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Purpose
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Collectivization of Farmer Producer Organization (FPOs) has emerged as a potential tool to transform Indian agriculture into a sustainable business by taking advantage of the scale by aggregation of input, demand, produce aggregation and collective marketing, and value addition, thus realizing the optimal returns for their produce. |
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Eligibility |
Farmer Producer Organizations (FPOs)/Farmer producer Companies (FPCs) |
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Nature of facility |
* Term Loan/Cash Credit/OD Book Debts against receivables Non Fund Based (NFB) Limits- Bank Gaurantee(BG) |
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Quantum of Loan |
Farm Credit- Corporate Farmers- (FPOs/FPCs) up to Rs 5.00 Crores |
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Margin |
Term Loan/CC/BGs- 25% OD Book Debts- 40% |
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Security |
* Primary Security - Hypothecation of Stock/Book Debts/plants &machineries. EM on land and Building * Collateral –UptoRs 2 Crore-NIL above Rs.2 Crore- 150% of limit |
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Interest Rate |
UptoRs 3,00,000/- |
MCLR + 1.35% |
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Processing Charges |
* Upto Rs 3 Lakh/- : Nil * Above Rs 3 Lakh/- : @0.30 % |
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Upfront Fee
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* Upto Rs 3 Lakh/- : Nil * Above Rs 3 Lakh/- : 50% of 1.25% (i.e. 0.625 %) |
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Repayment |
* CC/OD- To be renewed every year. *Term Loan- Max 8 years (including max moratorium of 18 months) |
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