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01. OBJECTIVES:
a) To enable the farmer to undertake improved practices of crop production with Bank’s credit assistance and increase farm production and productivity.
b) To provide the farmer an opportunity to earn a fair return on seasonal investment in the farm on the one hand and to meet a part of the domestic requirements of the family during storage period till better prices prevail in the market, on the other.
c) To provide the farmer a fully liquid savings module by allowing to earn interest on credit balances in the composite cash credit account when he is cash rich.
02. ELIGIBILITY:
a) Individual farmers, registered partnership firms, companies, registered farming co-operative societies owning agricultural land, registered tenants / share croppers with recorded rights are eligible for availing crop finance.
b) Only farmers engaged in production of crops and produce suitable for storage in the cold storage / warehouse godown / regulated market yard are eligible for finance against storage receipts.
c) The farmers who have availed of crop loans from the Bank for raising the concerned crop in that season are eligible for finance under produce marketing loan scheme.
03. TECHNICAL FEASIBILITY:
a) Suitability of soil, climate and availability of adequate irrigation facilities.
b) Suitability of the produce for storage.
c) Suitability of the storage unit.
04. FINANCIAL VIABILITY:
The expected incremental income should be adequate to repay the advance leaving sufficient balance for farmer’s domestic needs.
05. QUANTUM OF FINANCE AND MARGIN:
a) For production / short term purposes - Loan amount will depend upon the type of crop, area under cultivation and scale of finance.
b) Short term working capital - For ancillary activities and minor investment of medium term nature.
c) Short term credit for consumption / domestic needs to the extent of upto 25 percent of gross estimated income of the farmer and maximum Rs.50,000/=.
d) Finance against storage receipts / produce marketing may be considered maximum upto 50 percent of the price of the produce prevailing at the time of storage / sanction of loan. Limits / advances upto Rs.10 lakhs per farmer can be extended for a maximum period of 12 months. However, the amount of finance to the extent of net of loan may be made available to the farmer.
06. SANCTIONING AUTHORITY:
As per delegation of powers.
07. TYPE OF FACILITY:
Demand Composite Cash Credit – Annual Review.
08. RATE OF INTEREST:
a) On Debit Balance : As advised by Head Office from time to time
b) On Credit Balance : Rate of interest payable will be as per Savings
Bank interest rate and follow the Savings Bank
Rules except opening a separate account.
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