Finance To Farmer Producer Companies - Agri & Rural

Eligibility

FPOs must be a legal entity registered with any of the following:

• The State Cooperative Societies Act of respective state
• Mutually aided society act of respective state.
• Multi State Cooperative Society Act 2002.
• The FPCs registered under Companies Act 1956/2013.
• It should have a minimum member base of 300.
• The FPOs should have been in operation for at least 12 months.

Interest Subvention

No interest subvention is applicable under this product

Security

• Primary: Hypothecation of plant, machinery, stocks, receivables, etc. and other movable assets created out of Bank’s finance. Present and Future.

• Collateral Security: NIL up to Rs. 10 Crores where credit Guarantee Cover is availed.

• Without Credit Guarantee Cover:
  • NIL for Loans up to 1.60 lakhs.
  • For Loans above Rs 1.60 lakhs: Mortgage of SARFAESI Compliant property having market value not less than 40% of the limit sanctioned

Insurance

Assets, created out of Bank’s finance must be comprehensively insured till the loan is repaid in full

FAQs

For more details, please visit nearest SBI Branch.