CORPORATE FARMING FINANCE SCHEME
MODE AND PURPOSE
OF FINANCE:
I.
FUND BASED FACILITIES
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 and
implements
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 agri land
(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.