BHUMILAKSHMI

1. What is the purpose of this scheme?

The purpose of the scheme is to provide finance for purchase of land to the Small and Marginal Farmers / Share croppers / Tenant farmers to possess and cultivate land. Hence it is a pre-condition that the purchased land should be used for cultivation alone. Finance can also be availed for purchase of fallow and waste land for developing them for cultivation or for using the same for allied activities

2. Who are the eligible for applying the loan under this scheme?

Small and marginal farmers, Share croppers / Tenant farmers. Total land owned by the borrowers including the land to be purchased under the scheme should not be more than 5 acres of un- irrigated land or 2.50 acres irrigated land

3. What is the Type of Facility?

Loan sanctioned as term loan

4. What is margin requirement?

Loans Upto Rs. 1.60 Lakhs: Nil

Loans above Rs. 1.60 Lakhs: Minimum 10 %

5. What is the maximum Quantum of loan under this scheme?

Depends upon the valuation of the land to be purchased and development cost subject to a maximum ceiling of Rs. 10.00 lakhs

6. What are security requirements for loan under this scheme?

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

Temporarily separate collateral security is to be provided if mortgage of the purchased land in favour of the Bank is getting delayed

7. What is the Repayment period for this loan?

Loan to be repaid within 12 years, either in half yearly or annual instalments including a maximum moratorium period of 24 months. The moratorium period may be fixed taking into account the gestation period of the project and cash flow.