Scheme for financing JLGs

Purpose

To meet the Pre-harvest, Post-harvest credit requirement and finance against pledge of agricultural produce of JLGs of farmers

Eligibility

Joint Liability Groups of Small and Marginal Farmers, Tenant Farmers, Oral Lessees, Share Croppers and Individuals taking up farm activities.

Nature of facility

Term Loan/CC/Demand Loan, depending upon the purpose.

Limit

For individual member of the group – Maximum Rs1.00 lakh.

For JLG as a group – Based on the available cultivable area of each member of the JLG and the activity undertaken, maximum Rs5.00 lakh per group.

Margin

On loans uptoRs1.60 Lakh  : Nil

On loans above Rs1.60 Lakh : 10%

Security

Primary - Hypothecation of crops and assets created out of bank's finance.
Collateral -  No collateral for limit uptoRs One lac.

For limits above Rs1 lakh, charge on agricultural land.

Interest Rate

UptoRs3,00,000/-
Above Rs3.00 lakh

 

MCLR + 1.35%
MCLR + 2.50%

 

Processing Charges

*For Production Credit                       : Nil
*For other than Production Credit :UptoRs25,000/- : Nil .
* Above Rs25,000/-: @ Rs120/- per lac or part thereof

Documentation Charges

UptoRs2.00Lakh- NIL

Above Rs2 Lakh - Rs50/- per Lakh or part thereof

Repayment

Depending upon duration of crop and realization of sale proceeds.