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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 Guarantee (BG) |
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Quantum of Loan |
Minimum Rs. 10.00 Lakh and Maximum Rs. 500.00 Lakh |
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Margin |
Term Loan/CC/BGs- 25% OD Book Debts- 40% |
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Interest Rate |
Rs 10 Lakh to Rs 100 Lakh : MCLR + 0.50% Above Rs 100 Lakh : As per risk rating of the borrower |
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Repayment |
CC/OD- To be renewed every year. T/L- Max 10 years (including moratorium of 6 months in case of purchase of machineries). |
