Federal Prathyasha Loan
Features & Benefits
Federal Prathyasha Loan is designed to provide credit to distressed farmers, enabling them to prepay their debt to the informal sector against collateral or group security.
How to apply ?
Who can apply?
- Individual farmer indebted to informal sector – Either singly / jointly / groups of 5-10 persons belonging to different families (Joint Liability Groups- JLG)
- Federal Prathyasha Loan shall be limited to one member of a family at a time. For the purpose of the scheme, family means Husband, Wife and Unmarried children. Married children having sufficient income can be considered as a separate family.
- Members of the JLGs can be sanctioned with individual loans (Max. Rs.50,000/-) against the guarantee of rest of the members of JLG.
- A farmer is a person directly engaged in Agriculture and Allied Activities (Allied activities- dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture). Apart from farmers undertaking Agri & Allied activities in their own/leased lands, farmers can also be landless agricultural labourers, tenant farmers, oral lessees and share-croppers.
- All individuals engaged in Agri & Allied activities as detailed above are eligible even if they are self employed /employed in public/private firms, practicing as professional, undertaking other business ventures etc.
How to avail the loan?
- To avail the loan, Please visit any of our branches.
Documents Required
- Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)
- Recent Passport size photograph
- Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate)
- Proof of agricultural land/property
Repayment options
- Repayable in equated monthly Installments (EMI)
Loan Period and Amount
Loan period
- Individuals - Maximum 84 months
- JLGs - Maximum 60 months
Loan amount
- Individuals - Up to Rs. 5 Lac
- Groups (JLG's) - Up to Rs. 3 Lac
Security
Collateral for Individual Loans – Landed property valued not less than 200% of the loan amount
No collateral Security is required for loans to members of JLG, however guarantee of the other members of JLG, is required
Other terms and conditions
In the case individual loans, spouse / father / mother should join as co-obligant.
Interest Rates & Charges
- Please visit the rates and charges page for details
Explore Other Agri Loans
Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs) i.e. groups of individual farmers, provided banks maintain disaggregated data of such loans and Proprietorship firms of farmers, directly engaged in Agriculture and Allied Activities, viz. dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture. Loans sanctioned to Corporate farmers, Farmer Producer Organisations (FPOs)/(FPC) Companies of Individual Farmers, Partnership firms and Co-operatives of farmers engaged in Agriculture and Allied Activities are also eligible under farm credit subject to specific conditions.
Loans provided for construction of storage facilities, soil conservation and watershed development, Plant tissue culture and Agri-biotechnology, seed production, production of bio-pesticides, bio-fertilizer, and vermi composting are eligible to be classified under Agri infrastructure. Loans for construction of oil extraction/ processing units for production of bio-fuels, their storage and distribution infrastructure along with loans to entrepreneurs for setting up Compressed Bio Gas (CBG) plants are also eligible as per revised RBI guidelines.
Loans to co-operative societies of farmers for purchase of the produce of members , Loans for setting up of Agri-clinics and Agri-business centres, Loans to Start-ups that are engaged in agriculture and allied services, Loans to Custom Service Units who undertake farm work for farmers on contract basis are eligible under this category. Loans provided for Food and Agro-processing up to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system is also eligible under Ancillary services. Loans sanctioned by banks to MFIs and NBFCs complying specific conditions stipulated by RBI for on-lending to agriculture sector will also qualify under this head. In addition to these Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-sized Adivasi Multi-Purpose Societies (LAMPS) for on-lending to agriculture will qualify under ancillary category for priority classification.
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