Purpose:
Lease Financial Facility to purchase the machinery and equipment for setting up a
Model Milk Collection Centers.
Following items will be permissible.
- Farm cooling tanks.
- Pickups and Mini Trucks.
- Motorcycles for Milkmen.
- Any other machinery/equipment advised by PDDC that is necessary for
milk collection center.
Eligibility:
The applicant should have his own/rental place for collection centre.
Recommended by PDDC.
Amount:
Bank will provide Lease Finance Facility 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 will be in the name of
Bank).
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)
OR
Two personal guarantees of notables/credit worthy persons having landed property in the same area. Preferably Bank account holder maintaining good average balance with the Bank.
OR
Corporate Guarantee by established Milk companies acceptable to the Bank OR Ranking Charge on their assets.
Margin on Tangible Security:
25%-50% margin on FSV of immoveable security (Agri land /urban property). & 10% margin on surrender value 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 Leased/Hypothecated stock at borrower’s cost. Life
assurance of the borrower, assigned to BOP.
Mark-up:
Average 6 month’s KIBOR + 125 bps to 475 bps with the 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).