Objective

Credit facility for all irrigation facilities

Nature and
Purpose of
Advance

Term loan facility for:

Digging of well and drilling of bore/Tube wells (in safe and semi-critical areas.).

Drilling lateral/ Side bores in case of failed dug wells to augment water.

Lift Irrigation-Lifting of water from source through oil engine or electric pump sets Laying of water pipelines for uniform distribution.

Construction of pump house/ water delivery channel lining of water courses.

Sprinkler irrigation systems.

Drip irrigation etc.

Quantum of Loan

Minimum- No minimum

Maximum- No minimum

Eligibility

Digging of well /Drilling of bore well: Min 5-10 Acres land

Purchase of electric motor /pump set: Min 3 acres with assured source of water

Laying of pipelines and others: Min 3 acres with assured source of water

Security

Up to Rs. 2.00 Lakhs:  Hypothecation of assets created out of loan. Nil Collateral

Above Rs. 2.00 Lakhs: Loan should be adequately secured by way of immovable property whose value is not less than/ equal to the loan amount.

Margin

Up to Rs. 2.00 Lakhs: Nil

Above Rs 2.00 Lakhs: 15% to 25%

Repayment

Digging of well /Drilling of bore well - 9 years with 23 months gestation period

Purchase of electric motor /pump set - 7 to 9 years

Laying of pipelines and others - 6-8 years

Sprinkler/Drip Irrigation systems - 7 to 9 years

Rate of Interest

*1Y MCLR - 8.85% at present

Externally rated accounts:

Processing Charges

Up to Rs. 50,000/- - Nil

Above Rs. 50,000/- up to Rs. 3 Lakhs - 0.30% of the loan amount

Above Rs. 3 Lakhs - 0.71% of the loan amount