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TNAU Agritech Portal :: Banking & Credit

STATE BANK OF INDIA


1. AGRICULTURAL GOLD LOANS
2. KISAN CREDIT CARD (KCC) 
3. PRODUCE MARKETING LOAN 
4. KISAN GOLD CARD SCHEME (KGC) 
5. SETTING UP OF AGRI-CLINIC & AGRI BUSINESS CENTRES 
6. LAND PURCHASE SCHEME 
7. SCORING MODEL FOR TRACTOR LOANS 
8. FINANCING OF SECOND HAND / USED TRACTORS SCHEME 
9. FINANCING POWER TILLERS 
10. FINANCING FOR COMBINE HARVESTERS 
11. SCHEME FOR FINANCING FARM MACHINERY – WHERE TANGIBLE ASSETS ARE CREATED 
12. DAIRY PLUS SCHEME FOR FINANCING DAIRY UNITS 
13. DAIRY SOCIETY PLUS - SCHEME FOR FINANCING DAIRY SOCIETIES 
14. BROILER PLUS 
15. SCHEME TO COVER LOANS FOR GENERAL PURPOSE UNDER - GENERAL CREDIT CARD (GCC) 
16. SBI KRISHAK UTHAAN YOJNA 
17. GRAMIN BHANDARAN YOJNA - CAPITAL INVESTMENT SUBSIDY SCHEME FOR CONSTRUCTION / RENOVATION OF RURAL GODOWNS 
18. SCHEME FOR FINANCING PRIVATE COLD STORAGE/ PRIVATE WARE HOUSES FOR ONLENDING TO FARMERS 
19. SCHEME FOR FINANCING SEED PROCESSORS 
20. MORTGAGE LOAN TO SEED PROCESSING UNITS 
21. CAPITAL INVESTMENT SUBSIDY SCHEME FOR COMMERCIAL PRODUCTION UNITS OF ORGANIC INPUTS UNDER NATIONAL PROJECT ON ORGANIC FARMING 
22. SCHEME FOR DEBT SWAPPING OF BORROWERS 
23. ARTHIYAS PLUS SCHEME 
24. MINOR IRRIGATION SCHEMES 
25. FINANCE TO HORICULTURE 
26. FINANCING JLG OF TENENT FARMERS 
27. SCHEME FOR FINANCING MICRO FINANCE INSTITUTIONS (MFIs) / NON GOVERNMENT ORGANISATIONS (NGOs) 
28. SANJEEVANI 
29. KRISHI KALYAN 
30. FINANCING FOR ORGANIC FARMING 
31. FINANCING JLG OF TENANT FARMERS 
32. LEAD BANK SCHEME


1) AGRICULTURAL GOLD LOANS

Purpose

Bank extends hassle free finance to farmers / agriculturists against Gold Ornaments / gold wares to increase their liquidity to meet crop production expenses, Investment expenses related to agriculture and / or allied agricultural activities.

Eligibility
Any person engaged in agriculture or allied activities as well as persons engaged in activities permitted to be classified under agriculture.

Quantum of Loan
Upto 70% of the value of the ornaments .Value will be as advised by the bank to the branches periodically. 
Demand Loan / Term Loan : The repayment period of the loan should be fixed so as to coincide with the harvesting and marketing season / generation of income from the activity, allowing 2 to 3 months time after harvesting to market the produce and realize the proceeds. However, the total period will not generally exceed one year from the disbursement of the loan in the case of short-term loan / production credit and 36 months in other cases. 


2) KISAN CREDIT CARD (KCC)
Purpose:

To provide timely and adequate credit to farmers to meet their production credit needs (cultivation expenses) besides meeting contingency expenses, and expenses related to ancillary activities through simplified procedure facilitating availment of the loans as and when needed. 

Who are eligible for the loan?

• Owner cultivators, tenant cultivators and Share croppers.
• Agricultural borrowers having good track record for the last 2 years (i.e., Maintaining standard loan accounts).
• Creditworthy new borrowers can also be financed.

Loan 

100% of the cultivation cost available as loan upto Rs 50000/ and 85 % of the cost as loan above Rs 50000/. Expenses to meet important ancillary activities to production can also be financed in addition to the above The total limit is inclusive of 20% of production credit, which includes crop production expenses and working capital for allied agricultural activity, as contingency credit /consumption loan. 

Disbursement of the Loan 

As per the cultivation requirements of the crop, the loan will be disbursed in cash .

Security

Loan amount upto Rs 50000/ Hypothecation of Crops.
Above Rs 50000/ upto Rs 100000 (1) Hypothecation of crops. 
(2) Mortgage of land or third party guarantee *
Above Rs 100000/</O:P< SPAN> (1) Hypothecation of crops
(2) Mortgage of lands

*For loans upto Rs 1 lac to farmers having legal ownership of agricultural lands with good track record for last 2 years, no collateral is required


3) PRODUCE MARKETING LOAN

Purpose:
• To help farmers avoid distress sale of their produce
• To enable prompt repayment of crop loan dues and provide liquidity to farmers to meet contingency needs. 
• To offer the facility of loan against the stocks stored in farm houses, in addition to loan against warehouse receipts.

Who are eligible for the loan? 

1. All non-defaulter borrowers of our branches, who can store the produce either in their own farm/premises itself or in a Warehouse / cold storage.
2. Crop loan borrowers of other Bank’s and also Non-Borrower Farmers, who store their produce/ stocks in a Warehouse / cold storage.

Loan amount

60 to 80% of value of produce depending upon the place of storage subject to a maximum of Rs.10 lacs. 

SECURITY : 
1. Loan sanctioned against goods stored in Farmer’s godown:
Primary : Hypothecation of stocks.
Collateral : Mortgage / Charge over Land or Third Party guarantee for loans above Rs. 50,000/-.
2. Loans sanctioned against Warehouse Receipts (WHR) :
Primary : Pledge of stocks.
Collateral : No collateral is required for loans upto the maximum permitted limit of Rs.10 lakhs under the scheme.


