Banana Cultivation

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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

Composite Term loans are granted for meeting the cost of seasonal operations to raise Banana crops both recurring as well as Investment credit to meet Cost of seeds, fertilizers, Pesticides, Irrigation charges, Labour charges etc., and to lay Drip Irrigation and other Capital Investments.

Eligibility

• The applicant should be either owner cultivator or tenant.
• Composite Term loans can be granted to farmers duly ensuring viability.
• The applicant should not be a defaulter to any financing agency & generally free from any outside liabilities.
• Tenant cultivators should produce the record of possession and cultivation issued by the competent revenue authorities which should indicate that the applicant is cultivating the land mentioned in the application.
• The land holding should be within the ceiling limits prescribed by the government under land ceiling legislation.
• Composite Term loans can be granted under both irrigated & rain fed condition.
• Composite Term loans may be considered on production of no due certificate from other banks & the same should not be dated more than 15 days prior to the date of approach.

Primary Security

Hypothecation of Banana crops.

Collateral Security

In case of agriculture land: Collateral security should be obtained for not less than 200% of the limit. In case of other properties: Collateral security should be obtained for not less than 100% of the limit. NOTE: Collateral security may be obtained in the form of fixed deposit, NSC, LIC policy (surrender value only) or such other acceptable security.

Loan Quantum

Term loan Rs.45000/- per acre or 60% of cost of the Banana cultivation expenses under Tissue culture techniques with Drip irrigation equipments and other capital investments which ever is lower.

Margin

40%.

Repayment

3 yearly instalment and the same is synchronised with harvesting and marketing of produce.

Rate of Interest

• PLR - 3.00% (10.00% p.a.) for loans upto Rs. 50,000.00.
• PLR - 2.50% (10.50% p.a.) for loans between Rs. 50,000.00 and Rs. 1 Lakhs.
• PLR - 2.00% (11.00% p.a.) for loans between Rs. 1 Lakhs and Rs. 2 Lakhs.
• PLR - 1.50% (11.50% p.a.) for loans above Rs. 2 Lakhs.
• Current Prime Lending Rate (PLR) is 13.00% p.a.

Penal Interest

Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.

Processing Charges

Rs. 250.00 irrespective of loan amount (If release is made through Formers Club, or Spot Loan Campaign or Group, 50 % concession will be given.

Insurance

To cover the Banana crops to be cultivated under our Bank finance under insurance.

Other Conditions

• Before disbursement existing crop loan if any in the name of the applicant should be closed.
• Disbursement should be in stages according to the scale of finance.
• End use should be verified.
• Branch Manager should make spot visit and confirm the availability of water, labour and other infrastructures.
• The growth of standing crops, harvesting of crops & sale proceeds of the crops for the timely closure of loan are to closely monitored.

Documentation

Simple Documentation as per Bank Norms.

All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.