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Food and Agro Processing

Food and Agro Processing

Purpose of loan / Activities covered

  • Processing and preserving of Fruits, Vegetables, Meat, Fish, crustaceans and molluscs.
  • Manufacturing of vegetable, animal oils and fats.
  • Manufacturing of dairy products.
  • Manufacturing of grain mill products, starches and starch products.
  • Manufacturing of animal feeds.
  • Manufacturing and processing of other Food and Agro products

Margin

  • Term Loan: 25% for new machinery and 30% for landed property and building.
  • Working capital:
    • Stocks    For Limits less than Rs. 1 Crore – 20%
      •       For Limits Rs. 1 Crore& above – 25%
    • Book Debts – 25% (upto 90 days duration)

Quantum of finance

  •  Term loan: Based on Project cost
  • Working Capital: As per Credit Policy guidelines.
    •  Limits Upto Rs. 5.00 Crs – Turnover method
    • Limits above Rs. 5.00 Crs – MPBF II Method / Cash Budget Method.
    • NFB Facilities: Need based

 Security

  • Primary: Hypothecation of stocks / book debts / machineries / EM of factory land & building / charge on assets created out of Bank finance.
  • Collateral: No collateral should be obtained for limit up to Rs. 10 Lakhs.
  • Minimum Security Coverage Ratio of 1.20 should be maintained at all times.

Guarantee

  • Suitable third party guarantee may be obtained depending upon the loan amount.

Repayment period

  • Repayment for commercial activity is to be fixed based on life cycle of the project, on the cash flows, on ballooning basis, or as bullet payment or in EMI.
  • Term Loans – Maximum repayment period allowed is 15 years.
  • Working capital: One year with yearly renewal.

Processing fee & other charges (All Charges exclusive of GST) 

  • Term Loan:
  • Upto Rs. 25000/- : NIL
  • Above Rs. 25000 : 0.50% of the limit sanctioned

Working Capital:

  • Upto Rs. 25000: NIL
  • Above Rs. 25000/- up to Rs. 50 Lakh: Rs. 250 per lakh or part thereof Min. of Rs. 250
  • Above Rs. 50 Lakh: Rs. 350 per lakh or part thereof.
  • All other charges: As per circular on service charges related to Agri advances issued from time to time

( Last modified on Aug 21, 2021 at 03:08:40 PM )

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