4) KISAN GOLD CARD SCHEME (KGC)

Purpose:
KGC is a general-purpose loan meant for meeting credit needs of farmers for productive and consumption purposes. Consumption loans to meet domestic expenses like Children’s education, marriage, medical expenses etc will be included to the extent of 20% of the limit. 

Who are eligible?

Farmers with excellent repayment record for at least past 2 years, new farmers with sizeable deposits with our branches for 2 years, .good borrowers with other banks,Farmers who have closed accounts are eligible for this loan. 

Loan amount

Loan amount is fixed on the basis of Five times the annual farm income or 50% of the value of land (to be) mortgaged as collateral security, whichever is less, with a maximum of Rs. 10 lacs 
Documents you need to provide
Land records, other than that is already given to the bank, encumbrance certificates,if required .

Security

(a) Upto Rs 50000/ Hypothecation of assets created.
(b) Above Rs 50000 to Rs 100000 Hypothecation of assets and mortgage of land Or Third party guarantee
(c) Above Rs 100000 </O:P< SPAN> Hypothecation of assets and mortgage/ Charge over land or any other tangible security 


5) SETTING UP OF AGRI-CLINIC & AGRI BUSINESS CENTRES

Purpose
The scheme is to provide self employment opportunities to technically trained persons and to augment extension services for agriculture. 

Who are eligible for this loan?

Agricultural graduates / graduates in subjects allied to agriculture like horticulture, animal husbandry, forestry, dairy, veterinary, poultry, pisciculture and other activities.

Loan amount

Individual Activity – Rs.10 lacs
Group Activity – Rs.50 lacs (maximum). In case of group projects, if the group consists of 5 or more persons, all except one of them would have to be agriculture graduate trained under the scheme and the remaining could be non-agri graduate with experience in business development and management.
Loan amount for loans upto Rs 5.00 lacs 100% 
Loans above Rs 5 lacs upto 85 % of the cost 

SUBSIDY:

Credit linked capital subsidy @25% of the capital cost of the project funded through bank loan would be eligible. This subsidy would be 33.33% in respect of borrowers belonging to SC, ST, women and other disadvantaged sections and those from North-Eastern and Hill States. In addition to the above subsidy, full interest subsidy would be eligible for the first two years of the project. The capital subsidy will be back-ended with minimum 3 years lock-in period. The interest subsidy would, however, be concurrent. 

SECURITY :

Upto Rs. 5.00 lacs Hypothecation of assets created.
Above Rs. 5.00 lacs: Hypothecation of assets created. and Mortgage of land or Third party guarantee.


6) LAND PURCHASE SCHEME

Purpose:
To assist Small & Marginal farmers and landless agricultural labourers for purchase of Land, who are our existing borrowers to consolidate land holdings & development of Wasteland & fallow lands. 

Who are eligible?
• Small & Marginal Farmers owning less than 5 acres of unirrigated / 2.5 acres of irrigated land in their own names , landless agricultural labourers. 
• The borrowers should have a record of prompt repayment of the loan for at least two years. 
• Good borrowers of other Banks are also eligible provided they liquidate their Outstandings to other banks.

Loan amount:

Loan may be considered for:
• Cost of land
• Provision of irrigation facilities & land development (shall not exceed 50% of the cost of the land). 
• Purchase of farm equipments.
• Registration charges & stamp duty.

Loan amount will be 85 % of the cost of the land, as assessed by the bank, subject to the maximum of Rs 5 lakhs 
Security
Mortgage of land to be purchased


7) SCORING MODEL FOR TRACTOR LOANS

Purpose

Agricultural term loans are sanctioned for purchase of new tractors, accessories and implements 

Who are eligible for tractor loan?
Agriculturists (individually or jointly ) and Persons offering security like NSCs, KVPs, the Bank’s Fixed Deposits, surrender value of LIC policy, gold ornaments etc. to cover more than 60% of the loan amount are eligible for the loan .The applicants should score minimum score of 40 under the Scoring model of the bank. 

Loan amount:
Upto 95 % of the cost of the Tractor, trailer and accessories. (Depending on the scores in the scoring model).The cost includes the Registration charges and insurance premium not exceeding Rs 15,000/-. Additional loan equal to 10% of tractor loan for repairs may be provided for at the time of sanction. Bank will finance only for those models of tractors which have completed the commercial test from organizations viz. Central Farm Machinery Training and Testing Institute (CFMTTI) Budni (Madhya Pradesh) or Farm Machinery Training and Testing Institute (FMTTI), Hissar 

Security
1. Hypothecation of the tractor, accessories and implements. Noting of Bank’s hypothecation charge in the RC Book of the tractor is compulsory in all the cases. 
2. Collateral Security like NSCs, KVPs, Banks Fixed Deposits ,Surrender value of LIC policy etc OR Mortgage of agricultural lands .However no collateral security is required, if the score is 70 and above on the scoring model of the bank


8) FINANCING OF SECOND HAND / USED TRACTORS SCHEME
SBI - Mahindra Vishwas , SBI TAFE Nayaroop .

Purpose:
Loans provided for the purchase of second hand tractors refurbished by Mahindra & Mahindra and Tractors & Farm Equipments Ltd. Tractors which are up to 7 years old 

Who are eligible?
Individual farmer or a group of farmers not exceeding three in number (as co-borrowers) owning minimum 3 acres of perennially irrigated agricultural land. In case of co-borrowers the land should be in same area . 

Loan amount

Upto 85% of the cost. The cost will be based on the price fixed by the company for each tractor after refurbishing. The overall maximum limit will be Rs.2.50 lac including the cost of implements. The implements purchased shall be new . 

