Purpose:      

Loan is sanctioned for productive purpose (production and investment credit) related to agriculture and allied activities, Rural Housing related activities, and Consumption.

SUB-LIMIT

: 20% of the overall limit or Rs.2 lakh, whichever is lower is given for rural housing activities. However, loan for housing purpose will be allowed only if the mortgage of agricultural land for non agriculture purpose is permissible in the State. 30% of the overall limit or Rs 3 lakh which ever is lower (including 20% of the limit or Rs 2 lakh, whichever is lower, for rural housing activities) is given for consumption purposes

SUB-LIMIT

ELIGIBILITY: Only existing good agricultural land owner borrowers who have been continuously availing of any farm advance against mortgage of agriculture land and having no NPA record for last THREE years as on the date of application will be eligible. If the land mortgaged is in the name of more than one farmer then all will be eligible jointly.

SUB-LIMIT

EXTENT OF LOAN:
Loan limit will be the lowest of :
5 times average annual (2 years) income from agriculture and allied activities of the borrower.or
50% of value of mortgage land.
Maximum limit: Rs.10 lakh

Nature of maximum limit of Rs 10 lakh may be as under:-

RURAL HOUSING LOAN: If the land for which the house related loan is given is in the name of spouse then spouse will be co-borrower.

Maximum age limit at the time of sanction of loan is 60 years. Applicants above 60 years but maximum 65 years may be considered for sanction of loan if all the legal heir join as guarantors.

Required approval from competent authority for plan, etc., will have to be submitted.

Other requirements of Bank’s Housing Loan Scheme are to be fulfilled.