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Farmers Producers Organization (FPO)/ Farmer Producer Companies (FPCs).

Loan Application Form

Purpose

To meet the credit requirements of the Farmer Producer Companies / Organizations in the form of term loans to create assets and working capital loan to meet the recurring expenditure.

Eligible Activities

Loan facilities may be considered for any agriculture based activities by the FPC/FPO benefitting there farmer/member.

Eligibility

  • FPOs engaged in agriculture, horticulture, dairy, sheep rearing, fisheries, etc. are eligible for bank loan.
  • FPO incorporated/ registered either under Part IXA of Companies Act or under Co-operative Societies Act (including Mutually Aided or Self-reliant Cooperative Societies Act) of the concerned State.
  • Incorporated at least six months prior to submission of application & at least have one audited balance sheet (Relaxed norms for first year FPOs under CSS/other schemes).
  • For purchase of medical equipments,surgical instruments, diagnostic tools including X-Ray, CT Scan, etc. and office equipments including OT equipments, computers, UPS, air conditioners, etc.
  • FPO with a minimum farmer-shareholder size of 300 shall be eligible under the scheme in plains, while in North-Eastern and Hilly areas* (including such other areas of UTs), size of 100 shall be eligible in Agriculture and Horticulture. For FPOs engaged in dairy, sheep rearing, fisheries, etc minimum shareholder size will be 50.

    • *Hilly area means area at a height of 1000 meter or above MSL (All districts of J&K and Ladakh are included under Hilly area)

  • Minimum Rs. 2 Lakh of Share capital with positive Net worth
  • No default to any organization and applicable legal requirements (GST/TIN/Licenses etc.)
  • A regular CEO in place
  • Business plan at least for the next 18 Months.
  • The PO should fall under ‘A’ or ‘B’ or C+ Category (i.e above 65 Score) of POs based on prescribed rating tool, attached herewith as Annexure-II.
  • Comply with KYC/AML norms and should not barred from undertaking any business under any of acts.

Nature of Loan Facility

  • Term Loan and/or Working Capital

Quantumof Loan

Maximum Loan Amount upto Rs200.00lakh, to the extent below;

Time period Quantum of loan
Age up to 2 years from date of incorporation (For Start-up POs) Up to 5 times of net worth
Age more than 2 years from date of incorporation & Turnover in excess of Rs.25 lakh in the preceding year or average of preceding
three years (Matured POs)		 Up to 10 times of net worth
Age more than 2 years from date of incorporation & Turnover in excess of Rs.100 lakh in the preceding yearor average of preceding
3 years (Potential POs)		 Up to 20 times of net worth

Margin

Term Loan/ Cash Credit: Minimum 25%

Security

  • Primary: Hypothecation/Mortgage of assets created out of bank loan.
  • Collateral: No collateral security shall be obtained in case the loans are covered under credit guarantee scheme(As it is covered under Credit Guarantee Facility maintained at NABS anrakshan Trustee Pvt. Ltd.); else,
  • For Aggregate exposure upto Rs.10.00 lakh:- Third party guarantee of at least 02 persons with sound financial position/net worth to withstand the liability guaranteed
  • For Aggregate exposure above Rs.10.00 lakh:-MortgageofImmovablePropertyhavingDSVnotlessthan100% of the loan amount or Collateral security by way of tangible securities such as Bank’s own deposits, NSCs/ KVPs, LIC policies (having surrender value) equivalent or more than 100% of the loan amount. In addition to above, wherever applicable, Personal Guarantee from the Promoters/Directors/Governing Body of FPO and owner/s of the Collateral Security offered for Mortgage/Pledge/Lien/Assignment should also be obtained.

    • Credit Guarantee Fee (To be borne by the borrower)

  • @ 0.75% of the credit facility up to and including Rs. 1.00 Crore Project Loan.
  • Up to @ 0.85% of credit facility above Rs. 1.00 crore and up to Rs. 2.00 crore project loan sanctioned by the ELIs.

Assessment of Maximum Permissible Finance

NeedBased assessment of loan shall be done as per the following:

    For Crop Loans:

  • As per land holding and Scale of Finance of respective UTLBC. For crop loans, land holding records/details of all members of FPO/FPC should be obtained for assessment of the crop loan limit.

    • For Working Capital Finance (Other than crop loan):

  • 20% of projected Annual Sales Turnover

    • For Agri-Based Projects Finance:

  • Maximum 75% of the Total project cost as per DPR prepared by a CA/Consultancy

Repayment

  • Crop loans shall be repaid as per KCC guidelines.
  • 2Working capital component shall be initially valid for a period of one year & subject to annual review there after
  • Repayment of Term loan will be as per the plan described in the DPR/ Projected Financials. However, the Door to Door Tenor of the Loan should not exceed 84 Months with max. moratorium of 12 months.

Up front Processing Fee

  • For Fresh Facility :0.25% of loan amount Plus GST.
  • For Renewal of Existing facility: 0.10% of thel imit Plus GST In case of enhancement, the enhanced portion will attract the same charges asapplicable to the fresh limits.