Schemes on agricultural loans provided by federal bank

Schemes on agricultural loans provided by federal bank

1. SCHEMES ON AGRICULTURAL LOANS PROVIDED BY FEDERAL BANK Submitted by, Rinu Emmanuel Scany Jose

2. AGRI-LOANS Recognising the importance of the agricultural sector in the development of the nation, Federal Bank has created an elaborate institutional framework to meet the credit requirements of the sector. Agricultural lending forms an integral part of the priority sector lending of the Bank. Bank offers loan facitlites for sectors like plantation, horticulture, land development, irrigation, farm mechanisation , construction of rural godowns , cold storages and poly house/ greenhouse, precision farming, floriculture, animal husbandry, poultry, fishery among others. This service is extended through rural, semi-urban and urban branches of the Bank.

3. CATEGORIES OF AGRI-LOANS Agri - Working capital loans Agricultural infrastructure loans Agri -gold loans Federal prathyasha loans Agri term loans Loan against electronic warehouse receipt

4. AGRI WORKING CAPITAL LOANS

5. Federal Kisan Credit Card Federal Kisan Cards are issued to farmers to meet their cultivation needs and non-farm requirements including purchase of inputs and other short term requirements and working capital requirements for allied activities in a flexible and cost effective manner . Key Features To meet the recurring expense for crop raising/conducting seasonal operations.   Minimal paperwork  Beneficiaries under the scheme will be issued a  Federal Rupay Kisan Card  and pass book.  Hassle free processing Minimum credit limit for Federal Kisan Credit Card is Rs.25,000/- and there is no ceiling on maximum amount.

6. Who can apply ? All the farmers who cultivate crops of those engaged in allied activities like Dairy, Poultry etc and for their composite requirements are eligible for Federal Kissan Credit Card scheme.  Farmers cultivating authorised leased lands are also eligible. Documents required Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)  Recent Passport size photograph Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate)  Proof of Land Tax receipt, possession certificate etc . Repayment options Loan can be repaid as Lump sum.

7. Other terms and conditions Card Validity period: The Federal Kisan Card is for a period 60 months  subject to an annual review. The operations in the account shall be through the issuing branch only. Loan Amount: The limit is arrived at based on the operational Land holding, cropping pattern, scale of finance for crops grown, maintenance cost of Farm Animals, Farm machineries, allied activities and other contingent expenses of the applicant after insisting for 15% margin.  Security: No margin / collateral security for loans up to Rs.1,00,000/- under the scheme. For limits above Rs.1,00,000/- collateral security has to be provided.

8. Financing Dealers/Sellers/Traders of Fertilizers, Pesticides, Seeds Fertilizers and pesticides play a vital role in the modern agriculture technology. Increased use of fertilizers and good quality of seeds results in increased food production. Bank provides finance to Dealers, Sellers and Traders of Fertilizers, Pesticides, Seeds, Cattle feed, Poultry feed, Agricultural implements and other inputs. Key features Helps to meet working capital requirements of dealers/ sellers/ traders of fertilizers, pesticides, seeds, cattle feed, poultry feed, agricultural implements and other inputs No margin for limits up to and including Rs.1L Loan facility is made available as Agricultural Cash Credit Prompt processing of loan No hidden charges or heavy penalties

9. Who can apply Individuals, corporate, partnership firms, institutions who are dealers/ sellers / traders of fertilizers, pesticides, seeds, cattle feed, poultry feed, agricultural implements and other inputs. Applicant should have valid license from the State Government/ Department of Agriculture for fertilizer and pesticide dealers. Applicant should be an approved dealer of fertilizers, pesticides, seeds, cattle feed, agricultural implements and other inputs of good standing like FACT, SPIC etc. The applicant should have suitable premises for storage and sale.

10. Documents required Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card) Recent Passport size photograph Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate) Balance sheet and P&L for the last 2 years. Repayment option Repayment shall be made as Lump sum on demand. It is a revolving cash credit limit. Sales proceeds are to be routed through the account

11. Other terms and conditions Loan Amount: Maximum loan amount is Rs. 100 Lakhs. Security: Primary Security will be hypothecation of stock and book debts. For loan amounts above 1 Lakh, mortgage of landed property with a margin of  20% will be required as Collateral security.

