Lease Finance Facility to Dairy Farmers for Purchase of Milch Animals
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Purpose:
Lease Finance Facility for purchase of Milk producing animals for Dairy Farming.
Eligibility:
The applicant should be well experienced and having its own well constructed Live Stock Farm, Semen Production Unit.
Amount:
In case of Lease Finance 80% of cost of assets (animals/equipment/vehicle/machinery) (Maximum Facility can be granted upto 50% of forced sale value of property)
Primary Security:
Leased assets in the name of Bank.
Collateral Security:
I. Charge on Agriculture Land through Agri. Pass Book OR Charge on urban immovableproperty through equitable/registered mortgage OR Liquid security in the shape Bank’s
Fixed Deposited Receipts/DSC/NSC or Regular Income Certificates.
II. One personal guarantee of reputable person. ACO along with Regional Chief can
waive this condition.
Margin on Tangible Security:
50%-25 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 the Lease/Hypothecated stock at borrower’s cost.
Life assurance of borrower under the Bank’s charge.
Mark-up:
15% per annum.
Validity:
Five years in case of Lease Finance Facility.
Repayment:
20 equal quarterly installments (Principal and Mark-up) in five years