Loans
Loan Schemes
What is Agricultural Loan?
Agricultural loans help farmers run their farms more efficiently. It can be difficult to keep up with all of the costs associated with running a farm, so farmers need low interest agricultural loans to help them stay afloat.
Fortunately, the government often steps in with low interest loans and other subsidies that help farmers turn a profit.
Farmers can use agricultural loans to:
- Purchase farm land. Whether you are just starting out as a farmer or wish to expand your current farm business, agricultural land loans help you purchase the land you need to build a great farm.
- Cover operating expenses. Besides needing farm land financing, many farmers also need help covering some of the operating costs. Farm equipment is expensive, but it’s necessary to run the farm. With better equipment, you can cover more land quickly.
- Help with the marketing of their product. If they want to make a profit, then farmers need to sell the product they create. This means that they need an effective marketing plan and money to pay for marketing costs in addition to farm land loans.
Types of Agricultural Loan
| Sr.No | Type |
|---|---|
| 1 | AGST LOAN General (OLD) – IND |
| 2 | AGMT LOAN General (5-9 Y) – IND |
| 3 | AGMT LOAN (RESCHEDUAL) -IND |
| 4 | AGMT LOAN (IRDP) -IND |
| 5 | AGMT LOAN REHABILATION (PRINCIPAL) -IND |
| 6 | AGST LOAN General (OLD) – SOC |
| 7 | AGST LOAN (MARGINAL) – SOC |
| 8 | AGMT LOAN (RESCHEDUAL) – SOC |
| 9 | AGMT LOAN General (5-9 Y) – SOC |
| 10 | AGMT LOAN (IRDP) – SOC |
| 11 | AGMT LOAN (CONVERSION) – SOC |
| 12 | AGLT LOAN REHABILATION (PRINCIPAL) – SOC |
| 13 | AGLT LOAN REHALILATION (INTEREST) – SOC |
| 14 | AGMT LOAN (GODOWN) – SOC |
| 15 | AGMT (SOFT LOAN) – SOC |
Facilities in Agricultural Loan
- STATEMENT.
- SUBSIDY (IF APPLICABLE).
- SMS FACILITY.
What is a Non-Agricultural Loan?
Several kinds of loans are included in this category; every loan has different purpose & interest rates which is regulated by bank. Loans like Education, Housing, Vehicle, Gold, LAP (Loan Against Property) are included in this category.
Types of Non-Agricultural Loan
| Sr.No | Type |
|---|---|
| 1 | HOUSING LOAN – IND |
| 2 | FOUR WHEELER LOAN – IND |
| 3 | OTHER VEHICLE LOAN – IND |
| 4 | LOAN AGAINST DEPOSITS (FDR) |
| 5 | LOAN AGAINST DEPOSITS (CDR) |
| 6 | LOAN AGAINST NSC/KVP |
| 7 | LOAN AGAINST INSURANCE POLICY |
| 8 | EDUCATION LOAN – IND |
| 9 | (5-9 Y) LOAN – SELF HELP GROUP |
| 10 | COMPOSITE LOAN – IND |
| 11 | NON FARM SECTOR (BANKABLE) LOAN – IND |
| 12 | CONSUMER LOAN – IND |
| 13 | GOLD LOAN – IND |
| 14 | LOAN AGAINST PROPERTY – IND |
| 15 | LOAN (OWN FUND) – INDUSTRIAL SOC |
| 16 | LOAN (BLOCK FUND) – INDUSTRIAL SOC |
| 17 | PERSNAL CREDIT LOAN – IND |
| 18 | LOAN (YEARLY INSTALMENT) – SOC |
| 19 | EXCISE DUTY TERM LOAN |
| 20 | CUP LOAN (BANK FUNDS) – INDUSTRIAL SOC |
Facilities in Non-Agricultural Loan
- STATEMENT
- SMS
- SUBSIDY (IF APPLICABLE)
Policy for Granting Individual Higher Education Loan
Purpose: For higher education in India / Abroad
Eligibility:
- Applicant must be a resident of Valsad, Navsari or Dang district and must be an Indian citizen.
- Minimum 60% marks in graduation for postgraduate course.
- Minimum 60% marks in 12th standard for graduation course.
- In case of minor applicant, parent/legal guardian must be co-applicant.
- Co-applicant age should not exceed 70 years including loan period.
Loan Purpose: Admission must be confirmed in recognized institutions for Degree, Diploma, Postgraduate, PhD, or Professional Courses. Loan is also available for recognized foreign institutions.
Loan Terms & Conditions
- CIBIL Report: Loan eligibility based on CIBIL score. Charges Rs.100 + GST applicable.
- Title Clearance Report: For loans above Rs.7,50,000 with mortgage condition, title clearance certificate required.
- Valuation Report: For loans above Rs.7,50,000, valuation report required.
- Guarantor: Two guarantors with repayment capacity required. One must be parent.
- Margin: Up to 25% as per bank norms.
- Loan Period: Maximum 7 years including moratorium period.
- Interest Rate: As per bank norms. Interest during study calculated monthly and added later.
- Nominal Membership: Applicant and guarantor must become nominal members.
- Bank Account: Applicant must open account in the bank.
- Processing Fee: As per bank rules.
- Loan Disbursement: Includes admission fee, tuition fee, books, hostel, etc.
- Loan Recovery: Repayment starts after course + 6 months or job (whichever earlier). Maximum 84 months EMI.
- Loan Limit: 75% to 80% of total cost or Rs.20,00,000 whichever is lower.
- Other Conditions: Student must submit mark sheet every year.
Documents Required
- Loan Agreement
- Guarantor Deed
- Acceptance Letter
- Fee Receipt
- Expense Proof
- Property Documents (if applicable)
- Demand Promissory Note
- General Lien Letter
- Request Letter
- Instalment Letter
Security: For loans above Rs.7,50,000, property mortgage is required.