Objective

The scheme aims to Promote organic farming which is important for several reasons that align with environmental sustainability, public health, and economic resilience. 

Nature and
Purpose of
Advance

The term loan for purchase of equipment's/irrigation etc.

Working capital based on scale of finance

Quantum of Loan

Minimum - No Minimum

Maximum - up to Rs. 5 crore per borrowing entity to FPOs/FPCs and Rs. 50.00 lakhs for all individual farmers, SHG and JLG's.

Eligibility

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

Farmers using synthetic fertilizers, pesticides and genetically modified seeds/organisms in any area under their cultivation are not eligible.

Organic farming practices involves using compost, green manure, crop rotation and Practice natural pest control and biodiversity conservation.

Land should not have been treated with prohibited chemicals for at least 1-2 years. Necessary soil testing certificate to be obtained to ensure the same in case of farmers already practicing organic farming.

In case of farmers willing to follow the organic facility methods, declaration to that extent to be obtained.

Security

Prime Security:

Hypothecation of crops for working capital.

Hypothecation of assets created out of bank finance for term loan.

Collateral Security:

Up to Rs. 2.00 Lakhs- Nil

Above Rs. 2.00 Lakhs -

Minimum 50% of the loans to be covered either by way of immovable property or any other securities applicable to the bank.

Margin

Up to Rs. 2.00 Lakhs - Nil

Above Rs. 2.00 Lakhs:

Term loan: 10%

Working capital -Nil. Since assessment is based on scale of finance.

Repayment

Term loan should be repaid within a maximum period of 5 Years depending on the type of cropping pattern (Monthly/half yearly/yearly) including holiday period.

Cash Credit limit to be renewed annually after obtaining necessary proof on the existing cropping pattern. Interest to be serviced as and when debited.

Account should be in credit balance while renewing the limit.

Holiday Period

Maximum 12 Months based on the cropping pattern. Holiday period interest may be serviced or capitalized

Rate of Interest

*1Y MCLR @8.85%

Processing charges

0.20% of loan amount +GST to be collected for both cash credit of term loan.

Other conditions apply

*For more details, please contact our nearest branch