Security

Loan upto Rs 50000/ Hypothecation of tractor and accessories.
Above Rs.50,000/- (1) Hypothecation of tractor and accessories 
(2) Mortgage of the land of the farmer or any other tangible Security to cover atleast 50% of the loan amount or suitable third party guarantee .


9) FINANCING POWER TILLERS

Who is eligible?

Individual Farmers or a group of not more than 3 farmers owning 2 acres of perennially irrigated land (contiguous / nearby) 

LOAN AMOUNT:
Upto 90 % on the total cost of power tiller plus accessories. 

Security
a. For loans upto Rs.50,000/- Hypothecation of Power tiller, accessories, implements and trailer purchased out of Bank’s finance.

b. For loans above Rs.50,000 and upto Rs.2.00 lacs :
Hypothecation of Power tiller, accessories, implements and trailer purchased out of Bank’s finance and mortgage on land/ One third party guarantee, good for the amount involved or any other acceptable collateral security like NSCs, Bank’s own term deposits, Kisan Vikas Patras, Indra Vikas Patras, gold, urban property, surrender value of LIC Policy; the value of it should be at least 50% of the loan amount.

c. For loans above Rs.2.00 lacs :
Hypothecation of Power tiller, accessories, implements and trailer purchased out of Bank’s finance and mortgage of land.


10) FINANCING FOR COMBINE HARVESTERS
Purpose
Finance is given for the purpose of combined harvesters'. Makes in the approved list of the bank will only be financed 

Who are eligible?
a. For self propelled Combine Harvester
1. Farmers who are in a position to operate the Harvester successfully and owning minimum of 8 acres of irrigated land (corresponding acreage for other types of land).

2. Farmers owning lesser acreage than that prescribed above, are also eligible for availing combine harvester loans provided they could operate the harvesters successfully and generate sufficient income .Additionally they should provide additional collateral security like NSCs,Bank Fixed Deposits,LIC policies urban property etc to the value of at least 50% of the loan amount.

b. For Combine Harvesters as an attachment /equipment
Farmers who are in a position to operate the Harvester successfully and owning minimum of 6 acres of irrigated land (corresponding acreage for other types of land)..They should own a tractor of not less than 50 HP . Farmers owning lesser acreage than that prescribed above, are also eligible for availing combine harvester loans provided they could operate the harvesters successfully and generate sufficient income, additionally they should provide additional collateral security like NSCs, Bank Fixed Deposits, urban property etc the value of at least 50% of the loan amount 

Loan amount

Upto 85 % of the cost of combine harvester and accessories. 

Security
1. Hypothecation of assets financed 
2. Mortgage of land/buildings


11) SCHEME FOR FINANCING FARM MACHINERY – WHERE TANGIBLE ASSETS ARE CREATED
(OTHER THAN TRACTOR, COMBINE HARVESTER AND POWER TILLERS)

Purpose 
Bank is extending financial assistance for purchase of farm machinery like implements, threshers, sprayers (both mechanical and motorized) bullock and cart etc. 

Who are eligible?

All categories of farmers cultivating lands are eligible for the loan. 

Loan amount

For loans upto Rs 50000/ 100% of the cost 
For loan above Rs 50000/ 90% of the cost of the asset to be purchased 

Security

a. For loans upto Rs.50,000/-: Hypothecation of assets created out of Banks finance. 
b. For loans above Rs.50,000/- Hypothecation of assets created out of Banks finance.
and Mortgage/ charge over the land. 
Documents you need to provide

Land records, quotation for the assets to be purchased


12. DAIRY PLUS SCHEME FOR FINANCING DAIRY UNITS

PURPOSE
For construction of shed, purchase of milch animals, milking machine, chaff cutter or any other equipment required for the purpose. 

Who are eligible?

(1) Individual farmers who are members of the milk procuring societies or located on milk route

(2) They should be less than 65 years of age .

(3) Individual dairy unit having less than 10 animal - should own minimum 0.25 acre of land for every 5 animals for growing fodder and be in a position to procure the balance requirements locally.

(4) Individual dairy unit having 10 animals and above - should own or lease a minimum of one acre of land for cultivation of fodder for every 5 animals.

LOAN AMOUNT:

100% of the cost for loans upto Rs 50000/
90% of the cost for loans above Rs 50000/ with a maximum of Rs 5 lakhs as Term loan

WORKING CAPITAL: A working capital @ Rs.2500/- per animal per year may be Sanctioned for purchase of feed, fodder and medicine along with the term loan 

Security 
Hypothecation of assets created out of bank finance for loans upto Rs 1.00 lac .
For loans Over Rs.1 lac -Mortgage of landed property (or) third party guarantee 
Worth for loan amount (or) group guarantee of other 2 dairy farmers.


13. DAIRY SOCIETY PLUS - SCHEME FOR FINANCING DAIRY SOCIETIES
Purpose

Bank finance dairy societies for modernization of the societies and for creating infrastructures like 
• Construction of “milk house or society office”
• Purchase of “Automatic milk collection system”
• Purchase of transport vehicles.
• Purchase of Bulk chilling unit
What is the eligibility to avail this loan?

SOCIETIES SHOULD HAVE:
• ‘A’ grade milk societies – Registered & affiliated to district milk union.
• No adverse remarks in the audit report of previous 2 years.
• Supplying 1000 lit/day to milk union.
• Audited balance sheet for at least previous 2 years.
• Earning pre tax profits for the last two years.
• Borrowing from other banks, if any - prior liquidation and no due certificate are necessary.
• Borrowing powers as per bye-laws of the Society and Resolution to borrow from the bank.

