asset backed agri loan - Agri & Rural

Eligibility:

• Progressive, literate and illiterate farmers with owned land/immovable property
• Individuals/Joint, Sole Proprietary Concerns, Partnership firms.
• Loans to corporate farmers, farmers' producer organizations/companies of individual farmers, partnership firms and co-operatives of farmers directly engaged in Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, beekeeping and sericulture up to an aggregate limit of 2 crore per ₹ borrower.
• Existing borrowers already availing credit facilities from our Bank.
• takeover of existing units from other Banks/FIs with satisfactory track record. ( Credit Information Report (CIR)  to be obtained)

Security:

• Primary:Hypothecation of standing/future crops and assets created out of bank loan.
• Collateral:
  (1, 2 and 3 together or separately may be accepted)
• 1. Immovable Property (Land and Building) for value not less than 155% of the loan amount by way of first charge.
  • No Second Charge or Pari-Passu charge will be extended for other Bank/FI.
  • Property mortgaged needs to be within a radius of 25 km from the Branch, wherein loan is availed. (Controlling Authority may decide going beyond 25 KM on case to case basis).
  • Property should be SARFAESI Act compliant. CERSAI verification registration shall also be made on the proposed collateral security
• 2. Physical gold belonging to the applicant or the guarantor can be deposited with the Bank as collateral security.
• 3. National Saving Certificates/ KVPS/ LIC Policies/Banks Fixed Deposits belonging to the applicant or the guarantor can be accepted. Sovereign Gold Bond belonging to borrower can be accepted.

Other Features / Benifits:

• Verification of End Use :

1. Up to Rs.10.00 lakh loan limit, self-declaration from the borrower can be accepted without insisting for the bills / vouchers.
2. Above Rs.10.00 lakh loan limit, self-declaration up to Rs.20% of the loan limit can be taken from the borrower wherever they are not able to produce hills /vouchers due to cash purchases / payment of labour wages etc. and the remaining limit, branches to ensure end use of funds by verification of assets and collection of invoices/cash receipts within one month from the date of disbursement of the funds. Suitable record of inspection and documents should be maintained and made available during audits.

• KCC RuPay Cards : KCC RuPay Card should be provided to the borrower for the purpose of drawal through any digital channel.