Purpose of the scheme is to provide finance to the farmers to redeem their outstanding dues to moneylenders.
- To redeem an indebted farmer from the clutches of private moneylenders.
- To affect synergy between bank and the farmers.
- To ensure “financial inclusion”
- All farmers, including small & marginal farmers, tenant farmers, agricultural laborers, etc. who are indebted to non institutional money sources. The farmers shall undertake not to create fresh debts/ loans with the money lenders.
- Need based credit against the indebtness of farmer from money lenders with a maximum of Rs 1,00,000/= Rupees One Lac Only. An affidavit shall be obtained from the farmers as self declaration of existing debts raised from the money lenders.
- Term Loan
Hypothecation of Crop & receivables.
No collateral security should be insisted upon from the borrower.