agro processing unit

• Eligibility

  Eligibility

  Loans for food and agro processing will be classified under Agriculture up to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system. (Advances to Rice Shelling & Cotton Ginning Sectors are not covered under the Scheme).

• Finance

  Nature of facility	Term Loan / Working capital limits ,( Fund based/ Non fund based)
  MPBF Calculation	Limits up to ₹5.00 Crores shall be computed on the basis of 20% of their realistic projected turnover subject to the condition that a minimum margin of 5% of turnover shall be brought in by the promoters/borrowers as their own contribution. However, wherever the nature of business activity so warrants, the branches may apply traditional method of lending (based on holding levels of Inventory, receivables and Creditors) and sanction need-based limits. # The MPBF system (traditional method) shall continue to be followed for all borrowers with working capital limit above ₹5.00 Crores. Term Loan: 80% of Project Cost
  Delegation Power	As per delegated powers/ Discretionary powers
  Process Fee	75% of normal charges as per latest service Charges Chart of the Bank, However, No process fees shall be charged for credit limits upto ₹5.00 lacs to MSE borrower.
  Other Condition	The Scheme covers unit engaged in Manufacturing/ Processing / Preservation activities. Trading / warehousing activity is not covered under the scheme.

• Security/Margin

  Primary Security	Assets created out of the loan.
  Coll. Security / Security Coverage	Mortgage (Registered or Equitable) of factory land and building and / or any other property (Land & Building) belonging to promoters or in the name of Guarantors, viz. Proprietor/ Partners/Directors/or in the name of the firm/company or Guarantor. # Personal guarantee of directors and owners of property offered as collateral security.
  Margin	Term Loan : 20% , Working Capital: 25%

• Rate of Interest and Repayment

  Repayment Period/ Term	As per the requirement of the borrower / Guidelines of the Bank.
  ROI	Based on Collateral Coverage Rate of Interest 100% or Above RBLR+1.10% Less than 100%-upto75% RBLR+1.35% Less than 75% -upto 50% RBLR+1.60% Less than 50%-upto30% RBLR+1.85%

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*Collateral Below 30%-Rate of Interest For advances having below 30% collateral coverage, the ROI shall be charged as applicable to MSME loan based on internal credit rating.