LOAN AMOUNT: 

Upto 85% of the cost or four times the average profit of previous 2 years with a maximum of Rs 10.00 lacs
S.No. Purpose Maximum loan limit
1. Milk house or society office Rs. 2 lakh
2. Automatic milk collection system Rs. 1 lakh
3. Milk transportation Rs. 3 lakh
4. Chilling Unit Rs. 4 lakh

Security
Hypothecation of assets. And Mortgage of landed property (or) Guarantee of milk union.
How to repay the loan
The loan is repayable in 5 years with gestation of 6 months with monthly installments’. 
How to apply for this loan 
you may contact our nearest branch or talk to the marketing officers visiting your village 


14. BROILER PLUS
(Scheme for financing Broiler Farmers under Contract farming)

Purpose
Under this scheme loans can be extended to both existing farmers and new farmers having “Contract Broiler Farming” arrangements for enabling them to construct poultry shed and feed room and for purchase of equipments
Who are eligible for Broiler plus loan?
Those who have experience or undergone training in poultry farming They should have entered a contract with the companies undertaking broiler production through contract farming.
ii.The farmers should possess adequate land for construction of poultry shed which should be at least 500 meters away from any existing poultry farm. Potable water source should also be available . 

ECONOMIC FLOCK SIZE: 

The minimum flock size should be 5000 birds. However,financing can be done for 10,000 and 15, 000 birds or part thereof. 

Loan amount
Upto 75 % of the cost.
Upto Rs 3 lacs for every 5000 bird planned to be reared
Maximum loan amount under the scheme will be Rs 9.00 lacs per farmer


15. SCHEME TO COVER LOANS FOR GENERAL PURPOSE UNDER - GENERAL CREDIT CARD (GCC)
Purpose

The scheme is to provide hassle-free credit to our customers based on the assessment of cash flow without insistence on security, purpose or end-use of the credit. 

Who are eligible for the loan?

Eligibility:

i. All our existing customers with the branch having satisfactorily conducted deposit accounts including no frills deposit accounts in our books; say, for the last 6 months, or so, and / or loan accounts classified as standard assets will be eligible for availing loan under the scheme.

ii. GCC facility should, however, not be extended to the KCC borrowers. 
Loan amount Maximum Rs 25000 / 

Security:
 Nil 

How to repay the loan?

Account will be in the nature of cash credit. The outstanding amount in the GCC should be cleared in full when the applicant is fluid with cash which may be at yearly/ half yearly / quarterly / monthly intervals based on the occupation of the applicant / his family. In case the entire amount is not repaid a minimum of 20 % of the amount due along with upto date interest debited should at least be repaid. 
How to apply for this loan
You may contact our nearest branch or talk to the marketing officers visiting your village .


16. SBI KRISHAK UTHAAN YOJNA

Purpose

This scheme is to provide short term production and consumption credit to meet Genuine requirements of tenant farmers, share croppers and oral lessees who do not have recorded land records and where there is no written undertaking/ document available to substantiate raising of crops by the tenant farmer/ share cropper/oral lessee. It will help increase their income from agriculture production activities. 

Who are eligible?
Landless labourers, share croppers, tenant farmers, oral lessees, (also covering oral tenants & small farmers) having no recorded land records are eligible .They should have a permanent residential address proof & have been residing at the lace for at least past 2 years.
• Migratory tillers are not eligible under the scheme. 

Loan amount

Maximum of Rs 50000/ .out of which maximum consumption credit will be Rs 10000/ 
What documents you need to provide
(1) Proof of residence
(2) Proof of identity
(3) Affidavit in the prescribed format, duly notarized 

Security:
 Nil 

How do you repay
You should route the sale proceeds through the cash credit acccount 

How to apply for this loan

You may contact our nearest branch or even talk to the marketing officers visiting your village.



17. GRAMIN BHANDARAN YOJNA - CAPITAL INVESTMENT SUBSIDY SCHEME FOR CONSTRUCTION / RENOVATION OF RURAL GODOWNS

Purpose

This scheme is for creating scientific storage capacity in the rural areas for storing farm produce ,thereby prevent distress sale of produce by the farmers after harvest ,by promoting pledge financing and marketing credit. 

Who are eligible for the loan?
1. Individuals / Farmers. quality cum inputs testing laboratories.
2. Proprietary and partnership terms..
3. Co-operatives, Agro-processing co-operative societies.
4. Companies.
5. Corporations, Agro-Industrial corporations.
6. Agricultural Produce Marketing Committees..
7. Group of Farmers/Growers.
8. NGOs
9. Agro-Processing Corporations..
10. Self Help Groups..
11. Marketing Boards etc.

The godown can be constructed / located in any area outside the limits of a Municipal Corporation area. Rural godowns located in Food Parks promoted by Ministry of Food Processing Industries are also eligible. 

Loan amount

Depending on the project cost. Maximum Project cost will be Rs 1500/ to 2000/ per tonne capacity for construction and Rs 500/ per tonne for renovation NABARD is providing back end subsidy for the projects financed by the Banks ,depending on the location and capacity of the godowns
Bank will finance upto 80 % of the Project cost 

Security

Mortgage /charge of Land and godown 

How do you repay

The loan should be repaid in 11 years, with a grace period of one year. Subsidy will be credited as the final installments . 

How to apply for this loan? 

You may contact our nearest branch or even talk to the marketing officers visiting your village.


18. SCHEME FOR FINANCING PRIVATE COLD STORAGE/ PRIVATE WARE HOUSES FOR ONLENDING TO FARMERS
Purpose:
For financing private cold storages/warehouses for on lending to farmers against Agricultural commodities stored in the cold storage/warehouse. 

Who are eligible?

