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  • July 10,2020
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seed processing unit

 
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  • Eligibility
    Eligibility

    Seed producers/processors engaged in the activity of seed production for the last (at least) 3 years. However, in case an Agriculture graduate wishes to set a seed production plant/unit, the condition of past experience may be dispensed with
    Purpose

    To establish seed processing unit.
  • Finance
    Nature of facility
    • Term loan for financing items of investment.
    • Cash credit for working capital limit
    • Demand Loan for credit extended to outsourced farmers for seed multiplication.
    • Finance may be provided on the basis of crop loans when an added mark up of 25% to 35% over and above the existing scale of finance prescribed for the area. For this purpose, OGSs and/or OKGCs may be issued. The additional finance may be permitted keeping in view the higher cost of cultivation mainly due to higher labour for cultivation for the seed purpose.
    Delegation Power

    As per Discretionary Power Chart - applicable to Agriculture Advances
    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
  • Calculation of MPBF
    Calculation of MPBF
    1. Area under seed crop (hectares as per list submitted by the producer to seed certifying agency) = XX hectare
    2. Average yield (@ e.g. 35 to 40 qtls. Per hectare in case of wheat) = XXX quintal
    3. Value of stocks (Multiply production by average purchase price depending upon the brand) = `XX
    4. Add credit extended to outsourced farmers (cost of seed, supervision and certification charges) = `XX
    5. Total inventory cost (1+2+3+4+) = `XX
    6. Less advance received from buyers/agents = `XX
    7. Total working capital requirement (5-6) = `XX
    8. Less margin @ 25% (calculated at 20%) = `XX
    9. MPBF (7-8) = `XX
  • 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
    This stipulation shall not apply to "Oriental Green Card" & "Oriental Kissan Gold Card"
    Margin

    15%, in case of Term Loan ,25%, in case of Working Capital (CC/DL)
  • Rate of Interest and Repayment
    Repayment Period/ Term

    Term Loan The term loans for the seed processing plant/farm machinery/equipment shall be over a period of 5 to 9 years based on projected profitability and realistic assumptions. The installment will be on half-yearly interval after an initial moratorium of 6 to 12 months depending upon the case.
    Cash Credit The tenure of CC would be one year. CC limit would be renewed every year.
    Demand Loan The repayment of the advances under the scheme shall be maximum upto 12 months or commencement of cash generation whichever is earlier.
    ROI

    RBLR+0.85% 
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