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Objective
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Lending to Farm credit including Allied activity, Agriculture infrastructure & Ancillary activity (Except Food & Agro activity).
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Target Group
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Individuals, Proprietary concern, Partnership Firm, Private limited company, Public limited company, LLP, OPC etc
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Purpose
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· Working Capital - Financing for stocks/receivables /other operational expenditures.
· Term Loan - Purchase of fixed assets such as machineries, equipment, construction of factory/ warehouse/ cold storage/ poly house/ rural godown/ office and its interior decoration & furnishing/installation of solar systems etc., purchase of Commercial vehicles/ tractors / power tillers, setting up Food and Agro processing units, Agri Clinics/Agri Business Centre's, Agri-infrastructure projects.
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Amount of Loan
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- Minimum- Above Rs. 10.00 Lakh,
- Maximum- Rs.10.00 Crores
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Security
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Prime Security:
Liquid assets such as Life Policies of LIC of India and private companies approved by IRDA, NSC/KVP etc. or immovable property.
Collateral Security:
Working capital (FB & NFB): -
Hypothecation of fully paid stock and book debts. Branch to conduct unit visit on quarterly basis to ensure that unit is functioning.
Term Loan: -
Hypothecation/mortgage of assets created out of the Term Loan.
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Rate of Interest
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Refer - Interest Rates at a Glance (Click here)
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Repayment Period
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10 years including moratorium period (Monthly, Quarterly, Half yearly and annually based on the activity undertaken).
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Holiday
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· Maximum 18 Months
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For other details, please contact your nearest IOB branch.
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