Loan to FPO/FPC

​Purpose

To Provide Loan to FPO/FPC for Agriculture Farm credit, Investment, ancillary and allied activities.

Type of Facility: 

• Fund Based:
  • Term Loan
  • Cash Credit
• Non-Fund Based:
  • Bank Guarantee

Interest Rate:

Upto Rs. 25.00 Lakh:  Base Rate + 1.25%
Above Rs. 25.00 Lakh:  to Rs 25 crores Base Rate +0.25 %

Eligibility

All registered FPOs/FPCs with a minimum of 6 months' operational history

Limit & Repayment

• Limit: Above Rs.10.00 Lakh up to Rs.25.00 Crores
• Repayment: Repayment period of maximum 7 years including moratorium period

Security

• Primary Security: Hypothecation / Mortgage of asset created out of Bank finance.
• Collateral Security:
  • For Existing Borrowers: Minimum 40% Collateral Security of the total exposure i.e. existing plus enhanced combined.
  • For New Borrowers: Minimum 50% Collateral Security of the total exposure