Plantation Development Loans
Features & Benefits
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 plantation development.
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
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
Terms and Conditions
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.
Loan Repayment
- 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.
Security
- Hypothecation of the assets created / Mortgage of land
Rates and Fees
- Please visit the Interest Rates page for details
Explore Other Agri Loans
Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs) i.e. groups of individual farmers, provided banks maintain disaggregated data of such loans and Proprietorship firms of farmers, directly engaged in Agriculture and Allied Activities, viz. dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture. Loans sanctioned to Corporate farmers, Farmer Producer Organisations (FPOs)/(FPC) Companies of Individual Farmers, Partnership firms and Co-operatives of farmers engaged in Agriculture and Allied Activities are also eligible under farm credit subject to specific conditions.
Loans provided for construction of storage facilities, soil conservation and watershed development, Plant tissue culture and Agri-biotechnology, seed production, production of bio-pesticides, bio-fertilizer, and vermi composting are eligible to be classified under Agri infrastructure. Loans for construction of oil extraction/ processing units for production of bio-fuels, their storage and distribution infrastructure along with loans to entrepreneurs for setting up Compressed Bio Gas (CBG) plants are also eligible as per revised RBI guidelines.
Loans to co-operative societies of farmers for purchase of the produce of members , Loans for setting up of Agri-clinics and Agri-business centres, Loans to Start-ups that are engaged in agriculture and allied services, Loans to Custom Service Units who undertake farm work for farmers on contract basis are eligible under this category. Loans provided for Food and Agro-processing up to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system is also eligible under Ancillary services. Loans sanctioned by banks to MFIs and NBFCs complying specific conditions stipulated by RBI for on-lending to agriculture sector will also qualify under this head. In addition to these Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-sized Adivasi Multi-Purpose Societies (LAMPS) for on-lending to agriculture will qualify under ancillary category for priority classification.
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