Homestead Farming Loan
Features & Benefits
The predominance of small size land holdings, the agro-climatic situation has evolved a highly intensive practice of growing crops along with allied activities around the home as an integrated enterprise. This practice is known as "Homestead Farming". Federal Bank provides finance for homestead farms.
Loan Amount
- Up to 25 cents - Rs. 50,000/-
- Up to 50 cents - Rs. 1,00,000/-
- Up to 75 cents - Rs. 1,50,000/-
- Up to 1 Acre - Rs. 2,00,000/-
- Above 1 Acre & up to 2 Acre - Rs. 4,00,000/-
- Above 2 Acre & up to & including 2 ha - Rs. 6,00,000/-
Other Terms & Conditions
Repayment
Repayment shall be done as Lump sum on demand. It is a revolving cash credit limit. Harvest / sales proceeds are to be routed through the account.
Security:
Hypothecation of crops and other movable assets in the farm owned by the borrower shall be provided as Primary security.
If loan amount exceeds Rs. 1.60 Lakhs, mortgage of landed property with a value of 150% of loan amount shall be provided as Collateral security.
Interest Rates & Charges
Please visit the rates and charges page for details
Explore Other Agri Loans
AGRI FARM CREDIT LOANS
Features & Benefits
Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs) i.e. groups of individual farmers, provided banks maintain disaggregated data of such loans and Proprietorship firms of farmers, directly engaged in Agriculture and Allied Activities, viz. dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture. Loans sanctioned to Corporate farmers, Farmer Producer Organisations (FPOs)/(FPC) Companies of Individual Farmers, Partnership firms and Co-operatives of farmers engaged in Agriculture and Allied Activities are also eligible under farm credit subject to specific conditions.
AGRI INFRASTRUCTURE LOANS
Features & Benefits
Loans provided for construction of storage facilities, soil conservation and watershed development, Plant tissue culture and Agri-biotechnology, seed production, production of bio-pesticides, bio-fertilizer, and vermi composting are eligible to be classified under Agri infrastructure. Loans for construction of oil extraction/ processing units for production of bio-fuels, their storage and distribution infrastructure along with loans to entrepreneurs for setting up Compressed Bio Gas (CBG) plants are also eligible as per revised RBI guidelines.
AGRI ANCILLARY SERVICES
Features & Benefits
Loans to co-operative societies of farmers for purchase of the produce of members , Loans for setting up of Agri-clinics and Agri-business centres, Loans to Start-ups that are engaged in agriculture and allied services, Loans to Custom Service Units who undertake farm work for farmers on contract basis are eligible under this category. Loans provided for Food and Agro-processing up to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system is also eligible under Ancillary services. Loans sanctioned by banks to MFIs and NBFCs complying specific conditions stipulated by RBI for on-lending to agriculture sector will also qualify under this head. In addition to these Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-sized Adivasi Multi-Purpose Societies (LAMPS) for on-lending to agriculture will qualify under ancillary category for priority classification.
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