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Farm Forestry Loans: Finance Your Green Projects

The loan can be granted for raising tree crops including Tree borne Oil seeds like Jatropha (includes preparation of land, purchase of seeds/seedlings, fertilizers, pesticides and towards other expenditure involved for raising trees till they reach the age of bearing/harvest).

  • The applicant should be an owner/lessee cultivator.
  • Trees proposed to be raised by the applicant should have adequate demand and should be suitable for cultivation in the proposed area.
  • The State Govt. regulations, if any, should be adhered to.

Margin Up to ₹ 2.00 lakhs - Nil
Above ₹ 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 Lakhs
 
Wherever facility of online marking of lien/charge or states having the facility of manual charge creation is available.
  • Hypothecation of crops/assets created out of Bank finance.
  • Charge shall be created on land records.
  • Existing KCC holders 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.
For loans above Rs.2,00,000/-
 
Wherever the States are not having facility of online marking of lien/charge or manual charge creation.

 AND

 
For loans above Rs. 3,00,000/-, wherever the States are having the facility of online marking of lien/charge or manual charge creation.
  • Hypothecation of crops/assets created out of our finance.
  • Mortgage of landed properties
    • In case the party already has a development/investment loan and the total exposure including the proposed exposure exceeds Rs. 2.00 lakhs, mortgage of landed property shall be stipulated in addition to hypothecation of crops cultivated.
Repayment Period 4-15 years by yearly installment including a gestation period of 6-7 years depending on the crop or in a lump sum depending on the maturity and harvest.

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