Objectives

• To help increasing of milk and meat processing capacity and product diversification

Eligible Borrowers

• Farmer Producer Organization(FPO)
• Private companies
• Individual entrepreneurs
• Section 8 companies
• Micro, Small and Medium Enterprises

Eligible Projects

• Dairy Processing:
• Value added dairy product manufacturing:
• Meat processing and Value addition of facilities:
• Eligible Entities (EE) can also avail benefit for establishment of Animal Feed manufacturing and strengthening of existing units/ plant .

Nature of limit

Term Loan

Quantum of Loan and Margin Money/ Beneficiary Contribution

• The project under the AHIDF shall be eligible for loan up to 90% of the estimated/ actual project cost on submission of viable projects by eligible beneficiaries.
• The beneficiary contribution in case of Micro and Small units as per MSME defined ceiling should be 10%, while in case of Medium Enterprises as per defined MSME ceiling, beneficiary contribution should go up to 15%. The beneficiary contribution in other categories of enterprises should go up to 25%.
• The EE will submit the proposal with complete DPR through “Udyami Mitra” Portal developed by Small Industries Development Bank of India (SIDBI).
• The Schedule Bank after due appraisal and sanction of the project will forward the application/ project to the Department of Animal Husbandry and Dairying for approval of interest subvention through online mechanism.

Security

• Primary Security:

Hypothecation of assets created out of Bank finance, mortgage of land & building for which credit facilities has been extended

• Collateral Security: mortgage of land & building, pledge of specified financial assets etc as per Bank’s policy guidelines.

Personal Guarantee

Personal guarantee of the Proprietor, Partners of the Firm, Directors of the company and of owners of collateral security.

Repayment period

• Maximum repayment period should not exceed 10 years from the date of first disbursement inclusive of moratorium of 2 years on repayment of principal.

Credit Guarantee Coverage

Credit Guarantee Coverage will be available only for those projects which are viable and are covered under MSME defines ceilings and guarantee coverage would be up to 25% of the credit facility available to the borrower.
The Credit Guarantee will not be provided to Other beneficiaries who are not covered under MSME norms, however, those EEs will be eligible to get Interest subvention.

Interest Subvention

Loans under this financing facility are eligible for interest subvention of 3% per annum.

Security documents

Appropriate DPN note, Term loan agreement ,General Term loan agreement ,Letter of continuity, Letter of general lien and setoff , CIBIL undertaking , third party guarantee , letter of undertaking not to alienate hypothecated goods , Mortgage deed and any other document stipulated in sanction.