All private cold storages/warehouses subject to the following conditions:

i. The promoters of the cold storage/warehouse are persons of good repute and integrity

ii. The capacity of the cold storage should be more than 5000 MT.

iii. The cold storage/warehouse should be in good running condition and should have Registered post-tax profits for the last 3 years.

iv. Conduct of the accounts of the cold storage/warehouse with our bank/other banks should be satisfactory and all their existing accounts classified as “standard asset”

v. New cold storages can also be considered for finance under the scheme subject to the project’s viability. 
Loan amount 
Minimum: Rs.25.00 lacs ; Maximum: Rs.1.00 crore 

Security

(i) Equitable mortgage of the warehouse/cold storage is compulsory and The value of the collateral coverage (inclusive existing and proposed loan) should be 100%. This is important.

(ii) Personal guarantee of the proprietor/partners/directors of the cold Storage/warehouse 

How to avail the loan amount? 

The disbursal of the loan amount will be restricted to 60% of the value of produce / Commodities stored and belonging to farmers to whom on lending has been done by the Cold storage/ warehouse. For this purpose, a detailed statement should be submitted by the cold storage/ warehouse enclosing photo copies of the WHRs against which on lending has been done by it. 

Renewal 

The limit is valid for 12 months and needs to be renewed every year. Renewal of the limit is subject to satisfactory conduct of the facility . 

How do you repay the loan

The cash credit account should be brought into credit balance by the end of November each year and will continue with the credit balance till the commencement of the next Season. . 

How to apply for this loan

You may contact our nearest branch or even talk to the marketing officers visiting your village.


19. SCHEME FOR FINANCING SEED PROCESSORS

Purpose
To extend financial assistance to the seed processors against their receivables due to them from the seed growers.

Who are eligible?

Seed processors / units
• Enjoying good reputation & credit worthiness.
• Holding a valid license from the concerned State Department of Industries for Installation of Seed Processing Plant.
• Having valid certificate from Seed Certification Department.
• Doing business for the last 3 years.
• Having receivables from the farmers.
• Who have posted profits during the past two years of operation are eligible to avail credit limits under the scheme.

Loan amount 
60 % of the value of the receivables. Minimum Rs 2.00 lacs. No upper limit 

Security

(1) Assignment/hypothecation of receivables from the farmers.
(2) Equitable mortgage of residential/ commercial property worth 1.5 times of the limit sanctioned belonging to either the applicant or the guarantor. 

How to repay the loan?
Loan to be liquidated within a maximum period of 6 months for each crop season i.e.,Rabi & kharif. 

How to apply for this loan?

You may contact our nearest branch or even talk to the marketing officers visiting your village.
MORTGAGE LOAN TO SEED PROCESSING UNITS

Purpose
To Provide hassle free finance to Seed Processing Units who are willing to furnish mortgage of property of adequate value. 

Who are eligible?
Existing customers.
New connections including takeovers.
First generation entrepreneurs as well as promoters of existing units. 

Loan amount
65% of the realizable value of the property subject to a maximum of 40% of the projected annual turnover. Minimum loan amount will be Rs 5,00,000. Maximum will be Rs 1.00 crore. 

Security 
(1) Hypothecation of stocks and receivable
(2) Equitable Mortgage of land & building. 

How to repay the loan?
Cash Credit renewable on an annual basis, on the basis of the level of activity and the entire loan is repayable on demand. 

How to apply for this loan?
You may contact our nearest branch or even talk to the marketing officers visiting your village.


21. CAPITAL INVESTMENT SUBSIDY SCHEME FOR COMMERCIAL PRODUCTION UNITS OF ORGANIC INPUTS UNDER NATIONAL PROJECT ON ORGANIC FARMING

Purpose
This scheme is to promote organic farming in the country on a large scale. Under this scheme manufacturing of organic inputs such as biofertilisers, vermicompost, fruit and vegetable waste compost are considered. 

Who are eligible for the loan?

Individuals, group of farmers/growers, proprietary and partnership firms, cooperatives, fertiliser industry, seed industry, Companies, Corporations, NGOs are eligible New as well as existing units (for expansion / renovation) engaged in the production are eligible under the scheme. 

Loan amount

50% of the Project cost as Bank loan
25% of the cost will be provided as subsidy from Government, subject to ceiling
Cost of the project depends on the location, capacity, technology, invoice prices etc 

SECURITY

Security will be as per norms prescribed from time to time. 

How to repay the loan?
Repayable in 8 – 10 years, with a grace period of 2 years. 

How to apply for this loan?

You may contact our nearest branch or even talk to the marketing officers visiting your village.



22. SCHEME FOR DEBT SWAPPING OF BORROWERS


Purpose
To extend finance to farmers for paying off loans taken from non-institutional lenders (e.g. money lenders etc.) and to enable such farmers in distress, meet their crop production needs. 

Who are eligible?

All existing farmer borrowers as well as other farmers in the operational are of the branch. 

Loan amount

The scheme will be for farmers owning land – existing or prospective. The quantum of loan granted shall be 100% if the debt is on account of cultivation or agri activity, with a Maximum of Rs 50000/. Additionally loan for crop production will be sanctioned under Kisan credit card.

Documents you need to provide

(1) Stamped, notarized Affidavit, as per Bank format
(2) A letter from the lender confirming the facts in the Affidavit 

Security

All the existing security available with the bank should be extended to cover the loan under the proposed scheme also. Charge over assets and documents pledged / mortgaged with the moneylenders, non-institutional lender etc .after the dues of the money lenders / non-institutional lenders are cleared. Collateral security by mortgage / charge on agriculture property shall be taken for this loan. 

How to repay the loan

The loan is repayable in half yearly / yearly installments’ in 3 to 5 years. 

How to apply for this loan

You may contact our nearest branch or even talk to the marketing officers visiting your village.


23. ARTHIYAS PLUS SCHEME

Purpose

To finance commission agents against their receivables of farmers.

