The scheme aims at providing term loan to small/marginal farmers including sharecroppers / tenant cultivators to purchase agricultural land as well as fallow andwasteland 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).