Sustainable Agriculture Loan Program

The purpose of this loan is to enable farmers to adopt practices that will lead them to a more sustainable farming system. Loans are for capital purchases, which enhance the environmental and economic viability of the farm. Eligible purchases may include: rotational grazing systems, tree plantings, on-farm energy production, composting equipment, solar-powered equipment, low-cost livestock housing, hoop buildings, processing equipment, reduced or no herbicide weed control, equipment to handle cover crops, alternative fertilizer management equipment, soil conserving equipment and more.

When considering a proposed project ask the following three questions:

1. Does the project make efficient use of resources?
2. Is there an environmental benefit?
3. Does the project show a reasonable return on the additional investment?

If the answer to these questions is yes and the project pertains directly to your farming operation it is likely that your proposal will be eligible. Lloans under this program will be made only to residents of the State of Minnesota who are actively engaged in farming.

The maximum loan per farm family is $40,000. On joint projects funding will be $40,000 per farmer up to $160,000 total, whichever is less. A fixed interest rate of 3% will be charged. Loans will be made for future capital purchases. Operating expenses or refinancing of existing debt is not eligible. The term of the loan will match the expected life of the collateral but will not exceed 7 years. Payments will be on a semi-annual schedule. The State requires a 2 to 1 collateral to loan ratio. Other farm equipment may be offered as additional first lien collateral to obtain the required 2 to 1 ratio.

Applications will be reviewed for eligibility by a loan review panel that consists of the following individuals:

• two lenders with agricultural experience
• two resident farmers of the state using sustainable agricultural methods
• two resident farmers of the state using organic agricultural methods
• a farm management specialist
• a representative from a post secondary education institution
• chairperson from the department

National Bank for Agriculture

The banking sector has changed a lot since independence. At the time of independence people had to wait in long lines to withdraw cash. Today, we have Automatic Teller Machines or ATM's where we can withdraw cash with the press of a button. Agriculturalists have benefited from the banking revolution as well. Today, bank branches of nationalised banks are available in almost every village in the farthest corners of the country. Let us take a look at how this developed.

The first bank of India known as the General Bank of India was established as early as 1786. Later on, especially in the early 1900's many new banks came into being. After independence the government took various steps to reform the banking sector. In 1955, the State Bank of India or SBI was created. Five years later, the seven subsidiary banks of the SBI were nationalised. Nationalisation of banks picked up pace in 1969, when 14 banks were nationalised. The second phase of nationalisation was carried out in 1980 when seven other banks were nationalised. After this, around 80 percent of the banking sector in the country came under government ownership. The faith of the public in the safety of banks rose and deposits saw a huge increase. This allowed the government to provide loans and credit for different purposes including agriculture.

In 1981, the government came out with the National Bank for Agriculture and Rural Development Act that lead to the formation of National Bank for Agriculture and Rural Development (NABARD) - External website that opens in a new window. This organization is responsible for the flow of credit to agriculture and related industries.

In the late 1990's, the government launched the Kisan Credit Card Scheme in consultation with the Reserve Bank of India and NABARD. This scheme is meant to meet agricultural expenses of crop production, cultivation and contingency. It allows unlimited withdrawals and repayments. The adaptation of the Kisan Credit Card Scheme by different banks has lead to easy availability of agricultural credit and an increase in agricultural productivity. Other than this scheme, nationalised banks offer a variety of other agricultural loan options.

Commercial Mortgage Loan Portfolios

U.S. bank regulators are now targeting commercial real estate lending as an area for special

scrutiny.1 One important dimension of risk in commercial mortgage loan portfolios is geographic

concentration. Except for the largest banks, most institutions have notable geographic

concentrations in their commercial mortgage loan portfolios. The regulators should encourage banks

to mitigate risk by boosting the geographic diversification of their commercial mortgage loan

portfolios. Here is one way that would allow banks to do so.

The approach has two steps. In the first step, a bank sheds risk on its existing portfolio. In the

second step, the bank acquires exposure to a geographically dispersed pool of commercial loans

originated by other banks.

In the first step, the bank "buys protection" on a mezzanine slice of its own commercial mortgage loan

portfolio. For example, the protection might cover losses that exceed 1.5% of the original balance of

the loans, up to a maximum of 5.0%. Think of it as a credit loss insurance policy with a deductible of

1.5% and a coverage amount of 3.5% (i.e., 5.0% - 1.5% = 3.5%). If the bank's commercial loan

portfolio is $1 billion, the swap might cover losses from $15 million to $50 million. However, instead

of taking the form of an insurance policy, the protection likely would be a credit default swap or

"CDS." In CDS jargon, the protection would have an "attachment point" of 1.5% and a "detachment

point" of 5.0%. The bank would purchase the CDS from a securities firm that deals in CDS. For

purposes of our example, we'll call the firm the "Swaps Dealer."

