Agricultural Loan

Terms and Conditions:

1. Loan Nature & Eligibility:
   • Agricultural Loans are offered to farmers, agriculturists, and allied activity workers for farming and related purposes.
   • Eligibility depends on:
     • Ownership or lease of agricultural land
     • Farming experience and activity type
     • Credit history and repayment capacity
   • Loans may also be extended to Joint Liability Groups (JLGs) or Self-Help Groups (SHGs).
2. Purpose of Loan:
   • Loans are granted for agriculture and allied activities such as:
     • Crop cultivation and seasonal expenses
     • Purchase of seeds, fertilizers, and equipment
     • Farm mechanization (tractors, irrigation systems)
     • Post-harvest and storage activities
3. Types of Agricultural Loans:
   • Crop Loan (Kisan Credit Card - KCC)
   • Term Loan (long-term investment)
   • Working Capital Loan
   • Farm Equipment / Machinery Loan
   • Horticulture / Allied Activities Loan
4. Loan Amount & Margin:
   • Loan amount depends on:
     • Land holding
     • Crop type and scale of operations
     • Repayment capacity
   • Margin requirements may apply based on loan size (e.g., nil for small loans, increasing for higher amounts)
5. Interest Rate:
   • Interest rates are determined as per:
     • RBI priority sector lending norms
     • Government subsidy schemes (if applicable)
   • Rates may vary depending on loan type and borrower category.
   • Interest is calculated on the outstanding loan amount.
6. Documentation & Verification:
   • Applicants must submit:
     • KYC documents (Aadhaar, PAN)
     • Land ownership or lease documents
     • Crop details / farming proof
     • Income or bank statements
   • Applications are subject to verification and field inspection.
7. Charges & Fees:
   • Applicabe charges may include:
     • Processing fees
     • Documentation charges
     • Inspection charges
     • Penal charges for delayed payment
   • Some schemes may offer zero or subsidized charges for small farmers.
8. Subsidies & Government Schemes:
   • Agricultural Loans may be eligible for:
     • Interest subvention schemes
     • Government subsidies for specific activities
   • Benefits depend on applicable central/state schemes.
9. Security & Collateral:
   • Loans may be:
     • Secured (against land, crops, or assets)
     • Unsecured (for small-value loans under specific schemes)
   • Land records may be hypothecated or mortgaged as security.
10. Default & Recovery:
    • Delay or non-payment may result in:
      • Penal intrest
      • Impact on credit score
      • Legal recovery proceedings
    • Accounts may be clasified as NPA (Non-Performing Asset) as per RBI norms.
11. Transparency & Fair Practices:
    • The lender shall provide:
      • Sanction letter with loan details
      • Repayment schedule
      • Complete disclosure of charges and terms
    • Borrowers must accept terms before loan disbursement.
12. Amendments & Regulatory Compliance:
    • Agricultural Loans are governed by:
      • RBI priority sector lending guidelines
      • Government agricultural finance policies
    • Terms may be revised from to time as per regulatory updates.