What is land development loan?

Land development loan refers to the financial assistance by a bank to farmers for carrying out various farm development activities like land reclamation, soil development, on-farm development works, soil & water conservation and other farm activities that help farmers earn income.

How much can I borrow for farm development?

There are a few factors which decide the amount of loan:Land holding of the borrowerCrops grownSource and amount of farm & other incomeNature and cost of proposed developmental activity However, a maximum amount of Rs. 2.00 Cr. can be sanctioned under this scheme.

Financing Growth and Transforming Rural India.

Bank of Baroda, for rural India, with rural India.

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Scheme for Financing Farm Development Activities

Benefits
Features
Eligibility Criteria
Document Required
Fees And Charges
Most Important Terms & Conditions (MITC)

Scheme for Financing Farm Development Activities : Benefits

Margin Nil for limit up to Rs. 1 lakh
Processing charges Nil for Aggregate Loan upto Rs 3.00 Lakhs
Inspection charges Nil for Aggregate Loan upto Rs 3.00 Lakh
Minimum Loan amount: No minimum ceiling
Maximum Loan of Rs 2.00 Crores can be availed

Scheme for Financing Farm Development Activities : Features

Providing financial assistance for all farm development activities which results in enhanced income of the farmer.

Loan is provided for various activities as

Land Reclamation and Soil Improvement
On Farm Development Works
Soil and Water Conservation
Other indicative list of activities
1. Land clearance (removal of bushes, trees, etc.)
2. Land leveling and shaping
3. Contour /graded bunding
4. Bench terracing for hilly areas
5. Contour stone walls
6. Staggered contour trenches
7. Disposal drains
8. Formation of roads
9. Reclamation of saline/alkaline/ravine soils
10. Fencing

Scheme for Financing Farm Development Activities : Eligibility Criteria

Individual farmers including Self Help Groups (SHGs) or Joint Liability Groups (JLGs) i.e, groups of individual farmers) and Proprietorship firms of farmers, directly engaged in Agriculture and Allied Activities
Landless agricultural labourers, tenant farmers, oral lessees and sharecroppers whose share of landholding is within the limits prescribed for Small and Marginal Farmers (lease holder should have lease for at least last 10 years)
Corporate farmers, Farmer Producer Organisations (FPOs)/(FPC) Companies of Individual Farmers, Partnership firms and Co-operatives of farmers engaged in Agriculture and Allied Activities

Scheme for Financing Farm Development Activities : Document Required

KYC Documents (AADHAR, Voter ID, PAN Card, Driving License etc.)
Passport Size photo
Quotation/Invoice (if available)
Land Records
Project Report (if available)
IT Returns (if available)

Scheme for Financing Farm Development Activities : Fees And Charges

Pre-Payment Charges- Nil

Processing charges:

Aggregate Agriculture exposure of Rs. 3.00 Lakhs- Nil
Above Rs 3 Lakhs - 1 % of the limit sanctioned with a maximum of Rs 100 lacs.

Inspection Charges:

Agriculture exposure upto Rs. 3.00 Lakhs- Nil
Above Rs 3 lakhs to Rs 10 Lakhs - Rs 250
Above Rs 10 Lakhs to Rs 1 Crore - Rs 1000
Above Rs 1 Crore - Rs 5000

Scheme for Financing Farm Development Activities : Most Important Terms & Conditions (MITC)

Age criteria	(As on the date of application): Minimum: Age of applicant should be 21 Years & for co-applicant/s should be 18 years. Maximum: 70 years. However if applicant's age is more than 60 years, one of his/her legal heir aged between 21-50 years has to be made as co-applicant
Eligibility Criteria	Minimum satisfactory Banking relationship of 6 months with our Bank
Nature of facility	Demand Loan /Term Loan
Quantum of Loan	Minimum: No minimum ceiling Maximum: Rs 2.00 crores
Margin	Nil for aggregate loan up to Rs 1.00 Lakh For aggregate loan above Rs 1.00 Lakh up to Rs 3.00 lakhs: 10% For aggregate exposure limit above Rs. 3 lakhs: 15%
Rate of Interest	Limit upto Rs.3.00 Lakhs- One year MCLR+ SP Limit above Rs.3.00 Lakhs less than Rs.25.00 Lakhs: One year MCLR+ SP+1.25% Limit Rs.25 Lakhs and above: One year MCLR+SP+2.00%
Maximum Repayment period (Excluding moratorium period):	Small & Marginal Farmers/SHG/JLG/FPO/FPC: Maximum -180- months Others: Maximum -84- months
Moratorium/ Holiday period	Small & marginal farmer/SHG/JLG/FPO/FPC: Maximum of 23 months Others: Maximum of 11 months
Pre-payment Charges	Nil
Security	Upto Rs. 1.60 Lakhs: Hypothecation of crops / produces / assets created out of Bank's finance. Above Rs.1.60 Lakhs: Mortgage/Lien/Charge on Land and /or EM on any immovable properties. Third party guarantee (if available)

Note : The Bank may use the services of agents in sales/marketing etc. of its various products

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What is land development loan?

Land development loan refers to the financial assistance by a bank to farmers for carrying out various farm development activities like land reclamation, soil development, on-farm development works, soil & water conservation and other farm activities that help farmers earn income.
How much can I borrow for farm development?
There are a few factors which decide the amount of loan:

Land holding of the borrower

Crops grown

Source and amount of farm & other income

Nature and cost of proposed developmental activity

However, a maximum amount of Rs. 2.00 Cr. can be sanctioned under this scheme.