Loan for Agriculturists

The Standard Operating Procedure for the Agriculture Loans

 

Mahabank Kisan Credit Card (MKCC)

Type of Facility Cash Credit (MKCC)
Purpose Working capital for:
  • Cultivation of crops
  • Post harvest Expenses.
  • Consumption requirements of farmer household
  • Maintenance of farm equipments
  • Working capital for allied agricultural activities
Eligibility
  • All farmers- Individual / Joint landholders
  • Tenant Farmers, Share Croppers, Oral Lessees
  • SHG's/JLG's of farmers
Limit Limit for first year - Scale of finance of crop ( as decided by DLTC * Extent of area cultivated + 10% of limit towards post-harvest / household / consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets. From 2nd year onwards plus 10 % of the limit towards cost escalation / increase in scale of finance for every successive year { 2nd,3rd ,4th and 5th year}
Drawing Power Drawing limit (D.P.) for each year as worked out as above
Margin NIL as margin is considered while fixing Scale of Finance
Rate of Interest
  • Limit up to Rs3.00 lakhs: @7% p.a. (fixed) under interest subvention scheme up to one year
  • Limit above Rs3.00 lakhs: as applicable to Agricultural advances
Security
  • Limit Up to Rs 1 lakh :1)Hypothecation of Crops
  • Limit Above Rs 1 lakh:1) Hypothecation of Crops &
2)Third Party Guarantee/Mortgage of Land
Repayment
  • Kharif- Next March
  • Rabi- Next June
  • Horticultural crops- Next September
Validity / Renewal The KCC limit is valid for 5 years subject to annual review.
Other Terms Conditions Insurance for notified crops is available as per Government guidelines from time to time.
Paper requirement 1.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.1.00 lakh where land is to be mortgaged
2. Guarantee form F-138
  • All 7/12, 8 A & PACS dues certificate of the guarantors
 

Minor Irrigation

Type of Facility Term Loan (TL)
Purpose
  • Sinking a well/ repair or deepening of well
  • Sinking a tube well
  • Installation of an electric/ diesel pump set
  • Drip irrigation system
  • Sprinkler irrigation system
  • Laying irrigation channels/ pipelines
  • Farm pond/water tank
  • Composite minor irrigation which includes more than one purpose mentioned above
Eligibility All farmers- Individual / Joint landholders
Amount
  • For new dug wells/pipeline/pump sets: As per the NABARD Unit costs/ Estimates
  • For equipments/machinery:  As per price quotations.
Margin
  • Limit up to Rs 1.00 Lakh- NIL
  • Limit above Rs 1.00 Lakh-15% to 25%
     (Depending upon purpose & quantum of finance)
Rate of Interest ROI shall be as applicable to Agricultural advances
Security
  • Hypothecation of Crops, equipments, machineries & other assets
  • Third Party Guarantee/ Mortgage of Land
Repayment 7 to 11 years, depending upon the repaying capacity
Other Terms & Conditions
  • Proposed well should be located in white watershed area. It should not be in dark watershed area.  
  • GSDA certificate for digging of new well in Grey Watershed is required.
  • Insurance of assets created out of banks finance to be done.
Paper requirement  1.    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.1.00 lakh where land is to be mortgaged
  • Price quotations/ Plan estimates / Permissions etc. depending up on the purpose of loan
 2.   Guarantee form F-138
  • All 7/12, 8 A & PACS dues certificate of the guarantors
 

