Purpose

The scheme will facilitate setting up and modernization of key elements of the value chain including Post-Harvest Management Projects and Viable projects for building community farming assets .
Projects promoted by Central/State/Local Governments or their agencies under PPP for building community farming assets or post-harvest management projects.

Eligible Borrowers

Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Group (SHG), Farmers, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups and Central/State agency or Local Body sponsored Public Private Partnership Projects.

Nature of limit

Term Loan

Margin

Minimum 25%

Quantum of loan

Assessed based on the Project cost.

Security

• Prime Security:

Hypothecation of assets created out of Bank finance.

• Collateral Security: Mortgage of immovable properties and or pledge of specified financial assets as per Banks policy guidelines .

Personal Guarantee

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

Credit Guarantee Coverage

• Credit guarantee coverage will be available for eligible borrowers for a loan upto Rs.2 crores.

Repayment period

• The term loan component will be normally repayable within a period of 7 years inclusive of moratorium period (from 6 months to max 2 years )depending on the type of activity / investment in line with the projected cash flows.

Interest Subvention

• All loans under this financing facility will have interest subvention of 3% per annum up to a limit of Rs. 2 Cr. This subvention will be available for a maximum period of 7 years.
• In case of loans beyond Rs.2 Cr, then interest subvention will be limited up to Rs.2 Cr.

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.

Credit guarantee Cost

• Credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit guarantee Fund Trust for Micro and small enterprises for a loan up to Rs. 2.00 Crore. The fee for this coverage will be paid by the government. In case of FPOs the credit guarantee may be availed from the facility created under FPO promotion scheme of DA& FW. ADDITIONS However, FPOs are also eligible for reimbursement of credit guarantee fee under AIF.

Viable Projects for building community farming assets

• Organic inputs production
• Bio stimulant production units
• Infrastructure for smart and precision agriculture
• The following projects for individual beneficiaries as well as Farmers Communities such as FPOs, PACS, SHGs, JLGs, Cooperatives, National and State Level Federation of Co-operatives, FPOs federations, Federations of SHGs, National and State Level Agencies etc., as these are for the benefit of community
a) Farm/Harvest Automation.
b) Purchase of drones, putting up specialized sensors on field, Blockchain and AI in agriculture etc.,
c) Remote sensing and Internet of Things (IOT) such as automatic weather station, Farm advisory services through GIS application.
• Only for FPOS, PACS, SHGs, JLGs, Cooperatives, National and State Level Federation of Co-operatives, FPOS federations, Federation of SHGs, National and State Level Agencies etc as they qualify as community farming assets.
• Projects Identified for providing supply chain infrastructure for clusters of crops including export clusters.
• Projects promoted by Central/State/Local Governments or their agencies under PPP for building community farming asset or post-harvest management projects.

Number of projects per entity eligible under the scheme

• Interest subvention for a loan up to Rs. 2.00 Crore in one location is eligible under the scheme. Multiple projects in one location are also eligible with an overall cap of Rs. 2.00 core. However, for a private sector entity, such as farmer, Agri Entrepreneur, start-up there will be a limit of maximum of 25 such projects. This limitation of 25 projects will not be applicable to state agencies, Cooperatives, National and state federations of cooperatives, FPOs, Federation of FPOs , SHGs and federation of SHGs.