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Purpose The scheme aims at providing term loan to small/marginal farmers including share croppers / tenant cultivators to purchase agricultural land as well as fallow and wasteland production/ to develop and cultivate it with a view to increase production/ productivity. It also enables them to diversify the present activities and to take up allied activities.
  • Small and marginal farmers i.e., those who would own maximum of 5 acres of dry land or 2.5 acres of irrigated land including the land to be purchased.
  • Share' croppers / tenant farmers cultivating upto 2.5 acres of irrigated land or 5 acres of dry land as the case may be.
  • The total land holding of the borrower after the purchase of the land under the scheme should not exceed 2.5 acres of irrigated land or 5 acres of dry land or equivalent
  • Entrepreneurs with agricultural background are also eligible (Provided State laws permit purchase of agriculture lands by such persons) subject to the above ceiling. Entrepreneurs/applicants should be from an agricultural family or/and an agricultural graduate, seeking to establish an agriculture enterprise relating to agriculture (including allied activity).
Quantum of Loan

Maximum ceiling on loan: Rs.10 lakhs.

The quantum of loan will depend upon valuation as assessed by the Branch or Guidance value/Circle rate fixed by the State or the registration value whichever is lower plus value of stamp duty, registration charges for sale / mortgage deed

Margin 20%
Security Hypothecation of crops & Mortgage of lands irrespective of the limit (subject to the ceiling of Rs.10 lakhs under the Scheme)- lands presently owned, if any, and to be purchased.
Repayment Period Loan is to be repaid in 7-10 years in half yearly / yearly installments including a maximum moratorium period of 24 months. The moratorium period may be fixed taking into account the gestation period of the project and cash flow.


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Last updated on 24-06-2024 05:13 AM

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