12. AGRICULTURAL INFRASTRUCTURE LOANS

13. Agricultural Development Loan Finance should not be a barrier for your dreams of purchasing properties for agriculture. We listen to your needs with our attractive loan schemes for purchasing and developing agricultural properties . Key features Loan for purchase and development of agricultural land Suitable for small farmers  Get loan amount up to 75% of sale consideration/value of land whichever is lower. Easy documentation No hidden charges or heavy penalties Flexible repayment facility. Purchase of Agri land upto 2 Hectares (i.e. the existing land owned by the applicant including the land to be purchased should be upto 2 Hectares). 

14. Who can apply Small and Marginal Farmers only with sufficient repaying capacity are eligible for this loan. They shall have adequate income generation to take care of the repayment of loan installments. 

15. Documents required If you are a new customer, following documents are required: Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)  Recent Passport size photograph Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate)  Agreement to sale of the property to be purchased. Proof of agricultural land/property- Tax receipts Repayment option Repayment of loan will be quarterly/ half yearly / yearly installments depending on cash flows of the borrower.

16. Other terms and conditions Loan Amount Minimum Loan amount will be Rs. 2.00Lacs (Purchase component).  For development & maintenance of plantation no minimum loan amount. Maximum loan amount for purchase under the scheme will be 75 % of the sale consideration/value of land as estimated by the Bank.  Period Up to 84 months.     Primary Security Hypothecation of crops and movable assets financed; and mortgage of landed property proposed to be purchased.

17. Collateral Security If the value of the property proposed to be purchased is more than or equal to 150% of the loan amount (which may include both purchase and development component) no additional collateral security is needed. If the value of the property to be purchased is less than 150% of the loan amount, the shortage is to be compensated by way of additional collateral security.   Co- obligants Spouse of the borrower / Children of the borrower (only if resident) whose income is also taken into consideration for calculating repayment capacity shall join the document as co- obligant .   NRIs shall not join the loan documents and their income shall not be considered while calculating repayment capacity. 

18. Homestead Farming Loan The predominance of small size land holdings, the agro-climatic situation and the multi-tier cropping system prevalent in the Kerala State have evolved a highly intensive practice of growing crops along with allied activities around the home as an integrated enterprise. This practice is known as "Homestead Farming". Federal Bank provides finance for homestead farms in Kerala . Key features Provides need based credit for farmers, which would enable them to meet the credit requirements of their homestead farms and to increase / sustain productivity and income of Homestead Farms.* Minimal paperwork  Hassle free processing  *This loan facility is applicable for Kerala State only

19. Who can apply Small and Marginal Farmers only.  Documents required Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)  Recent Passport size photograph Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate)  Proof of land – Tax receipt, Possession certificate etc.

20. Loan amount Up to 25 cents - Rs. 50,000/- Up to 50 cents - Rs. 1,00,000/- Up to 75 cents - Rs. 1,50,000/- Up to 1 Acre - Rs. 2,00,000/- Above 1 Acre & up to 2 Acre - Rs. 4,00,000/- Above 2 Acre & up to & including  2 ha - Rs. 6,00,000/-

21. Other terms and conditions Repayment Repayment shall be done as Lump sum on demand. It is a revolving cash credit limit. Harvest / sales proceeds are to be routed through the account. Security: Hypothecation of crops and other movable assets in the farm owned by the borrower shall be provided as Primary security. If loan amount exceeds Rs. 1 Lakh, mortgage of landed property with a value of 150% of loan amount shall be provided as Collateral security.

22. Searching for funds for buying a vehicle for your agricultural needs? Federal Bank has the right solution for you. With our Agri Mobile loan, get finance for new or used vehicles for agricultural needs . Key features Speedy loan approval Get loan amount upto 90% of ex showroom price Loan available for purchase of Two wheelers, Three wheelers, Tractors, Four wheelers and Heavy vehicles Minimal paperwork Longer repayment period upto 84 Months* Loan amount will be up to 90% of ex showroom price for new vehicles. For used vehicles*, 80% of depreciated / market / purchase value whichever is less. Repayment can be done in easy Installments

23. Who can apply? Individuals Partnership firms Corporate planters Companies    How to avail the loan? To avail the loan, you can choose any of these: Download the application form and submit it your branch Call our contact centre executives Please visit any of our branches

24. Documents required Proof of land holding – Land tax receipt. Quotation of the vehicle to be purchased. Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card) Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate) Bank Statement (latest 6 months bank) In case the applicant is a firm / company, last 2 Years ITRs (computation of income) Balance Sheet and Profit & Loss a/c. Audited or Certified by a CA. In case finance required for Agri Allied activities, financial statements of the business for the last two years.

