Schemes on agricultural loans provided by federal bank

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

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.

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

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.

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.

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.

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

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.

Documents required
• 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

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.

AGRICULTURAL INFRASTRUCTURE
LOANS

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
• 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).

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.

Documents required
• If you are a new customer, following documents are required:
• 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.

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.

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.

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.*
*This loan facility is applicable for Kerala State only

Who can apply
• Small and Marginal Farmers only.
Documents required
• Proof of land – Tax receipt, Possession certificate etc.

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/-

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.

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
• 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

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

Documents required
• Proof of land holding – Land tax receipt.
• Quotation of the vehicle to be purchased.
• 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.

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

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
• Hassle free processing within a few minutes
• 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

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.

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:
• Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade
license /Sales Tax certificate)
• If you are existing customer:
Repayment option
Repayment of the loan can be either as lump sum or as instalments

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.
• Speedy processing

Who can apply?
• Small and Marginal farmers only.
Documents required
• 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.

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

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

Key features
• Suitable for development of plantation crops, flowers, fruits and vegetable crops
• Loan available up to 85% of asset/project cost*
• 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

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

Who can apply
• All farmers having cultivable lands are eligible for this loan.
Documents required
• Land records Quotation / estimates for the costs to be incurred. For
large projects, detailed project report shall be submitted

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

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

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.

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.

Documents required
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

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 agriculture 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.

• 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.

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.
• 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

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)

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

Schemes on agricultural loans provided by federal bank

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