Who is eligible for the loan?
Commission agents with valid license from the market yard/Board.
Agents who are in business for the last 3 years.
Only commission agents having receivables from farmers and functioning in rural and semi urban markets /mandis.

Loan amount

Maximum of Rs 50 lacs in the form of cash credit. 

Documents you need to provide
Statement of book debts (not more than 6 months)
Land records of the security offered
Commission agent license
Audited balance sheet 
Disbursement of the loan

60 % of the book debt is given as loan directly in cash. 

Security

Hypothecation of the receivables and the movable assets, including stocks, if any Collateral: for loan upto Rs 25 lacs ; Mortgage of residential / commercial property (other than agricultural property) worth at least 1.5 times of the advance sought belonging to either the applicant or a guarantor.

For loans above Rs 25 lacs : Mortgage of residential / commercial property worth 2 times of the advance value. 

How do you repay?

The loan amount is to be repaid within a period of 6 months. 
How to apply for this loan?

You may contact our nearest branch or even talk to the marketing officers visiting your village.


24. MINOR IRRIGATION SCHEMES
Purpose
Loan covers various activities like digging of new wells (open / bore wells), deepening of existing wells, energisation of wells (oil engine/electrical pump set ),laying of pipelines, installing drip / sprinkler system and lift irrigation system. 

Who are eligible?
All farmers having a known source of water available for irrigation purpose are eligible for the loan. 
Loan amount
For loans upto Rs 50000/ 100 % of the project cost
For loans above Rs 50000/ upto 85 % of the project cost will be provided as loan cost
What are documents you need to provide?

(1) Land records
(2) Quotation for the assets to be purchased
(3) An estimate for the civil works to be undertaken
(4) Geologist certificate wherever applicable
(5) Feasibility certificate from the EB Dept 

Security 

A) Where movable assets are not created
(a) Upto Rs 10000/ Personal guarantee
(b) above Rs 10000/ Personal guarantee and Mortgage of land
B) Where movable assets are created
(a) Upto Rs 50000/ Hypothecation of assets created 
(b) Above Rs 50000 Hypothecation of assets and mortgage of land

How to repay the loan

Repayment will be in Quarterly / half yearly / yearly installments’ over a period of 5 to 7 years depending on the crops or the liquidity created by the agriculture activity undertaken. 
How to apply for this loan

You may contact our nearest branch or even talk to the marketing officers visiting your village.


25. FINANCE TO HORICULTURE

Purpose

Loans for development of fruit orchards like mango, chikoo, Grapes, pomegranate, apple, etc., as well as short term crops like banana, pineapple, Flowers in open and green houses and vegetable crops are financed. 

Who are eligible?

All farmers having cultivable lands. 

Loan amount


Upto Rs 50000/ 100 % of the cost of the asset / project cost
Above Rs 50000/ upto 85 % of the asset / project is given as loan.

For Short term loans, loans are given under our crop loan / Kisan Credit Card schemes. 
Documents you need to provide

For Orchard development you need to submit the following:
i) Water and soil testing report
ii) A feasibility certificate from the local Horticulture department
iii) Land records
iv) Quotation /estimates for the costs to be incurred
v) Project Report, if the project is large 

Disbursement of the loan

Generally disbursements are made directly to the suppliers. Cultivation expenses are released in stages as per the schedule set in your proposal. 

Security


Loan amount upto Rs 50000/ Hypothecation of assets created
Above Rs 50000/ upto Rs 100000 (1) Hypothecation of assets created 
(2) Mortgage of land or third party guarantee
Above Rs 100000/</O:P< SPAN> (1)Hypothecation of assets created
(2) Mortgage of lands
How do you repay?

The loan repayment starts after the completion of the gestation period varying from 4 to 7 years for different crops. Repayment commences from the time the crop gives economic yield and is linked to the income generation of each crop every year and varies between 7 to 12 years. 
How to apply for this loan?

You may contact our nearest branch or even talk to the marketing officers visiting your village.


26. FINANCING JLG OF TENENT FARMERS
Purpose

To provide credit to tenant farmers cultivating land either as oral lessees or sharecroppers and small farmers, who do not have proper title to their landholding, through financing of JLG.. Finance is provided to the members of the JLGs to meet the credit requirements including crop production, consumption, marketing, and other productive purposes. 

Who should constitute the JLG?

i) Members should be of similar socio-economic status and background carrying out farming activities and who agree to function as a joint liability group.

ii) The group members should not be a defaulter to any other financial institution.

iii) JLGs should not be formed with members of the same family and more than one person from the same family should not be included in the JLG.

iv) The group should be formed preferably with 4 to 10 members to enable group members to offer mutual guarantee 

JLG Models

Model A: The group members are eligible for individual loans on executing an inter-se guarantee agreement.

Model B: The group is eligible for getting one loan, which could be combined credit requirements of all its members. 

Loan amount

Maximum loan amount is Rs 50000/ per individual, under both models. 

Security

Only mutual guarantee of the members. 

How to repay the loan?

Repayment depends on the purpose for which the loan is availed. 

How to apply for this loan

You may contact our nearest branch or even talk to the marketing officers visiting your village.


27. SCHEME FOR FINANCING MICRO FINANCE INSTITUTIONS (MFIs) / NON GOVERNMENT ORGANISATIONS (NGOs)

Purpose

Routing micro credit through NGOs / MFIs functioning as financial intermediaries. With the ultimate aim of increasing the outreach by financing large number of Self Help Groups. 

Who are eligible?

The NGO / MFI, to be eligible for finance under the scheme, will have to be of any one of the following:

(i) Societies registered under Societies Registration Act, 1960 or similar State Act.

(ii) Trusts registered under Public Trust Act, 1920 or similar Act.

(iii) Companies registered under Companies Act, 1956 including Section 25 companies.

