19. Scheme for Financing Matured SHGs for Farm Production and Investment Activities

Eligibility

SHGs which are three years old or have availed a minimum of two cycles of bank loan and repaid successfully (Matured SHGs).

Purpose

Term Loan and Cash Credit limit sanctioned for farm production and investment activities covering agriculture sector and allied activities. Illustrative list of Activities that could be considered for financing to matured SHGs.

Agriculture

1. Crop under normal banking arrangements or under Contract Farming
2. Fruit crops.
3. Ornamental plants.
4. Aromatic plants.
5. Vegetable crops.
6. Medicinal plants.
7. Sericulture.
8. Farm Forestry.
9. Agro Forestry.

Other Activities allied to Agriculture

1. Animal Husbandry - Goatery, Piggery, Sheep Rearing, etc.
2. Fisheries including tank / pond on lease.
3. Apiculture
4. Mushroom cultivation
5. Seed production
6. Agro food processing units - making Papad, Pickles Jams etc.
7. Custom hiring activities in Agriculture
8. Agriculture inputs trading

Amount of Loan

The matured SHGs may prepare a credit plan for each of its members and aggregate of that is to be submitted by the SHG to the bank.

Rate of Interest

Interest rates ranges from 1.50% to 2.50% above Base Rate for various limits.

Security: Nil

Repayment: Repayment period based on the activities undertaken by members, maximum 5 years.