31. Financing for Organic Framing
Purpose: Investment credit to develop a farm design and management under organic farming for initial two-year period.
Eligibility
• All farmers who own individually or collectively a minimum of 4 acres of irrigated land or 10 acres of dry (rain fed) land (or equivalent) are eligible
• JLGs engaged in crop production activity.
• Farmers applying for Organic Farming registration with Certified Agenciesmay also be considered, however,disbursements will be subject to completion of the registration formalities.
• The product is currently launched on pilot basis in Bangalore, Chennai, Delhi, Hyderabad and Mumbai Circles in select branches.
Quantum of Loan: ( unit cost)
Total cost for 3 years:
Cost of infrastructure required to produce Organic Inputs on own farm (Rainfed Crops– 10 acres / Irrigated crops – 4 acres / Commercial Irrigated Crops – 2 acres.)*
Term loan for production of organic input 40,000/-
For Certification 60,000/- 1,05,000/-
Total Cost 1,00,000/- 1,45,000/-
Margin:
Minimum 20% - either contributed by the borrower or by subsidy.
Bank Loan - 80% 80,000/- 1,16,000/-
*Circles will not deviate from the above fixed unit costs.
Repayment: Repayable in 9 years including a gestation period of 3 years in half yearly / yearly installments.
Security:
For Individual Farmers:
Primary Collateral
Hypothecation of assets created & crops to be raised Mortgage of land or any other readily realizable liquid/ immovable security of adequate value.
Group Farmers (JLGs):
Unit Size Primary Collateral
ATL & ACC Max.Rs. 50,000/- per member.Max. 10 members / group. ATL & Hypothecation of assets created and crops to be raised -Nil-(Mutual Guarantees offered by the JLG members to be obtained)
Rate of Interest: As per interest rates circulated from time to time for agricultural term loans (Interest rate Effective from 29.06.2009)
Source: http://www.statebankofindia.com/portal/agri |
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