Objective

Finance for establishment, expansion and development of commercial plant propagation unit i.e. Nursery.

Eligibility

• Nursery unit on own agriculture land: Borrower should have agriculture land in his / her name.
• Nursery unit on rented agriculture land

Nature of Facility

Term Loan & Cash Credit

Margin

For both Term Loan  &Cash Credit : Minimum 20%

Loan Amount

• As per NABARD / NHB / NHM guidelines subject to economical viability of the project.
• Minimum loan amount will be Rs. 50,000/- & Maximum loan quantum will be Rs.1.00 Crore per individual borrower (both TL & CC put together).

Repayment Schedule

• Term loan: As per cash flow I income generation  with maximum repayment period of 7 years (excluding Moratorium period). Maximum moratorium period will be 12 months.
• Cash Credit: Review I renewal of limits every year.

Subsidy

• Nursery projects shall be eligible for capital subsidy from National Horticulture Mission (NHM) or National Horticulture Board (NHB) as per applicable norms.

Primary Security

• Term Loan: Hypothecation of Plants I Seedlings and other assets purchased I created out of bank finance.
• Cash Credit :
• Hypothecation of Plants/Seedlings and other assets purchased I created out of bank finance.
• Hypothecation of Paid up stock and receivables.

Collateral Security

• For Loan amount up to Rs. 1.60 lakh– Nil
• For Loan amount above Rs. 1.60 lakh up to Rs. 3.00 lakh -
• Mortgage of nursery land or any other collateral acceptable to the bank &I or Third Party guarantee with means not less than 200% of loan amount. In case of mortgage, value of collateral should not be less than the amount of loan.
• For Loan amount above Rs. 3.00 lakh –
• Mortgage of nursery land or any other collateral acceptable to the bank.
• Personal guarantee of third party having adequate means (at least equal to loan amount) is to be obtained for entire exposure.

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.