Banking & Credit ::State Bank of India
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10. Financing Power Tillers
Production credit:
Annual Credit needs will be sanctioned, depending on the operational land holdings, cropping pattern, and scale of finance.
Produce Marketing loan:
Limit depends on the current market price or the MSP fixed by the Government (less Margin) multiplied by the quantum of stock to be stored.
Maximum Limit
a. Production Credit : No upper limit
b. Produce Marketing Loan : Max of Rs 10 lac per borrower.
Margin:
• For Production Credit: 15-20%
• For Produce Marketing loan:
1. sanctioned against goods stored in Farmers own godown 40%
2. Loans against warehouse receipt 20-35%
Security
Limit up to Rs 1 Lac:
Primary: - Hypothecation of standing crops and / or stocks Stored under produce Marketing Loan
Collateral : - NIL Limit above Rs 1 Lac;
I) If the Production credit portion does not exceed Rs 1 lac and Produce Marketing Loan is against Warehouse receipt (Max Limit Rs 10 lacs)
a) Hypothecation of standing crops and/or Pledge of stocks.
b) Warehouse Receipt (duly endorsed) and Letter from the Warehouse Authorities to the effect that the stocks covered by WHR will be released only on a written communication from the bank
II)If production credit limit exceeds 1lac & produce loan is against warehouse receipt (below Rs 10 lac)
a) Hypothecation of standing crops and/ or Pledge of stocks.
b) Mortgage /charge over the land to the extent of Production credit limit.
III)If production credit limit exceeds 1lac & produce stored in Farmers own go-down
a) Hypothecation of standing crops and stocks
b) Mortgage/charge over land
c) Declaration of Stocks from the farmer
Interest rate :As applicable from time to time to crop loans.
Repayment
Crop Loan (Production Credit) amount will be liquidated from Produce
Contingency credit Loan - Marketing loan sanctioned to the farmer
Produce Marketing Loan is to be repaid within a maximum period of 12 months, from the date of availment of the PML loan, depending on the produce.
Source: http://www.statebankofindia.com/portal/agr |
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