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    Kisan All-Purpose Term Loan

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    vanhussian
    This document outlines the terms and conditions for a Kisan all-purpose term loan offered by an agricultural policy section. The loan is intended to provide farmers with a single loan limit for various agricultural activities and development projects with gestation periods under 7 years. Individual farmers and joint farmer groups can qualify for the loan if they have a satisfactory 3-year loan history. The loan quantum is capped at 5 times the annual farm income or 50% of mortgaged land value, up to 20 lakhs. Interest rates vary from MCLR+1.4% to MCLR+2.3% depending on loan amount. Security required is hypothecation of crops/assets for loans under 1.6 l

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    Kisan All-Purpose Term Loan

    Uploaded by

    vanhussian
    34 views2 pages
    This document outlines the terms and conditions for a Kisan all-purpose term loan offered by an agricultural policy section. The loan is intended to provide farmers with a single loan limit for various agricultural activities and development projects with gestation periods under 7 years. Individual farmers and joint farmer groups can qualify for the loan if they have a satisfactory 3-year loan history. The loan quantum is capped at 5 times the annual farm income or 50% of mortgaged land value, up to 20 lakhs. Interest rates vary from MCLR+1.4% to MCLR+2.3% depending on loan amount. Security required is hypothecation of crops/assets for loans under 1.6 l

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    Kisan all-purpose term loan

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    This document outlines the terms and conditions for a Kisan all-purpose term loan offered by an agricultural policy section. The loan is intended to provide farmers with a single loan limit for various agricultural activities and development projects with gestation periods under 7 years. Individual farmers and joint farmer groups can qualify for the loan if they have a satisfactory 3-year loan history. The loan quantum is capped at 5 times the annual farm income or 50% of mortgaged land value, up to 20 lakhs. Interest rates vary from MCLR+1.4% to MCLR+2.3% depending on loan amount. Security required is hypothecation of crops/assets for loans under 1.6 l

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    34 views2 pages

    Kisan All-Purpose Term Loan

    Uploaded by

    vanhussian
    This document outlines the terms and conditions for a Kisan all-purpose term loan offered by an agricultural policy section. The loan is intended to provide farmers with a single loan limit for various agricultural activities and development projects with gestation periods under 7 years. Individual farmers and joint farmer groups can qualify for the loan if they have a satisfactory 3-year loan history. The loan quantum is capped at 5 times the annual farm income or 50% of mortgaged land value, up to 20 lakhs. Interest rates vary from MCLR+1.4% to MCLR+2.3% depending on loan amount. Security required is hypothecation of crops/assets for loans under 1.6 l

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    Agriculture Policy Section, Priority Credit Wing

    Head Office, Bengaluru -560 002

    Kisan all-purpose term loan


    (Updated as on 29.08.2022)
    Purpose  To create a convenient single shot term loan limit to farmers for all term loan
    requirements like Farm Mechanization, Land Development, Minor Irrigation,
    Water Conservation, Horticulture, Allied activities and other agri. related
    activities etc.

     Development projects with a long gestation period shall not considered under
    the scheme in view of the specific tenor of this credit product (e.g. Mango
    plantation-requiring gestation of 6-7 years).

     Purchase of Tractors, Combine Harvesters, and Cars are out of the purview of
    this Scheme for the reason that farm machinery loan requires independent
    appraisal with regard to minimum viable land holdings, and the need for
    controlled expansion of the portfolio.

     The purposes for which the limit is granted shall not be a part of the Kisan Credit
    card limit /Canara Kisan OD Scheme /term loan already availed for the same
    purpose and it shall be a separate Single transaction account.

    Beneficiaries Individual, Joint/ Group of Farmers-owner cultivators and JLGs, SHGs etc. engaged
    in Agriculture and related activities.

    Applicant should be our existing Agriculture loan borrower (Other than Gold loan and
    VSL) with 3 years satisfactory track record.

    Quantum It shall be subject to 5 times of Annual farm income (current-pre development stage
    as assessed by the branch based on crop pattern & allied activities undertaken) of
    the farmer OR 50% of the value of land mortgaged whichever is lower, with a
    maximum ₹20 Lakhs.

    Margin 15-25% for loan above Rs. 1.60 lakhs

    The entire margin need not be brought in upfront for the entire limit. The pro-rata
    margin to be brought at the time of creation of asset only
    RoI  Loans upto Rs. 3.00 lakh - MCLR+1.40
     Loans above Rs.3.00 lakh – MCLR+2.30

    Note:- For loans repayable more than 1 year upto 5 years and more than 5 years,
    the liquidity premium to be loaded to the Card rates additionally

    Repayable > 1 year upto 5 years 0.40%


    Repayable > 5 years 0.80%

    Security  Upto Rs.1.60 Lakhs - Hypothecation of crops/assets created out of our finance.

     Above Rs.1.60 lakhs- Hypothecation of crops / assets created out of finance +


    Mortgage of landed property (it shall be at least 200% of the limit sanctioned)
    Repayment 9 Years. This may be a ballooning repayment and interest shall be paid along with
    the installments.
    Nature of Term loan
    Facility &
    Classification Priority sector- Agriculture – Farm Credit
    Product
    839
    Code
    Schedule 1012 – Agri Loans for 3 years
    Code 1013 – Agri Loans above 3 years.

    Page No. 01
    (Disclaimer: This educative series is for information purpose only.)

    Page No. 01

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