Scheme for Estate Purchase Loans

Scheme for Estate Purchase Loans

Type of Facility

Agri Term Loan (ATL)

Purpose

Purchase of estates growing traditional plantation crops viz. coffee, tea, rubber, cardamom, cashew, pepper, coconut etc.

Eligibility

• The purchaser should have yielding estates and should be in a position to rejuvenate the Estate proposed to be purchased.
• Satisfactory past dealings
• Expereineced, Financially sound and able to bring Margin & Service the debt
• Buyer should qualify respective State Govt norms
• The estate should preferably neglected one.
• Total land holding including the land to be acquired be within the land celing norms of respective state.

Amount

Lower of the 1, 2 & 3 

1. Market Value
2. Guidance Value / Circle rate fixed by the state
3. Purchase Consideration after retaining necessary margin

                 plus Stamp duty & registration charges for sale deed

   Maximum Rs 20.00 Lakh

Margin

Margin shall be normally of 50% on purchase consideration or value of the estate, whichever is lower.

Rate of Interest

Security

Primary: 
1) Mortgage of property to be purchased
2) Hypothecation of Plantation crops raised on the field / estate

Repayment

7 to 9 years

In specific cases, depending on the sttus of the Estate & rejuvenation period required, it may be extended upto 20 years.

Documents / Papers to be submitted for loan proposal

• Copies of land records regarding land owned & to be purchased, certified by concerned revenue authorities
• No dues certificate from PACS / Commodity Boards / Financial Institutions.
• Documents of title & other relevant documents related to landed property as well as lands to be purchased.
• Copy of sale agreement, if entered into or offer letter by the vendor
• Crop history of the Estate to be purchased as well as existing Estates
• Valuation report of the Estate to be purchased from the Panel Valuer

Paper requirement