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Agri & Rural

Last Updated on: 24/05/2024


Category Particulars

Name of the Scheme

IOB Krishi Vriddhi Plus


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.


Priority Sector - Ancillary services- Food & Agro Processing Units

Target Group

Individuals, Proprietary Concern, Partnership Firm, Private Limited Company, Public Limited Company, LLP, OPC etc. No JLG/SHG/FPO's will be financed under this scheme.

Nature of Facility

Term Loan & Need based Working Capital (FB & NFB)


  • Project should generate sufficient income such that loan can be repaid from the financed activity, without relying on other income. While the desirable debt service coverage ratio would be above 2:1, average DSCR of 1.5:1 and minimum DSCR of 1.2:1 can be accepted on merits. However sanctioning authority RLCC and above are permitted to relax the benchmark on merits of the case and the same to be properly justified in the appraisal note.
  • The projects/ activities considered under the scheme should have all requisite permissions/ licenses/ approvals from competent authorities wherever applicable.
  • Need based working capital facility to be considered

Loan Quantum

No Minimum & No Maximum


Minimum 20% irrespective of the quantum. However, RLCC and above can consider reduction in margin up to 15%


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, however relaxation in collateral coverage can be considered by the following committees:

- RLCC Can Relax Collateral Coverage Up to 75%

- HLCC(GM) can Relax Collateral Coverage up to 60%

- HLCC(ED) can Relax Collateral Coverage up to 40%

- CAC can Consider Relaxation in Collateral Coverage below 40%


10 Years including Moratorium Period

Monthly/Quarterly based on the Activity undertaken

Holiday Period

Maximum 36 Months

Interest Rate

Rate of Interest

Less than Rs. 1.00 Crore

1 Year MCLR + 0.90%

Above Rs. 1.00 Crore

Rating - IOB 1 & IOB 2

1Y MCLR + 0.80%

Rating - IOB 3

1 Year MCLR + 1.00%

Rating - IOB 4

1 Year MCLR + 1.40%

Rating - IOB 5

1 Year MCLR + 1.80%

Rating - IOB 6 and Above

1 Year MCLR + 2.20%

Externally Rated Accounts:

External Rating Rate of Interest


1 Year MCLR + 0.80%


1 Year MCLR + 0.90%


1 Year MCLR + 1.20%


1 Year MCLR + 1.35%

Penal Interest

As applicable from time to time



Personal Guarantee of the promoters, all partners in case of partnership firm / LLP, all whole-time directors in case of companies (other than independent/ professional directors) and owners immovable property/ liquid security to be obtained.

Processing charges/upfront fees

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.