Banana Cultivation
loan for your banana cultivation and farming
Learn more about our Banana Cultivation Loan Scheme under TMB Business Loan Products.
This scheme is very popular in the Banana Cultivating Agricultural Belts of Rural and Semi Urban India. Under this scheme the bank funds the cultivation of banana fruit. Being a priority sector agri finance, the rate of interest charged is very low and the documentation is simple. Processing of the loan application is swift and loan terms are also relaxed.
- Purpose
- i) Crop Loan / KCC for meeting the Cultivation Expenses including Tissue Culture Seedling Cost.
- ii) Capital Investment Loan / Development Loan for Drip Irrigation, Land Building, fixing support sticks to Banana Plants, Well repairing, Motor Replacement, etc.
- iii) Composite KCC in combination of (i) & (ii) above.
- Eligibility
- Individual / Joint, Joint Liability Groups, Farmer Producer Organizations, Sole Proprietary Concerns, Partnership Firms, Trusts, Societies, Limited Companies and all legal forms of Organization.
- Loan Amount
- 1) Crop Loan as per Scale of Finance fixed by the District Level Technical Committee. (No Margin required) with flexibility to exceed upto 70% of Scale of Finance.
- 2) Term Loan: 80% of Development Works / Capital Investment / Repairs, etc. Unit Cost fixed by NABARD should be observed.
- Primary Security
- Hypothecation of Banana crops, Hypothecation of assets created out of the Loan.
- Collateral Security
- i) For Loans up to Rs. 1 Lakh - No Collateral Security is required.
- ii) For Loans Above Rs. 1 Lakh
- a) In case of agriculture land:- Collateral Security should be obtained for not less than 150% of the Limit. (or)
- b) In case of other properties:- Collateral Security should be obtained for not less than 75% of the Limit. (or)
- c) Financial Collateral Securities:- In the form of Fixed Deposit, NSC, LIC Policy (Surrender Value only) or such other acceptable Security to the extent of 75% of the Limit.
- Margin
- As per RBI Guidelines no margin is required for Loans up to Rs. 1 Lakh.
- For Crop Loans - Nil. For Development Loans - 20%.
- Rate of Interest
- Click MCLR Rates of Interest for MCLR based interest rates. For further details please contact our nearest branch.
- Penal Interest
- Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over & above the normal Interest for the Loan exceeding Rs. 25,000
- Repayment
- Crop Loan Limit should be reviewed annually. Term Loan should be recovered within 5 Years as per KCC Scheme.
- Processing Charges
- 0.50% of the Loan Amount without any maximum cap, 0.25% on Annual Review of crop Loan.
- Documentation Charges
- Up to Rs. 25 Lakh - Nil. Above Rs. 25 Lakh & Upto Rs. 1 Crore for fresh Credit Limits - Rs. 1,500
- Insurance
- To cover the Banana Crops to be cultivated under our Bank finance under Insurance.
All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Goods & Service Tax (GST) on All Service Charges extra wherever applicable.
