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model scheme for financing coconut farming

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  • model scheme for financing coconut farming
  • Eligibility
    Purpose

    Credit facilities can be provided for establishment of new Coconut plantation/rejuvenation of existing Coconut plantation/ planting coconut on field bunds and on fish tank bunds/ reclamation of water logged kayal lands and marshy lands near sea-shore and establishing coconut gardens there/ maintenance of existing Coconut Gardens/ to carry out improved package of practices and to prevent coconut plantation from disease and pest.

    Eligibility Individual farmers {including Self Help Groups (SHGs) or Joint LiabilityGroups (JLGs), i.e. groups of individual farmers}, corporates, partnership firms and institutions.
  • Rate of Interest
    Working Amount Base Rate w.e.f 01.04.2014
    Term Loan
    up to 2.0 lac BR+2.25%
    ₹ 2.00 lac to 5.00 lac BR+3.00%
    Above 5.00 lac BR+3.50%
     

    (As per RBI interest subvention scheme, interest charged on short term production loan with a principal amount upto ₹3.00 lac is 7% p.a)

  • Security and Margin
    Security
    Loan Amount Security
    Up to Rs 100,000/- Only Primary security i.e. Hypothecation of crop
    Above Rs 1.00 lac and up to Rs 2.00 lac
    • Hypo. Of Crops/ Assets created by Bank Finance
      And
      Mortgage of Agricultural Land with value equal to the amount of loan
      Or
      3rd party guarantee of adequate net worth acceptable to the Bank
    Above Rs 2.00 lac
    • Hypo. Of Crops/ Assets created by Bank Finance And
      Mortgage of Agricultural Land with value equal to the amount of loan.
    Margin

    For Working capital: NIL, (Finance has to be made as per scale of finance fixed by the district technical committee.)

    Term Loan/ Investment credit:- Up to Rs 100,000/- Nil
    Above Rs100,000/- 15%
     

    *The Regional Heads are authorized to reduce it to 10 % in deserving cases.

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