Scheme for Controlled Sheds
|
|
Purpose
The purpose of this scheme is to provide finance:
For Construction of new Controlled Poultry Sheds
For remodeling of existing Sheds in to Controlled Sheds
For modernization/remodeling of existing sheds by replacing equipment machinery
Import of Machinery/Equipments related to Controlled Sheds
Eligibility
A genuine farmer engaged in Agri related activities directly or indirectly
Having a suitable land to erect Controlled Sheds
Not a defaulter of any Financial Institution
Having land free from all encumbrances to be offered as security
Nature & Amount of Facilities
MEDIUM TERM DEMAND FINANCE FACILITY (D/F)
Amount of Finance
(for construction of Controlled Sheds for Poultry Farming)
70% of the cost of construction as assessed by PBA’s approved surveyor according to the proposed plan of construction.
Equity:
30% of the cost of construction as assessed by PBA’s approved surveyor according to the proposed plan of construction.
MEDIUM TERM LEASE FINANCE FACILITY (L/F)
Amount of Finance
(for purchase of machinery and equipments for modernization/remodeling of existing poultry sheds (Feeding System, Nipple System, Cooling Pads, Fans, Heaters, Generators and Weighbridge etc)
80% of purchase price of Equipment/Machinery
Letter of Credit Facility L/C
facility for import of equipments/machinery to be installed in the Controlled Shed
- Import L/C (sight) Cash Margin 20%
- Retired through L/F of 5 years period
- Lease Key Money 20%
Tenure of Facilities
Five Years in case of Demand Finance with grace period of ONE YEAR
Five Years in case of Lease Finance
Type of Security
1 . Primary
Leased Assets in case of Lease Finance Facility (receipt will be issued in the name of the Bank of Punjab)
2. Collateral
Charge on agriculture land through Agri. Passbook.
OR
Charge on urban immovable property through equitable/registered mortgage.
The property should be cleared by the banks approved legal counsel and will
be assessed by the Banks and PBAs approved surveyor.
OR
· Liquid security in shape of Bank’s Fixed Deposit Receipt/DSC/NSC or Regular
Income Certificates.
· One personal guarantee of a reputable person. ACO along with Regional Chief
can waive this condition if they deem the borrower to be credit worthy.
Margin on Security
IN CASE OF OAST BAI
The maximum amount of Finance will be allowed up to 75% of the Oast Bai Value (duly verified by Revenue Officer) of Agri Land
IN CASE OF MARKET VALUE OF AGRI/URBAN/COMMERCIAL LAND
The maximum amount of Finance will be allowed up to 50% of the Forced Sale Value of the property as evaluated by PBA/Bank’s approved surveyor.
Insurance
Comprehensive Insurance (assigned to BOP) of the Leased Assets at borrower’s cost.
Life assurance of the borrower (assigned to BOP)
Application of Markup Rate
For Demand Finance 18% Per Annum
For Lease Finance 18% Per Annum
Disbursement
In case of Medium Term Demand Finance Facility the loan will be disbursed in the
following manner:
40% for base structure, foundation and purchase of raw materials
40% for construction of Boundary Wall and other civil works
20% for finishing purposes
Each tranche will be released after proper verification by Executive Incharge Agriculture, Branch Manager and ACO of the respective Branch.
In case of Medium Term Lease Finance Facility the loan will be disbursed in the following manner.
Payment will be made directly to the vendors/suppliers. The original cash receipts/invoices will be in the name of the Bank of Punjab.
Repayment
20 equal quarterly installments (Principal + Mark up) in case of Lease Finance
16 equal quarterly installments (Principal + Mark up) in case of Demand Finance Facility.
This scheme would be a part of our existing Kissan Dost Livestock Development Finance Scheme.