Kissan Dost Cold Storage Finance Facility


Particulars Bank’s Policy
Purpose The purpose of this loan is to establish compartmentalized cold storage units where perishable Agri commodities can be stored for a longer duration to obtain a year round supply, reducing post-harvest losses.
What is Eligibility Criteria
  • A genuine farmer
  • Should have a suitable land to establish a compartmentalized cold storage
  • Should not be a defaulter of any other Bank and the land under cultivation should be free from all encumbrance.
  • Age Limit: 21-65 years (till maturity)
Amount of Facility Maximum Rs. 50 Million
The facility shall be provided keeping in view the cash flows of the borrower in order to justify the requested amount of finance and secure the bank’s interest.
Markup For D/F & L/F (Term Loan Facility): 15% P.A. Fixed rate
For R/F (Running Finance Facility): 03 M KIBOR + 500 BPS
Security
  • Leased assets (Purchase receipts of other equipment’s/machinery in the name of the Bank)
  • Site will be mortgaged with BOP
  • 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 an individual having adequate tangible net worth.
  • Two written satisfactory market verified reports.
Tenure of Facilities
  • 5 Years from the date of disbursement (in case of D/F & L/F)
  • 1 year from the date of disbursement (in case of R/F)
Loan Repayment
  • Demand Finance Facility – 18 equal quarterly installments (Principal Markup)
  • Lease finance Facility – 20 equal quarterly installments (Principal Markup)
  • Running Finance Facility - markup will be recovered on quarterly basis
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This page last updated on: August 31, 2017 2:17:19 PM
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