Kisan Mithra Scheme
This is a secured overdraft loan given to agents for onward lending to farmers for crop cultivation.
- 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||CONTACT NEARBY BRANCHES|
|Processing Charges||CONTACT NEARBY BRANCHES|
|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.|