Scheme for Financing Farmers for Purchase of Land by Small & Marginal Farmers

 Scheme for Financing Farmers for Purchase of Land by Small & Marginal Farmers

Type of Facility

Term Loan (TL)

Purpose

Purchase of land for agricultural purposes

Eligibility

 Small & Marginal Farmers (Who owns maximum of 5 acre of non irrigated land or 2.5 acres of irrigated land including land to be purchased)

 Share Croppers/tenant farmers cultivating up to 2.5 acres of irrigated land or 5 acres of unirrigated land

 Entrepreneurs with agricultural background are also eligible (Provided state laws permits purchase of agri lands by non agriculturists)

Amount

A. Lower of the 1, 2 & 3

i. Valuation as assessed by the branch

ii. Circle rate fixed by the state

iii. Registration Value plus

B. Stamp duty & registration charges for sale deed Maximum Rs 20.00 Lakh

Margin

Margin shall be minimum of 20%.

Rate of Interest

ROI shall be as applicable to Agricultural advances

Security

 The land presently owned, if any & also the lands to be purchased out of the bank finance be mortgaged in favour of the bank.

 Hypothecation of Crops grown from time to time on the land

Repayment

7 to 10 years half yearly / yearly installments including maximum moratorium of 24 months

Other Terms & Conditions

 Total land holding including proposed land should not exceed 5 acres for non irrigated land & 2.5 acres for irrigated land.

 Applicant farmers may be encouraged to purchase the land at one place & not in fragmented holdings to step up productivity & save production expenses.

Documents / Papers to be submitted for loan proposal

 Copies of land records regarding land owned & to be purchased, certified by concerned revenue authorities

 Documents of title, Copy of sale agreement, if entered

Paper requirement

1. Loan application ie Form No -138, & Enclosure – B2

 All 7/12, 8 A, 6 D extracts, Chatu Sima of the applicant

 No dues certificates of the applicant from surrounding financial institutions including PACS

 Legal search from advocate on Bank’s panel for loans above Rs.1.00 lakh where land is to be mortgaged

2. Guarantee form F-138

 All 7/12, 8 A & PACS dues certificate of the