Farm Mechanization

Type of Facility Term Loan (TL)
Purpose
  • Purchase of Tractors/Power tillers
  • Purchase of Combine Harvesters
  • Purchase of Threshers & other farm implements
  • Purchase of vehicle for transportation of farm input / produce
Eligibility All farmers- Individual / Joint landholders
Land Holding Criteria
  • Tractor up to 35 HP: Minimum 4 acres of perennial irrigated land.
  • Tractor above 35 HP: Minimum 6 acres of perennially irrigated land
(Corresponding acreage of  dry land or seasonally irrigated land)
  • Power tiller: Minimum 3 Acres of perennially irrigated land
Amount     As per cost of machinery along with implements and accessories
Margin For tractor / Power tiller unit –
  1. Loan  Up to Rs 1.00 lakh : No Margin
  2. Loan Over Rs 1.00 lakh : 15 % -25% of investment cost of unit
Rate of Interest    ROI shall be as applicable to Agricultural advances
Security
  1. Up to Rs 1,00,000: Hypothecation of  tractor unit  
  2. Above Rs 1, 00,000:
  1. Hypothecation of  tractor unit and
  2. Third party guarantee (Two)/Mortgage of land
Noting of Bank’s  hypothecation charge in the RC book Two blank TTO forms signed by the borrower/s.
Repayment 5 to 9 years, depending upon the purpose of loan
Other Terms & Conditions
  • Bank will  finance only for those models of tractors which have completed the commercial test from organizations viz Central Farm Machinery Training & Testing Institute (CFMTT)  Budni (Madhya Pradesh) or Farm Machinery Training and testing Institute ( FMTT), Hissar
  • Registration of the tractor - The tractor should be registered with concerned Regional Transport Authority with bank clause.
  • Insurance – Comprehensive insurance should be obtained in respect of assets acquired.
  • Bank’s hypothecation should be prominently displayed on the machinery
  • Where ever there is tie up arrangement the terms and condition as per MOU be followed.
Paper requirement 1. 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.1.00 lakh where land is to be mortgaged
  • Price quotations/ Plan estimates / Permissions etc. depending up on the purpose of loan
2. Guarantee form F-138
  • All 7/12, 8 A & PACS dues certificate of the guarantors
 

Animal Husbandry

Type of Facility Term Loan (ATL) &/or Cash Credit (CC)
Purpose
  • Purchase of Milch Animals like Cows/Buffaloes etc
  • Purchase of Draft Animals like Bullock /Camel etc
  • Poultry: Broiler / Layers Farm, Hatchery, Feed Mill
  • Sheep/Goat: Rearing
  • Construction of Byre, Purchase of equipment / machinery
  • Working Capital Requirements.
Eligibility
  • All farmers- Individual / Joint landholders
  • Tenant Farmers, Share Croppers, Oral Lessees
  • SHG’s/JLG’s of farmers
(Who have necessary expertise)
Amount
  • Animal: As per NABARD unit costs
  • Others:As project Cost / Estimates/ Price quotations.
Margin
  • Limit up to Rs 1.00 Lakh- NIL
  • Limit above Rs 1.00 Lakh-15% to 25%
(Depending upon purpose & quantum of finance)
Rate of Interest   ROI shall be as applicable to Agricultural advances
Security
  • Hypothecation of Animals/Plant Machinery to be purchased
  • Third Party Guarantee ( Two) / Mortgage of land.
Repayment Within 3 to 7 years with suitable monthly/ quarterly/ half yearly installments.
Other Terms & Conditions Insurance of all animals/birds & equipments/machineries purchased is essential.
Paper requirement 1. 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.1.00 lakh where land is to be mortgaged
  • Price quotations/ Plan estimates / Permissions etc. depending up on the purpose of loan
2. Guarantee form F-138
  • All 7/12, 8 A & PACS dues certificate of the guarantors
 

Horticulture / Plantation Activities

Type of Facility Term Loan (TL)
Purpose Cultivation of fruit crops-Mango, Pomegranate, Grapes, Guava etc.
Eligibility All persons engaged in raising fruit gardens, plantations and nursery crops as owners of land or permanent tenants or as lease holders (for reasonably long period).
Amount As per NABARD/NHB Unit costs/ Project costs
Margin
  • Limit up to Rs 1.00 Lakh- NIL
  • Limit above Rs 1.00 Lakh-15% to 25%
(Depending upon purpose & quantum of finance)
Rate of Interest ROI shall be as applicable to Agricultural advances
Security
  • Hypothecation of Crops, equipments, machineries & other assets
  • Third Party Guarantee/ Mortgage of Land
Repayment Within 7-15 years including gestation period. Coinciding with harvesting of crops/marketing of produce.
Subsidy Subsidy for the eligible projects is available from NHB/NHM
Paper requirement 1. 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.1.00 lakh where land is to be mortgaged
  • Price quotations/ Plan estimates / Permissions etc. depending up on the purpose of loan
2. Guarantee form F-138
  • All 7/12, 8 A & PACS dues certificate of the guarantors
 

Financing For Setting Up of Agri-Clinics and Agri-Business Centers for Agriculture Graduates

