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Objectives
Purpose
Eligibility
Loan Limit
Nature of facilities
Non fund based limits:
Assessment Method/Quantum of Finance
I.For Layers, parent breeder birds and hatcheries:
Assessment of Term loan:
Note: Term loan be sanctioned for layers, broilers and parent birds in the form of composite or Project finance as a whole and no term loan should be sanctioned on standalone basis for layers, broilers and parent birds for purchase of DOC( i.e.,Day old Chicks) and feed as they are reckoned under working capital.
In other words, it is to be noted that only recurring costs (i.e., Purchase of DOCs- Day Old Chicks, feed ingredients) should not be financed as a standalone term loan as they are included in working capital assessment. However, all the above components can be included in the project / composite for financing in the form of term loan.
Assessment of Working capital:
Feed Consumption method is used for assessment of Working capital requirements for layer and parent breeder bird / hatcheries. (Calculation sheet annexed separately for Layers and Parent Birds. Separate working sheets are made available for
The assessment of working capital is not based on the sales turn over. In view of seasonal availability of the feed ingredients, the assessment shall be made based on feed requirements of the poultry birds. However, branches shall calculate the turnover method as a routine and not to be considered for financing the working capital.
II.For Broiler Birds:
Trading activities:
General guidelines on assessment of limits:
Feed formula and feed Cost
Margin
Rate of Interest
Revised ROI under the scheme is as follows (Basis – as per IC No: 1974-2020 Dt: 27.03.2020 & IC no: 2365-2020 Dt: 28.12.2020 and modified as under):
Limit
Applicable ROI
Revised ROI
Loans up to Rs. 1.00 Cr
MCLR+0.75%
MCLR+0.50%
Internal Rating
Applicable ROI upto Rs 20 Crs
Applicable ROI Rs 20 Crs to Rs 25 Crs
Revised ROI under the scheme
CR/UBC-1
MCLR+0.70%
MCLR+2.65%
MCLR+0.10
CR/UBC-2
MCLR+2.90%
MCLR+0.25%
CR/UBC-3
MCLR+0.80%
MCLR+3.20%
MCLR+0.35%
CR/UBC-4
MCLR+0.95%
MCLR+3.70%
MCLR+0.45%
CR/UBC-5
MCLR+4.15%
MCLR+4.30%
MCLR+1.00%
For limits above Rs. 25.00Cr for both Term loan and cash credit is as under:
External Rating*
AAA
AA
A
BBB
BB
A1+
A1
A2
A3
A4
CR-1
MCLR
MCLR+0.10%
MCLR+0.40%
MCLR+0.55%
CR-2
MCLR+0.20%
MCLR+0.65%
CR-3
MCLR+0.30%
CR-4
MCLR+0.60%
CR-5
MCLR+1.25%
Note: *
Clarifications:
Service Charges
(As per IC no: 03454-2022 dated: 25.07.2022 and circulars issued from time to time)
Credit rating
Internal Rating :
External Rating:
Take-over norms
As per extant Loan policy.
Primary Security
Collateral Security
Financing to poultry units established on leased lands
Loans to Poultry and other activities in leased sheds/lands shall be extended based on merits. Field level staff are advised to ensure the following while dealing with such proposals.
Personal Guarantee
Personal guarantee of the Partners, Promoters /Promoter Directors of the Firm/company having sufficient means and personal guarantee of all mortgagors of primary /collateral security to be obtained. In case of proprietor concern, personal guarantee of third party or any other family members to be obtained. Any waiver/deviation shall be dealt with as per loan policy of the bank.
Insurance
Assets financed to be insured as per bank’s loan policy for infrastructure, stock – feed, medicines, and birds, plant and machineries/ equipment etc.
Waiver of Insurance in case of live stock
Delegation
As per extant policy on delegation of powers.
Due diligence
Due diligence to be undertaken as per extant guidelines;
Repayment
Working capital/Term Loan
Additional Facility for seasonal requirement
Guidelines for Purchase of existing poultry units
Purchase of existing poultry units / Outright purchase:
Reporting
Other terms & conditions
Clarification on Battery operated cages
Security Documents
Policy issues
Most of the policy parameters are addressed and incorporated in the Pan India Scheme for financing to poultry units. In case of any policy component / issue / parameter/ guideline/ deviation is not mentioned in pan India scheme, branches shall follow the loan policy of the bank.
Competent authority
General Manager/Chief General Manager, Agri Business vertical shall be the competent authority to provide clarifications on the scheme to field functionaries.
Classification
Priority sector Agriculture: Irrespective of loan amount to individual farmers and loans up to Rs.2 crores for corporate farmers, FPO of individual farmers, partnership firms and cooperative of farmers and loans to individual farmers are to be classified under Farm credit of Agri priority. Loans over and above Rs 2.00 Crs to corporate farmers to be classified as Agri Non-Priority. Accordingly, AGRPS/AGNPS to be mentioned clearly in the Appraisal note.
Finacle Codes
Branch to label the account opened under this scheme as “POULTRY” in Finacle. Accounts are to be opened in RA012, CCGEN/CCAHF scheme codes. Purpose of Advance (POA) should be fed in the finacle at MIS tab as 01203.
Validity of the Scheme
The Pan India scheme is valid upto 22.09.2024.
Rate of Interest - Please click here to know our latest interest rates
Conditions apply
For more details please contact our nearest branch
1. Which purposes are eligible for the loan?
Purchase of /Birds, Equipments, Construction of Shed and Working Capital for the activity.
2. Will there be insurance coverage for animals?
Poultry farmers can also contribute to a separate risk fund in lieu with insurance.