25. Repayment option Repayment can be made as Equal monthly / quarterly / half yearly installment. Repayment of the loan can be made using any one of the ways Cheques Standing instructions at your branch FedNet - Internet Banking Automated Payment through ECS Mobile Banking

26. AGRI GOLD LOAN

27. Need instant loans for meeting your urgent needs for agricultural purpose? With our Agri Gold loan, get financial assistance for direct, indirect and allied agricultural activities . Key features Instant gold loans with lower interest rates Minimal paperwork  Hassle free processing within a few minutes No hidden charges or heavy penalties No collateral security required Lump sum repayment option Agri Gold loan/ Kisan Gold is available against pledge of gold ornaments owned by the borrower. Repayment period is up to 12 months. Security for the loan will be pledge of 22 ct gold ornaments

28. Loan can be used for purposes such as: For cultivation of crops both in owned and leased land. Allied activities include dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture Individuals including Proprietors, Partners of business units engaged in Ancillary Activities such as Food & Agro Processing. Loans to distressed farmers indebted to non-institutional players to prepay their debt.

29. Who can apply Individuals engaged in Agriculture and allied activities are eligible to avail Agri Gold Loan/ Kisan Gold Loan.  Agri Gold Loan  can also be availed under Interest subvention scheme subject to conditions. Documents required If you are a new customer, following documents are required: Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)  Recent Passport size photograph Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate)  Proof of agricultural land/property- Tax receipts If you are existing customer: Proof of agricultural land/property- Tax receipts Repayment option Repayment of the loan can be either as lump sum or as instalments

30. Federal Prathyasha Loan

31. Federal Prathyasha Loan is designed to provide credit to distressed small and marginal farmers, enabling them to prepay their debt to the informal sector against collateral or group security . Key Features Ideal for individuals indebted to the informal sector – Either singly, jointly, or groups of 5-10 persons belonging to different families. Members of the JLG (Joint Liability Group) are also eligible. Minimal paperwork  Speedy processing  No hidden charges or heavy penalties

32. Who can apply? Small and Marginal farmers only. Documents required Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card) Recent Passport size photograph Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate) Proof of agricultural land/property Repayment option Repayable in equated monthly /quarterly /half-yearly /yearly installments depending on the cash flows available to the borrowers.

33. Loan period and amount Loan period Individuals - Maximum 84 months JLGs         - Maximum 60 months Loan amount Individuals - Up to Rs. 5 Lac Groups (JLG's) - Up to Rs. 3 Lac Collateral for Individual Loans – Landed property valued not less than 200% of the loan amount No collateral Security is required for loans to members of JLG, however guarantee of the other members of JLG, is required

34. AGRI TERM LOANS

35. Over the years, horticulture has emerged as one of the potential agricultural enterprise in accelerating the growth of Indian economy. India, with its wide variability of climate and soil, is highly favorable for growing a large range of horticultural crops such as fruits, vegetables, potato, tropical tuber crops, ornamental crops, medicinal and aromatic plants, spices and plantation crops like coconut, cashew, cocoa, tea, coffee and rubber. Its role in the country's nutritional security, poverty alleviation and employment generation programs is becoming increasingly important. To boost the growth in this area, Federal Bank offers loan facilities for horticulture

36. Key features Suitable for development of plantation crops, flowers, fruits and vegetable crops Loan available up to 85% of asset/project cost* Minimal paperwork Hassle free processing No hidden charges or heavy penalties Longer repayment period Loan is provided for Development plantation crops (Rubber, Tea, Coffee, Coconut, Arecanut , Pepper, Cardamom etc.) Flowers in open and green houses (roses, carnation, chrysanthemums, jasmine etc.) Vegetable crops (potato, tomato, brinjal, gourds, peas etc.) Fruit orchards (mango, Guava, Grapes, etc.,) Short term fruit crops(banana, pineapple etc.). *Terms and Conditions apply

37. Loan is provided for Development plantation crops (Rubber, Tea, Coffee, Coconut, Arecanut , Pepper, Cardamom etc.) Flowers in open and green houses (roses, carnation, chrysanthemums, jasmine etc.) Vegetable crops (potato, tomato, brinjal, gourds, peas etc.) Fruit orchards (mango, Guava, Grapes, etc.,) Short term fruit crops(banana, pineapple etc.). *Terms and Conditions apply

38. Who can apply All farmers having cultivable lands are eligible for this loan. Documents required Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)  Recent Passport size photograph Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate)  Proof of agricultural land/property- Tax receipts Land records Quotation / estimates for the costs to be incurred. For large projects, detailed project report shall be submitted

