Agricultural Term Loan - ATL (Investment Credit)

Purpose: Cultivation of Plantation and Horticulture crops, Plough Bullocks, Minor Irrigation, Land Development etc.

Target Group: Individuals (singly or jointly), Farmers, Agricultural labourers, Self-Help Groups (SHGs) and Joint Liability Groups (JLGs).

Age: Minimum 21 years (ii) Maximum: 65 years

Loan Amount: No Minimum or Maximum limit of loan amount. However, loan amount will depend on actual land holding, indicative unit cost and scale of finance etc.


  • For loan up to Rs. 1,00,000/- No Margin
  • For loan above Rs. 1, 00,000/- 15% to 20% of total project cost.

Type of Facility:

Term Loan Security

  • For loan up to Rs. 1, 00,000/ -: Hypothecation/Pledge/Mortgage of assets created out of Bank Loan
  • For loan above Rs.1,00,000/-: In addition to Hypothecation/pledge/mortgage of assets, other collateral security in the form of Bank deposit, NSC, KVP, Life Policy (Surrender Value) or any other tangible security etc. or mortgage of land and building, Third Party Guarantee with adequate means.

Interest Rate: As per Bank's guidelines issued from time to time and subject to change from time to time.

Periodicity for Application of Interest: Yearly rests. Simple Interest up to due date or during gestation period and thereafter compounding. During the gestation period, the borrower is not required to pay any interest. However, the interest for that period gets capitalized and the principal loan amount is increased. Thus taking into accrued interest during grace period the installment shall be fixed.

Repayment: Repayable in Quarterly/ Half-yearly or Yearly instalments depending on income generation of the scheme and types of crops as per Norms circulated by NABARD from time to time.

Repayment Period/No of Installments: The repayment period including grace period varies from 4 to 14 years for Plantation and Horticulture crops as per Norms circulated by NABARD from time to time. According number of installments will vary depending on the scheme and crops. Processing Fee: No processing fee on Agricultural Term Loan

Pre-payment Penalty: No Pre-Closure/Pre-payment penalty on Agricultural Term Loan

Insurance: Units financed under the Scheme shall have to be insured with a registered Insurance Company.