Eligibility:    

Resident Self Cultivator having Agriculture Land minimum 5 acres and maximum 50 acres.

The applicant should not be defaulter of any other Bank and property should be free from

any encumbrances

Amount:       

Maximum Rs.500,000/- according to per acre limit of the crop.

Security:      

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

Liquid security in the shape Bank’s Fixed Deposited Receipts/DSC/NSC or Regular

Income Certificates.

One Personal guarantee of reputable person. ACOs along with Regional Chief can waive this condition if they deem the borrower to be very credit worthy. Two written satisfactory market checking reports.

Margin on Collateral Security:

• 50% Margin on Agri land or Urban property assessed by Surveyor.
• 25% margin on liquid security or Agri land as per value in 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)

Insurance:

Borrower will to arranged Crop Insurance and Life assurance by company on bank’s panel.

Mark-up: 

Average Six month KIBOR + 350 bps (3.5%) with floor of 8.5% per annum.

Repayment:

Once in a year along with mark up.

Renewal:

Automatic renewal upon adjustment of entire principal with full markup within one year.

Fresh documents will be obtained after three years.