• The objective of the scheme is to finance farmers to purchase, develop and cultivate agricultural as well as fallow & waste lands.
  • Establishing/ diversifying into other allied activities.  


  • Small & marginal Farmers i.e. those who would own maximum of 5 acres of non-irrigated land or 2.5 acres of irrigated land including purchase of land under the scheme.  Share Croppers and tenant farmers can also be eligible under the scheme.
  • Women/ SHG members.

Quantum of finance

  • It will depend on area of land to be purchased and its valuation and also development cost.
  • The last 5 years average registration value available with the Registrar/ Sub-Registrar of the areas and a view taken by the Bank.


The land purchased out of bank finance to be mortgaged in favour of the Bank


  • Loan upto Rs.1.00 lakh  -  Nil  
  • Loan over Rs.1.00 lakh – 20%  

Rate of interest

Interest Rate as decided by the Bank from time to time.


Loan may be repaid in 7 – 12 years in half yearly/ yearly installments including maximum moratorium period of 24 months.

Location of Holding

The farmers may be allowed to purchase land within the village boundary or in a radius of 3 to 5 kms. near land owned by them.