To provide hassle free finance to farmers for traditional and modern farm and farm related activities including emerging and High Tech Agri activities in meeting short term production (Including lease rentals payable to University / Government / Private Institution’s lands used for cultivation for a period of at least one year)/ Working capital and investment credit.
An indicative list of components/activities which can be considered for financial assistance under the scheme are as under:-
I. For Farm/production Credit:-
Cultivation of crops
Harvest /Post-Harvest Expenses
Produce marketing loan
Working capital for running/maintenance of activities allied to agriculture, like dairy animals, inland fishery etc.
II. For Working Capital Credit:
Running/ maintenance of Agriculture based units like Agro- Processing Units/ Food processing Units etc falling under definition of Agriculture or Allied activities to Agriculture.
III. Agri-Based Projects Finance:-
Establishment & running of Agro Processing Units
Establishment & running of Agriculture Infrastructure units designed to store agriculture produce/products
Establishment of Plantation nurseries
Any other income generating activity falling under definition of Agriculture or Allied activities to Agriculture.
1. Progressive, literate or illiterate farmers.
2. Individuals/Joint, Sole Proprietary Concerns, Partnership firms and Companies.3. Loans to corporate farmers, farmers' producer organizations/companies, partnership firms and co-operatives of farmers directly engaged in Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, beekeeping and sericulture.
1. Working Capital in form of CC/Overdraft/ Dropline Cash Credit for production credit for Agriculture/Allied activities/ Agro Processing Units/ Agriculture Infrastructure units.2. Term Loan for Agri-Based Projects Finance of Agro processing / Agri Infrastructure/Allied Agriculture units
For Farm Credit/Working Capital Loans: 1YMCLR (Floating)+1.50%For Term Loan: 3YMCLR (Floating)+1.50%
1. Farm/ production credit & working capital component shall be
initially valid for a period of one year & subject to annual review thereafter.
2. Repayment of Term loan will be as per the plan described in the DPR/ Projected Financials. However, the Door to Door Tenor of the Loan should not exceed 72 Months.3. Dropline Limits can be sanctioned for periods ranging from 12 months to 72 months with either equated reduction in limit or customized reduction in limit, depending upon the cash accruals. The drawing power shall be reduced monthly so as to have the overdraft liquidated at the end of the period.