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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 FacilityTerm Loan (TL)
PurposePurchase 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
  • Stamp duty & registration charges for sale deed Maximum Rs 20.00 Lakh
MarginMargin shall be minimum of 20%.
Rate of InterestROI 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
Repayment7 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