Ø      Eligibility :

à  All Paddy & Sugarcane Growers in the State of Andhra Pradesh and Tamil Nadu only.

Ø      Purpose :

à  To enhance scale of finance covering the cost of cultivation for high yielding crops irrigated crops with high seed cost and dose of fertiliser.

à  To mitigate the problem of under financing, the scale of finance for two major crops in Andhra Pradesh and Tamil Nadu viz., Sugarcane and Paddy have been revised.

Ø      Amount of Loan :

à  Sugar Cane
Presently Rs.600 per gram (or) 70% of the market value of the jewels to be pledged, whichever is lesser.

à  Paddy (for AP)
Scale of Finance: 60% of value of the estimated yield or Rs.10,000/- per acre whichever is lower.

à  Paddy (for TN)
Scale of Finance: 50% of value of the estimated yield or Rs.10,000/- per acre whichever is lower.

Ø      Interest Rate :

Upto 3 lakhs -                       7.00% (Under 2% interest subvention from Govt of India)

Rs.3.00 to Rs.5.00 lakhs -      @ BPLR + 0.50 - Presently 13.00 %

Rs.5.00 lakhs    -                    @ BPLR + 1.00 % - Presently 13.50%

Ø      Repayment :

à Loan amount to be adjusted within 2 months from the date of harvest of the crop.