LOAN FOR PURCHASE OF AGRICULTURE LAND

Objectives
  • To make the small and marginal holdings economically viable.
  • To bring fallow lands and wastelands under cultivation.
  • To step up agricultural production and productivity.
  • To finance share croppers/tenant farmers to purchase land to enable them to increase their income.
Eligibility Small and Marginal Farmers with ceiling on land holding as prescribed.
Margin
  • No margin is stipulated for loans up to Rs.100,000/-.
  • In case of loans for higher amount, a minimum of 10% margin will be stipulated.
Security
  • Mortgage of land proposed to be purchased out of loan.
  • Hypothecation of Crops grown from time to time on the land.
  • Additional collateral security, depending upon merit of each case.
  • Co-obligation.
Quantum of loan The Quantum of loan will depend upon valuation as assessed by bank or the registration value whichever is lower and value of stamp duty, registration charges for sale/mortgage deed.
Repayment From 7 to 12 years in half yearly/ yearly installments.