Purpose:
Lease Finance Facility to purchase Dairy Farm Machinery for up gradation of Farm
infrastructure. Following items will be permissible.
- Farm cooling tanks.
- Fodder harvesters.
- Hay bailers.
- Animal cooling systems.
- Any other machinery/equipment advised by PDDC that is necessary for Farm up-gradation.
Eligibility:
I) The applicant should be having his owned/leased Dairy Farm.
II) Recommended by PDDC.
Amount:
Bank will provide Lease Finance between 70% to 90% of the cost of assets ( on case
to case basis).
Equity:
From 10% to 30% of the cost of Equipment ( on case to case basis).
Primary Security:
Leased assets in the name of the Bank (Cash Memo/Invoice in the name of Bank).Hypothecation of stocks (if any).
Collateral Security:
Charge on Agriculture Land through Agri. Pass Book/Registered and Equitable Mortgage of Urban Immovable property/Lien on liquid security (Bank’s Term Deposit Receipts/National Saving Certificated)
Margin on Immovable Security:
25% to 50% margin on FSV of immoveable security (Agri land /urban property). & 10% margin on 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 Leased assets at the borrower’s cost. Life assurance
of the borrower, assigned to BOP.
Mark-up:
Average 6 month’s KIBOR + 250 bps to 495 bps with floor of 10% per annum to be
paid by PDDC according to the repayment schedule of the principal amount.
Validity:
Upto five years in case of Lease Finance Facility.
Repayment:
Equal quarterly installments (Principal only).