12. Agricultural Term Loan – Slaughter Tapping of Rubber

Eligibility: Experienced persons undertaking slaughter tapping on a contract basis.

Quantum of Finance

Unit cost per rubber tree –Rs.1, 500/-
For 1 Hectare model, No. of trees -400 @ Rs.1, 500/- Rs.6 Lacs
Minimum loan amount Rs.2.25 Lacs (For 0.50 Ha )
60% of the loan disbursed during 1st year and balance during second year.

Rate of Interest

Credit limit	Interest
Above Rs.2.25 lac – Rs.10 Lacs	3% above Bank's Base Rate ,Effective Rate 13.25%
>Rs.10Lacs to Rs.25 Lac	3.5% above Bank's Base Rate , Effective Rate 13.75%
>Rs.25 Lac	4% above Bank's Base Rate ,-Effective Rate 14.25%

Margin : 25% of the total cost

Repayment:

Repayment of Interest: Yearly or Half yearly intervals on application.
Repayment of Principal: Entire loan amount (Principal along with the unpaid interest) shall be repaid in 3rd year or when the trees are cut and disposed off which ever is earlier

Security: Collateral security by way of immovable property twice the value of the advance.

Other terms and conditions
1. An agreement should be executed by the land owner and the lease holder ( the contractor) to the effect that the area has been given for slaughter     tapping with the amendment in clause No.15.
2. Minimum area eligible for finance shall be 0.50 Ha .,
3. Margin amount should be deposited in an account in the name of the borrower to ensure utilization of the margin.
4. The margin with loan amount should be disbursed in stages, as stipulated in the agreement, by means of an Account Payee Cheque,/ DD drawn in favour of the Registered Owner or through RTGS transfer