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.

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.

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.

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

Externally Rated Accounts:

Interest Concession

Interest concession can be considered on case to case based on the merits depending upon the discretionary power of sanctioning authority.

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.