Objectives
To provide credit to distressed small and marginal farmers to prepay their debt to informal sector against collateral or group security.
Eligibility
Individuals indebted to informal sector – Either singly / jointly / groups of 5-10 persons belonging to different families (Joint Liability Groups- JLG) Members of the JLGs can be sanctioned with individual loans against the guarantee rest of the members of JLG.
Nature of facility
Term Loan
Quantum of Loan
Individuals -Maximum Rs.5,00,000/-, subject to a maximum of 50% of the value of property offered as collateral security. Yearly repayment obligation towards the loan not to exceed 50% of annual net income of the applicants. Groups (JLGs)- Maximum Rs.300000/- (per capita loan component should not exceed Rs.50,000/-) and yearly repayment obligation towards the loan not to exceed 50% of annual net income of the applicants (In the case of Agriculturists, Net Income = Gross Income - Cultivation expenses, In the case of Salary / Wage earners, Net Income = Total salary / wages earned)
Interest rate
Refer Rates & Charges Page (take me there)
Period
|
Individuals
|
Maximum 84 months |
| JLGs |
Maximum 60 months |
Repayment
Repayable in equated monthly /quarterly /half-yearly /yearly installments depending on the cash flows available to the borrowers
Sector
Priority- Weaker Section
Security
Collateral-Individual Loans – landed property valued not less than 200% of the loan amount. No collateral security for Group Loans / Individual loans to members of JLGs against guarantee of rest of the members of JLG