Target Group

Primary Agriculture Cooperative Societies(PACS), Farmer Producer Organizations(FPOs), Marketing Cooperative Societies, Self Help Groups (SHG), Farmers, Joint Liability Groups(JLG), Multipurpose Cooperative Societies, Agriculture entrepreneurs, Startups and Central/State Agency or Local Body sponsored Public Private Partnership Projects.

Purpose

(A) Post Harvest Management Projects:

1. Supply chain services including e-marketing platforms,
2. Warehouses,
3. Silos,
4. Pack houses,
5. Assaying units,
6. Sorting, &grading units,
7. Cold chains,
8. Logistics facilities,
9. Primary processing centers,
10. Ripening Chambers

(B) Viable projects for building community farming assets:

1. Organic inputs production,
2. Bio stimulant production units,
3. Infrastructure for smart and precision agriculture.
4. Projects identified for providing supply chain infrastructure for clusters of crops including export clusters.
5. Projects promoted by Central/State/Local Governments or their agencies under PPP for building community farming assets or post-harvest management projects.

Type of Facility proposed : Term Loan

Quantum of finance :Based on Project cost

Margin Norms

Term Loan: 25% (Minimum)

(Any grant or subsidy available under any present or future scheme of Central/State Government can be availed for projects under this financing facility. In cases of capital subsidy such amount shall be considered as promoter’s contribution. However , a minimum of 10% of the project cost shall be mandatory as promoter’s contribution.

Repayment Period : Maximum 7 years (including holiday period)

Holiday Period :  Minimum of 6 months and Maximum of 2 years

Processing & other charges:

Processing Charges :

1. Upto Rs.25000/ : Nil
2. Above Rs.25000/-: 0.50% of the limit sanctioned + Applicable GST

(All other charges: As per circular on service charges related to Agri advances issued from time to time)

Interest Subvention

All loans under this financing facility will have interest subvention of 3% per annum up to a limit of Rs. 2 crore. This subvention will be available for a maximum period of 7 years. In case of loans beyond Rs.2 crore, then interest subvention will be limited up to 2 crore.

Credit Guarantee

Credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore. The fee for this coverage will be paid by the Government. In case of FPOs the credit guarantee may be availed from the facility created under FPO promotion scheme of DACFW.

RATE OF INTEREST

Please refer the Lending Rates link on home page in our Bank`s Website

Security Norms

1. Hypothecation of assets created out of Bank Finance.
2. Mortgage of land & building
3. Collateral security in the form of FD, NSC, LIC Policies.
4. Equitable Mortgage of immovable properties
5. Guarantee: Personal guarantee of partners/directors.
6. Credit Guarantee cover is mandatory.