IOB KRISHI SARAL – (All Agri activities except Food & Agro units)
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Objective
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Security backed scheme for Individuals/firms/companies engaged in agricultural activities to extend hassle free flow of credit.
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Nature and Purpose of Advance
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Working Capital
Term Loan, Fertilizer Dealers, Pesticide Dealers / Distributors / Large Traders dealing in Agri Commodities (Wholesalers / Retailers) Agri Input Manufacturers /Agri Exporters/Other Allied activities like Dairy, Fishery, Poultry, Horticulture, Pisciculture, Bee keeping, Livestock-rearing etc.,/Agri-clinics , individuals/firms/companies wants to maintain fleet of Tractors, power tillers, agricultural equipment to function as Agri business Centre and services supporting these, which promote livelihood or are income generating activities. Individuals/ firms/ companies engaged in Hi-tech Agri activities (subject to availability of requisite qualification, experience and statutory approvals) like Bio-fertilizers, high value integrated poultry, post-harvest management like pre-cooling, processing and preserving of fruits and vegetables etc., Biotechnology - Tissue culture & Hybrid seed production, Floriculture - Cut flower cultivation, Hydroponics, Vertical Farming, High density plantation, Mushroom production, Aquaculture - shrimp aquaculture, Recirculating Aquaculture Systems.
Food and Agro Processing Units are not eligible under this scheme.
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Quantum of Loan
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Minimum - Above Rs. 10.00 Lakh
Maximum - Rs.10.00 Crores
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Eligibility
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Project should generate sufficient income such that loan can be repaid from the financed activity, without relying on other income.
When the loan is to be used for farming/cultivation activity, the proof of land holding must be obtained. However, for loans up to Rs. 25.00 Lakhs backed by liquid securities, a simple declaration from borrower will suffice.
The projects/activities considered under the scheme should have all requisite permissions/licenses/approvals from competent authorities.
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Security
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Prime Security:
Working Capital & Term Loan:
Credit facility should be fully secured by liquid assets such as Life Policies of LIC of India and private companies approved by IRDA, NSC/KVP etc. and /or immovable property.
Collateral Security:
Hypothecation/mortgage of assets created out of the Loan/ Hypothecation of fully paid stock and book debts
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Margin
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Liquid Securities
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Life Policies
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10% (Surrender Value)
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KVP/NSC
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10% (Face Value)
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Term Deposit
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10% (Present Value)
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Immovable Properties
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Properties situated at Metro
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25%(FSV)
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Properties situated at Urban/Semi Urban Areas
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30% (FSV)
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Properties situated at rural areas ##
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40% (FSV)
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##Residential/commercial properties situated in prominent location classified as rural but adjoining to Metro/urban/semi urban centers and found to be highly marketable can be considered by RLCC and above on case-to-case basis subject to provisions of SARFAESI Act are enforceable.
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Repayment
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10 years including moratorium period
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Holiday Period
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Maximum 18 months
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Rate of Interest
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Total Spread |
Total Interest |
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Less than Rs. 2.00 Crore:
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1 Y MCLR |
1.00% |
10.05% |
Above Rs. 2.00 Crore: |
Rating - IOB 1 & IOB 2 |
1 Y MCLR |
1.00% |
10.05% |
Rating-IOB 3 |
1.10% |
10.15% |
Rating-IOB 4 |
1.20% |
10.25% |
Rating-IOB 5 |
1.30% |
10.35% |
Rating-IOB 6 and above |
1.40% |
10.45% |
*1 Y MCLR (9.05% at present) |
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Interest Concession
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If the value of prime security (Forced Sale Value of Immovable property plus value of liquid securities) is more than 200% of the exposure sanctioned under IOB KRISHI SARAL scheme, a concession of 1.00% can be extended on applicable interest rates.
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Processing charges
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Processing charges @ 200 per lakhs or part thereof (maximum Rs. 1.00 Lakhs) + GST to be collected for cash credit and NFB limits.
Upfront fees @ 0.71% of term loan amount (maximum Rs. 3.55 Lakhs) + GST to be collected.
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