Farmer's Scheme

Mortgage loan scheme

Sr. No. Details of Terms and Conditions
1 Only the produce of actual farmers shall be accepted under the Pledge Loan Scheme for the following agricultural commodities:
  • Tur (Pigeon Pea)
  • Moong (Green Gram)
  • Udid (Black Gram)
  • Chana (Bengal Gram)
  • Soybean
  • Sunflower
  • Safflower
  • Sorghum (Jowar)
  • Bajra (Pearl Millet)
  • Wheat
  • Maize
  • Paddy (Rice)
  • Rajma (Kidney Beans)
  • Turmeric
  • Areca Nut (Supari)
  • Cashew Nut (Kernel)
  • Raisins
2 For the pledged agricultural commodities from Sr. No. 1 to 12, for which MSP is declared by Government:
Loan Amount Determination
  • For Tur, Moong, Udid, Chana, Soybean, Sunflower, Safflower, Sorghum, Bajra, Wheat, Maize, Paddy – Pledge loan will be granted up to 75% of MSP or prevailing market price whichever is lower.
3 For pledged agricultural commodities without MSP — Rajma, Turmeric, Areca Nut, Cashew Kernel & Raisins:
Loan Amount Determination
  • Rajma – Minimum ₹3000 per quintal OR prevailing market price whichever is lower, 75% as pledge loan.
  • Turmeric – 75% of prevailing market price.
  • Areca Nut – Maximum 75% of market price OR ₹100 per kg whichever is lower.
  • Cashew Kernel – Maximum 75% of market price OR ₹100 per kg whichever is lower.
  • Raisins – Minimum ₹7500 per quintal OR prevailing market price whichever is lower, 75% pledge loan. Under any condition, rate per kg shall not exceed ₹100.
  • The Secretary shall provide farmers with the MSP declaration for Kharif/Rabi seasons announced by GoI every year.
4
Pledge acceptance beyond Market Committee jurisdiction (relaxation)
As per letter dated 28/11/2017 of Maharashtra State Agricultural Marketing Board, if a Market Committee does not run the pledge scheme due to lack of storage or funds, farmers may keep the produce in the godowns of a nearby Market Committee implementing the scheme or in warehouses of the State Warehousing Corporation. The nearby Market Committee will sanction the loan, and reimbursement will be made by the Marketing Board.
5 Minimum & maximum period and interest rate for pledge loan of 17 commodities:
  • Up to 180 days → 6% interest
  • After 180 days up to next 6 months → 8% interest
  • After 1 year → 12% interest
  • Loan with interest must be fully repaid within 18 months from sanction date
6 While pledging agricultural produce, consent of all family members listed in 7/12 extract must be submitted in favour of the applicant farmer. The Secretary of Market Committee must verify the consent letter.

Family includes: mother, father, son, unmarried daughter, son’s wife & his children (grandchildren).
Joint or separate 7/12 extract will be considered valid.