in relation to the value of gold offered as security.

RATE OF INTEREST

Interest rate ranges from 2.50% below to 1.50% above BPLR for various limits. For working capital loans like ACC/KCC/AGL up to Rs.3 lakh interest at the rate of 7% is extended as per RBI guidelines subject to the periods stipulated by RBI and beyond that normal rate will apply.

REPAYMENT

As applicable to Agri. Cash Credit accounts depending on the duration of crops raised and harvesting period and income generation, subject to a maximum period of 12 months.  The account has to be closed at the end of the repayment period.

14. SCHEME FOR DEVELOPMENT / STRENGTHENING OF AGRI. MARKETING INFRASTRUCTURE, GRADING AND STANDARDIZATION
ELIGIBILITY  

Scheme shall be available to individuals, groups of farmers / growers / consumers, partnership / partnership firms, NGOs, SHG, Companies, Corporations, Cooperatives,  Co-marketing Federations, Local Bodies etc.

PURPOSE

For development of agricultural marketing operations  including strengthening of infrastructure, techniques of preservation, storage etc.

AMOUNT OF LOAN  

As per the project

RATE OF INTEREST  

BPLR irrespective of credit size.

REPAYMENT  

Adequate long-term repayment period according to the project.

15. CONSTRUCTION / RENOVATION / EXPANSION OF RURAL GODOWN ELIGIBILITY  

The project for construction of rural godowns can be taken up by Individuals, Farmers, Group of farmers/growers, Partnership / Proprietary firms, NGOs, SHGs, Companies, Corporations, Co-operatives, Federations, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations.

PURPOSE

To create scientific storage capacity with allied facilities in rural areas to meet the requirements of farmers for storing farm produce, processed farm produce and agricultural inputs.

AMOUNT OF LOAN

As per the project.

RATE OF INTEREST  

As applicable to advances under SIB / C&I segments will be charged.
REPAYMENT

Adequate long-term repayment period, not less than 5 years including a grace period of one year.