-Advance-against-tangible-security-to-individuals-engaged-in-Agriculture-and-allied-activities

Advance against tangible security to individuals engaged in Agriculture and allied activities

Purpose of Loans:

Business Expenses –To carry out business, purchase of raw materials, payment of creditors etc.

Eligibility:

Individuals engaged in Agriculture and allied activities i.e. dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture
Advance against LIC- The Life insurance Policy( LIP) should be in force for a minimum period of 3 years and should be assignable
Advance against NSC/ KVP - NSC/ KVP should be minimum 1 year old

Limits of Loans:

No limit

Margin:

NSC/ KVP : 10%-15% of the face value
LIP : 10% of surrender value

Basis of Advance:

NSC : 90 % of Face Value if residual maturity period is less than 3 years.
85 % of Face Value if residual maturity period is more than 3 years
LIP : 90% of surrender value

Repayment Period:

5 years in case of TL OR date of maturity whichever is earlier

Rate of interest (Floating):

PLR -4.25 : 10.15% p.a
Present PLR @14.40% p.a

Security:

In case of LIP, the terms and conditions of the Policy should state that Policy can be assigned / Loan can be availed against the Policy.

Processing Fees:

Nil

Shareholding:

2.5% of sanctioned amount maximum Rs 25,000/-

Documents Required:

Prescribed loan application form

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