In purchasing credit protection through a CDS, a bank must balance competing considerations in

selecting the attachment and detachment points. The attachment point should be substantially higher

than the level of "expected losses" on the protected portfolio to keep the price of protection

reasonable. A bank naturally knows its own loan portfolio better than outsiders do — it faces less

uncertainty about the level of expected losses. Accordingly, each bank reasonably has the strongest

bid (i.e., ascribes the highest value) to the "first loss" exposure on its own loans. It usually cannot buy

"first loss protection" at a price that it would deem fair. Thus, for a bank to buy protection

economically through a CDS, the attachment point must be substantially higher than the level of

expected losses.

Likewise, the detachment point on a CDS should be high enough that it covers most plausibly

adverse scenarios (i.e., high levels of unexpected losses), but not so high that it covers extremely

unlikely "catastrophic" losses. Compared to third parties, a bank can better judge what is reasonable

for its own portfolio. By properly selecting attachment and detachment points, the CDS contract can

provide a bank with meaningful protection at a reasonable cost.

Farmers and Ranchers Loans

The Farm Service Agency (FSA) provides direct and guaranteed loans to beginning farmers and ranchers who are unable to obtain financing from commercial credit sources. Each fiscal year, the Agency targets a portion of its direct and guaranteed farm ownership (FO) and operating loan (OL) funds to beginning farmers and ranchers.


A beginning farmer or rancher is an individual or entity who has not operated a farm or ranch for more than 10 years; meets the loan eligibility requirements of the program to which he/she is applying; substantially participates in the operation; and, for FO loan purposes, does not own a farm greater than 30 percent of the median size farm in the county. (Note: all applicants for direct FO loans must have participated in business operation of a farm for at least 3 years.) If the applicant is an entity, all members must be related by blood or marriage, and all stockholders in a corporation must be eligible beginning farmers.

Medical Loan

1. Medical Loan Overview

A healthcare or medical loan is often a great idea because it will give you the funds to pay your doctors and you can achieve the desired health outcomes without going broke.

Even with the help of insurance, many of us still cannot afford to pay our medical bills. Health insurance helps, but when you are forced to go to doctors that are not in the “system” or worse yet, hospitals that do not work with your insurance company because they are the only ones available to you, medical bills can pile up quickly. When there are medical bills piling up and you still have more procedures that need to be performed you do not have to sit around and wait for the day when you can afford to pay the bills and have the procedures done. You can apply for a healthcare or medical loan so that you are able to pay your medical bills or afford those long awaited procedures without going broke. A healthcare or medical loan is often a great idea because it will give you the funds to pay your doctors and you can achieve the desired health outcomes without going broke.

While health insurance is useful, it doesn’t take care of all of our medical bills and this is where healthcare loans come into play. The loan doesn’t do away with the necessity to pay your medical bills; instead it just makes it more affordable for you to do so. Instead of ignoring the creditors calling your home asking when you’ll be sending them their money you can pay your bills and then pay back your healthcare or medical loan at a rate that is in line with what you earn and should be expected to pay.

2. Who Gets a Healthcare or Medical Loan?

When you first learn about a healthcare or medical loan you may think that it doesn’t apply to your situation. Perhaps you have just $10,000 worth of medical bills, which isn’t all that much in the world of medical and healthcare bills and you think that a medical loan is only for those that have hundreds of thousands of dollars due to hospitals and doctors so you shouldn’t apply. This isn’t at all the case, in fact many people have secured a healthcare or medical loan for just a few hundred dollars because they could not afford to pay all of their bills right now, but they could afford to pay back their healthcare loan over a period of a year or two.

Often times, individuals have to secure a healthcare or medical bill after they have incurred the expenses, but often times people know in advance that they will be receiving healthcare that they cannot pay for so they apply before they incur those charges. This means that if you know you will be going in for a major spinal surgery in five weeks, you can apply now and actually pay your bills as you go instead of letting them build up and getting creditors after you. This will help to lessen the stress that you feel during the recovery period so that you can simply rest and get back on your feet again.

Of course, it is not always possible to plan ahead for expensive medical treatment, so you can always apply for such a loan after the fact. Whatever your situation is and whatever procedures you’ve had done, you should definitely consider getting a healthcare or medical loan to help you spread the payments out over a period of time instead of owing it all right now. There are lenders that will approve a healthcare or medical loan for just about any procedure you can think of, so it won’t hurt to apply, and chances are you’ll be provided with some relief so it’s worth the time that it takes to apply.

