Last Updated on: 28/01/2025
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MINOR IRRIGATION – (IRRIGATION FACILITY TO AGRI LANDS)
Objective
Credit facility for all irrigation facilities
Nature and purpose of advance
Term loan facility for:
Digging of well and drilling of bore/Tube wells (in safe and semi-critical areas).
Drilling lateral/ Side bores in case of failed dug wells to augment water.
Lift Irrigation-Lifting of water from source through oil engine or electric pump sets Laying of water pipelines for uniform distribution.
Construction of pump house/ water delivery channel lining of water courses.
Sprinkler irrigation systems.
Drip irrigation etc.
Quantum of Loan
Minimum - No Minimum
Maximum - No Minimum
Eligibility
Digging of well /Drilling of bore well: Min 5-10 Acres land
Purchase of electric motor /pump set: Min 3 acres with assured source of water
Laying of pipelines and others: Min 3 acres with assured source of water
Security
Up to Rs. 2.00 Lakhs: Hypothecation of assets created out of loan. Nil Collateral
Above Rs. 2.00 Lakhs: Loan should be adequately secured by way of immovable property whose value is not less than/ equal to the loan amount.
Margin
Up to Rs. 2.00 Lakhs: Nil
Above Rs 2.00 Lakhs: 15% to 25%
Repayment
Digging of well /Drilling of bore well - 9 years with 23 months gestation period
Purchase of electric motor /pump set - 7 to 9 years
Laying of pipelines and others - 6-8 years
Sprinkler/Drip Irrigation systems - 7 to 9 years
Rate of Interest
Up to Rs. 5 Lakhs - 1 Year MCLR (9.10% at present) + 1.40% (spread) = 10.50% at present.
Above Rs. 5 Lakhs up to Rs. 25 Lakhs - 1 Year MCLR (9.10% at present) + 2.25% (spread) = 11.35% at present.
Above Rs. 25 Lakhs up to Rs. 1.00 crs - 1 Year MCLR (9.10% at present) + 2.75% (spread) = 11.85% at present.
Above Rs. 1.00crs - 1 Year MCLR (9.10% at present) + 3.25% (spread) = 12.35% at present.
*1 Year MCLR - 9.10% at present.
Processing Charges
Up to Rs. 25000/- - Nil
Above Rs. 25000/- up to Rs. 3 Lakhs - 0.30% of the loan amount
Above Rs. 3 Lakhs - 0.71% of the loan amount.