Financing of the long-term credit (5 years and above) for agriculture and its allied activities and also for NFS, Rural Housing, Wastelands development are the main objective of the SCARDBs. Thus, the credit delivery system of SCARDBs may be divided broadly into three sectors viz. Farm Sector, Non-farm Sector and Rural Housing Sector.
Under farm sector the purposes for which the long-term loans are advanced by the SCARDBs are as follows,
i) Construction of new houses upto Rs.5 Lakh
ii) Renovation / repairs of old houses upto Rs. 1 lakh.
Terms & Conditions
i. Upto 95% loan may be sanctioned to borrowers depending upon the purposes for which loan is required.
LT loan is granted on land/agricultural land mortgage as main security. Besides hypothecation of assets, surety etc. will be treated as collateral security.
iii. Land Valuation
The eligibility criteria of loan will be fixed on land valuation 60% or 75% of which will be taken as loan value.
iv). Repayment period
LT loans are granted for five years and above upto 15 years depending upon the loan purpose. Grace period is granted on specific projects.
To strengthen the resource base of SCARDBs, RBI has granted permission for accepting rural deposits from the members/ non-members of SCARDBs in rural areas. SCARDBs have formulated various deposit mobilisation schemes and are accepting deposits ranging from one year onwards.