To provide adequate and need based financial assistance for cultivation of saffron. The term loan shall cover the entire plantation & production costs including plant material, agricultural machinery, labour, etc.

  • Agricultural Term Loan
  • All saffron growers including small, marginal & large farmers including contract farmers engaged in cultivation of saffron or intending to commence the cultivation of saffron.
  • The unit cost, Margin & maximum amount of finance inclusive of the interest during moratorium (capitalized) shall be as follows:

    For Loans upto 2 lacs:                                            Amount in Rs 
     
    a. Unit Size
    (Land Holding)
    b. Unit Cost excluding 
    Capitalized Interest.
    c. Unit Cost
    inclusive of capitalized Interest.
    d. Interest @ during moratorium*. e. Margin @ 20% of b. f. Loan Amount g. Loan amount inclusive of capitalized Interest.
    1 Kanal 28,500 32,305 3805 5700 22,800 26,605


    For loans above 2 lacs to 10 lacs.                             Amount in Rs

    a. Unit Size
    (Land Holding)
    b. Unit Cost excluding 
    Capitalized Interest.
    c. Unit Cost
    inclusive of capitalized Interest.
    d. Interest @ during moratorium*. e. Margin @ 20% of b. f. Loan Amount g. Loan amount inclusive of capitalized Interest.
    1 Kanal 28,500 32,692 4192 5700 22,800 26,992

  • The finance shall take care of 1st & 2nd year’s costs.
  • Minimum unit size to be financed under the scheme will be 0.5 Kanals. The unit-sizes indicated in the Tables-above are for I Kanal of land. However, in actual cases the unit size can be of varied sizes. The unit cost of the farms should therefore be calculated in proportion to the unit cost prescribed in the Tables.
  • For the purpose of loan limit, the amount of Interest during moratorium has been calculated on worst –case scenario assuming that 1st & 2nd installment during year 1 are disbursed during April. However, in practice branches shall calculate the interest during moratorium on actual disbursement basis.
  • Minimum -                 Rs 0.06 Lacs

  • Maximum -                Rs 10.00 Lacs.

Amount of Loan   Security to be furnished
Upto Rs 0.50 lacs.

Hypothecation of the Asset created.Third Party Guarantee of one person.

Above Rs 0.50 lacs upto Rs 3 lac/-

Hypothecation of the Asset created.Third Party Guarantee of two persons

Above Rs 3 lacs to Rs  10 lacs. Hypothecation of the Asset created
Mortgage of unencumbered immovable property.

The loan facility sanctioned under the scheme shall be disbursed as follows:
a) 90% of loan amount including Margin but excluding amount earmarked for interest charged during moratorium to be disbursed in 2 installments in the Year 1 during the months of April –August as per the requirements of the grower. 
b) 10% of loan amount including Margin but excluding amount earmarked for interest charged during moratorium to be disbursed during April-August of 2nd year.
c) Amount earmarked for interest to be released on yearly basis for servicing of interest during moratorium. Interest for remaining period of moratorium, i.e. 8 months shall be applied as well as disbursed at the end of the moratorium period.

  • There shall be an initial moratorium of 20 months from the date of disbursal of loan. Interest for the moratorium shall be capitalized.
  • Option 1 : Interest for the moratorium period shall be capitalized. At the end of the moratorium period, the outstanding loan amount inclusive of capitalized interest shall be paid in three yearly installments in the ratio of 20, 35 & 45% with the first installment to be paid immediately after completion of the moratorium period. Interest for the period after initial moratorium shall be paid along with the annual installments.
  • Option 2 : This option shall be similar to the first option except for the difference that here a borrower shall pay the interest portion every month after the moratorium period till the liquidation of the loan at the time of payment of 3rd yearly installment.