| Objective | Long Term Financing of Oil palm Cultivation through DCCB/PACS |
|---|---|
| Eligibility | I.All the DCCBs in the state of Telangana and the respective PACS II.ThePACS are primarily eligible to finance the loan III.Where the PACS are not eligible for any reason, the concerned DCCB Branch shall finance the Applicant |
| Sponsoring Agency | Department of Horticulture, Government of Telangana |
| Eligible applicants | All the farmers who are not willful defaulters The DCCBs and PACS shall look into the CIBIL report in order to weed out defaulters. |
| Unit Cost per Acre | Rs.65,000/-perAcre a)Drip Irrigation Rs.25,000/- b)Saplings Rs.15,000/- c) Pitting Field operation & specialized labor Rs.10,000/- d)Fertilizers, Pesticides for 4 years Rs.15,000/- Total Unit Cost Rs.65,000/- |
| Margin Money | Rs. 10,000/- |
| Eligible Loan Amount | Rs. 55,000/- per Acre |
| Rate of Interest | As applicable for LTloans |
| Processing Fees | NIL |
| Sanctioning Authority | A)Branch Managers are to be delegated powers to accord ‘in-principle’ consent atRythu Vedika after due screening B)Branch Managers are to be delegated powers to sanction loans under this scheme upto Rs.3.00 Lakh only. C) The copy of the sanction shall be submitted to Head Office. |
| Tenure of the loan | After a moratorium period of 4 years from the date of first disbursal, the Term Loan is repayable in 10 half yearly instalments (total 9 years including moratorium period). Interest during the moratorium period will be kept separately and should not be capitalized. At the end of moratorium period, the interest accrued which is kept in a separate account shall be transferred to the principal amount. |
| Intercropping | Basing on the type of land, DCCB/PACS may consider for financing Short Term intercrops for the sustenance of the farmers. |
| Refinance | 100% refinance is available from Apex Bank and the Rate of Interest will be as applicable to the LT loans. |
