National Helpline No1800 425 00 000

Food and Agro Processing

Food and Agro Processing


  • 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:


  • 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


  • 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.

( Last modified on Dec 29, 2022 at 04:12:56 PM )