Model Dairy Farms (PDDC)
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 monthly/quarterly
installments (Principal only).