Objective:

To provide hassle free credit to milch cattle owners/dairy operators. Finance to small dairy units subject to maximum 10 animals.

Eligibility

• Individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups of individual farmers engaged directly in dairy activities.
• Dairy owners can also be financed against receivables from Milk unions/Co-operatives/Big Dairies on production of satisfactory proof.
• Corporates Farmers, FPOs/Companies of individual farmers, Partnership Firms, Co-operatives of farmers directly engaged in agri&agri allied activities.

Purpose

• To finance for purchase of milch cattle and purchase of machines, utensils, construction of sheds (term Loans) and working capital limits for purchase of fodder, transportation of milk, veterinary needs etc

Nature of Facility

• Term Loan
• Working Capital (If applied for Term Loan Only) In case of availing only term loan, the one month operating expenses should be capitalized in project cost.

Quantum of loan

As per NABARD guidelines subject to economical viability of the project.

Margin

• Up to Rs.1.60 lakh: Nil.
• Above Rs.1.60 lakh : minimum 10%

Security

• Loans up to Rs.1.60 lakh –

Hypothecation of asset created out of bank finance.

• Loans above Rs.1.60 lakh-
• Hypothecation of asset created out of bank financeand;
• Mortgage of land (Accepted value of land should not be less than  100% of loan amount) &/ or third party guarantee (means should not be less than 100% of loan amount).

Repayment period

Maximum 84 months including moratorium period of maximum six months.

Forms & Documents

Appropriate DPN note, Deed of Guarantee, Letter of continuity,  Hypothecation agreement, Mortgage deed ,Letter of general lien and setoff, Undertaking from borrower /Guarantor for disclosure to CIBIL , Declaration/undertaking for Agriculture advance and any other document stipulated in sanction.

Eligibility

• Individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups of individual farmers engaged directly in dairy activities.
• Dairy owners can also be financed against receivables from Milk unions/Co-operatives/Big Dairies on production of satisfactory proof.
• Corporates Farmers, FPOs/Companies of individual farmers, Partnership Firms, Co-operatives of farmers directly engaged in agri&agri allied activities.

Purpose

• To finance for purchase of milch cattle and purchase of machines, utensils, construction of sheds (term Loans) and working capital limits for purchase of fodder, transportation of milk, veterinary needs etc
• Finance to commercial dairy units subject to commercial unit has more than 10 animals.

Nature of Facility

• Term Loan
• Working Capital

Quantum of loan

As per NABARD guidelines subject to economical viability of the project.

Margin

• Term Loan: Minimum 10%
• Working Capital: Minimum 25%

Security

• Primary security: Hypothecation of asset created out of bank finance.
• Collateral security: Mortgage of land/other property owned by the farmer/guarantors (Accepted value of land/other property should not be less than 100% of loan amount).
• Guarantee: 3rd party guarantee with sufficient means (means should not be less than 100% of loan amount).

Repayment period

Maximum 84 months including moratorium period of maximum six months.

Forms & Documents

Appropriate DPN note, Deed of Guarantee, Letter of continuity, Hypothecation agreement, Mortgage deed, Letter of general lien and setoff, Undertaking from borrower /Guarantor for disclosure to CIBIL, Declaration/undertaking for Agriculture advance and any other document stipulated in sanction.