ARF (FS)-Purchase of Land for
Agricultural Purpose
1. Objective: The object of the scheme is to provide credit for purchase of land (fallow and waste) under ARF (FS) to step up agricultural production and productivity under agriculture and other allied activities and thus enabling them to increase their income.
2. Eligible borrowers: Small and marginal farmers ie. those who
would own a maximum of 5 acres of non- irrigated land or 2.5 acres of
irrigated land including purchase of land under the scheme.Share Cropers/Tenant
Farmers are also eligible.
3. Quantum of loan: It depends upon the area of the land to be purchased, its valuation and also the development cost required.
4. Margin: The margin will be a minimum of 20%, as farmers/ beneficiaries contribution.
5. Repayment of loan: 7-10 years in half yearly or yearly installments
with a grace period of 24 months. The grace period will be fixed taking
into account, the gestation period of the project & cash flow.
6. Security & valuation: The land purchased out of the bank
finance and charge created(Gehan), in the favour of bank, form the security.Valuation
need be fixed based on the price indicated by the farmer,cross checked
with the last five years average registration value available with the
Sub Registrar of the area.
7. Rate of Interest: Interest rate will be fixed by KSCARD Bank from time to time, in accordance with the guide lines issued by RCS/NABARD/RBI.
8. Reporting system: The monthly lending progress/disbursement statement should be furnished to the apex bank in the prescribed format by the PCARD Banks.
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