Scheme for Financing Farmers for Purchase of Land by Small & Marginal Farmers
| Scheme for Financing Farmers for Purchase of Land by Small & Marginal Farmers |
|---|
| Type of Facility | Term Loan (TL) |
| Purpose | Purchase of land for agricultural purposes |
| Eligibility | - Small & Marginal Farmers (Who owns maximum of 5 acre of non irrigated land or 2.5 acres of irrigated land including land to be purchased)
- Share Croppers/tenant farmers cultivating up to 2.5 acres of irrigated land or 5 acres of unirrigated land
- Entrepreneurs with agricultural background are also eligible (Provided state laws permits purchase of agri lands by non agriculturists)
|
| Amount | - A. Lower of the 1, 2 & 3
- Valuation as assessed by the branch
- Circle rate fixed by the state
- Registration Value plus
- Stamp duty & registration charges for sale deed
- Maximum Rs 20.00 Lakh
|
| Margin | Margin shall be minimum of 20%. |
| Rate of Interest | Up to Rs.10.00 lakh : 1 Year MCLR + BSS@0.50% + 2.00% Above Rs.10.00 lakh : 1 Year MCLR +BSS@0.50%+ 3.00% |
| Security | - The land presently owned, if any & also the lands to be purchased out of the bank finance be mortgaged in favour of the bank.
- Hypothecation of Crops grown from time to time on the land
|
| Repayment | 7 to 10 years half yearly / yearly installments including maximum moratorium of 24 months |
| Other Terms & Conditions | - Total land holding including proposed land should not exceed 5 acres for non irrigated land & 2.5 acres for irrigated land.
- Applicant farmers may be encouraged to purchase the land at one place & not in fragmented holdings to step up productivity & save production expenses.
|
| Documents / Papers to be submitted for loan proposal | - Copies of land records regarding land owned & to be purchased, certified by concerned revenue authorities
- Documents of title, Copy of sale agreement, if entered
|
| Paper requirement | - Loan application ie Form No -138, & Enclosure – B2
- All 7/12, 8 A, 6 D extracts, Chatu Sima of the applicant
- No dues certificates of the applicant from surrounding financial institutions including PACS
- Legal search from advocate on Bank’s panel for loans above Rs.1.60 lakh where land is to be mortgaged
- Guarantee form F-138
- All 7/12, 8 A & PACS dues certificate of the guarantors
|
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