Model Dairy Farms (PDDC)

Purpose: 

Lease Finance Facility to purchase Dairy Farm Machinery for up gradation of Farm infra structure.

Following items will be permissible.

1.      Farm cooling tanks.

2.      Fodder harvesters.

3.      Hay bailers.

4.      Animal cooling systems.

5.      Any other machinery/equipment advised by PDDC that is necessary for Farm
          up-gradation.

Eligibility:                

·         The applicant should be having his owned/leased Dairy Farm.

·         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 monthly/quarterly installments (Principal only).