agro processing unit

  • 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.
    • 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.

    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.

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