PURPOSE

: Financial assistance will be made available mainly for establishment and development of new orchards or groves of fruit crops, plantation crops, ornamental crops, medicinal plants, essential oil/aromatic plants etc, rejuvenation of existing orchards or plantation, raising vegetables ,raising flower crops, inter-cropping in horticultural crops, Marketing loan to meet picking, grading, crating, forwarding and transportation costs etc..

ELIGIBILITY

: Individual farmers or group of farmers with stipulated land holding , and Public Sector Undertakings or private firms desirous of seeking financial assistance for plantation of fruit trees or other economic plants on project basis.

NATURE OF FACILITY

: Short term loan or cash credit facility is provided for production purposes and Medium term loan for development of orchards or vegetable/flower gardens.

EXTENT OF LOAN

: Need based. However, working Capital loan would depend upon scales of finance. In case marketing loan is also considered, it does not exceed 20 per cent of the estimated value of crop.

GESTATION PERIOD :Gestation period will vary with variety of plants/trees grown

REPAYMENT OF LOAN

:
Short Term Loans:

Crop Loan: Loan disbursed for raising vegetable crops, flower crops or other inter-cropping shall be recovered within 6-8 weeks of harvest of crop unless loans are given as composite loans taking into account both production and investment credit needs. In such cases, loan would be recovered in 4-5 years.

Marketing Loan: Repayment within 4 months from date of loan.

Medium Term Loan:
Repayment period (inclusive of gestation) in respect of medium term loans shall be in the range of 4-15 years.