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Security

Upto Rs.1.00 lakh

  • Hypo. of standing crops
 

Above Rs.1.00 lakh

  • Hypo. of standing crops

Margin

Mortgage of land/ Collateral Security

  • Loan upto Rs.1.00 lakh - Nil
  • Loan over Rs.1.00 lakh – 15% to 25%
 

Margin in case of crop loans need not be in cash. The cost of labour of the farmer and his family and the cost of other inputs not financed by the Bank can constitute margin.

Rate of interest

As per RBI directives on the interest rate issued from time to time.

Repayment

The entire advance should be repaid in one lumpsum within three months from harvesting of crop or one month from marketing of produce, whichever is earlier.

Crop Insurance

Crops financed should be insured under Rashtriya Krishi Bima Yojana (RKBY) of the Agriculture Insurance Company of India Ltd. (AIC)

Insurance premium should be debited to the relative loan account and claims if any, be credited to the beneficiary’s account promptly.

 

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