Asba, Applications Supported By Blocked Amount

Sure, here is the information about ASBA Applications Supported by Blocked Amount:

Under the RBI guidelines, an application under the Agricultural Short-Term Bank Loan Scheme (ASBA) can be supported by blocked amount. However, certain conditions need to be met for the application to be valid.

Eligibility:

• The applicant must be a cultivator and should have a land holding of at least one acre.
• The land should be situated in a notified area under the Agricultural Short-Term Bank Loan Scheme.
• The applicant should not have any overdue loans from any bank or financial institution.

Margin Requirements:

• The minimum margin requirement for an ASBA application supported by blocked amount is 25%.
• The margin is calculated on the total loan amount requested.
• The margin can be met through cash deposit or Government securities.

Documentation:

• The applicant must provide a copy of their land record certificate.
• The applicant must provide a mortgage deed or other security document.
• The applicant must provide a proof of income and landownership.
• The applicant must provide a bank guarantee or other security.

Interest Rate:

• The interest rate on ASBA loans is determined by the bank.
• The interest rate is usually linked to the base rate of the bank.

Repayment:

• The repayment of an ASBA loan is usually made in installments over a period of 3-5 years.
• The installments are paid to the bank on a monthly basis.

Benefits:

• ASBA loans have a lower interest rate than other agricultural loans.
• ASBA loans have a longer repayment period than other agricultural loans.
• ASBA loans do not require collateral security.

Additional Notes:

• The RBI has recently announced a new scheme called the PM-KISAN Scheme, which provides a minimum support price of Rs. 2,000 for certain crops. This scheme is expected to benefit many farmers.
• The RBI has also introduced a new mobile application called the PM-KISAN SAMBHAL App, which allows farmers to apply for PM-KISAN Scheme benefits.

Please note that this is just a general overview of ASBA applications supported by blocked amount. The specific requirements for Eligibility, Margin Requirements, Documentation, Interest Rate, Repayment and Benefits may vary depending on the bank and the applicant’s circumstances. It is recommended to consult with a bank for more information about ASBA loans.