Kisan Mithra Scheme
This is a secured overdraft loan given to agents for onward lending to farmers for crop cultivation.
Features
- Secured overdraft account for agents upto 90% of the balance outstanding by the farmers to the agents
- Overdraft can be taken for crop cultivation and consumption expenses.
- The overdraft limit is given considering the number of farmers within the fold of the agents, the crops cultivated by the farmers and the extent of area cultivated by them.
| Charges and Limits | |
| Drawing Power | 90% of the balance outstanding by the farmers to the agent. |
| Rate of Interest | 11% p.a.
|
| Processing Charges | 0.3% |
| Repayment | A running secured overdraft account. However, the interest will be charged every month |
| Validity | the limit is to be renewed every year. |
| Primary Security | Receivables outstanding in the books of the trader |
| Collateral Security | Equity mortgage charge on Land & Building |
| Guarantee | Personal guarantee of the partners Guarantee from the owners of the collateral properties |
| Drawing Power | The drawing power in the secured overdraft account will be limited to 90% of the loan outstanding in the books of the agent or the limit sanctioned, whichever is less. |