3. Financing for Organic Coffee - New Plantation

Purpose

Long Term Loan for raising new plantation, to meet the expenses, from the preparation of land for planting till yielding stage

Loan Period

Loan is disbursed in instalments over a period of five years or six years in stages depending on the requirement.

Loan Amount

As per the amount (unit cost) fixed by the government agencies (NABARD/Coffee Board) for the place.

Margin

15% for small farmers and 25% for others

Security

1.Primary –Hypothecation of the crops raised with banks finance.

2.Collateral
a.Limits up to Rs.1,00,000 : NILL
b. Limits above Rs.1,00,000 : Mortgage of landed property

Repayement

Interest and loan amount to be repaid after the plant starts yielding. The interest accrued during the first five /six years depending on the variety of crop and the loan amount to be repaid from the fifth/sixth year to 12th year in installments