PRODUCT FEATURES OF LOANS FOR FINANCE TO FARMER PRODUCER COMPANIES
Type of Facilities:
Agri Term Loan
Credit Guarantee by SFAC: Credit Guarantee Cover: SFAC will also provide Credit Guarantee Cover to the extent of 85% of the sanctioned limit, to FPCs enjoying aggregate credit limits of up to Rs1.00 cr provided the loan is sanctioned without obtaining any third party guarantee or collateral security.
Quantum of Loan :No maximum loan limit.
Margin :20% of project cost, unless otherwise stipulated in the Scheme for the activity for which the loan is being availed.
Repayment :Repayable in 10 years, unless otherwise prescribed in the scheme for which activity /the loan is solicited.
Security :Collateral: No collateral security is to be obtained other than charge on other movable / immovable assets of the Company where Guarantee cover from SFAC (Small Farmer’s Agri Consortium ) is obtained to the extent of 85% of eligible sanctioned limit.
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.
Interest rate is linked to One Year MCLR + spread as determined by Bank from time to time.
Interest concession of 50 bps on the card rate to FPCs financed under Credit Guarantee Scheme of SFAC.
Interest concession of 100 bps on the card rate to FPCs financed under tie-up where forward linkage for sale and deposit of sale proceeds through our Bank’s account.
Processing Fee & Other Charges
Processing Fee : 0.30 % of the loan amount + GST
SFAC Fee : One time Guarantee Fee @0.85% of the sanctioned Credit Facility, subject to a maximum of Rs.85,000/-.; plus an annual Service Fee of 0.25%