Corporate Farming Finance Scheme
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Mode and Purpose of Finance
I. Fund Based Facility
Following fund based facilities can be provided under this scheme.
1. Agricultural Finance Facility (Purchase of crop inputs i.e. seed, fertilizer, pesticides,fungicides etc.)
2. Tractor Finance Facility (For purchase of maximum two tractors on lease finance basis).
3. Finance for Farm Mechanization (For purchase of Farm Mechanization Machinery, Tools andimplements on lease finance basis).
4. Finance for Farm Aabiari (For installation of tube wells and adoption of modern irrigation systems on lease finance basis).
5. Finance for Farm Transport (For purchase of Small pick-ups and loader for Farm Transportation).
6. Finance for Live Stock Development (Purchase of animals for Dairy Farms, Poultry Farms and Fish Farms).
7. Finance for Islah-e-Arazi (Land development, improvement and reclamation). Any of all above facilities can be provided as a package deal.
II. Non Fund Based Facility
1. Opening of Letters of credit for import of farm related agriculture goods for corporate farming e.g. inputs, machinery, tools, implements and Vehicles etc.
2. Issuance of Bank guarantee for purchase of farm related commodities e.g. inputs, machinery, tools, implements, and Vehicles etc.
Eligibility:
1. Resident Self Cultivator doing corporate farming on an area not less than 50 acres of agri land.
2. Self Cultivator cum Tenant having total farming area not less than 50 acres of agriland (owned and leased). The Lease Agreement for lease hold area should be valid and for reasonable tenure.
3. Tenant having valid lease agreement for reasonable tenure for not less than area of 50 acres agri land.
Following persons will not be eligible for the said scheme:
1. The applicant who is not a genuine farmer.
2. The applicant’s whose name does not appear in the Revenue records.
3. The applicant should not be defaulter of the banking system.
4. The applicant is unable to produce proper security/securities/passbook.etc
Security:
1. Charge on Agriculture Land through Agri. Pass Book. OR Registered/Equitable mortgage of Urban property assessed by PBA’s approved surveyor and cleared by Bank’s legal counsel. OR Lien on Liquid security in the shape of Bank’s Fixed Deposited receipts/DSC/Regular Income Certificates.
2. One personal guarantee of reputable person. ACO along with Regional Chief can waive this condition if they deem the borrower to be very credit worthy. Two written satisfactory market checking reports must be obtained before disbursement.
Margin on Security:
50% margin on landed property (Agri/Urban) 25% margin in case of liquid security or Agriland assessed as per revenue record. The maximum amount of Finance will be allowed upto 75% of the Oast Bai Value of land (Oast Bai is verified by Revenue Officer)
Amount of Facility
The amount of facility will be based on value of security provided and future Cash Flows from the avenues on which the funds will be invested. In order to assess the amount of future cash flows following aspects should taken into consideration:
1. Past three year’s output of the farm under cultivation with the applicant.
2. Future expected output of the farm.
3. Complete Feasibility Report of the project.
Mark-up:
The prevailing Mark-up of respective Scheme.
Repayment Period
Repayment period of any or all facilities to be provided to an Owner cum Tenant or a Tenant should be fixed according to the validity of Lease Agreement of Agri Land e.g if a person has lease agreement in his name which is valid upto 30-06-2007 all the facilities should be repaid or amortized before the expiry of lease agreement. In case of exclusive owner repayment period will be fixed according to the terms and conditions of respective Kissan Dost Agriculture Finance Scheme.
Insurance
Crop Insurance and Borrowers Life Assurance.
Documentation & Other Terms and Conditions
Documentation and other terms and conditions of facilities mentioned herein above will be the same as that of respective Bank’s Kissan Dost Agriculture Finance Schemes.