Finance To Farmer Producer Companies

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Finance To Farmer Producer Companies
  • Features
  • Eligibility

PRODUCT FEATURES OF LOANS FOR FINANCE TO FARMER PRODUCER COMPANIES

Features

  • Interest rate:
    • Loan up to Rs.50 lakh: One-year MCLR+ 3.60%.
    • Loan Above Rs. 50 lakh:-As per Bank Guidelines.
  • Credit Guarantee Cover: Availability of NABSanrakshan Guarantee Cover for Loan upto Rs 2 Crores.
  • Quantum of Loan: Rs 1 lakh – Rs 5 crores
  • Collateral Security: 
    • For loans covered under NABSanrakshan Credit Guarantee cover: NIL
    • For loans not covered under Credit Guarantee cover:
      • Upto 1.6 Lakhs – No Collateral / TPG is required.
      • Above 1.6 Lakhs and below 50 Lakhs – Registered / equitable mortgage of land / immovable properly for minimum 25% of credit exposure is required which will be in the name of the FPO.
  • Processing Charge: NIL

Eligibility

  • The Company should have a minimum equity of Rs.5 lacs
  • Minimum 33% of FPC shareholders (numbers) should be small, marginal, landless or tenant farmers.
  • FPC have been in operation for at least 2 years.
  • FPC have no accumulated losses of the previous years.
  • FPC to prepare loan proposal backed by appropriate resolution and borrowing powers.
  • Special dispensation for newly incorporated Companies.
  • FPCs which have not completed two years of operation, are permitted to avail the following loans:
    • a. Produce Marketing Loans against the pledge of Warehouse Receipts.
    • b. Loan against specified security /gold ornaments/time deposit receipts of the bank.

Last Updated On : Tuesday, 18-04-2023

Interest Rates

8.50%* p.a. onwards

w.e.f. 05.04.2024

*T&C Apply.

 

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