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iob_bank_agri_poultry_finance_to_poultry_units

Last Updated:07/02/2026
AGRI POULTRY FINANCE TO POULTRY UNITS
   

Objective

Financing to Poultry units (Commercial layer, broiler, poultry Breeding units and hatcheries)

Nature and
Purpose of
Advance

Term loan and need based Working capital for Construction of brooder/grower and layer sheds, feed Godown, labour quarters etc, Purchase of poultry equipment such as cages, feeders, waterers etc., Creating infrastructure items for supply of electricity, feed, water etc., Purchase of day-old chicks or ready to lay pullets, any other innovative activity adopted by unit for increasing production or better management, Purchase of existing poultry units / Outright purchase etc.

Quantum of Loan

No Minimum & No Maximum

Eligibility

Project should generate sufficient income such that loan can be repaid from the financed activity, without relying on other income.

The projects/ activities considered under the scheme should have all requisite permissions/ licenses/ approvals from competent authorities wherever applicable.

Applicant should have sufficient knowledge/ experience in the activity undertaken

Security

Prime security: Hypothecation/mortgage of assets created out of bank finance.

Collateral Security:

up to Rs. 2.00 Lakhs - Nil

Above Rs. 2.00 Lakhs - Mortgage of Immovable property or any other securities acceptable to bank. (Relaxation in collateral coverage can be considered on case-to-case basis based on the merits depending upon the discretionary power of sanctioning authority).

Margin

Up to Rs. 2.00 Lakhs - Nil

Above Rs. 2.00 Lakhs:

Term loan & Working capital: 25%.

(Relaxation on Margin can be considered on case-to-case basis)

Repayment

Maximum 120 months

Holiday Period

Maximum 18 months

Rate of Interest

 

Benchmark

Strategic Premium

Risk Premium

Total Spread

Less than Rs. 1.00 Crore:

1 Y MCLR

0.20%

0.20%

0.40%

Rs. 1.00 Cr and above

Rating - IOB 1 & IOB 2

1 Y MCLR

0.20%

0.10%

0.30%

Rating-IOB 3

1 Y MCLR

0.20%

0.20%

0.40%

Rating-IOB 4

1 Y MCLR

0.20%

0.40%

0.60%

Rating-IOB 5

1 Y MCLR

0.20%

0.70%

0.90%

Rating-IOB 6 and above

1 Y MCLR

0.20%

0.90%

1.10%

 

Externally rated accounts:

External rating

Benchmark

Strategic Premium

Risk Premium

Total Spread

AAA

1Y MCLR

0.20%

-

0.20%

AA

1Y MCLR

0.20%

0.20%

0.40%

A

1Y MCLR

0.20%

0.40%

0.60%

BBB

1Y MCLR

0.20%

0.70%

0.90%

*1Y MCLR @ 8.85% at present

Interest Concession

Interest concession up to MCLR can be considered on case to case based on the merits depending upon the discretionary power of sanctioning authority.

Processing Charges

Cash Credit and NFB limits - @ 0.40% of limit + GST

Term loan - 0.71% of term loan amount + applicable GST

Waiver of insurance for livestock

In lieu of bird insurance with the condition that the party undertakes to create RMF (Risk Mitigation Fund) at 10% of the cost of bird (broiler, layer, and parent bird) and to be maintained in the form of fixed deposit with auto renewal clause and the deposit to be maintained for the entire currency of loan under lien to us. (Relaxation in RMF value can be considered depending on the risk involved).

Purchase of existing poultry units

Existing poultry units can be purchased in the form of outright purchase where in the building, sheds, plant and machinery will be considered.

Additional fund facility for seasonal requirement

Seasonal limit up to 20% of the sanctioned working capital can be considered with a maximum term of 2 months. This facility can be availed thrice in a financial year with a minimum gap of 30 days.

Other conditions apply

*For more details, please contact our nearest branch