IPSD-53

Letter of Intent for Agriculture and Allied Activities

From
shri/Smt/Kum Kamehand.ra..Nag. The Branch Manager
IDB Bank
Branch
Date:
12.12 2 14
Dear Sir/Madam

Re: Your Loan Application for crop loan /term loanfor Agriculture & Alied Activities for Rs.
With reference to abovementioned application, we are pleased to advise you sanction of loan of
Rs , l. Rs. L six evem.Kaidne.Orlq
on the following terms and conditions.

Crop Cash Credit

Year/Season Details of Crops raised

Drawing Limit
1 Year Kharif
1 Year Rabi
1s Year Summer
2nd Year
3 Year
4 T Year

5h Year

Crop loan (KCC) to be paid annually or as per crop cycle. Crop Loan limit (KCC) has been assessed for 5
years, stepping up of the limit assessed for the first year 10% from 2, 3, 4", and 5h years. The
same will undergo a change in case of change in Scale of Finance (SoF), area under cultivation, change in
cropping pattern/variety/method. KCC limit is valid for 5 years, subject to annual review

Term Loan
Particulars Purpose of Loan Amount Repayment (No of Repayment
and type) *
inst. commencing from
Term Loan 1 io
Term Loan 2

Term Loan 3

Term Loan 4

Term Loan 5

M aa
M rgrig
n in
- -Z0 --- %

Rate ofInterest:(BBR+0 so '/,)=Io ?s /.

Q.S9% p.a. above BBR (present BBR being . . % p.a.) to be serviced on monthly/quarterly/
half yearly/ yearly basis.
7 % p.a. for Crop Cash Credit up to Rs. 3 Lakh under GOl Interest Subvention Scheme.
Interest rate is subject to change as per RBI/ Bank guidelines. Interest incentive if any available for
prompt paying borrower from Government will be passed on as per the extant guidelines. In the event
of default in payment of dues or non-compliance of any terms and conditions, enhanced interest will be
charged over and above the normal rate as per extant guidelines.

Processing Fees and Other Charges:

Processing Charges/ upfront fee amount of Rs. - - for Credit limit/ loan sanctioned
shall be paid by you before availing the limit/loan from the Bank. Inspection and other service charges

as
mey be applicable to the loan shall also be paid by you. The charges are subject to change from time

timè as decided by the Bank.

to
Disbursements:
Cash Credit is mentioned above.
Year wise Disbursement schedule of Crop as

bills and receipts duly countersigned by

Disbursement towards civil works will be made on production of
the borrower and confirmation by bank official.
based
remittance to the suppliers
Disbursement towards purchase of machinery will be made by direct
borrower's farm or against
installation thereof in the
On quotation or on receipt of machinery and should be submitted to
received. Original bills and receipts
documents evidencing dispatch of machinery
the Bank.
Security:
assets etc.
Hypothecation of crop/ livestock/machinery/stock/ movable
and2-93 H M a r a S No. 138 177
house e r b a g e 82,37o 413 492
Mortage/ Charge on/ofland/ 2.1andra Sle.: Sam.nd. * * * - - - - -

K0S.aSlo.Shatkaingh..
Guarantee of 1.

Other Security (Specify)

Insurance:
the case may be.
Crop Loan will be covered under NAIS/WCIS as
insured
bank loan and assets given as security should be
Insurance of assets created out of

comprehensively at your cost.

done.
borrower under PAIS is also to be
Personal insurance coverage of the which the
of the due date, failing
in Bank account before 15 days
The premium amount to be deposited
insurance of goods is not binding
I n s u r a n c e premium shall be
debited to the loan account. However,

upon the Bank and is entirely your

responsibility.
Other Terms and Conditions:

for verification/ inspection

visit the farm/ house/ premises
Bank's oficials / representatives will
Please
o n the sites
wherever assets are lying/situated.
of assets. They should be allowed entry
to the Bank in
stock and other properties charged
note to keep and maintain the machinery
cost.
good working condition and preserve the same at your
to be mortgaged/ charges by the
Please submit search report/valuation reports of properties
the Bank. All legal expenses such as lawyers fees,
bank from the advocate/valuer approved by
borne by you.
registration charges, etc. should be
etc.
in respect of the cost of plant/machinery/equipments
Original invoices, supplier's receipts
should be deposited with the Bank.
d other connected correspondence
the assets hypothecated to the Bank.
T h e Bank's n a m e should be displayed prominently on
Allied and other activities should be routed through Bank
Income generated out of Agriculture,
account only.
otherwise encumbered without
to the Bank shall not be disposed off/sold
or
The assets charged
the Bank's permision.
terms and conditions stipulated in this letter and otheer
The advances are also subject to the
documents. This letter of intent shall be read with the hypothecation agreement to be executed

by you for availing the various loan/facility.

and conditions in future in case of necessity to
The Bank may add/alter/change any terms
protect the bank's interest.
the date of the communication.
This communication is valid for 30 days from
This communication is issued in duplicate. Please returna duplicate copy duly signed by you in

token of having accepted the terms and conditions.

NKLTD.
BA
For, IDBI3.H.Br,ours aithfuny
NPERFTRTOR)

TE Branch Head
AN C.
I have read all the above terms and conditions, understood and agreed to accept the sañction.

Signature of Borrower/s

Place: v a
Date: (212 2y