(iv) Non Banking Financial Companies providing financial services to SHGs which satisfy the following criteria as laid down by RBI may only be taken up for financing:

Engaged in micro financing activities.
Licensed under section 25 of the Companies Act, 1956, which are not accepting public deposits from the purview of sections 45-IA(Registration), 45-IB (maintenance of liquid assets) and 45-IC (transfer of profits to Reserve Fund) of the RBI Act, 1934.

(v) Specialist and other Co-operatives such as Mutually Aided Co-operative Societies,etc.

(vi) Any other type of institution that offer micro finance and related services may be considered on merits. 
Track record

(i) The NGO / MFI has been in existence for at least 12 months and/or it has a track record of running a successful micro credit programme at least for the last 6 months.

(ii) The NGO / MFI has partnership with a minimum of 200 SHGs.

(iii) It’s activities should be secular in nature.

(iv) It maintains a satisfactory and transparent accounting system, MIS and internal audit system.

(v) The NGO / MFI should be continuously profit making, where they are in existence for 2 years or more. In case of existence of less than 2 years, the Sanctioning Authority will ensure that the projected profit of the NGO / MFI should be sufficient to meet the repayment obligation of the loan.

(vi) The NGO / MFI should not be a defaulter to any Bank / Financial Institution.

(vii) Portfolio at risk of the NGO / MFI should be less than 5%. (Ratio of the amount overdue for 60 days or more to the total loans on a given date) 56

(viii) In case of takeover of NGO / MFI loan from other banks, all the terms and conditions for taking over of the loan will be applicable.

(ix) NGO / MFI must exhibit transparency in dealing with its borrowers like levying of service and other charges, etc.

(x) NGO / MFI will not borrow from other sources for the same project for which loan from our Bank is being availed.

(xi) Loans below Rs 200 lacs -The NGO/MFI should score minimum scores in the scoring model of the bank. For the loan of above Rs 200 lacs they should have valid credit rating from any of the Micro Credit rating agencies, MCRIL, CRISIL, CARE, ICRA and Planet Finance. 

Loan amount

(i) Need-based repeat finance.

(ii) Requirement of finance to be worked out based on the health of the NGO / MFI and the business plan as per the appraisal format 

Security

Hypothecation of Book Debts of the NGOs / MFIs. And , personal guarantee of the Promoters / Directors and charge over other available assets 

How to repay the loan?

Term loans are repayable in : monthly / quarterly / half-yearly. Instalments depending on the project / purpose. However, total repayment period should not exceed 3 years.Cash credit loans are to be renewed annually 
How to apply for this loan?

You may contact our nearest branch or even talk to the marketing officers visiting your village



28. SANJEEVANI

(FINANCE FOR REPAIRS, MAINTENANCE AND ADDITION OF NEW IMPLEMENTS ETC. TO TRACTORS) 

Purpose:

To assist the farmers, who are regular in their repayments for repairs / maintenance of tractor and for purchase of additional implements.

Eligibility: 
• Borrowers who have already availed the tractor / power tiller / combined harvester loan facility from our Bank before three years or more and whose accounts are closed / or regular/standard (IRAC) and who have paid a minimum of 2 yearly installments or 4 half yearly installments after moratorium period are considered eligible for the loan. The borrower should not have availed the benefit of a compromise scheme earlier.

Facility: Agricultural Term Loan.

Quantum of Loan:
 Repairs: Up to a Maximum of Rs. 50,000/- 
Addition of new implements: Up to a Maximum of Rs. 1, 00,000/- 

Margin:

Up to Rs.50, 000 - NIL
Above Rs.50, 000 - 15-25% of invoice price 

Security:

A. For borrowers who had already repaid / closed the Tractor loans:
a. Upto Rs. 50,000/- 
Primary: - Hypothecation of tractor (value to be assessed based on the age and condition of the vehicle) and new implements. (Noting of Banks Charge with Road Transport Authority on tractor is a must)
Collateral : - NIL

b. Above Rs. 50,000/- 
Primary: - Hypothecation of tractor (value to be assessed based on the age and condition of the vehicle) and new implements. (Noting of Banks Charge with Road Transport Authority on tractor)
Collateral : - Mortgage / Charge over the Land

B. For borrowers having existing Tractor Loan A/cs: 
a. Upto Rs. 50,000/- 
Primary: - Hypothecation of existing tractor / new implements
Collateral : - Extension of Mortgage / Charge over the Land 
Repayment:Maximum 5 years or up to the last installment of the existing tractor whichever is earlier in half yearly installments 
Insurance: Tractor to be insured till the advance is repaid in full.
Interest Rate: As per the card rate applicable on aggregate limits for the facility and periodicity.
(Interest rate Effective from 29.06.2009)

Up to Rs. 50,000. - 10.50 % p.a.
Above Rs.50, 000/- and up to Rs. 2 lacs - 11.50 % p.a)


29. KRISHI KALYAN
FARMERS EASY EMPOWERED LOAN (FEEL): “KRISHI KALYAN”
(Combo Product of ACC and PML) 
Purpose:
• To provide timely and adequate credit to farmers to meet production and consumption expenses. 
• To offer credit against the stocks stored in farmers own premises / godowns/ warehouses/ cold storage, which help farmers avoid distress sale of the produce & promptly repay the loan dues. 
• To reduce the multiple process of separate application, documentation & EM creation for availment of KCC and PML, thereby reduce the time for delivery of credit.
ELIGIBILITY: All non-defaulter and credit worthy farmers – owner cultivators, tenant farmers, and share croppers, having good track record and cultivating crops , like food grains( cereals), pulses, oilseeds etc., produce of which could be stored in godowns /ware houses/cold storage etc., Farmers cultivating fruits and vegetables, in centers where cold storage facilities are available. 

Quantum of Loan: 

Total credit limit will be sanctioned, comprising of following components. 

