THE KERALA STATE CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD(KSCARDB)

Comprehensive Rural Development Through Credit

ARF Traditional Activities - Farm Sector

  • 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.

  • Individual Maximum Borrowing Power:

    IMBP is Rs 20 lakhs/borrower.

  • Purpose

    Only traditional & routine activities can be financed under ARF-FS.The purposes eligible are as follows:

    • Minor irrigation in 'white blocks'

    • Dairy development

    • Sheep, Goat, Piggery

    • Draught animals, animal drivencart.

    • Poultry units and Duck rearing.

    • Inland fisheries except brackish water fish culture

    • Plantation & horticulture

    • Sericulture

    • Land Development

  • 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.

  • 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.

  • Insurance

    Comprehensive insurance coverage should be taken for entire period of loan as per the guidelines issued by NABARD / RBI from time to time.

  • 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) to 19250) Upto 4.5 Acres Upto 9 Acres
    Other farmer (Rs 19251 onwards) Upto 4.5 Acres Upto 9 Acres
  • 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.

  • Repayment period

    The Repayment period with grace period for various investments will be as indicated by NABARD.(Please see the Approved Unit cost Table)

  • Repayment of Loans

    In equated installments suitable for the activity.

  • Security

    As fixed by the apex bank in the respective loan rules,in accordance with the guidelines issued by RBI/NABARD/RCS

  • 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)

  • Reporting system

    The Monthly Progress /disbursement Statement should be furnished to the Apex bank in the prescribed format.