Purpose

The purpose of this loan is to store fruits & vegetables even during off seasons. By establishment of Compartmentalized cold storage units, where perishable commodities can be stored for a longer duration of time period to obtain a year–round supply and reduce post harvest losses.

Eligibility

The applicant should be a genuine grower and should have a suitable land to establish a Compartmentalized Cold Storage. The applicant should not be a defaulter of any other Bank and the land under cultivation should be free from any encumbrance.

NATURE AND AMOUNT OF FACILITIES

• MEDIUM TERM DEMAND FINANCE FACILITY

For purchase of Pre fabricated Insulated building in panels .

• MEDIUM TERM LEASE FINANCE FACILITY

For purchase & installation of Ammonia Compressor/Condenser, Evaporator, Pschrometer, Hydrothermo graph, Handheld Infrared Thermometer, Set of sensors Electric operated fork operator, Standby generators (20 KVA), Misc Accessories like a  pair of diffuser 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 Cold storage 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. The sale invoice will be issued in name of

   The Bank of Punjab.

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.

Security

PRIMARY

    ·         Leased assets in case of lease finance facility (receipt will be issued in the name of

            bank).

    ·         Hypothecation of vegetables, equipment etc.

    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 be 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

   a. Landed property

Ø  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)

Ø  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:   15 % p.a.

  For Lease Finance:        15 % p.a.

Recovery of Mark up

• In case of Lease Finance & Demand Finance the mark up will be recovered along with the installment on quarterly basis. First six months will be treated as grace period in case of Demand finance.

Validity

• Five years in case of Lease Finance Facility.
• Five years in case of Demand Finance Facility with grace period of six months.

Repayment