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

Comprehensive Rural Development Through Credit

ARF (FS)-Purchase of Land for Agricultural Purpose

  • 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

  • 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

  • Quantum of loan

    It depends upon the area of the land to be purchased, its valuation and also the development cost required

  • Margin

    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.

  • Reporting system

    The monthly lending progress/disbursement statement should be furnished to the apex bank in the prescribed format by the PCARD Banks