Scheme for Financing Farmers for Purchase of Land by Small & Marginal Farmers

Bank of Maharashtra offers a dedicated loan scheme to assist small and marginal farmers in becoming landowners. By enabling the purchase of agricultural land, this scheme helps strengthen the economic foundation of rural families and promotes long-term farming sustainability.

The scheme aligns with the broader vision of inclusive agricultural development by providing credit support where it’s needed the most—on the ground, with the farmers.

Purpose

This loan is designed exclusively for the purchase of agricultural land to expand cultivable area and improve farm output. By acquiring additional land, farmers can increase their productivity, diversify crops, and reduce dependency on leased or fragmented land parcels.

ParticularsDetails
Type of FacilityTerm Loan (TL)
PurposePurchase of land for agricultural purposes
Eligibility
  • Small & Marginal Farmers (Who owns maximum of 5 acre of non irrigated land or 2.5 acres of irrigated land including land to be purchased)
  • Share Croppers/tenant farmers cultivating up to 2.5 acres of irrigated land or 5 acres of unirrigated land
  • Entrepreneurs with agricultural background are also eligible (Provided state laws permits purchase of agri lands by non agriculturists)
Amount
  • A. Lower of the 1, 2 & 3
    1. Valuation as assessed by the branch
    2. Circle rate fixed by the state
    3. Registration Value plus
  • Stamp duty & registration charges for sale deed
  • Maximum Rs 20.00 Lakh
MarginMargin shall be minimum of 20%.
Rate of Interest
Up to Rs.10.00 lakh : 1 Year MCLR + BSS@0.50% + 2.00% 
Above Rs.10.00 lakh : 1 Year MCLR +BSS@0.50%+ 3.00%
Security
  • The land presently owned, if any & also the lands to be purchased out of the bank finance be mortgaged in favour of the bank.
  • Hypothecation of Crops grown from time to time on the land
Repayment7 to 10 years half yearly / yearly installments including maximum moratorium of 24 months
Other Terms & Conditions
  • Total land holding including proposed land should not exceed 5 acres for non irrigated land & 2.5 acres for irrigated land.
  • Applicant farmers may be encouraged to purchase the land at one place & not in fragmented holdings to step up productivity & save production expenses.
Documents / Papers to be submitted for loan proposal
  • Copies of land records regarding land owned & to be purchased, certified by concerned revenue authorities
  • Documents of title, Copy of sale agreement, if entered
Paper requirement
  1. Loan application ie Form No -138, & Enclosure – B2
    • All 7/12, 8 A, 6 D extracts, Chatu Sima of the applicant
    • No dues certificates of the applicant from surrounding financial institutions including PACS
    • Legal search from advocate on Bank’s panel for loans above Rs.1.60 lakh where land is to be mortgaged
  2. Guarantee form F-138
    • All 7/12, 8 A & PACS dues certificate of the guarantors

Loan Quantum

The maximum loan sanctioned is ₹20 lakh. The loan amount is calculated as the lowest among:

  • Bank’s internal land valuation
  • State government circle rate
  • Registered sale deed value (plus stamp duty and registration charges)

The borrower must contribute at least 20% of the cost as margin.

 

Additional Terms & Support

  • The total landholding after purchase must not exceed 5 acres (non-irrigated) or 2.5 acres (irrigated).
  • Preference is given to contiguous land for better operational efficiency.
  • Farmers are encouraged to maintain land utilisation and yield records for performance tracking.

Bank also supports agricultural extension and advisory services to help borrowers maximise the value of their investment.

This scheme is a strong choice for farmers looking to invest in their future through a structured loan against agricultural land—a move toward secure ownership, higher productivity, and economic upliftment.