Minor Irrigation

Minor Irrigation
Type of FacilityTerm 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
EligibilityAll 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 1.60 Lakh- NIL
  • Limit above Rs 1.60 Lakh-15% to 25%

(Depending upon purpose & quantum of finance)
Rate of Interest
Up to Rs.10.00 lakh : 1 Year MCLR + BSS@0.50% + 1.75% 
Above Rs.10.00 lakh : 1 Year MCLR +BSS@0.50%+ 2.75%
Security
  • ​Limit up to Rs 1.60 Lakh- Hypothecation of Crops, equipment’s, machineries & other assets
  • Limit above Rs 1.60 Lakh – 
a. Hypothecation of Crops, equipment’s, machineries & other assets
b.Third Party Guarantee/ Mortgage of Land
Repayment7 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.1.60 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