Canara Bank Kisan All Purpose Term Loan

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.

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

Quantum of loan is based on the investment plan given by the farmer to b undertaken in the next 2-3 years. The plan can be a combination o investment/development activities relating to agriculture and allied activities.
It shall be subject to 5 times of Annual farm income (current-pr development stage as assessed by the branch based on crop pattern & allied activities undertaken) of the farmer including allied activities OR 50% of the value of land mortgaged (for aggregate loan above Rs.1.6 lakh), whichever is lower with a maximum Rs. 20 Lakhs.

Actual purpose wise assessment is to be made as per regular Scheme on the pre development status, viability and post development income etc.

Margin

For loans upto and including Rs. 1,60,000/-	NIL
For loans above Rs. 1,60,000/-	15 to 25% of the project cost depending up on the purpose and quantum

Nature of facility and classification

Term loan
Priority sector- Agriculture – Farm Credit

Rate Of Interest

Sanction amount

Spread over MCLR

Upto Rs. 3.00 Lakhs

1.40

Above Rs. 3.00 Lakhs upto Rs. 1.00 Crores

2.30

Above Rs.1.00 Crores and Upto Rs. 2.00 Crores as per scoring

For Loans above Rs. 2.00 Crores and upto Rs. 25.00 Crores Internal Rating

Security

Loan Quantum	Security to be stipulated
For loan upto Rs.1.60 lakhs	Hypothecation of crops/assets created out of our finance.
For loans above Rs.1.60 lakhs to Rs 2.50 lakhs	In states where online/manual charge creation is not available	In states where online/manual charge creation is available
For loans above Rs.1.60 lakhs to Rs 2.50 lakhs	Hypothecation of crops/ assets created out of our finance. Mortgage of landed properties	Hypothecation of crops/ assets created out of our finance. Creation of charge on land records
For loans above Rs.2.50 lakhs	Hypothecation of crops/ assets created out of our finance. Mortgage of landed properties However our charge on the land records to be ensured.

Existing borrowers where agricultural land is already mortgaged would be continued as per existing terms and conditions.
Declaration from the borrower containing the details of land holdings, to be obtained for creation of charge
After charge creation, copy of confirmation of the charge to be kept with loan documents.
In case, party is already having a development/ investment loan, and total exposure including the proposed exposure exceeds Rs. 1.60 Lakhs, mortgage of landed property is to be stipulated in addition to hypothecation of crops cultivated.

Security shall be atleast 200% of the limit sanctioned in addition to hyp. of assets created.

Repayment

9 Years. This may be a ballooning repayment and interest shall be paid along with the installments.