15. Scheme for Hi-Tech Farming (Establishment of Green house)

Eligibility: Individuals/ Firms/ Companies/ Institutions

The beneficiaries under the above Govt. of Kerala (GOK ) sponsored scheme are identified by State Govt. agencies like Krishibhavans/ VFPCK/ State Horticulture Mission in Panchayat area. In other states, similar sponsorship/ identification by the concerned Govt. authorities, as well as availability of subsidy is necessary. KYC norms to be adhered. Defaulters of other Banks not to be considered.

Purpose: To establish Green House Units sponsored by Government agencies under different schemes with subsidy.

Facility: Agri. Term Loan – For erection of Green House and bed preparation.Separate loan under KCC will be considered for raising of crops after the establishment of the green house. The amount of KCC will be based on the crops selected for cultivation.

Components Financed: GI Pipe fabricated structure Ventilation, Irrigation, Fogging, Misting system, Civil work, Fixtures UV stabilized film, Roof ceiling, Shade net as per specifications by the implementing agencies.

Erections / Instalation of Green House: By agencies in the market, based on the specifications stipulated by the Govt. and under the supervision of the implementing agencies. The borrowers have freedom to construct by any agency of their choice without compromising the quality specifications.

Technical Support: Technical support will be provided by various agencies like Krishi Bhavan, VFPCK,SHM etc. Training of entrepreneurs also will be arranged by NGOs and above agencies

Loan Amount: As fixed by NABARD/government agency from time to time.

Loan Disbursement: Loan will be disbursed in 3-4 stages based on the progress of the construction work

Rate of Interest

Limit	Int. Rates (%p.a)
Up to Rs.50000/-	1.25% above BaseRate
Above Rs.50000/- up to Rs.3 lac	2% above BaseRate
Above Rs.3 lakh up to Rs.5 lakh	3% above BaseRate
Above Rs.5 lakh but below Rs.25 lakh	3.25% above BaseRate
Limits Rs.25 lakhs and above: Based on Credit Rating

Processing Charges: Normal upfront fee as applicable to Term Loan. 1.25% of loan amount plus service tax@12.36% on the charges recovered.

Repayment and Start-up Period

The loan should be repaid in maximum period of 7 years :
3 months including a start up period of 9 months (3 months for installation of the structure and 6 months for the harvest of the first crop).
To be repaid in half yearly installments depending on the nature of crops grown and harvesting season

Security

• Primary
  Hypothecation of the Assets created out of Bank finance.
  Hypothecation of standing crops.
• Collateral
  Up to Rs.1 Lakh (including KCC limit) – Nil
  Above Rs.1 Lakh - Equitable mortgage of land on which crops are grown or term deposit receipts or LIC policies of adequate surrender value etc. having value of 125% of the net loan amount (ie. Project cost less subsidy).

Subsidy - GOK Scheme

Up to 75% subsidy (on total cost of erection @Rs.935 per Sq.m as approved by Govt.) under the GOK sponsored scheme. The subsidy will be released by the implementing agency on completion of the structure. The District Level Technical Committee, constituted by SHM, will do the technical evaluation of the structure constructed, for releasing subsidy. For units in other states, the subsidy depends on the the scheme and implementing agency.

Insurance: The assets created out of Bank's finance and the buildings, if any, in the property mortgaged to the bank should be insured, preferably with SBI General.

Inspection and Inspection Charges

Upto Rs.25,000	Nil
> Rs.25,0000 to Rs.2 Lakhs	Rs.500+service tax @12.36% on charges recovered
> Rs.2 Lakhs	Rs.3000+service tax @12.36% on charges