| Loans - Horticulture Projects - FAQs - |
What are the stages involved in availing of a loan? The stages involved are:
Where the farmer has to send the application to get LOI?How long it takes to get LOI from NHB? Application with project cost upto 20 lakhs will be sent to the state NHB office and the application with project cost more than that will be directly sent to NHB headquarter at Gurgaon. It takes around one month from the receipt of application or inspection report to get LOI Will the loan be provided if the farmer does not get the LOI? No. The farmer will be able to get the loan under this scheme only when he is having a letter of Intent issued by NHB. If the farmer does not want to apply for NHB subsidy, will he be funded under this program? No, only the farmers who have applied for NHB subsidy and have got a valid LOI will be able to get loan under this program. If the land is not his own, but is on lease,will he be funded under this program? If yes, what will be the minimum lease period to get loan under this scheme? No, to be funded under this program, he should have his own land and land cost should not be more than 10% of project cost if the land is purchased.
Can this be the case that farmer has got LOI but subsidy is not released from NHB? What will be the repayment criteria in that case? Yes, this may be the case if the project is not completed as per NHB guidelines. If the subsidy is not released at completion of the project, the farmer will pay all the loan amount in regular instalments as applicable earlier. If the farmer is already getting subsidy from NHB under one project, can he apply for a new loan under different project from other bank? Yes he can apply for a new loan but the earlier project/ projects should be operational and should not be abandoned. Husband and wife can also apply for loan for two different projects only if both are paying income tax seperately.
What are the loan tenure options? The facility would be secured by For all the crops other than papaya and banana, the maximum tenure of loan is 7 years. For Papaya and banana, the maximum tenure of the loan is 3 years.ICICI Bank loans for funding long-term horticulture projects come to you at attractive rates of interest that are based on the prevailing market situation. How is the interest charged/calculated? The borrower shall pay to the bank interest on the loan outstanding at the rate stipulated by ICICI bank at the time of disbursement.
Interest is charged on a half-yearly reducing balance basis. Every instalment that is paid has a component of principal and interest. Do I have to pay any additional charges? Yes, there is a nominal one-time file-processing fee that needs to be paid, which is inclusive of service tax. How much time will it take for my loan to be sanctioned? Within 24 hours subject to submission of complete documents and completion of Field Investigation (FI) Who can become co-applicants for the loan? Your spouse or any blood relative of yours or can be the co applicant. Blood relatives include your father, mother, brother and son.
What security/collateral do I have to provide?
Is there any provision for balance transfer from other banks or Financial Institutions? Yes. It has been observed that a farmer in spite of having LOI from NHB is not able to obtain NHB subsidy because of various reasons (apathy, lack of awareness of procedure etc) related to lending institution. A facility of balance loan transfer to the farmers is available. Balance loan transfer from any other Bank and Financial Institutions (Private Bank, Public Sector Banks, and Cooperative Banks etc) for all regular account will be allowed under the program, provided he fits in the selection criteria mentioned in program. This will be further secured by way of a Fixed Deposit equivalent to the loan outstanding along with other security (except the liquid security) as prescribed in the program note. If I do not meet all the criteria for the loan, can I still avail of a loan? No, you cannot. Yes, we can allow you to pre-pay your loan at any point of time during the tenure of the loan. Are there any charges levied for late payment of interest? Yes, 8% on the outstanding overdue amount. ‘Reducing balance’ is a method of charging and calculating interest where the interest is charged on the outstanding principal amount after an installment has been paid. Under this method, you pay interest only on the loan amount which is outstanding, and not on a flat interest basis. Do I need to open an account with ICICI Bank for availing and/or servicing of the loan? Yes, it is mandatory for you to open an account with ICICI Bank. Where will my account be opened? At any branch that you may specify. However, you can operate the loan and repayments from any of our branches under our Anywhere Banking facility.
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