Andhra Bank

AB Finance for Purchase of Land for Agricultural Purpose (Land Purchase Scheme)

Objectives

To make the small and marginal holdings economically viable.
To bring fallow lands and waste lands under cultivation
To step up agricultural production and productivity
To finance the share croppers/tenant farmers to purchase land to enable them to increase their income

Purpose

To provide term loan to small/marginal farmers including share croppers/tenant cultivators to purchase agricultural land as well as fallow land and wasteland & to develop and cultivate it with a view to increase production/productivity.
To diversify the present activities and to take up allied activities under agriculture.

Eligibility

Small and marginal farmers,share croppers /tenant farmers i.e., those who owned maximum of 5 acres of non irrigated land or 2.5 acres of irrigated land including the land to be purchased.

Quantum of finance

Maximum of Rs. 10.00 lac

Margin

20% of the project cost

Repayment

The loan is repayable in 7-15 years in half yearly/yearly installments including a maximum moratorium of 2 years.

Security

Mortgage of land to be purchased along with the lands presently owned by the borrower ,if any.
Loans above Rs.50,000/-, suitable co-obligation/third party guarantee is to be obtained

Documents to be produced by the applicant

Copies of land records regarding land owned and to be purchased & certified by the concerned revenue authorities.
No due certificate from Co-operative Credit society/Commodity Boards/Financial Institutions.
Documents of title and other relevant documents to establish the right over presently held landed property as well as lands to be purchased.
Copy of sale agreement if entered into or offer letter by the vendor.

Rate of Interest :

click here for Interest rates

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