IOB KRISHI VRIDDHI PLUS – (Special Credit Scheme for Food & Agro units)
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Objective |
Need based credit scheme exclusively for Food & Agro processing units |
Nature and Purpose of Advance |
Working Capital - Financing for stocks/ receivables /other operational expenditures for Food and Agro processing units alone.
Term Loan - For acquisition of fixed assets/ plant & machineries/ vehicles/ furniture and fixtures/ setting up /expansion/modernization of Food and Agro processing units.
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Quantum of Loan |
Minimum - No Minimum Maximum - No Minimum |
Eligibility |
Project should generate sufficient income such that loan can be repaid from the financed activity, without relying on other income.
The projects/ activities considered under the scheme should have all requisite permissions/ licenses/ approvals from competent authorities wherever applicable.
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Security |
Credit facility under this scheme can be considered with CGTMSE coverage as per the CGTMSE guidelines.
In all other cases:
Up to Rs. 1.60 Lakhs
Prime security:
Hypothecation/mortgage of assets created out of bank finance
Collateral Security: Nil
Above Rs.1.60 Lakhs
Prime Security:
Hypothecation/mortgage of assets created out of bank finance.
Collateral Security:
Mortgage of Immovable property/any other security acceptable to bank.
-Overall collateral coverage should not be less than 100% of loan amount.
Relaxation in collateral coverage is permitted on case-to-case based on discretionary power.
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Margin |
Minimum 20% irrespective of the quantum. Relaxation in margin is permitted on case-to-case basis based on discretionary power. |
Repayment |
Maximum 10 years including moratorium period |
Holiday Period |
Maximum 36 Months |
Rate of Interest |
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Total Spread |
Total Interest |
Less than Rs. 1.00 Crore: |
1 Year MCLR |
0.90% |
9.95% |
Above Rs. 1.00 Crore: |
Rating - IOB 1 & IOB 2 |
1 Year MCLR |
0.80% |
9.85% |
Rating-IOB 3 |
1.10% |
10.15% |
Rating-IOB 4 |
1.50% |
10.55% |
Rating-IOB 5 |
2.10% |
11.15% |
Rating-IOB 6 and above |
2.35% |
11.40% |
*1 Year MCLR (9.05% at present) |
Externally Rated Accounts:
| External Rating |
Benchmark |
Total Spread |
Total Interest |
AAA |
1 Year MCLR |
0.80% |
9.85% |
AA |
1 Year MCLR |
0.90% |
9.95% |
A |
1 Year MCLR |
1.20% |
10.25% |
BBB |
1 Year MCLR |
1.35% |
10.40% |
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Interest Concession |
Interest concession can be considered on case to case based on the merits depending upon the discretionary power of sanctioning authority.
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Processing Charges |
Processing charges @ 0.40% of limit + GST to be collected for cash credit and NFB limits.
Upfront fees @ 0.71% of term loan amount + applicable GST to be collected.
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