The objective of the scheme is to finance farmers to purchase, develop and cultivate agricultural as well as fallow & waste lands.
Establishing/ diversifying into other allied activities.
Eligibility
Small & marginal Farmers i.e. those who would own maximum of 5 acres of non-irrigated land or 2.5 acres of irrigated land including purchase of land under the scheme.Share Croppers and tenant farmers can also be eligible under the scheme.
Women/ SHG members.
Quantum of finance
It will depend on area of land to be purchased and its valuation and also development cost.
The last 5 years average registration value available with the Registrar/ Sub-Registrar of the areas and a view taken by the Bank.
Security
The land purchased out of bank finance to be mortgaged in favour of the Bank
Margin
Loan upto Rs.1.60 lakh - Nil
Loan over Rs.1.60 lakh – 20%
Rate of interest
Interest Rate as decided by the Bank from time to time.
Repayment
Loan may be repaid in 7 – 12 years in half yearly/ yearly installments including maximum moratorium period of 24 months.
Location of Holding
The farmers may be allowed to purchase land within the village boundary or in a radius of 3 to 5 kms. near land owned by them.
