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8. VALUATION:
For the purpose of valuation of land for fixing the quantum of finance the price indicated by the farmer may be cross checked with the last 5 years average registration value available with the Registrar/Sub-Registrar of the areas and a view taken by the bank.
9. QUANTUM OF LOAN:
It will depend on area of land to be purchased and its valuation and also development cost.
10 REPAYMENT PERIOD:
Loan may be repaid in 7-12 years in half-yearly/yearly instalments including a maximum moratorium period of 24 months. The moratorium period may be fixed taking into account the gestation period of the project and cash flow.
11 REPAYING CAPACITY:
The financing Bank should satisfy itself that the borrower/s would have adequate income from their production activities and other income to repay the bank loan with interest and the repayment period may be fixed accordingly.
12. LOCATION OF LOAD HOLDING: -
The farmers may be allowed to purchase land within the village boundary or in a radius of 3 to 5 kms. Now the existing land owned by them. The Care also should be taken of the managerial aspects of such fragmented holdings.
13. PURCHASE OF LAND IN THE NAME OF WOMEN: -
With a view to encouraging woman to own land, as ownership rights to woman would lead to their empowerment, it has been decided to earmark a definite percentage for financing woman under the scheme, especially woman in distress, widows, SHG members, etc. and encourage purchase of land by woman under the scheme.
14. NABARD REFINANCE:
NABARD would provide refinance to the banks for the loans disbursed by them for purchase of land under the scheme broadly on the same terms and conditions as applicable to the schematic finance.
15. RATE OF INTEREST ON REFINANCE
As may be decided by NABARD from time to time
16. ELIGIBILITY TO DRAW REFINANCE:
Eligibility to draw refinance by the banks will be determined as per instructions issued by NABARD from time to time.
17. MODE OF REFINANCE:
Refinance will be extended under both Automatic Refinance Facility (ARF) and pre-sanction procedure of NABARD depending upon the project cost and the amount of refinance involved
18. GENERAL TERMS
(i) The banks may adopt the scheme with minimum suitable modifications, if necessary, depending on local conditions. It should, however, be ensured that the land purchased should be used for agricultural purposes and the farmers take up the project implementation without delay.
(ii) Applicant farmers may be encouraged to purchase the land at one place to the extent possible. However, in the case of any field level constraints/problems, farmer may be allowed to purchase land within the village boundary or in a radius of 3 to 5 kms from the existing piece of land owned by him, keeping in view the manageability of such fragmented holdings by the farmers. The financing bank may satisfy itself about this aspect.
(iii) Whenever farmers avail themselves of loan for purchase of virgin lands, they must be encouraged to develop the land and put the same land under cultivation without any delay.
(iv) Wherever land development involves digging of open wells/ drilling of bore wells, the possibility of getting electricity supply on priority basis may also be examined.
(v) Whenever farmers are financed for purchase of unirrigated land, the farmers should be encouraged to go in for suitable crops like horticulture/ plantation crops depending upon the climatic conditions and also take up activities like dairy, poultry, etc, to supplement income.
(vi) The scheme aims at boosting the production and productivity of land purchased. The finance provided by the bank should not result in acquisition of land for investment and encashing on rising prices of the land.
(vii) Project cost may include, besides cost of land, value of stamp duty, registration charges for sale / mortgage deed and other land development expenses.
(viii) During the period of the loan, the farmer is not expected to sell the land.
(ix) In certain states /regions, State Governments have imposed restrictions on sale/purchase of agricultural land (e.g. Tribal belt, SC/ST, hill areas etc.). Banks should take note of such instructions.
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