Multi Purpose Agricultural Jewel Loan (without interest subvention)

Sl. No Details Guidelines
1. Name of the Product Multi Purpose Agricultural Jewel Loan (without interest subvention)
2. Purpose

To meet the short term production/investment credit needs of:
a. The farmers, engaged in agriculture, cultivating own and /or leased land or engaged in cultivation of crops.
b. Farmers in allied activities like Dairy, Poultry, Fisheries, Piggery, Sheep etc.
c. Entrepreneurs and farmers who need investment credit for acquiring farm machinery, undertaking land development, irrigation, horticulture, transportation of agri produce, etc.
d. All other farming activities which are permitted to be classified under agriculture/ farm credit.

3. Eligibility

Any person engaged in agriculture & allied activity. A declaration has to be obtained from the applicant that he/she is engaged in agri & allied activities as per Annexure XIII. As the advance against gold ornaments are granted on the basis of the borrower's declaration of bonafide ownership of the ornaments offered to pledge, the onus of determining respectability and identity of the individual borrowers rests with the branches

4. Quantum

Maximum Upto Rs. 3.00 lakhs

5. Scale of Finance

70 % of Net value OR scale of finance per gram of 22 carat gold conveyed by HO from time to time, whichever is less and to ensure LTV of 75% throughout the tenure of the loan.

6. Margin


7. Rate of Interest

9.50 % p.a. AND overdue interest 2% over and above the normal rate

8. Disbursement

Disbursement to be made through KCC/SB account only

9. Repayment

The tenor of the loan shall not exceed 12 months from the date of sanction with repayment holiday of 11 months.

10. LTV Ratio

LTV Ratio shall not exceed 75% of the value of the pledged Jewellery at any point of time during the tenure of the loan

11. Classification

Priority sector