Demand Finance for Construction of Sheds and other Civil Works
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Purpose:
Demand Finance Facility for construction of Sheds and other Civil Works for Livestock
Farms.
Eligibility:
The applicant should be having suitable land for construction of Dairy Farms.
Amount:
70% of total cost of construction assessed by the Banks and PBA’s approved Surveyors.
Equity
30% of total cost of construction assessed by the Banks and PBA’s approved
Surveyors.
Security:
(a) Primary
Leased assets in the name of Bank (if any).
(b) Collateral
I. Charge on Agriculture Land through Agri. Pass Book OR Charge on urban
immovable property through equitable/registered mortgage. OR Lien Liquid
security in the shape Bank’s Fixed Deposited Receipts or certificates of National
Savings Centres.
II. One personal Guarantee of reputable person of that area. ACO along with
Regional Chief can waive this condition.
Margin on Tangible Security:
25% to 50% margin on landed property (Agri/Urban). & 25% margin in case of liquid security.
The maximum amount of Finance will be allowed upto 75% of the Oast Bai Value of land (Oast Bai is verified by Revenue Officer)
Insurance:
Comprehensive Insurance of Building. Life assurance of borrower under the Bank’s charge.
Mark-up:
18% Per Annum
Validity:
Five years from the date of disbursement with first year as grace period.
Repayment:
16 equal quarterly installments (Principal and Mark-up) after first year of grace period