Production credit: 

Annual Credit needs will be sanctioned, depending on the operational land holdings, cropping pattern, and scale of finance.

Contingency credit: 
Produce Marketing loan: 
Limit depends on the current market price or the MSP fixed by the Government (less Margin) multiplied by the quantum of stock to be stored.
Maximum Limit: 
a. Production Credit : No upper limit 
b. Produce Marketing Loan : Max of Rs 10 lac per borrower. 
Margin: 
• For Production Credit: 15-20% 
• For Produce Marketing loan: 
1. sanctioned against goods stored in Farmers own godown 40% 
2. Loans against warehouse receipt 20-35%

SECURITY

Limit up to Rs 1 Lac: 
Primary: - Hypothecation of standing crops and / or stocks Stored under produce Marketing Loan
Collateral : - NIL

Limit above Rs 1 Lac; 
I) If the Production credit portion does not exceed Rs 1 lac and Produce Marketing Loan is against Warehouse receipt (Max Limit Rs 10 lacs)
a) Hypothecation of standing crops and/or Pledge of stocks.
b) Warehouse Receipt (duly endorsed) and Letter from the Warehouse Authorities to the effect that the stocks covered by WHR will be released only on a written communication from the bank <BR
II)If production credit limit exceeds 1lac & produce loan is against warehouse receipt (below Rs 10 lac) 
a) Hypothecation of standing crops and/ or Pledge of stocks. 
b) Mortgage /charge over the land to the extent of Production credit limit.<BR
III)If production credit limit exceeds 1lac & produce stored in Farmers own go-down 
a) Hypothecation of standing crops and stocks
b) Mortgage/charge over land 
c) Declaration of Stocks from the farmer

INTEREST RATE 

As applicable from time to time to crop loans.

REPAYMENT 
Crop Loan (Production Credit) &} Loan amount will be liquidated from Produce
Contingency credit Loan } Marketing loan sanctioned to the farmer

Produce Marketing Loan is to be repaid within a maximum period of 12 months, from the date of availment of the PML loan, depending on the produce.


30. FINANCING FOR ORGANIC FARMING 

Purpose :
• Investment credit to develop a farm design and management under organic farming for initial two-year period.

Who are eligible?

• All farmers who own individually or collectively a minimum of 4 acres of irrigated land or 10 acres of dry (rain fed) land (or equivalent) are eligible 
• JLGs engaged in crop production activity. 
• Farmers applying for Organic Farming registration with Certified Agenciesmay also be considered, however,disbursements will be subject to completion of the registration formalities. 
• The product is currently launched on pilot basis in Bangalore, Chennai, Delhi, Hyderabad and Mumbai Circles in select branches.

Quantum of Loan: ( unit cost)

Total cost for 3 years:

Cost of infrastructure required to produce Organic Inputs on own farm (Rainfed Crops– 10 acres / Irrigated crops – 4 acres / Commercial Irrigated Crops – 2 acres.)*

Requirement Domestic purpose Export purpose RS.
Term loan for production of organic input 40,000/- 40,000/-
For Certification 60,000/- 1,05,000/-
Total Cost 1,00,000/- 1,45,000/-

Margin:

Minimum 20% - either contributed by the borrower or by subsidy.
Bank Loan - 80% 80,000/- 1,16,000/-

*Circles will not deviate from the above fixed unit costs.

Repayment:

Repayable in 9 years including a gestation period of 3 years in half yearly / yearly installments.

Security:

For Individual Farmers:
Primary Collateral 
Hypothecation of assets created & crops to be raised Mortgage of land OR any other readily realizable liquid/ immovable security of adequate value.

A) Group Farmers (JLGs)
Unit Size Primary Collateral 
ATL & ACC Max.
Rs. 50,000/- per member.Max. 10 members / group. ATL & Hypothecation of assets created and crops to be raised -Nil-(Mutual Guarantees offered by the JLG members to be obtained)

Rate of Interest
: As per interest rates circulated from time to time for agricultural term loans (Interest rate Effective from 29.06.2009)

Up to Rs. 50,000/- 10.50 % p.a.

Above Rs. 50, 000/- and up to Rs. 2 lacs 11.50 % p.a.

Above Rs. 2 ac but up to Rs.5 lac 12.25 % p.a.

Above Rs .5 lac but up to Rs.25 lac 13.25 % p.a.


31. FINANCING JLG OF TENANT FARMERS 

Objectives:

• To augment flow of credit to tenant farmers cultivating land either as oral lessees or sharecroppers and small farmers, who do not have proper title to their land holding, through formation and financing of JLGs. 
• To extend collateral free loans to target clients through JLG mechanism. 
• To build mutual trust and confidence between the Bank and tenant farmers.
Purposes of credit
The finance to JLG is a flexible credit product addressing the credit requirements of its members including crop production, consumption, marketing and other productive purposes.

Who should constitute the JLG? 
• Members should be of similar socio-economic status and background carrying out farming activities and who agree to function as a joint liability group. 
• The group members should not be a defaulter to any other formal financial institution. 
• JLG should not be formed with members of the same family and more than one person from the same family should not be included in the JLG.

Size of the JLG 

The group should be formed preferably with 4 to 10 members to enable the group members to offer mutual guarantee. While informal group of upto 20 members could also be considered, such large groups are found to be not effective in fulfilling mutual guarantee obligations in the case of farmers. 

JLG models:

Model A: The group members are eligible for individual loans on executing an inter-se guarantee agreement.
Model B: The group is eligible for accessing one loan, which could be combined credit requirement of all its members.

Type of loan
ACC or ATL depending upon the purpose of loan.

Loan limit
Maximum amount of loan available is Rs.50, 000/- per individual both under Models A and B

Security Norms
No collaterals are obtained. Only mutual guarantee is obtained.

MICRO CREDIT

 



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