IOB KRISHI SARAL

Q1. What is the objective of the scheme?

Ans: The objective of the scheme is lending to Farm credit including Allied activity, Agriculture infrastructure & Ancillary activity (Except Food & Agro activity)

Q2. Who are the eligible target groups & target markets under the scheme?

Ans: Target markets : Fertilizer Dealers, Pesticide Dealers, Distributors/ Large Traders dealing in Agri commodities (wholesalers/ retailers), Agri Input Manufacturers/ Agri Exporters/ Other allied activities.

Target groups: Individuals, Proprietary concern, Partnership Firm, Private limited company, public limited company, LLP, OPC, FPOs etc.

Q3. What is the purpose of the scheme?

Ans: 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.

Q4. What are the eligible guidelines for availing loan under the scheme?

Ans: The project/ activities considered under the scheme should have all requisite permissions/ licenses/ approvals from competent authorities.

• Desirable DSCR would be 2:1, average DSCR: 1.5:1 and minimum DSCR 1.2:1 can be accepted on merits.
• The proof of land holding is required for loans used for farming/ cultivation activity. However, for loans up to Rs.25.00 lakhs backed by liquid securities, a simple declaration from borrower will suffice.
• For agriculture loans to allied sector/ Agri Infrastructure and ancillary activities, agriculture land records may not be insisted upon.

Q5. What is the minimum and maximum loan amount that can be availed under the scheme?

Ans: Minimum: Above Rs.10.00 lakhs and Maximum: Rs.10.00 crores

Q6. What are the margin requirements?

Ans:

Life Policies: 10% of Surrender Value.

KVP/NSC: 10% of Face Value.

Term Deposit: 10% of present value.

Immovable Properties:

Metro: 25% of FSV, Urban/ Semi Urban: 30% of FSV and Rural areas: 40% of FSV.

Q7. What is the maximum holiday period and loan repayment period under the scheme?

Ans: 10 years (Door to door tenor) including moratorium period (Monthly/ quarterly/ Half yearly/ Yearly. Maximum Moratorium period is 18 months.

Q8. What are the security requirements?

Ans: Prime Security: Liquid Securities/ Immovable Property

Collateral Security: Hypothecation of Stocks/ Assets or mortgage of asset created out of our loan amount.