Type of Facility Term Loan (TL)
Purpose
  • Setting up of Agri Clinics
  • Setting up of Agri Business Centers
Eligibility
  • Graduates in Agriculture and allied subjects from State Agriculture Universities (SAUs) / Central Agricultural Universities / Universities recognized by ICAR / UGC.
  • Diploma in Agriculture and allied subjects from State Agricultural Universities.
  • Science graduates with Post Graduation in Agriculture and allied subjects
Amount
  • Individuals: Maximum Rs 10 lakh,
  • Group (5 members) : Maximum Rs 50 lakh
Margin
  • Limit up to Rs 5.00 lakh: NIL
  • Limit above Rs 5.00 lakh:15% to 25%
(However, concessions will be available to SCs / STs, women and beneficiaries of North Eastern states, Hill areas)
Rate of Interest ROI shall be as applicable to Agricultural advances
Security
  • Limit upto Rs 5.00 Lakh:
a) Hypothecation of Assets created out of bank loan
  • Limit above Rs 5.00 Lakh:
  1. Hypothecation of Assets created out of bank loan
  2. Mortgage of land / other property.
Repayment 5 to 10 years depending up on the cash flows
Subsidy Credit linked capital subsidy @ 25% of the capital cost of the project funded through bank loan is available from NABARD. This subsidy would be 33.33% in respect of candidates belonging to SC, ST, Women and other disadvantaged sections and those from North-Eastern and Hilly States.
Other Terms & Conditions Applicant should complete training programme conducted by National Tanning Institute approved by MANAGE
Paper requirement 1. 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.1.00 lakh where land is to be mortgaged
  • Price quotations/ Plan estimates / Permissions etc. depending up on the purpose of loan
2. Guarantee form F-138
  • All 7/12, 8 A & PACS dues certificate of the guarantors
 

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
  1. Valuation as assessed by the branch
  2. Circle rate fixed by the state
  3. Registration Value plus
B. Stamp duty & registration charges for sale deed
Maximum Rs 20.00 Lakh
Margin Margin shall be minimum of 20%.
Rate of Interest ROI shall be as applicable to Agricultural advances
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 1. 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.1.00 lakh where land is to be mortgaged
2. Guarantee form F-138
  • All 7/12, 8 A & PACS dues certificate of the guarantors
 

Hi-tech Projects

Facility Term Loan (TL)
Purpose Hi-tech Agricultural projects (Green House/ Polyhouse /Shed net /Pre Cooling / Cold Storage etc)
Eligibility All farmers- Individual / Joint landholders
Amount As per the project cost/ estimates
Margin
  • Limit up to Rs 1.00 Lakh- NIL
  • Limit above Rs 1.00 Lakh-15% to 25%
(Depending upon purpose & quantum of finance)
Rate of Interest ROI shall be as applicable to Agricultural advances
Security
  • Hypothecation of Crops/ other assets &
  • Third Party Guarantee/ Mortgage of Land
Repayment Within 5 to 9 years depending upon the cash flows of the activity
Other Terms & conditions
  • All statutory licenses, permissions from respective authorities/ departments for setting up unit/ project are mandatory.
  • Subsidy is available from NHB/NHM subject to complying documentation as per their requirement.
Paper requirement 1. 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.1.00 lakh where land is to be mortgaged
  • Price quotations/ Plan estimates / Permissions etc. depending up on the purpose of loan
2. Guarantee form F-138
  • All 7/12, 8 A & PACS dues certificate of the guarantors
 

Mahabank Kisan All Purpose Term Loan

Facility Term Loan (TL)
Purpose To create hassle free single term loan limit to farmer for all term loan requirements excluding development projects with long gestation periods (more than 3-4 years)
Eligibility Individuals, Joint/ Group of farmers- owner cultivators & JLG’s/SHG’s engaged in agriculture & allied activities
Amount
  • To be based on the investment plan given by the farmer to be undertaken in the next 2-3 years
  • The plan can be a combination of investment/ development activities relating to agriculture & allied activities.
  • It shall be subject to 5 times of Annual Income (Current pre development stage) of the farmer including allied activities or 50% of value of land mortgaged whichever is lower subject to Maximum of Rs 20.00 Lakh
Margin
  • Small & Marginal Farmers: 5%
  • Other Farmers:15%
Rate of Interest ROI shall be as applicable to Agricultural advances
Security
  • Up to Rs 1 lakh- Hypothecation of assets created out of bank finance
  • Above 1 lakh (aggregate limit)- Mortgage of land, value thereof shall be at least 200% of limit sanctioned
Repayment Repayable within 9 years maximum in suitable installments coinciding overall income generation of the farmer, without linking to individual projects.
Insurance Asset created have to be insured for full value.
Other Terms & Conditions The farmer should undertake to create/ complete the project within 15/30 days of availing the disbursement.
Paper requirement 1. 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.1.00 lakh where land is to be mortgaged
  • Price quotations/ Plan estimates / Permissions etc. depending up on the purpose of loan
2. Guarantee form F-138
  • All 7/12, 8 A & PACS dues certificate of the guarantors
 

