AGRI-CLINIC/AGRO-PROCESSING
RULES FOR AGRI-CLINIC / AGRI-BUSINESS CENTRE LOANS
Definition
Agri-Clinics are meant to provide technical advices and other expert services to farmers. Such advices may be on cropping practices, crop protection from pests and diseases, market trend on crops, clinical services on animal health, new technology on agriculture/ agri-allied activities etc.
Agri-Business Centres are meant to provide all types of inputs for agriculture including farm equipments on hire.
Eligibility
Graduates in Agriculture/ and allied (e.g., Horticulture, Veterinary Science, Animal Husbandry, Forestry, Dairy Technology, Poultry Farming, Pisciculture etc.), being members of PACS’ (including LAMPS, FSCS etc.) and Nominal members of the Bank are eligible for such finance.
Maximum Project Cost
Rs.10.00 lac for project by an individual and Rs.50.00 lac for group of five or more. In a group of 5 or more, the ceiling shall remain Rs.50.00 lac, even if one of the Group members is a graduate in disciplines other than Agriculture and the afore-said Agri-allied Scheme.
Margin
The borrower shall have to contribute 30% (thirty per cent) of the Project Cost as his margin and in case of coverage of the scheme under Cedit-linked Capital Subsidy Scheme under Agri-Clinic / Agri-Business Centre (ACABC), no margin will be required.
Security
- Creation of charge through mortgage of land at the project site,if owned or that of an equivalent plot of land if the project site is leasehold / hypothecation of the assets created.
- Liquid collateral security for 20% (twenty per cent) of the loan sanctioned
- Personal Guarantee of two persons acceptable to the Bank apart from that of the borrower.
Repayment period
5 to 7½ years, with maximum moratorium period of 1(one) year.
Other conditions
Along with the application following documents should be obtained:- a) Land records like sale deed, parcha/ mutation certificate, tax receipt etc. and Search-cum-non-encumbrance certificate in respect of the landed property, b) Project economics and the detailed Scheme, technically vetted, and estimate of Civil works and (iii) Quotations for the instruments, accessories etc. to be acquired.
Appraisal and Sanction
All loans of this type shall be appraised by the Branch Manager himself or any official authorized by him with reference to the Loan Manual of the Bank specifically recommended by the Branch Manager/ Manager of the Branch, processed at the Regional / Head Office level and then considered and sanctioned by the appropriate Committee of the Bank duly authorized by the Board of Directors from time to time or by the Board of Directors itself.
Illustrative List of activities which can be undertaken
- Soil / Water Testing Laboratories.
- Pest Control Services.
- Custom Hiring, maintenance, repair of implements.
- Seed Processing Units.
- Units to produce Biofertilizers, bio-pesticides.
- Hatcheries, Apiaries, Food processing units, etc.
- Post harvest management functions like setting up of cool-chain, storage facilities.
- Retail Marketing outlets, etc.
For more information the please contact with the loan department of the bank and its branches.