IOB HARIT KRANTI

SPECIAL CREDIT SCHEME FOR PROMOTING ORGANIC FARMING

Scheme

Purpose

Scheme to promote organic farming which is important for several reasons that align with environmental sustainability, public health, and economic resilience. 

Eligibility

Target Audience

All Farmers - Individuals / Joint borrowers who are owner cultivators / Tenant Farmers, Oral Lessees & Sharecroppers/ including tenant farmers, sharecroppers etc.

Age Criteria

Minimum 18 years

Other Criteria

Farmers who are engaged/willing to engage in cultivation of crops through organic method will be considered.

In case of farmers willing to follow the organic farming methods, declaration will be obtained on adopting organic farming practices.

Proof to be submitted on Land area/ Crop Cultivated

AADHAR to be linked mandatory with account before availing loan under this scheme

Financials

Quantum

Individuals - Maximum Rs.1.00cr

FPO/FPCs -Maximum Rs.5.00cr

Margin

Term loan - 10% on the project cost

Working capital - Scale of finance is inclusive of Margin and additionally no margin is required.

Rate of interest

Ranges from 9.05% to 9.85% based on rating.

For loan amount up to Rs.3.00 Lakhs, interest rate will be capped at 7%.

Interest Subvention

Only for Working capital:

Interest subvention is available at 1.50% p.a. and prompt repayment incentive of 3.00% p.a. of the loan is repaid in time.

Interest subvention and prompt repayment incentive is available up to Rs. 3.00 lakhs for crop loans.

Processing charges

Up to Rs. 3.00 Lakhs - Nil

Above Rs. 3.00 Lakhs - 0.20% + applicable GST

Tenure

Repayment period

Ranges from 5 to 10 years based on loan amount

Holiday Period

Maximum 12 months

Security

Up to Rs.2.00 Lakhs

Hypothecation of crops /assets created out of loan

Above Rs.2.00 Lakhs

Hypothecation of assets & Suitable Collateral with 50% coverage for the loan amount.