Food and Agro Processing

Objective:

• Processing and preserving of Fruits, Vegetables, Meat, Fish, crustaceans and molluscs.
• Manufacturing of vegetable, animal oils and fats.
• Manufacturing of dairy products.
• Manufacturing of grain mill products, starches and starch products.
• Manufacturing of animal feeds.
• Manufacturing and processing of other Food and Agro products.

Type of Facility:

• Term Loan.
• Cash Credit.

Quantum of finance:

• Term loan: Based on Project cost.
• Working Capital:
• As per Credit Policy guidelines.
• Limits Upto Rs. 5.00 Crs – Turnover method.
• Limits above Rs. 5.00 Crs – MPBF II Method / Cash Budget Method.
• NFB Facilities: Need based.

Margin Norms:

• Term Loan: 25% for new machinery and 30% for landed property and building.
• Working capital:

Stocks

• For Limits less than Rs. 1 Crore – 20%
• For Limits Rs. 1 Crore& above – 25%

Book Debts

• 25% (upto 90 days duration).

Repayment Period:

• Repayment for commercial activity is to be fixed based on life cycle of the project, on the cash flows, on ballooning basis, or as bullet payment or in EMI.
• Term Loans: Maximum repayment period allowed is 15 years.
• Working capital: One year with yearly renewal.

Processing Charges:

• Term Loan:

Upto Rs. 25000/- : NIL.

Above Rs. 25000 : 0.50% of the limit sanctioned.

• Working Capital:

Upto Rs. 25000: NIL

Above Rs. 25000/- up to Rs. 50 Lakh: Rs. 250 per lakh or part thereof Min. of Rs. 250

Above Rs. 50 Lakh: Rs. 350 per lakh or part thereof.

(All other charges: As per circular on service charges related to Agri advances issued from time to time)

Rate of Interest:

• Please refer the Lending Rates link on home page in our Bank’s Website www.indianbank.in.

Guarantee:

• Suitable third party guarantee may be obtained depending upon the loan amount.

Security Norms:

• Primary: Hypothecation of stocks / book debts / machineries / EM of factory land & building / charge on assets created out of Bank finance.
• Collateral: No collateral should be obtained for limit up to Rs. 10 Lakhs.
• Minimum Security Coverage Ratio of 1.20 should be maintained at all times.