3. What Do You Need a Healthcare Loan For?

A healthcare or medical loan is exactly that, a loan that is used for the purposes of paying off medical and healthcare expenses. These can be bills from doctors, hospitals, insurance co-payments, equipment needed, medication, and even transportation to and from medical facilities. Basically any charge that you incur going to or from a medical procedure or doctor visit you can pay off with a healthcare or medical loan.

Most of the time individuals take out a healthcare or medical loan when they are over their heads in medical bills. This can be after a heart attack, stroke, catastrophic car accident, prolonged illness, or an injury that takes you away from work. All of these things will have the bills piling up faster than you would have previously imagined; especially if you needed emergency services such as treatment in the emergency room, emergency surgery, or the help of specialists.

Knowing in advance that you will be accumulating a lot of medical bills can be beneficial, but it usually doesn’t work that way! We all know that medical bills are stressful and when you are healing from any event or surgery you can find peace of mind knowing that a loan has taken care of all of your outstanding debts and you can pay off your loan at a rate that is much more comfortable than trying to pay off all of your medical bills at once. A healthcare or medical loan is simply a good idea if you are going to end up over your head in medical bills that you cannot possibly pay, but need to because you may need continuing care.

4. Finding a Healthcare or Medical Loan

It usually isn’t all that difficult to find a healthcare or medical loan, in fact if you are in a large hospital you may be able to find literature right there about lenders that help people pay their medical bills. If you cannot find any literature, you’ll find that the Internet is a great resource. More and more lenders offer quotes and applications for loans of all types on the Internet and healthcare and medical loans are not any different. When you apply online you can often get an approval within a few minutes or hours, so you are not left wondering how you will pay your medical bills.

Using an Internet lender is also very convenient because you can apply from home and if you are recovering this couldn’t be more convenient. The last thing you want to do if you are ill and worried about money is to call people, receive faxes, and meet in offices, so at least you can get the application portion of your healthcare loan completed from the comfort of your own home. The best thing is, if your loan is denied or you are not offered as big a loan as you had hoped, you don’t have to be embarrassed because you never looked anyone in the eye and chances are they will never even see your name again! This takes a lot of the stress out of the loan application process, which is intensified when it comes to paying for healthcare and medical bills.

If you don’t have any luck with Internet lenders, the yellow pages or even your own bank can often be very helpful. Phone books are full of lenders that will help people from just about any walk of life with any credit history, so don’t hesitate to pick it up and see if there is someone that can help you get your bills paid. Not all banks offer healthcare and medical loans, but they may be able to offer you a loan that will basically do the same thing, which is get the bills paid so you don’t have to worry about them right now. There are a lot of places to find a healthcare loan, so don’t give up if one lender doesn’t pan out or things aren’t as great as you thought they would be. There are many different types of loans out there, and loans are not one size fits all so search for the one that is right for you.

5. Why Get a Loan?

Medical bills are one of those things that most people have; in fact, a good portion of the population has delinquent medical bills listed on their credit reports. Unfortunately, many people think that this is the way that it has to be, that their credit has to suffer because they cannot afford to pay outrageous medical bills. The fact is you don’t have to let your credit rating suffer because your medical insurance doesn’t cover everything you need them to cover, or if you’ve exceeded your insurance benefits for the year. A medical loan should simply be looked at as a way to pay back your medical bills in an efficient manner.

If you can’t afford to pay your bills, it simply makes sense to get a loan to pay them off, which is essentially what this sort of loan is out there for. Even if you have medical bills from several procedures, a medical loan is a great way to consolidate your medical debt and get it all paid off with one loan. What is great about this is that you don’t have to make several different payments a month, when you pay off your medical bills with a healthcare loan you can then make one monthly payment just to the lender. This is a lot easier to keep track of, and in the long much more affordable and a lot less stressful. You’ll pay interest, but it’s worth it to get the bills paid in a timely manner and then be able to pay back the loan at a rate that is affordable to you.

6. Repayment Terms of a Healthcare or Medical Loan

A healthcare or medical loan is just like any other loan, you’ll have repayment terms that you will have to stick to or you’ll have the creditors calling again. Not only that, but if your healthcare loan was of substantial size you may have had to put up a collateral such as your home. If you don’t understand your loan repayment terms you could end up jeopardizing your home or the collateral that you put up. It’s very important that you understand and adhere to the repayment terms.

The length of your loan may depend on how much you have borrowed and how much you earn, as this will depend on how quickly you can pay back the loan. When you apply for the loan the lender will ask for all of your financial information, so they will be able to determine how much you can afford each month and your repayment terms will typically be based on this. Some medical loans are paid off in just six months while others last for a term of five years.

Your repayment can be based on an interest rate that is fixed or variable, and can depend on if you make a larger down payment or if you’ll expect balloon payments at the end of the loan term. When your loan officer goes over these details with you, make sure to pay attention and even ask to have things explained twice, just so that there aren’t any surprises down the line. Nothing is worse than finding out you have a medical loan that is more of a pain than creditors would have been calling your home morning, noon, and night.

