CROP LOANS

Purpose For meeting the cost of seasonal operations to raise crops viz.
Cost of seeds, fertilizers, pesticides, irrigation charges, labour
charges, etc.
Eligibility i. Either owner cultivator or tenant or share cropper.
ii. Tenant cultivators should produce the record of
possession and cultivation issued by the competent
revenue authorities which should indicate that the
applicant is cultivating the land mentioned in the
application.
iii. In respect of borrowers of Land Development Banks,
crop loans not exceeding Rs.50,000/- may be
considered on production of no objection
certificate and no overdue certificate and the same
should not be dated more than 15 days prior to the
date of approach.
iv. Party should be a registered grower wherever
Commodity Boards are constituted for the
development/marketing of such crops. Registration
Certificate issued from such boards is to be
insisted, along with application for loan/ before
release of loan amount(i.e Branches to ensure that
the borrower is a registered / licensed grower of crops
wherever so required as per statute)
Margin For loans upto Rs.1 lac: No margin
For loans above Rs.lacs: 15% to 25%
Security
For loans upto Rs.100000/- Hypothecation of crops and
/ or assets.
For loans above Rs. Hypothecation of crops and
100000/- / or assets and mortgage of
landed properties
Repayment 9 to 15 months
Period