ELIGIBILITY

Individuals, Farmers, Group of Farmers/ Growers, Partnership Firms, Proprietory Firms, NGOs, SHGs, companies, Corporations, Cooperatives, Local Bodies.

LOCATION

Entrepreneur will be free to constuct godown at any place as per his / her commercial judgement except for the restriction that it would be outside the limits of Muncipal Corporation Area.

Rural areas as per the definition of NABARD are to be included under the scheme provided there is sufficient production and availability of potentiality. The structure shall be located on a well-drained site not liable to flooding or inundations and it shall be away from a place likely to be affected by seepage water.

CAPACITY

Capacity of the  godown shall be  decided by an entrerprenuer.

Margin 25%

REPAYMENT SCHEDULE:

12 to 15 Years, including grace period of 12 months. Normally, the constructions of godown should be completed within 6 months of disbursement of bank loan. Repayments are to be made in quarterly installments.

RATE OF INTEREST: 

For the construction of  Rural Godown :

Upto the capacity of  10,000 MT  --- Base Rate 8.25 + 1.50 + 0.25 = 10.00% p.a.

Above 10,000 MTs capacity         --- Base Rate 8.25 + 2.50 + 0.25 = 11.00% p.a. 

SECURITY:

Primary security of the site and the godowns constructed there on. Collateral security is to be obtained at least 100% of loan amount.

INSURANCE:

The godowns including the stock there in are to be fully insured against all possible risks.

The scope of our existing Kisan Samraksha scheme extended to provide finance to the following:

A) Purchase of Rural Godowns.

1. Unit cost: Godown value as per Approved Engineer's Valuation report (or) cost of the Godown as per the sale agreement which ever is less
2. Bank Loan : 75% of the unit cost + 50% of cost incurred towards stamp duty and registration charges
3. Repayment period: 5- 7 years (or) remaining life of the Godown as certified by the Engineer which ever is less
4. Godowns eligible for purchase:

1. Godown proposed for the purchase should not be more than 10 years old.
2. Godown should be as per the specifications of FCI
3. The remaining life of the Godown should not be less than 10 years to be certified by Approved Engineer

B) To under take repairs to the existing Godowns.

1. Unit cost: Unit cost is fixed based on the estimates prepared by the Approved Engineer for Repairs (Or) 20% of value of the Godown valued by Approved Engineer which ever is less.
2. Bank Loan: 60% on eligible amount
3. Repayment period: 3-5 years or remaining life of the Godown as certified by the Engineer which ever is less
4. Godowns eligible for repairs:

1. Godowns constructed after 5 years are eligible for repairs.
2. Remaining life of the Godown should be minimum 10 years to be certified by Approved Engineer
3. Godown should be as per the specifications of FCI
4. Godowns are free from any encumbrances and no outstanding loans with other banks
5. Borrowers who have availed finance for the purchase of Godown are eligible for availing finance to under take repairs after five years of the loan availed for the purchase.

The following guidelines are common to purchase or to under take repairs.

Primary security: Equitable mortgage of Rural Godown
Collateral security: 100% of the loan amount

Rate of interest:

Base Rate 8.25 + 2.75 = 11.00 % p.a.(0.25% term premia where repayment exceeds three years)