PURPOSE

The purpose of this scheme is to provide finance:

• For Construction of new Controlled Poultry Sheds
• For remodeling of existing Sheds in to Controlled Sheds
• For modernization/remodeling of existing sheds by replacing equipment/ machinery
• Import of Machinery/Equipments related to Controlled Sheds

  ELIGIBILITY

        ü  A genuine farmer engaged in Agri related activities directly or indirectly

ü  Having a suitable land to erect Controlled Sheds

ü  Not a defaulter of any Financial Institution

ü  Having land free from all encumbrances to be offered as security

NATURE AND AMOUNT OF FACILITIES

MEDIUM TERM DEMAND FINANCE FACILITY (D/F)

Amount of Finance (for construction of Controlled Sheds for Poultry Farming) 

70% of the cost of construction as assessed by PBA’s approved surveyor according to the proposed plan of construction.

Equity: 

30% of the cost of construction as assessed by PBA’s approved surveyor according to the proposed plan of construction.

MEDIUM TERM LEASE FINANCE FACILITY (L/F)

Amount of Finance (for purchase of machinery and equipments for modernization/remodeling of existing poultry sheds (Feeding System, Nipple System, Cooling Pads, Fans, Heaters, Generators and Weighbridge etc)

• 80% of purchase price of Equipment/Machinery

LETTER OF CREDIT FACILITY

• L/C facility for import of equipments/machinery to be installed in the Controlled Sheds

TENURE OF FACILITIES

• Five Years in case of Demand Finance with grace period of ONE YEAR
• Five Years in case of Lease Finance

  TYPE OF SECURITY

 1 .  PRIMARY

Leased Assets in case of Lease Finance Facility (receipt will be issued in the name of the Bank of Punjab)

 2.  COLLATERAL

  ·        Charge on agriculture land through Agri. Passbook.

                                         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 shape of Bank’s Fixed Deposit Receipt/DSC/NSC or Regular Income

       Certificates.

·        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

Ø  IN CASE OF OAST BAI

The maximum amount of Finance will be allowed up to 75% of the Oast Bai Value (duly verified by Revenue Officer) of Agri Land  

Ø  IN CASE OF MARKET VALUE OF AGRI/URBAN/COMMERCIAL LAND

The maximum amount of Finance will be allowed up to 50% of the Forced Sale Value of the property as evaluated by PBA/Bank’s approved surveyor.

INSURANCE

• Comprehensive Insurance (assigned to BOP) of the Leased Assets at borrower’s cost.
• Life assurance of the borrower (assigned to BOP)

APPLICATION OF MARK UP RATE

DISBURSEMENT

In case of Medium Term Demand Finance Facility the loan will be disbursed in the following manner:

      40% for base structure, foundation and purchase of raw materials

      40% for construction of Boundary Wall and other civil works

      20% for finishing purposes

Each tranche will be released after proper verification by Executive Incharge Agriculture, Branch Manager and ACO of the respective Branch.

In case of Medium Term Lease Finance Facility the loan will be disbursed in the following manner:

     Payment will be made directly to the vendors/suppliers. The original cash receipts/invoices will be in the name of the Bank of Punjab.

REPAYMENT

• 20 equal quarterly installments (Principal + Mark up) in case of Lease Finance 
• 16 equal quarterly installments (Principal + Mark up) in case of Demand Finance Facility.

This scheme would be a part of our existing Kissan Dost Livestock Development Finance Scheme.