Kissan Dost Green House Finance Facility
|
|
At present, the agriculture business is the most rewarding avenue of the Bank of Punjab. Due to the increasing demand of off seasoned vegetables, we are rolling out a special scheme by the name of “GREEN HOUSE FINANCE FACILITY” for farmers who intend to establish Green House to grow off seasoned vegetables.
Purpose
The purpose of this loan is to encourage the farmers to establish green houses. This will also curtail the shortage of vegetables. Moreover the rate of vegetables will also decrease when they are in abundance in the markets.
Types of Green House
There are two types of green houses i-e
Metallic Construction &
Bamboo Construction
Eligibility
The applicant should be a genuine grower and should have a suitable land to establish a Green house. The applicant should not be a defaulter of any other Bank and the land under cultivation should be free from any encumbrance.
Nature & Amount of Facilities
MEDIUM TERM DEMAND FINANCE FACILITY
For Metallic Tunnels: For purchase of iron/steel, cement, concrete, polythene, mulching shopper, green net
For Bamboo Tunnels:
For purchase of bamboo, cement, concrete, polythene, mulching shopper, green net
MEDIUM TERM LEASE FINANCE FACILITY
For installation of Drip Irrigation System for both Metallic & Bamboo Tunnels:
SHORT TERM FINANCE FOR RUNNING EXPENSES
Running finance facility for the purpose of purchasing seed/inputs and other running expenses such as farm power, labor etc.
Disbursement:
In case of Medium Term Demand Finance Facility the loan will be disbursed as 30%
for base structure & for purchase of raw material, 40% for construction of green
house/tunnels and rest of 30% for finishing purpose. Each tranche will be released
after proper verification by Executive Incharge Agriculture & respective ACO of the
Branch.
In case of Medium Term Lease Finance Facility the payment will be made directly to
the vendor after proper verification of leased asset.
In case of Short Term running Finance Facility the initial disbursement will be made
as and when required by the applicant.
Amount
70% of the cost of construction assessed by Bank’s approved surveyor according to the proposed plan of construction In case of lease finance 80% of the purchase price of leased assets.
In case of Running Finance, up to 80% of total running expenses.
Security
I. PRIMARY
·
Leased assets in case of lease finance facility (receipt will be issued in the name of
bank).
· Hypothecation of vegetables, equipment etc. in case of running finances facility.
II COLLATERAL
Charge on agriculture land through Agri. Pass book.
OR
· Charge on urban immovable property through equitable/registered mortgage. the property should be cleared by the banks approved legal counsel and will assessed by the Banks and PBAs approved surveyor.
OR
· Liquid security in the shape of Banks Fixed Deposited Receipt/DSC/NSC or Regular Income Certificates.
III 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 upto 75% of the Oast Bai Value of land (Oast Bai is verified by Revenue Officer)
IN CASE OF THE FORCED SALE VALUE IF EVALUATED BY PBA /BANK’S APPROVED SURVEYOR
Maximum Amount of Finance will Be 50% Of The Forced Sale Value, Evaluated By PBA/Bank’s Approved Surveyor.
Insurance
Comprehensive Insurance of the Leased/Hypothecated stock at borrowers cost assigned to BOP.
Life assurance of the borrower under the bank’s charge assigned to BOP.
Mark up
For Demand Finance 18% Per Annum
For Lease Finance 18% Per Annum
For Running Finance 18% Per Annum
Recovery of Mark up
In case of lease finance & Demand Finance the mark up will be recovered along with the installment on quarterly basis.
In case of Running Finance Facility, the mark up will be recovered on quarterly basis.
Validity
Running Finance to be settled in One Year along with mark up from the date of initial disbursement of Running Finance.
Five years in case of Lease Finance Facility.
Five years in case of Demand Finance Facility.
Repayment
20 equal quarterly installments (Principal and Mark up) in case of Lease/Demand Finance Facility.
Running Finance to be settled once a year along with total mark up.