ESTATE PURCHASE LOAN

To purchase estates growing traditional plantation crops viz.coffee, tea, rubber and cardamom.
To purchase Areca Garden.
To purchase estates growing other high value crops like Cashew, pepper, coconut and other perennial orchard crops.
To pay stamp duty and registration expenses involved in purchase of estate.
Loans can also be granted for ownership of estates by retirement of partners in case of partnership firms.

The purchaser should have good track record and have yielding estates
Non Estate owners may also be financed provided that it isassessed that the borrowers can, after purchase, will be able to develop the Estate on the desired lines (subject to State Law permitting such purchase).
The purchaser should preferably be our customer with satisfactory past dealings.
The purchaser should be experienced intheline, financially sound and should be in a position to bring in margin and service the debt.
Normally the purchaser/s and vendor/s should not be close relatives.
The intending buyer should qualify the State Government norms of being an agriculturist / satisfy the income criteria stipulated by the State Government in cases where loan is considered for purchase of areca garden.
Being a non-priority advance, the proposal shouldpreferably shall have spin off benefits in the form of deposits, other business support, non fund based income, etc.
The estate should preferably be a neglected one. The estate should have potential for realizing higher yields.
The total land holding including the land to be acquired should be within the land ceiling norms of respective State, whenever loan is considered for areca garden.
The estate should have the potential to absorb substantial credit for other developmental activities.

Margin

The Margin shall be 50% of purchase consideration or market value , whichever is less

Rate of Interest

Rate of interest to be charged on Estate Purchase Loan will be as advised from Head Office from time to time. Interest to be debited on monthly on compounding basis.

Security

Prime: Mortgage of entire land purchased out of the loan sanctioned

Collateral: SARFAESI compliant immovable property/ies secured by mortgage to a minimum extent of 25% of the loan/exposure as collateral security, wherein Residential/Commercial Properties (Land & Buildings backed by approved building plan) should be minimum as follows,

Risk Category	Minimum Residential/ Commercial % of Collateral
Low Risk	25%
Normal Risk	35%
Moderate Risk	50%

Repayment

Repayment The loan should normally be repayable within 7 to 9 years. The repayment period should coincide with the income generation. No repayment holiday will normally be considered as parties are expected to pay the amount out of their other sources.