Finance To Farmer Producer Companies

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Finance To Farmer Producer Companies

PRODUCT FEATURES OF LOANS FOR FINANCE TO FARMER PRODUCER COMPANIES

Features

  • Type of Facilities:
    • Agri Term Loan
    • Cash Credit/OD
    • Demand 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.

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.

Interest Rate

  • 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%

Last Updated On : Friday, 09-04-2021

Interest Rates

8.50%* p.a.

w.e.f. 09.03.2023

*T&C Apply.

 

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