#

Rural

Objectives

  • To enable the farmer to undertake improved practices of crop production with Bank’s credit assistance and increase farm production and productivity.
  • To provide the farmer an opportunity to earn a fair return on seasonal investment in the farm on the one hand and to meet a part of the domestic requirements of the family during storage period till better prices prevail in the market, on the other.
  • To provide the farmer a fully liquid savings module by allowing to earn interest on credit balances in the composite cash credit account when he is cash rich.

Eligibility

  • Individual farmers, registered partnership firms, companies, registered farming co-operative societies owning agricultural land, registered tenants / share croppers with recorded rights are eligible for availing crop finance.
  • Only farmers engaged in production of crops and produce suitable for storage in the cold storage / warehouse godown / regulated market yard are eligible for finance against storage receipts.
  • The farmers who have availed of crop loans from the Bank for raising the concerned crop in that season are eligible for finance under produce marketing loan scheme.

Technical Feasibilty

  • Suitability of soil, climate and availability of adequate irrigation facilities.
  • Suitability of the produce for storage.
  • Suitability of the storage unit.

Financial Viability

The expected incremental income should be adequate to repay the advance leaving sufficient balance for farmer’s domestic needs.

Quantum of Finance & Margin

  • For production / short term purposes - Loan amount will depend upon the type of crop, area under cultivation and scale of finance.
  • Short term working capital - For ancillary activities and minor investment of medium term nature.
  • Short term credit for consumption / domestic needs to the extent of upto 25 percent of gross estimated income of the farmer and maximum Rs.50,000/=.
  • Finance against storage receipts / produce marketing may be considered maximum upto 50 percent of the price of the produce prevailing at the time of storage / sanction of loan. Limits / advances upto Rs.10 lakhs per farmer can be extended for a maximum period of 12 months. However, the amount of finance to the extent of net of loan may be made available to the farmer.

next