ARF (FS)-Purchase of Land for Agricultural Purpose
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
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
Quantum of loan
It depends upon the area of the land to be purchased, its valuation and also the development cost required
The margin will be a minimum of 20%, as farmers/ beneficiaries contribution.
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.
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.
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.
The monthly lending progress/disbursement statement should be furnished to the apex bank in the prescribed format by the PCARD Banks