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Crop Loan (S.A.O)

Crop loans for the cultivation / Agricultural operations will be issued to members of the affiliated societies.  Such loans will be issued for the cultivation of Paddy - Ragi - Maize - Areca - Sugarcane - Chillies - Coconuts - Ginger - Sweet Potatoes - Tapioca - Cocoa - Groundnuts - Banana - Sericulture crops etc., or any other crop to be decided by the Bank every year.

The Bank will fix the scale of finance for every crop as laid down in the crop manual - with reference to the cost of cultivation of each crop and such scale shall be in force till the period decided by the Board - The scale of finance shall be in three  components, such as A,B, and C.  Among  these three A and C shall be in cash and B shall be in kind such as fertilizers,   pesticides,  insecticides,  implements,  seeds etc.,  to be supplied to the members.  ‘A’ component shall not exceed 1/3rd of the total estimated yield of the respective crop and ‘C’ component shall be based on the value of produce marketed by the member through the society during the immediate previous year and it shall not exceed 25% of such sale proceeds provided the ‘A’ and ‘C’ together shall not be more than 75% of the total sale proceeds of the concerned crop marketed during the previous year.  It shall not exceed Rs. 2000 per acre or as decided by the Bank from time to time.