Development loans for plantation

Loan for purchase of estate or land are not considered.
Loans are granted for establishment of estates / orchards clearing of jungle, leveling of land, conversion of barren land into cultivable land, minor irrigation, fencing, construction of labour lines, farm house, purchase of planting material, maintenance cost till bearing and other inputs, rejuvenation/replanting.

The applicant should own economic land holding depending upon the type of crop proposed.
The applicant should have experience/knowledge in the proposed activity.
Technical advice on various aspects should be available from an extension agency
Wherever commodity boards are constituted for the development/ marketing of such crops, registration with such boards are manadatory.

Margin

Up to Rs. 2.00 lakhs - Nil
Above Rs. 2.00 lakhs 15-25% depending on the purpose and quantum of loan.

Quantum

As per the project

Security

Loan Quantum	Security to be stipulated
For Loan upto Rs. 2.00 lakhs	Hypothecation of crops/assets created out of our finance.
For loan above Rs. 2.00 Lakhs	Hypothecation of crops/assets created out of our finance. Mortgage of landed properties. Value of security (Post development value) should be minimum of 125% of the loan amount. However, if the sanctioning authority feels that there is need for additional collaterals depending on risk factors, the same may be insisted. Existing borrowers where agricultural land is already mortgaged would be continued as per existing terms and conditions. In case, party is already having a development/investment loan, and total exposure including the proposed exposure exceeds Rs. 2.00 Lakhs, mortgage of landed property is to be stipulated in addition to hypothecation of crops cultivated. Development loans above Rs 15,000/- and up to Rs 2,00,000/- where the land is not obtained as collateral in terms of the guidelines, branches are to obtain Photostat copies of available title deeds duly verifying the same with the original. Also, encumbrance certificate for the past 13 years should be obtained and it should be ensured that there are no prior encumbrances on the lands owned by the farmer. For development loans under government sponsored schemes, the security norms as per the respective scheme will be applicable.

Repayment

Period

To be repaid in 10 to 15 years depending upon the pattern of income

generation.

Plantation Development Loans: Grow Your Agri Business