7. The Fine Print

It’s important when you apply for a healthcare or medical loan that you read all of the fine print associated with the specific loan plan that you are applying for. The fine print is there because it has to be by law, but it’s small because they are usually the details that make the loan not as appealing as it might be at first glance. In the fine print you may find information about loan fees, attorney fees, credit report fees, annual usage fees, and more. All of these fees that they mention in an offhand manner can end up costing you hundreds or even thousands of dollars when all is said and done, and may make the medical loan less than ideal for you. You may also find information regarding the need for large down payments, a variable interest rate, or even balloon payments near the end of your loan term.

It’s a good idea to read all of the fine print at least twice, but three times would be even better. If you have any questions, be sure to ask your loan officer to explain it all to you. According to the Truth in Lending Act your lender has to be upfront and honest with you about all of the information regarding interest rate, fees associated with your loan, and any other concerns regarding what one would be expected to pay in association with their loan. The fine print is where less than ideal loans are found out, so make sure to read this information for yourself.

8. Refinancing

Many loans come with the ability to refinance them, so when you have paid a portion of your loan back you can refinance it and lower your monthly payments. When you apply for your loan you can ask if there will be the ability to refinance after a certain period, if at all. Many types of loans offer refinancing, but whether or not you can refinance your healthcare or medical loan will depend on the size of the loan and who your lender is as well as your past payment history.

If refinancing isn’t discussed at the time when you apply for your loan, you should ask that the option to refinance be put into your contract. This doesn’t mean that the lender will agree, but it is a good idea to have the ability to do this, just incase. If for some reason your financial situation changes and you cannot afford to keep paying your monthly payment on the loan, refinancing can often lower your payment substantially and this will lessen the burden. Refinancing isn’t always an option with a healthcare loan, but it doesn’t hurt to ask.

9. When to Get a Medical Loan

Anytime is a good time to get a medical loan. You can get it before treatments and bills come in so that you can use the loan much like you would use a credit card, or you can get the loan after the procedures and bills so that you can take the stress out of paying them! It’s up to you when you get your medical loan, but if you know that you will need some help paying bills it’s always a good idea to do it in advance. You will usually need a dollar amount to apply for and you will also need to be able to tell the lender what procedures you are having done, but you can get the loan in advance.
Healthcare Loan and Health Insurance

Many people believe that they cannot get a healthcare loan if they have health insurance, but this is not the case. The fact is that insurance doesn’t pay 100% of your bill, so if you have a major procedure you can be left with thousands to pay. A healthcare loan is for anyone that needs help paying their bills, regardless of their insurance situation. Your insurance company will not object to the loan, in fact, they may never know about it if you don’t want them to unless the lender needs to verify your coverage but this can often be done through the doctors and medical providers that you are paying off with the medical loan.

Agriculture Loan

The banking sector has changed a lot since independence. At the time of independence people had to wait in long lines to withdraw cash. Today, we have Automatic Teller Machines or ATM's where we can withdraw cash with the press of a button. Agriculturalists have benefited from the banking revolution as well. Today, bank branches of nationalised banks are available in almost every village in the farthest corners of the country. Let us take a look at how this developed.

The first bank of India known as the General Bank of India was established as early as 1786. Later on, especially in the early 1900's many new banks came into being. After independence the government took various steps to reform the banking sector. In 1955, the State Bank of India or SBI was created. Five years later, the seven subsidiary banks of the SBI were nationalised. Nationalisation of banks picked up pace in 1969, when 14 banks were nationalised. The second phase of nationalisation was carried out in 1980 when seven other banks were nationalised. After this, around 80 percent of the banking sector in the country came under government ownership. The faith of the public in the safety of banks rose and deposits saw a huge increase. This allowed the government to provide loans and credit for different purposes including agriculture.

In 1981, the government came out with the National Bank for Agriculture and Rural Development Act that lead to the formation of National Bank for Agriculture and Rural Development (NABARD) - External website that opens in a new window. This organization is responsible for the flow of credit to agriculture and related industries.

In the late 1990's, the government launched the Kisan Credit Card Scheme in consultation with the Reserve Bank of India and NABARD. This scheme is meant to meet agricultural expenses of crop production, cultivation and contingency. It allows unlimited withdrawals and repayments. The adaptation of the Kisan Credit Card Scheme by different banks has lead to easy availability of agricultural credit and an increase in agricultural productivity. Other than this scheme, nationalised banks offer a variety of other agricultural loan options.

Agriculture Finance

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

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

Ø 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 bank’s 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 3^rd and 4^th year and the principal from the 5^th 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, NGO’s, 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.