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Obtaning Agricultural Loans form People's Bank

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Krushi Navodaya Loan Scheme

Introduction

The implementation of this special Loan Scheme, introduced through the 2007 , with the intention of improving the income generating Sources of small farmers and the self-employed engaged in varied economic activity in the field of agriculture.

Project Implementation Area

  • All districts in the island

Quantum of Loan

  • Maximum per person is Rs.100,000/- while the minimum is Rs. 10,000/-

Repayment Period

  • Should be between 09 to 36 months. (Any grace period allowed also should be within the stipulated 3 year period.)

Securities

  • Two Personal Guarantors acceptable to the Bank or
  • Mortgage over movable or immovable property or
  • Other securities acceptable to the Bank.

Forward Sales Contract

Forward Sales Contract is a contract of sale of goods between the farmer who agrees to sell their agro-products of certain amount with quality and the buyer agrees to purchase the goods as agreed on a future date with the agreed price, at an earlier stage.

For Whom

  • Buyers/Sellers entered into the Forward Sales Contracts for marketing of agricultural commodities and falling into one of the following categories are eligible to receive credit facilities under the scheme.
  • Individual Farmers/ Individuals
  • Farmer Organizations
  • Farmer Companies
  • Partnerships
  • Co-operative Societies
  • Limited Liability Companies?

Maximum Credit Limit

  • The upper limit of loan for paddy purchase subject to Forward Sales Contract under the New Comprehensive Rural Credit Scheme is Rs. 50 M.

Repayment Period

  • Maximum repayment period for Yala and Maha Seasons is 180 days for paddy and 270 days for the other crops.

Securities

  • Guarantors and pledge over paddy stocks to be purchased?? or
  • Mortgage over immovable properties / Securities acceptable to the Bank

Product Features

  • Buyers and sellers entered into a Forward Sales Contract to sell any agro products that belongs to the under mentioned category, are entitled to apply for this facility.
  • The People's Bank function as a facilitator in the business activity.
  • Loan facilities available for Yala and Maha seasons.
  • Paddy, potato, Chilli, Red Onion, Big Onion, Maize, Soya beans, Black gram, Pineapple, Tomato etc.

Benefits

  • Farmer can obtain loans subject to the Forward Sales Contract.
  • Can obtain facilities upto 60% of the FSC agreement and be within the repayment capacity.
  • Possession of an account when applying for a facility is not necessary.
  • Benefits for Buyers/Millers/Producers

Maximum loan limit 75% value of the Forward Sales Contract agreement.
Should possess the repayment capacity and storage capacity.
Possession of an account when applying for a facility is not necessary.
Benefits for farmers

Farmer can sell his agro products to a fare price.
Can obtain a better harvest with the help of modern methods.
Can improve the quality and the bulk of the harvest.
Obtain an Insurance cover for the damage of the cultivation.
To have a good income through out the year.
Benefits for millers

Can purchase quality agro products.
Can obtain loan facilities at the interest rate 12% or less.
Since the purchase price is known well in advance, the best selling price can be decided.


Organization Information

People's Bank

People's Bank - Head Office
No. 75,
Sir Chittampalam A. Gardiner Mawatha,
Colombo 02.


Mr. A.U.L.A. Anzar
Telephones:+94 112 481 481, Overseas - +94 112 031 001
Fax Nos:+94 112 380 516
Email:info@peoplesbank.lk
Website: www.peoplesbank.lk

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Last Updated On: 2017-04-05 13:16:52
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