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MINOR-IRRIGATION

Last Updated on: 28/01/2025

MINOR-IRRIGATION

Home >> Agri & Rural >> Agriculture Credit >> MINOR IRRIGATION

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.