Horticulture Loan Scheme

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

Horticulture Loan Scheme : Benefits

Margin Nil for short term loan upto Rs 100000/-
Attractive Interest Charges
Nil Processing Charges for aggregate loan upto Rs 3.00 Lakhs
Nil Inspection Charges for aggregate loan upto Rs 3.00 Lakhs
Provision for availing subsidy from National Horticulture Board (NHB) under “Development of commercial Horticulture through Production and Post-Harvest Management”
Farmers, permanent Tenant, lease holder, SHGs, JLGs, Proprietorship, Partnership, LLP concerns, Private, Public Ltd. Companies are eligible to avail the loan.

Horticulture Loan Scheme : Features

For establishing new orchards or for maintenance of existing orchards, gardens, plantations and nurseries. All capital costs for development of orchards, gardens, plantations (including purchase and installation of machinery, construction of processing houses etc.) and maintenance costs (such as cost of plants, seedlings, grafts, fertilizers, insecticides, pesticides etc., wages and salaries of permanent employees such as supervisors, Malies etc. are financed under the scheme.

Horticulture Loan Scheme : Eligibility Criteria

All persons engaged in raising fruit gardens, plantations and nursery crops as owners of land or as permanent tenants or as lease-holders (for a reasonably long period)

Horticulture Loan Scheme : Document Required

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

Horticulture Loan Scheme : Fees & Charges

Processing charges:

Waived upto Aggregate Agriculture exposure upto Rs. 3.00 Lakhs
Above Rs 3 Lakhs - DL/TL 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

Horticulture Loan Scheme : Most Important Terms & Conditions (MITC)

Nature of Facility

Term Loan (for capital expenditure)
Cash credit (for working capital)

Margin Norms

Category	Category Margin Required
Crops Loans/Short Term Loans (a) Loan limit up to Rs. 100,000/-	NIL
(b) Above Rs. 100,000/-	15%
b. Term Loans Loan limit up to Rs. 100,000/- Loan limit above Rs. 100,000 Tractor and heavy agri. Machinery Other loans	NIL 15% *10% or as specified in the special schemes

Repayment Period

Term Loan: Maximum period of repayment 5 to 7 years excluding moratorium period
Cash Credit: 12 months subject to annual review

Security Norms

Upto Rs. 1,60,000/-	- D.P. Note - Hypo. of crops
Above Rs.1,60,000	- D.P. Note - Hypo. of crops - Mortgage of land or third party guarantee etc.

Interest Rate

Limit upto Rs.3.00 Lakhs
Other than Crop Loan:	One year MCLR+ SP
Limit above Rs.3 Lakhs and less than Rs.25 Lakhs	One year MCLR+ SP+1.25%
Limit Rs.25 Lakhs and above
For CC/OD & DL of Loan period less than -3- years	One year MCLR+ SP+2.00%
For Loan period -3- years and above
3 years & above and upto 5 years	One year MCLR+ SP+2.10%
Above 5 years and up to 7 years.	One-vear MCLR+ SP+2.15%