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iob_bank_iob_krishi_saral

Last Updated:07/02/2026
IOB Krishi Saral

IOB KRISHI SARAL – (All Agri activities except Food & Agro units)

   

Objective

Security backed scheme for Individuals/firms/companies engaged in agricultural activities to extend hassle free flow of credit.

Nature and
Purpose of
Advance

Working Capital -

Term Loan - Fertilizer Dealers, Pesticide Dealers / Distributors / Large Traders dealing in Agri Commodities (Wholesalers / Retailers) Agri Input Manufacturers /Agri Exporters/Other Allied activities like Dairy, Fishery, Poultry, Horticulture, Pisciculture, Bee keeping, Livestock-rearing etc.,/Agri-clinics , individuals/firms/companies wants to maintain fleet of Tractors, power tillers, agricultural equipment to function as Agri business Centre and services supporting these, which promote livelihood or are income generating activities. Individuals/ firms/ companies engaged in Hi-tech Agri activities (subject to availability of requisite qualification, experience and statutory approvals) like Bio-fertilizers, high value integrated poultry, post-harvest management like pre-cooling, processing and preserving of fruits and vegetables etc., Biotechnology - Tissue culture & Hybrid seed production, Floriculture - Cut flower cultivation, Hydroponics, Vertical Farming, High density plantation, Mushroom production, Aquaculture - shrimp aquaculture, Recirculating Aquaculture Systems.

Food and Agro Processing Units are not eligible under this scheme.

Quantum of Loan

Minimum- Above Rs. 2.00 Lakh

Maximum- Rs.20.00 Crores

Eligibility

Project should generate sufficient income such that loan can be repaid from the financed activity, without relying on other income.

When the loan is to be used for farming/cultivation activity, the proof of land holding must be obtained. However, for loans up to Rs. 25.00 Lakhs backed by liquid securities, a simple declaration from borrower will suffice.

The projects/activities considered under the scheme should have all requisite permissions/licenses/approvals from competent authorities.

Security

Prime Security:

Working Capital & Term Loan:

Credit facility should be fully secured by liquid assets such as Life Policies of LIC of India and private companies approved by IRDA, NSC/KVP etc. and /or immovable property.

Collateral Security:

Hypothecation/mortgage of assets created out of the Loan/ Hypothecation of fully paid stock and book debts

Margin

Liquid Securities

Life Policies

10% (Surrender Value)

KVP/NSC

10% (Face Value)

Term Deposit

10% (Present Value)

Immovable Properties

Properties situated at Metro/ Urban/Semi Urban Areas

25%(FMV)

Properties situated at rural areas ##

30% (FMV)

##Residential/commercial properties situated in prominent location classified as rural but adjoining to Metro/urban/semi urban centers and found to be highly marketable can be considered by RLCC and above on case-to-case basis subject to provisions of SARFAESI Act are enforceable.  

 

Repayment

10 years including moratorium period

Holiday Period

Maximum 18 months

Rate of Interest

Internal Rating

  

Total Spread

Total Interest

Up to Rs. 1.00 Crore:

1 Y MCLR

0.30%

9.15%

Above Rs. 1.00 Crore:

Rating - IOB 1 & IOB 2

1 Y MCLR

0.30%

9.15%

Rating-IOB 3

0.60%

9.45%

Rating-IOB 4

0.75%

9.60%

Rating-IOB 5

1.00%

9.85%

Rating-IOB 6 and above

1.40%

10.25%

*1Y MCLR (8.85% at present)

 

Interest Concession

If the value of prime security (Fair market value of Immovable property plus value of liquid securities) is more than 200% of the exposure sanctioned under IOB KRISHI SARAL scheme, a concession of 1.00% can be extended on applicable interest rates.

Processing Charges

Processing charges @ 200 per lakhs or part thereof (maximum Rs. 1.00 Lakhs) + GST to be collected for cash credit and NFB limits.

Upfront fees @ 0.71% of term loan amount (maximum Rs. 3.55 Lakhs) + GST to be collected.