BANK FINANCING ON PRIVATE COLD STORAGE/ PRIVATE WARE HOUSES FOR ON LENDING TO FARMERS

BANK FINANCING PRIVATE COLD STORAGE/ PRIVATE WARE HOUSES FOR ONLENDING TO FARMERS LIKE SBI ETC.

Purpose:
For financing private cold storages/warehouses for on lending to farmers against Agricultural
commodities stored in the cold storage/warehouse.

Eligibility:
All private cold storages/warehouses subject to the following conditions:
The promoters of the cold storage/warehouse are persons of good repute and integrity
The capacity of the cold storage should be more than 5000 MT.
The cold storage/warehouse should be in good running condition and should have Registered post-tax profits for the last 3 years.
Conduct of the accounts of the cold storage/warehouse with our bank/other banks should be satisfactory and all their existing accounts classified as standard asset
New cold storages can also be considered for finance under the scheme subject to the projects viability.

Loan amount:
Minimum: Rs.25.00 lacs ; Maximum: Rs.1.00 crore

Security:
Equitable mortgage of the warehouse/cold storage is compulsory and The value of the collateral coverage (inclusive existing and proposed loan) should be 100%. This is important.
Personal guarantee of the proprietor/partners/directors of the cold Storage/warehouse

How to avail the loan amount:
The disbursal of the loan amount will be restricted to 60% of the value of produce / Commodities stored and belonging to farmers to whom on lending has been done by the Cold storage/ warehouse. For this purpose, a detailed statement should be submitted by the cold storage/ warehouse enclosing photo copies of the WHRs against which on lending has been done by it. Value of Ware House receipt which is more than 6 months will be excluded for arriving at the eligible loan amount.

Renewal :
The limit is valid for 12 months and needs to be renewed every year. Renewal of the limit is subject to satisfactory conduct of the facility.

How do you repay the loan :
The cash credit account should be brought into credit balance by the end of November each year and will continue with the credit balance till the commencement of the next season.

How to apply for this loan:
You may contact our nearest branch or even talk to the marketing officers visiting your village.

BANKS FINANCING CONSTRUCTION OF COLD STORAGES/ GODOWNS

SCHEME FOR FINANCING CONSTRUCTION OF COLD STORAGES/ GODOWNS BY BANKS (UBI/UCO/PNB ETC)

PURPOSE COLD STORAGES /GODOWNS:-

To meet the production, investment, and consumption needs of the farmer, i.e. cultivation of crop, purchase of farm equipment, etc., allied activities and consumption needs like marriage, medical treatment, education, etc.
To cover farmers having proven track record and also new farmers who are either not availing any loan or if availing finance from some other Bank, can be taken over if the repayment record is clean and their existing loan account is standard asset. Alternatively they can close their account with their existing Banks and switch over to us.

Eligibility:-
All Co-Operatives, Companies, Corporations, Partnership and Proprietary Firms, Agriculture Produce Marketing Committees/Boards, Agro Industries Corporations and Growers' Associations, Individuals.

Quantum of loan:-
Bank funds 50% of the project cost may be considered as term loan. The eligible amount of subsidy also would be allowed as term loan as the subsidy is back ended.

Margin:-
25% of the project cost to be contributed by the applicant.

Rate of Interest And Processing charges:-
Applicable by Bank as announce time to time.

Repayment Period:-
Maximum 120 months with 18 months moratorium

Subsidy:-
Cold storage unit is eligible for subsidy of 25% of the project cost.

NEW SUBSIDY ON COLD STORAGE CONSTRUCTION, EXPANSION AND MODERNIZATION SCHEME

Capital Investment subsidy scheme for construction/expansion/ modernization of cold storage and storages for Horticulture Products

Components: 
Credit linked projects relating to Cold Storages including Controlled Atmosphere (CA) and their modernization are eligible for assistance under this component. Subsidy need not be credit linked for the institutions like Public Sector Units, Panchayats, cooperatives, registered societies/trust and public limited companies provided they can meet remaining share of the project cost out of their own resources. Such projects will have to be appraised by appraising agency approved by NHB. 

Pattern of Assistance:  
The assistance will be given as subsidy @ 35% of the capital cost of project in general areas and 50% in case of NE, Hilly & Scheduled Areas for a storage capacity above 5000 MT up to 10000 MT. 
Calculation of Capacity for subsidy: 
For calculation of capacity, 3.4 cubic meters (cum.) (120 cubic feet (cft.) of chamber volume shall be considered equivalent to 1 MT storage capacity 
 1 Cold storage units - 
Basic mezzanine structure with large chamber (of > 250 MT) type with single temperature zone.
• @ Rs. 8000/ MT for capacity upto 5000 MT.
• @ Rs. 7600/ MT for capacity between 5001 to 6500 MT.
• @ Rs. 7200/MT for capacity between 6501 to 8000 MT.
• @ Rs. 6800/MT for capacity between 8001 to 10000 MT.
 2 Cold storage units – 
Pre Engineering Building (PEB) Type for multiple temperature and product use , more than 6 chambers of
 • @ Rs.10000/ MT for capacity upto 5000 MT.
• @ Rs. 9500/ MT for capacity between 5001 to 6500 MT.
• @ Rs. 9000/MT for capacity between 6501 to 8000 MT.
• @ Rs. 8500/MT for capacity between 8001 to 10000 MT.
 3 Cold Storage Units -
 With add on technology for Controlled Atmosphere Additional Rs.10,000/MT for add on components of controlled atmosphere technology as per component wise cost 
 4 Technology induction and modernization of cold-chain
• @ Rs. 5000/MT, for capacity between 5001 to 10000 MT.
Components of modernization includes PLC equipment,packaging lines, dock levelers, advanced graders, alternate technologies, stacking system, modernization of insulation and refrigeration etc. 

General conditions for cold storage projects :
For credit-linked projects, credit components as means offinance ofthe project should be term loan from banking or non banking financial institutions. For credit linked projects under NHB, eligible subsidy amount to be capped at par with term loan sanctioned by the lending Banks/FI.
Assistance for setting up of new Cold Storage infrastructure will be available only to Multi Chamber cold Storage units with technologies which are energy efficient with provision of thermal insulation, humidity controlled, advance coolling systems, automation, etc, having specification and standards approved by the Ministry. To ensure, compliance of notified standards, all projects will be subjected to technical scrutiny by NHB empanelled Technical appraisal agency.Extant specifications standards and protocols on cold storage and cold-chain components will be adhered to while approving cold storage projects