Credit Services

Credit Services by SCARDBs

Financing of the long-term credit (5 years and above) for agriculture and its allied activities and also for NFS, Rural Housing, Wastelands development are the main objective of the SCARDBs. Thus, the credit delivery system of SCARDBs may be divided broadly into three sectors viz. Farm Sector, Non-farm Sector and Rural Housing Sector.

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Farm Sector

Under farm sector the purposes for which the long-term loans are advanced by the SCARDBs are as follows,

  1. Minor Irrigation works i.e.
    • * Digging/renovation of wells
    • * Installation of pump-sets
    • * Construction of irrigation channels
    • * Pipelines
    • * Sprinkler/drip irrigation system
    • * Community wells
    • * Lift irrigation system etc
  2. Farm Mechanisation
    • * Tractor/power tillers with accessories
    • * Combined harvesters
    • * Trolleys
    • * Power threshers etc.
  3. Land Development/Land Reclamation including water conservation
  4. Horticulture development (fruit crops, floriculture, mushrooms, vegetables etc)
  5. Plantation crops (coconut, cashew, arecanut, rubber, coffee, cardamom, tea, bamboo etc.)
  6. Diversified activities (dairy, poultry, piggery, rabbit, fishery, sheep & goat rearing, gobar gas/bio-gas, farm house, sericulture, rural godowns, bullocks and bullock carts/camel carts, APMC, cold storages/storages etc.)
  7. Wastelands development/afforestation, dry land development.
  8. Payment of old debts
  9. Purchase of land

Non-Farm Sector

  • Rural SMEs including
    • * Rural artisans
    • * Small-scale industries/agro-processing, food processing units.
    • * Small Road Transport Vehicles (upto 16 tonnes pay load capacity)
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Rural Housing

i) Construction of new houses upto Rs.5 Lakh

ii) Renovation / repairs of old houses upto Rs. 1 lakh.

Terms & Conditions
i. Upto 95% loan may be sanctioned to borrowers depending upon the purposes for which loan is required.

ii. Security

LT loan is granted on land/agricultural land mortgage as main security. Besides hypothecation of assets, surety etc. will be treated as collateral security.

iii. Land Valuation

The eligibility criteria of loan will be fixed on land valuation 60% or 75% of which will be taken as loan value.

iv). Repayment period

LT loans are granted for five years and above upto 15 years depending upon the loan purpose. Grace period is granted on specific projects.

Deposit Mobilisation


To strengthen the resource base of SCARDBs, RBI has granted permission for accepting rural deposits from the members/ non-members of SCARDBs in rural areas. SCARDBs have formulated various deposit mobilisation schemes and are accepting deposits ranging from one year onwards.



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