RULES FOR MEDIUM TERM FISHERY LOANS
What is Fishery or Pisciculture ?
As per explanation provided under Clause (a) of Section 2 of the National Bank for Agriculture and Rural Development Act, 1981, Pisciculture means and includes development of fisheries, both inland and marine, catching of fish and all activities concerned therewith or incidental thereto. Rearing or culture of fish and catching of fish is collectively called Fishery. Fish can grow and can be grown in Marine water (sea), fresh water (Inland/sweet water and Brackish water (confluence of sea water and river).
Fishermen’s Co-operative Societies, PACS, members of PACS or Fishermen’s Co-operative Societies, owning or holding lease of inland water bodies are eligible for finance. Upto 5 ha.of vested Khas ponds/ beels / jheels (Govt.-owned water bodies) are being leased out by Gram Panchayats/ Panchayat Samities to fish farmers/ Fishermen’s Co-operative Societies for a period of 3 to 5 years. Above 5 ha. vested Khas Pukur (Govt. water bodies) are being leased out by Additional District Magistrates of Land & Land Reform to fish farmers/fish co-operatives upto a period of 3 to 5 years.
Amount of Finance
Generally Schemes of Short-term fishery, Brackish Fishery, Paddy-Cum- Pisiculture, Behri-Fishery, Fish seed Hatchery ,Pawn Hatchery(Fresh/brackish),fish seed Hatchery, Pawn-Hatchery, Fish processing units, Marine fishery etc. may be considered for finance as per scheme vetted by the District Fishery Officer / Fishery Development Officer or any institute with technical competence duly accredited by the Government of West Bengal.
In case of inland fishery, finance can be provided for the following purposes: Term loan for excavation/ renovation/ reclamation of ponds/ water bodies and short term loan for working capital for rearing of fish.
30% (thirty per cent) of the Project cost shall be born by the borrower. A member society shall have to purchase requisite “C” Class Share for the loan.
(i) Legal / equitable mortgage of the land / waterbody to be financed and if the same is lease-hold, mortgage of an alternative landed property of at least equal value. (ii) Liquid Collateral Security @ 10% of the loan amount sanctioned and (iii) hypothecation of stock of inputs and fish produced.
Rate of interest
As may be decided by the Bank from time to time
The borrower should arrange for insurance cover for the full loan amount under comprehensive policy with agreed Bank Clause. The expiry of the policy should be diarised and the arrangement should be made to get the policy renewed well before the date of expiry.
Term loans for excavation of pond is repayable in 3-5 years on half-early/ annual instalments) with grace period of 11 months from the date of release of fingerlings. In case of renovation / reclamation the repayment period Working Capital advances are repayable within one year.
Along with the application following documents should be obtained:-
a) Land records like sale deed, parcha/ mutation certificate, tax receipt etc., and Search-cun-non-encumbrance certificate in respect of the land under possession and b) Project economics with technically vetted Scheme, including the estimate for civil construction (if any).
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