39. Repayment option The loan repayment starts after the completion of the gestation period varying from 3 to 7 years for different crops. Repayment commences from the time the crop gives economic yield and is linked to the income generation of each crop every year and varies between 7 years to 15 years. Loan Amount Up to Rs. 50,000/- 100 % of the cost of the asset / project cost is provided as loan. For loans above Rs 50000/-  85 % of the cost of the asset / project is given as loan. Short term loans for meeting working capital under  Kisan Credit Card scheme. Security Hypothecation of the assets created / Mortgage of land

40. Federal Green Plus loan is extended to needy farmers to meet the cost / expenses of any genuine direct agricultural purpose (including allied activities ). Key Features Available for direct agricultural purposes as well as allied activities Avail loan amount maximum up to Rs.10 Lakhs Longer repayment period – Maximum of 120 months Minimal paperwork Hassle free processing No hidden charges or heavy penalties

41. Activities covered under the scheme Finance to individual farmers for Agriculture to meet their investment credit as follows:  All kinds of land development All kinds of Irrigation Farm mechanization Construction of sheds, store, farm house, manager, supervisor, labor quarters, tanks etc. for agriculture and allied activities Traditional/non-traditional plantations and horticulture development Allied Activities (dairy, fishery, piggery, poultry, bee-keeping, etc.) Loans to small and marginal farmers for purchase of land for agricultural purpose. All other term loans for financing production and investment requirements for agriculture and allied activities.

42. Who can apply Any farmer (individuals only) having good track record / repayment history with our bank. Borrowers having FKCC accounts with us where interest is serviced promptly and credits in the FKCC account in the particular year (i.e. 12 months from the date of disbursal or 12 months from the anniversary date) are not less than the limit sanctioned shall alone be considered for finance.

43. Documents required Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card) Recent Passport size photograph Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate) Proof of agricultural land/property- Tax receipts Repayment option The loan with interest shall be repaid within a maximum period of 120 months with monthly/ quarterly/ half yearly or annual instalments; depending upon the cash flow with a maximum cushion period of 12 months

44. Loan amount Minimum loan shall be Rs.3L and maximum loan shall be Rs.10L.  Loan amount will be 50% value of collateral security or 5 times the previous year's net agricultural income from agriculture and allied activities; whichever is lesser; subject to maximum of 75% of the proposed investment cost.  Minimum margin:  25% Security Primary Security:  Hypothecation of all assets created out of loan including crops. Mortgage of agri culture Landed property where agricultural activities are being undertaken. A margin of 25% shall be maintained on investment.  Collateral security:  Collateral security property shall have value of 200% of loan amount and shall be a residential property with or without house or a commercial property.

45. Other terms and conditions Spouse of the applicant shall join as Co- obligant for the loan. In case spouse is not available, one of the close relatives like father, mother, brother, sister, son or daughter shall join the documents as a co- obligant .

46. Federal Bank offers finance against Warehouse Receipts of Agricultural Commodities issued by State/Central Warehousing Corporations (SWCs/CWC) or approved Collateral Managers . Key Features Best suitable for short term fund needs. Loan amount up to 70 % of the value of goods pledged/covered by the warehouse receipt,  upto maximum amount of Rs 25 crores. Minimal paperwork Hassle free processing No hidden charges or heavy penalties No collateral security needed Repayment can be done as Lump sum Loan can be availed as demand loan or cash credit Primary Security of the loan will be Pledge of warehouse receipts/Storage Receipts issued by State/Central Ware Housing Corporations or approved Collateral Managers Loan period will be up to 12 months

47. Who can apply? Any person, firm, company engaged in lawful activity properly identified by the branch holding warehouse receipts (negotiable or non negotiable) issued by State/Central Warehousing Corporations (SWCs/CWC) or approved Collateral Managers.   Approved Collateral Managers include National Bulk Handling Corporation (NBHC) National Collateral Management Services  Ltd (NCML) Edelweiss Agri Value Chain Ltd (formerly Edelweiss Integrated Commodity Management Ltd (EICML)) Staragri Warehousing & Collateral Management Ltd Shree Shubham Logistics Ltd, LTC Commercial Co Pvt Ltd Navjyoti Commodity Management Services Ltd)

48. Documents required Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card).  Recent Passport size photograph. Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/Passport/Trade license /Sales Tax certificate). Proof of Warehouse receipts

49. THANK YOU!