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potato seed growers

  • Eligibility
    Eligibility
    • Seed growers, who are not defaulters of any Financial institutions/Banks.
    • The grower should have minimum experience of 3 years in potato seed growing.
    • The minimum experience of 3 years in potato seed growing may be exempted in case of agriculture graduates.
    • The growers owning land or land taken on lease verbal (as approved by the Board vide Resolution No. CR-9 dated 07.07.2004) or written, shall be accepted for finance. The written agreement (Pattanama) directly between the seed grower and the land owner, without registration with the revenue authority shall be accepted. It is pertinent to mention that most of the seed production is done on the leased land. Normally, the minimum size of seed farms managed by single grower is 100 Acre. Many big growers are managing more than 1000 Acres.
    Purpose

    The loan for cultivation of seed potato shall be extended to the existing seed growers to promote expansion of their activity

  • Finance
    Nature of facility
    • Term Loan – For the farm machinery and for cold storage units, the financed shall be provided by way of term loan.
    • Working Capital – For meeting seed cultivation requirement the facility shall be allowed by way of Cash Credit. In case of small growers the facility may also be allowed under Oriental Green Card Scheme as per guidelines issued on the subject product.
    • Demand Loan – For credit extended to outsourced farmers for seed multiplication
    Loan amount

    The loan amount will be decided based on cost of the project. There may be three components. One, for cultivation of seed. Two, for purchase of farm machinery. Third, for setting up of cold storages.

    Process Fee

    The loan amount will be decided based on cost of the project. There may be three components. One, for cultivation of seed. Two, for purchase of farm machinery. Third, for setting up of cold storages.

    Process Fee
    Up to ₹ 25000.00 Nil
    Above ₹ 25000.00 up to ₹ 2.00 lacs ₹ 400.00
    Above ₹ 2.00 lacs up to ₹ 10.00 lacs ₹ 300.00 per Lac or part thereof
    Above ₹ 10.00 lacs ₹ 100.00 per Lac subject to minimum of ₹ 3000.00 & maximum of ₹ 25 lacs
    Finacle Scheme Code

    TL701, CC401

  • Security and Margin
    Primary Security Coll. Security / Security Coverage

    Up to ₹ 1.00 lac : Only Primary Security i.e. Hypothecation of Crops/Assets created by Bank Finance .

    Above ₹ 1.00 lac and up to ₹ 2.00 lac
    • Hypothecation Of Crops/Assets created by Bank Finance
    • Mortgage of Land/Property minimum equal to the amount of loan. OR 3rd party guarantee of adequate net worth acceptable to the Bank
    Above ₹ 2.00 lac
    • Hypothecation of Crops/Assets created by Bank Finance
    • Mortgage of Land/Property minimum equal to the amount of loan
    Margin

    Up to ₹ 1,00,000/- Nil ,
    Above ₹ 1,00,000/- 15%*

  • Rate of Interest and Repayment
    Repayment Period/ Term

    T/L : The term loan portion for farm machinery shall be repayable over 5 to 7 years, after a moratorium of up to 18 months. For cold storage term loan, a repayment period of 9 to 11 years may be prescribed after a moratorium of up to 24 months.

    Working Capital: The operation in Cash Credit/OGC would continue normally as running account. The production and sales cycle in case of potato seed is 12 to 18 months. The seed multiplication starts in October and it is harvested during the following March. The seed is required to be stored until the next sowing season. Thereafter, 6 months period is needed for realization of dues. Thus, in all there is a cycle of about 18 months. The CC account circulation will take 18 months instead of usual 12 months. Accordingly, the term of sanction of Cash Credit limit will be upto 18 months.

    D/L : In case of Demand Loan the repayment period shall be maximum 12 months or commencement of cash generation whichever is earlier

    ROI

    RBLR +0.85%

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