A scheme of financing tractors to rural youth for custom hiring work.
Objective :
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1. To promote young entrepreneurs in rural areas to take up the activity of custom hiring |
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2. To assist small and marginal farmers both directly and indirectly. |
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3. To increase lending under agricultural segment. |
Eligibility :
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1. Any rural youth below the age of 35 years, who has an educational qualification of minimum 8th standard and undergone training in maintenance/repairs of auto mobile tractor. |
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2. The applicant and his family should belong to small and marginal farmer category and should possess a minimum land holding of 1 acre of cultivated land. |
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3. The applicant should have a valid tractor driving licence and should operate the tractor by himself i.e. the tractor should be owner driven. |
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4. The applicant or his family member should be dealing with us and should have a minimum of 2 years of good track record in their dealings with bank. |
Loan amount :
As per quotation of the tractor and other accessories
including trailer of borrower's choice, the loan may be
sanctioned upto 90% of the total cost of project.
Margin : 10% margin of the project.
Repayment :
Loan should be repaid in 9 years in monthly instalments
including 6 months grace period
Security :
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Primary : Hypothecation of the tractor and accessories financed. |
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Collateral : Mortgage of land possessed by the applicant or his family members irrespective of its value or third party guarantee. |
Insurance : Third party insurance for the tractor and accessories to be obtained after obtaining letter of undertaking from the borrower.
Interest : As applicable to agricultural term loans.
Other terms and conditions :
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1. As applicable to tractor loan under our general scheme. |
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2. The scheme will be applicable for the purchase of new tractors and implements only. |
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3. Sanction of loan should be made only in areas where the scope for custom hiring is good either on farm or for other sector. Minimum 1500 hrs of work should be available per year. Financing will be based upon potential in the area. |
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4. The area should have good back up facilities for servicing of the tractor. |
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5. Initially, not more than one tractor should be financed in a village. However in exceptional cases, where the scope exists the number can be increased with prior permission from the controlling office. |
Scheme for financing of cultivation of medicinal/Aromatic plantation
Object
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To boost production/cultivation of medicinal, Aromatic Plants/herbs. |
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To increase lending under agricultural segment/priority sector. |
Eligibility :
Farmers/group of farmers/other entities already engaged in
agricultural activities and well experienced in farm crop
cultivation are eligible for financing under the scheme,
Due care should be taken to assess the arrangements for
marketing of the produce, at remunerative rates.
Type of advance :
Agricultural Term Loan and/or Agricultural cash credit.
Loan amount :
Loan will be granted for various plantation crops as per
unit cost given by the NABARD. Details of the investment
should be obtained and got verified/checked from the
agriculture/Horticulture dept. of State Govt.
Subsidy :
presently there is provision of back ended subsidy as
under :
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1. National medicinal plants Board - 30% of the project cost with a maximum of Rs.9 lacs, |
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2. National Horticultural Board - 20% of the project with a maximum of Rs.25 lacs. |
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3. Rate of Interest : As applicable for agriculture segment depending on the amount of loan. |
Security :
Hypothecation/Guarantee agreement/Regd. Mortgage of land
as per Banks existing instructions.
Margin :
As per agricultural segment.
Insurance :
As per norms to be insured.
Repayment period :
Some herbal plantation are annual crops and others are
perennial crops. Repayment should coincide with harvest of
the crops. In case of perennial crops fixed upto 5 years,.
whereas in case of annual crops, two months after
harvesting of the crop.
Scheme for financing of commission Agents/Arhatias
During cropping season, Agents/Arhatia support the farmers both in kind and cash to meet their needs and at the time of the harvest of the crop, they help the farmers in selling of the produce thus commission agents have established themselves as strong link in the system.
With a view to tapping business of these agents/arhatia, we have introduced a new product called "Arhatia Plus".
Objectives :
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To finance commission Agents against their receivables from farmers |
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To increase lendings under priority sector. |
Eligibility :
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Commission agents enjoying good reputation and holding a valid licence from the market yard/board and are in the line of business for past 3 years. |
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Advance against receivables from farmers only will be eligible for financing. |
Type of Advance :
Cash Credit (Hypothecation of book debts not older than 6
months)
Quantum of Loan :
Maximum Rs.25 lacs
Rate of Interest (Monthly rests) :
As this scheme is inter segmental in nature, covering
agriculture, SBF and C&I depending upon the branch size of
credit limit, hence interest will be applicable as per
segment where scheme is classified.
Margin : 40%
Security :
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Primary : Hypothecation of receivables from farmers and the movable assets including stocks if any. |
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Collateral : Equitable mortgage of residential/Commercial property (other than agricultural property) worth at least 150% of the advance. |
Other terms and conditions :
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a) Advance to be liquidated within a maximum period of 6 months. |
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b) If the applicant is a borrower of other bank he should close his account with that bank before disbursement of the loan. |
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c) Borrower should have sound financial standing. |
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d) The statement of eligible receivables should be obtained at half-yearly intervals. |
Objective :
To finance milk producing members of milk societies for construction of dairy shed and purchase of
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1) milch animals |
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2) Milking machines |
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3) mechanical chaff cutter. |
Eligibility :
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1) Individual farmers who are members of these societies for more than 2 years. producing and selling at least 1000 litres of milk per year to the society. |
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2) Applicant should be below 65 years of age |
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3) Should own land for cultivation of fodder, minimum one acre land for every 5 animals. |
Type of Advance :
Agricultural Term Loan
Quantum of Loan : Total loan amount at one time - Rs.2 lac (maximum)
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1. For purchase of milch animals |
Rs.1.50 lacs |
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2. For milking machine |
Rs.0.40 lac |
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3. For construction of shed |
Rs.3600 per animal |
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4. Chaff cutter |
Rs.5000 |
The cost of animals will be based on the unit cost prescribed by Technical Committee (circulated by NABARD). But an additional 10% upward revision in the cost depending on the local market rates permitted.
The total quantum of loan will be decided based on the repaying capacity of the borrower. Chaff cutter, shed and milking machines will be provided where minimum cattle are 5. Minimum 4 cattle needs to be provided under the scheme.
Purchase of Cattle :
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1. Farmer is free to purchase animals of his choice. However, care should be taken that cattle are in I or II lactation. |
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2. Cattle will be purchased in two instalments, i. e. after 5-6 months of the 1st lot provided. |
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3. Milking per day below 7 litres of milk in case of buffalos, and 8 litres of milk in case of cows will not be financed. Regarding health of cattle, certificate from veterinary surgeon to be obtained. |
Margin :
Up to Loan amount Rs.50000 - Nil
Loan above Rs.50000 to Rs. 2.00 lac - 15%
Interest : As applicable for Agri. Term Loans time to time.
Security :
Primary : Hypothecation of cattle and machinery financed.
Collateral : Regd. Mortgage of land. (In case of loan above Rs.50000 )
Documentation :
1. As per Agri. Term Loan Schemes of bank
2. Tripirate agreement between borrower, society and Bank.
Repayment : Instalment alongwith interest to be recovered in 5 years at monthly interval.
Other Terms and Conditions :
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Insurance of cattle and machinery is mandatory. |
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Scheme will be introduced only where milk unions are in operation and proper milk routes are available. Repayment should be made by the Society directly tothe branch. Bank may consider loan for feed and fodder separately. |
SECURITY
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Registered mortgage of the entire land holding of the
borrower/borrowers including that on which godown is to be
constructed alongwith the godown constructed thereon.
INSURANCE
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Insurance will be obtained against all possible risks
including civil riots risk.
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