IOB FPO FINANCE

Farmer Producer Organization/Company

Scheme

Purpose

Short term finance for crop production/ Allied purpose or loan for input stocking/ purchase/ aggregation of produce from members/ infrastructure/ Custom service/ financing warehouse receipt/ Negotiable warehouse receipt

Eligibility

Target Audience

Farmer Producer Companies/Organizations shall be registered under legal provisions i.e., Cooperatives/ Producer Companies/ Farmer Producer Companies/Societies/Trust/ Section 8 company/ under part - IXA of companies act etc.

Other Criteria

Members and stake holders of the FPO/FPC's shall be Farmer/ Milk Producers/Fishermen/Weavers/Rural artisans/Institution of primary producers

FPO/FPC's must have at least latest one audited Balance sheet for availing loan and should have positive net worth

Financials

Quantum

No Minimum & Maximum Rs.10.00 cr

Margin

Up to Rs.2.00 Lakhs - Nil

&

Above Rs.2.00 lakhs - Minimum 10% on the project cost

Rate of interest

Ranges from 8.85% to 9.95% based on rating.

Processing charges

Up to Rs.50,000/-: Nil

Above Rs.50,000/-: 0.20% of loan amount + applicable GST.

Tenure

Repayment period

Maximum 10 years including holiday period

Holiday period

Maximum 24 months

Security

Up to Rs.2.00 Lakhs

Hypothecation of assets created out of bank finance.

Above Rs.2.00 Lakhs

Hypothecation of assets & Suitable Collateral with 75% coverage for the loan amount.

Coverage under CGTMSE is considered and in such case no collateral will be insisted/ Hybrid Security model is also permitted.