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Image  Financing Farmer Producer Companies (FPC)/ Organization (FPO)


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

Nature of limit

  • Term loans for investment purpose
  • Working capital.
  • Composite loan comprising of both working capital and term loan requirements.


  • Farmer Producer Companies/Organizations shall be registered under legal provisions i.e. Cooperatives, Producer Companies, Farmer Producer Companies, Societies and Trust.
  • Members and stake holder of the FPCs/FPOs shall be farmers, milk producers, fishermen, weavers, rural artisans, craftsmen and institutions of primary producers.
  • The productive land under an FPC/FPO shall be around 500 to 4000 ha.  
  • The minimum number of farmer producers in FPC is 500.
  • FPC/FPO with six months of active operations from the date of registration minimum capital of Rs 5.00 lakh ,positive net worth  and one audited balance sheet
  • In case of FPCs/FPOs eligible for Equity Grant and Credit Guarantee Scheme, SFAC guidelines issued on the scheme to be followed.

Loan amount

  • Maximum loan amount under financing per FPC/FPO is Rs 1.00 Crore.

Third party

  • as per bank’s existing guidelines.


  • Term loan: Minimum 15%.
  • Cash credit: Minimum 20%.


  • Primary Security:
  • Hypothecation of assets created out of bank finance
  • Collateral Security: 
  • No collateral security shall be obtained in case the loans are covered under credit guarantee scheme implemented by SFAC.
  • In all other cases, branches to obtain Minimum 100% collateral security.


Term Loan: Repayment period maximum up to 7 years (including the moratorium period of maximum 12 months)
Working Capital:12 months subject to renewal annually.

Forms & Documents

Application, copy of bye laws, copy of proceedings/resolution/Inter se agreement by all members ,articles of agreement by authorized members, appropriate DPN, Letter of continuity, Hypothecation agreement, General Term loan agreement, Letter of general lien and set off , mortgage deed , third party guarantee , comprehensive insurance of assets , letter of general lien and setoff, undertaking from borrower/guarantor  for disclosure to CIBIL and any other document stipulated in sanction advise.

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