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Land degradation is the major problem of Indian Agriculture. Most of the land area in our country shows evidence of degradation, affecting thereby the productive resource base. Out of 329 million hectares of land in the country, about 175 million ha. (53 %) is suffering from degradation in some form or the other. There are 7.61 M ha of salt affected soils in India as per the Ministry of Agriculture, GOI. The extent of this problem area as given by different sources varies from 8.56 M ha to 10.9 M ha. Water logging affects another 8.52 M ha mainly in the irrigation commands, which includes some of the saline-alkali soils also.
Soil degradation takes place for various reasons like cultivation of same type of crops year after year, excessive use of chemical fertilizer. Excessive and uncontrolled irrigation, excess use of ground water also degrades the soil. Banks extend finance farmers for the purpose of Land Development and Development of Waste land.
2. PURPOSE:
Land leveling, reclamation of soil, bunding and any other soil conservation measures
3. ELIGIBILITY:
a) Farmers owning land
b) Farmers cultivating registered leased land
4. QUANTUM OF LOAN
Quantum of loan will depend upon the estimated cost of the scheme. The nature of treatment and material required per unit of land should be ascertained from the concerned department of the state Govt.
5. SECURITY:
Principal/Collateral:
a) Loan limit upto Rs.50,000/- Term loan agreement (CHA-1)(mortgage not required)
b) Loan limit above Rs.50,000/- 1. Term Loan Agreement – CHA-1
2. Mortgage of land or declaration as per Agricultural Credit Act or Collateral Security of adequate worth. For legal Mortgage CHA-IV)
Other Common documents:
a) Demand Promissory Note
b) L-515
c) L-516
d) Letter of Guarantee from Guarantor/s whenever considered necessary (CHA-3)
6. MARGIN:
Loan upto Rs.50,000/- Nil
Loan over Rs.50,000/- 15% to 25%
7. MODE OF DISBURSEMENT:
The loan amount should be disbursed in stages depending upon the progress as per project report. The hire charges for the machinery and implements should be paid directly to the executing agency after obtaining progress/completion statement from the farmer.
8. REPAYMENT:
Normally such loans should repaid within 9-15 years depending upon the loan amount and income of the farmer from various sources. Moratorium should be given to the farmer for repayment of loan if necessary.
The installments may be fixed half yearly/annually according to the cropping pattern and income generation. The due dates of installments should synchronize with the marketing of the crop produce.
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