Mahabank Kisan Tatkal Scheme

Facility Term Loan (TL)
Purpose For instant credit for farming community to meet emergencyrequirements
Eligibility Individual Farmers / Joint borrowers (not exceeding 4 farmers) who are existing KCC holders having satisfactory track record of at least 2 years
Amount Minimum- Rs 5000/- Maximum- Rs 50000/- (Subject to ceiling at 50% of KCC limit / 25% of annual income)
Margin NIL
Rate of Interest ROI shall be as applicable to Agricultural Advances
Security Existing Security obtained for KCC to be continued.
Repayment 3 years in half yearly / yearly installments coinciding with harvest of  the crop
Other terms & conditions The loan is to be cleared in full if a fresh/ enhanced limit is sought in the subsequent year based on revised KCC limit.
Paper requirement 1. 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.1.00 lakh where land is to be mortgaged
2. Guarantee form F-138
  • All 7/12, 8 A & PACS dues certificate of the guarantors
 

Mahabank Gold Loan Scheme - Agriculture

Purpose To enable farmer to quickly meet their agricultural credit needs i.e both crop production / cash credit for allied agricultural activities & investment credit
Type of Loan A] i) Cash Credit for Crop Production- in the form of MKCC
ii) Cash credit for allied activities
B] Term loans
Eligibility Any person engaged in agriculture or allied activities. The applicant should satisfy the KYC guidelines
Amount A] i) MKCC against Gold- As per Scale of Finance of crops
ii) CC for allied activities- As per actual credit requirement
B] Agricultural Term Loan- As per actual credit requirement
2. 75% of market value of gold (for MKCC) & 60% of market value of gold (for TL)
3. Maximum permissible limit under the scheme is Rs3.00 Lakh (aggregate limit for MKCC+CC Allied +TL Agri) **Out of 1,2,3 above whichever is lower
Margin NIL
Rate of Interest
  • MKCC: 7% p.a. (fixed) upto Rs 3.00 lakh under interest subvention scheme upto one year.
  • Cash credit for allied activities: As applicable to agricultural advances.
  • Term Loans: As applicable to agricultural advances.
Security Pledge of Gold jewelry/ ornaments. Bank shall not grant any advance against bullion/ primary gold.
Repayment
  • MKCC against Gold- As per MKCC scheme guidelines
  • CC allied activities- Annual review
  • TL- Within 60 months depending upon the purpose
Documents & Papers requirement
  1. Loan application ie Form No. -138, & Enclosure –B2
  2. Revenue records - 8A, 7/12
 

Scheme for Financing against Warehouse Receipts to farmers

Type of Facility Short Term Loan (STL)
Purpose Loan against receipts of warehouse/cold storage is available to provide liquidity to the farmers & prevent them from resorting to distress sale of their produce at the time of harvest.
Valuation Market Price or Value shown in warehouse receipt whichever is lower
Margin 25% of the valuation
Rate of Interest
  • Loans upto Rs 3.00 lakh to Small & Marginal farmers who has availed MKCC limit: @7% p.a. upto six months
  • For all others: At Base rate +2%
Security
  • Loan upto Rs 25.00 lakh:
  1. Charge on Warehouse Receipts being endorsed in favour of bank
  2. Lien should be noted with concern warehouse
  • Loans above Rs 25.00 lakh:
  1. Charge on Warehouse Receipts being endorsed in favour of bank
  2. Lien should be noted with concern warehouse
  3. Mortgage of land
  4. Third party guarantee having sufficient net worth
Repayment The loan should be liquidated as & when the produce is sold during the interim period not exceeding 12 months
Other Terms & Conditions Warehouse receipt should be duly endorsed in favour of bank
 
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