Dear Mr. Rao,
Does banks give loan for floriculture business. If yes, what are the prerequisites for taking bank loan for flower cultivation?
Regards,
Shweta
Yes, Climate, soil and scope for marketing and transportation of of flowers to near by towns and state capitals.
For cultivation of flowers like jasmine, marigold, roses , tuberose (lily) etc are can be cultivated on fileds and can be availed crop loans up to Rs.1.00 ( cost of cultivation is Rs.20000 to 25000 per acre) with hypothecation of flower crops with third party guarantee. Farmers can avail short term loans up to Rs. 3.00 lakhs with 9% interest with 2 – 3 % interest subvention
If cost of cultivation is more than 1.00 lakh for short term loans as well as for term loans mortgage of land /vacant site/building etc are required with at least 125% value of the loan availed from Bank for new agricultural projects.
They have to produce the following documents ascertain the unit cost of the project. .
1.Ryot Pass books
2.Field Sketch
3.Computerised Adandal copy
4.Land Revenue receipts
5.Encumberance certificate for 25-30 years
6.Legal Opinion (Bank’s empanelled lawyer)
7.Valuation report of the property ( Bank’s approved valuer)
8. Estimates for developmental structures like ,Farm house,.Godown,.Workers quarters
Land development , minor irrigation requirements poly houses/green houses
9.Quotations for pumpsets/Drip systems
10.Project Report
.
Farmers have to bring 25% margin and ask for 75% of the unit cost as term loan.
Shares-
G.Ananda rao B.Sc (Ag) ,
Agricultural Finance Consultant