Ø      Eligibility :

à  Small Farmers, Share croppers/Tenant farmers

à  Land to be purchased not to exceed 5 acres of un-irrigated land or 2.5 acres of irrigated land, including the land already owned by the borrower.

Ø      Objective :

à  To finance the share croppers/tenant farmers to purchase land to enable them to increase their income.

à To step up agri. production and productivity by making small and marginal holdings economically viable.

à  To bring follow lands and waste lands under cultivation.

Ø      Loan Amount :

à  Maximum of Rs.5.00 lakhs inclusive of cost of developmental activities proposed.

à  Land cost including value of stamp, registration expenses etc. not to exceed 50% of the project cost or Rs.2.50 lakhs whichever is higher.

à  Balance or 50% or Rs.2.50 lakhs to be deployed for developmental activities.

Ø      Rate of Interest :
            ( Term Loan )

Upto Rs. 0.50 lakhs -                   @ BPLR+TP -2.50% (10.50%)

Rs.0.50 – Rs.2.00 lakhs -              @ BPLR + TP -1.00%( 12.00%)

Rs.2.00 - Rs.5.00 lakhs    -            @ BPLR + TP + 0.50 (13.50%)

> Rs.5.00 lakhs    -                        @ BPLR + TP +1.00 % (14.00%)

Ø      Margin :

à  20% of the project cost.

Ø      Security :

à  Mortgage of the land purchased out of the bank finance and third party guarantee.

Ø      Repayment :

à  7 to 10 years in half yearly/yearly installments including a max. moratorium period of 24 months.