IOB KRISHI SARAL

Q1. What is the objective of the scheme?

Ans:The objective of the scheme is to provide Credit to Food and Agro units.

Q2. Who are the eligible target groups & target markets under the scheme?

Ans:

Target groups:  Individuals, Proprietary concern, Partnership Firm, Private limited company, public limited company, LLP, OPC, FPOs etc.

Target Market: Individuals, Proprietary concern, Partnership Firm, Private limited company, public limited Company, LLP, OPC, FPOs etc engaged in Food Processing & Agri commodity Processing activity.

Q3. What is the purpose of the scheme?

Ans: Working Capital - Financing for stocks/receivables/other operational expenditures.

Term Loan - Purchase of fixed assets such as machineries, equipment, construction of factory/ warehouse/ cold storage/ poly house/ rural godown/ office and its interior decoration & furnishing/installation of solar systems etc., purchase of Commercial vehicles/ tractors / power tillers, setting up Food and Agro processing units, Agri Clinics/Agri Business Centre's, Agri-infrastructure projects.

Q4. What are the eligible guidelines for availing loan under the scheme?

Ans:

• The project/ activities considered under the scheme should have all requisite permissions/ licenses/ approvals from competent authorities.
• Desirable DSCR would be 2:1, average DSCR: 1.5:1 and minimum DSCR 1.2:1 can be accepted on merits.

Q5. What are loan limits under the scheme?

Ans: Minimum- Above Rs. 10.00 Lakh and Maximum- Rs.10.00 Crores

Q6. What are the margin requirements?

Ans:

Life Policies: 10% of Surrender Value. KVP/NSC: 10% of

Face Value. Term Deposit: 10% of present value.

Immovable Properties:

Metro: 25% of FSV, Urban/ Semi Urban: 30% of FSV and Rural areas: 40% of FSV.

Q7. What is the maximum holiday period and loan repayment period under the scheme?

Ans: 10 years (Door to door tenor) including moratorium period (Monthly/ Quarterly/ Half-yearly/ Yearly. Maximum Moratorium period is 36 months.

Q8. What are the security requirements?

Ans: Prime Security: Liquid Securities/ Immovable Property

Collateral Security: Hypothecation of Stocks/ Assets or mortgage of assets created out of our loan amount.