Canara Bank Farm Development Loans

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.

Margin	Up to ₹. 2.00 lakhs - Nil Beyond ₹. 2.00 lakhs 15-25%
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 laks	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 15000/- and upto 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 the respective scheme will be applicable.

Farm Development Loans: Grow Your Agri Business