Development loans are considered for digging/deepening of wells, construction of tanks/ponds and repairs thereof, bunding, land reclamation, levelling of land, terracing, conversion of dry lands into wet irrigable lands, development of farm drainage, laying/lining irrigation channels, fencing, cattle and poultry sheds, construction of farm buildings/structures like implement sheds, tractor and truck sheds, farm stores etc., and such other developmental activities of the farm, where the investment made will result in creation of immovable assets resulting in increase in the value of land and income of the farmer.

• The farmer should be an owner of the land.
• He should own an economic land holding with a minimum of 2 acres. However, loans can be considered even if the benefitting area is less than 2 acres provided the farmer is able to sell the surplus water or the viability of the project is ensured.
• In case of digging/deepening of wells, the Department of Mines and Geology of the State Government (Ground Water Survey Directorate) should have surveyed the area and confirmed the feasibility of digging new wells/deepening of the existing wells in the area. The feasibility certificate from the Ground Water Directorate is to be obtained. However, in the following cases, adherence to ground water discipline or obtaining of feasibility certificate from ground water directorate will not arise.
• Financing for desalting of well due to caving in of soil because of torrential rains.
• Construction of stone revetment/parapet wall and repairs thereof for the existing well.