Syndicate Bank has introduced a new farm loan mortgage product for helping farmers in distress to refinance their debts to unorganised moneylenders. The loan would be made available to farmers on the condition that they do not create fresh indebtedness with the unorganised moneylenders.
The mortgage loans would be released on the basis of a valuation of farmers assets. Such advances would be falling outside the purview of normal farm advances. Therefore, such advances would not be eligible for the concessional pricing of seven per cent. Instead, such mortgage-backed advances would be priced at one per cent above the current benchmark prime lending rate. Syndicate Banks prime lending rate is currently 11.25 per cent.
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| Posted : 7/11/2006 |
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