Farm Sector
ARF Traditional Activities
1. Objective:
The object of the scheme is to provide investment credit for traditional
activities with repayment period of not less than 3 yrs, which qualifies
for refinance without prior sanction from NABARD.
2. Individual Maximum Borrowing Power:
IMBP is Rs 20 lakhs/borrower.
3. Purpose:
Only traditional & routine activities can be financed under
ARF-FS.The purposes eligible are as follows:
1. Minor irrigation in 'white blocks'
2. Dairy development
3. Sheep, Goat, Piggery
4. Draught animals, animal drivencart.
5. Poultry units and Duck rearing.
6. Inland fisheries except brackish water fish culture
7. Plantation & horticulture
8. Sericulture
9. Land Development
4. Unit cost:
The unit cost for various investment activities under ARF (FS), as approved
by NABARD may be treated as indicative average costs depending upon
the local conditions and merits of each loan case subject to technical
feasibility & financial viability of investments proposed.
5. Direct payment to suppliers:
Payments may be made directly to the suppliers/manufactures in respect
of assets purchased by beneficiaries from out of loan amount disbursed
against invoice.
6. Insurance:
Comprehensive insurance coverage should be taken for entire period
of loan as per the guidelines issued by NABARD / RBI from time to time.
7. Small farmer definitions:
The norms for classification of small/medium/large farmers engaged
in land based/non land based agricultural and allied activities are
as follows:
| Category (non land) |
Land Ceiling |
| |
Wet land |
Dry land |
| Small farmer (not exceeding Rs 11000) |
Upto 2.5 Acres |
Upto 5 Acres |
| Medium farmer (Rs 11001 to 19250) |
Upto 4.5 Acres |
Upto 9 Acres |
| Other farmer (Rs 19251 onwards) |
Upto 4.5 Acres |
Upto 9 Acres |
8. Down payment:
The down payment/beneficiaries contribution under the scheme will be 5% and which will be inclusive of the obligatory share capital contribution at the bank.Based on category of the farmer, the percentage contribution for Small farmers ,Medium farmers and Other farmers will be at the rate of 5%, 10% & 15% respectively.
9. Repayment period:
The Repayment period with grace period for various investments will be as indicated by NABARD.(Please see the Approved Unit cost Table)
10. Repayment of Loans:
In equated installments suitable for the activity.
11. Security:
As fixed by the apex bank in the respective loan rules,in accordance with the guidelines issued by RBI/NABARD/RCS
12. Interest rate:
Interest rate will be as fixed by KSCARD bank from time to time in accordance with the guidelines issued by RCS/NABARD/RBI.(Please see the revised interest rate table)
13. Reporting system:
The Monthly Progress /disbursement Statement should be furnished to the Apex bank in the prescribed format.
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