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iob_bank_iob_krishi_vriddhi_plus

Last Updated:07/02/2026
IOB Krishi Vriddhi Plus

IOB KRISHI VRIDDHI PLUS – (Special Credit Scheme for Food & Agro Units)

   

Objective

Need based credit scheme exclusively for Food & Agro processing units

Nature and
Purpose of
Advance

Working Capital - Financing for stocks/ receivables /other operational expenditures for Food and Agro processing units alone.

Term Loan - For acquisition of fixed assets/ plant & machineries/ vehicles/ furniture and fixtures/ setting up /expansion/modernization of Food and Agro processing units.

Quantum of Loan

Minimum- No minimum

Maximum- No minimum

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.

Security

Credit facility under this scheme can be considered with CGTMSE coverage as per the CGTMSE guidelines.

In all other cases: 

Up to Rs. 2.00 Lakhs

Prime security:

Hypothecation/mortgage of assets created out of bank finance

Collateral Security: Nil

Above Rs.2.00 Lakhs 

Prime Security:

Hypothecation/mortgage of assets created out of bank finance.

Collateral Security:

Mortgage of Immovable property/any other security acceptable to bank.

-Overall collateral coverage should not be less than 100% of loan amount.

Relaxation in collateral coverage is permitted on case-to-case based on discretionary power.

Margin

Up to Rs. 2.00 Lakhs - Nil

Above Rs. 2.00 Lakhs -

Minimum 20% irrespective of the quantum.

Relaxation in margin is permitted on case-to-case basis based on discretionary power.

Repayment

Maximum 10 years including moratorium period

Holiday Period

Maximum 36 months.

Rate of Interest
   

Total Spread

Total Interest

Less than Rs. 1.00 Crore:

1 Y MCLR

0.90%

9.75%

Above Rs. 1.00 Crore:

Rating - IOB 1 & IOB 2

1 Y MCLR

0.80%

9.65%

Rating-IOB 3

1.10%

9.95%

Rating-IOB 4

1.50%

10.35%

Rating-IOB 5

2.10%

10.95%

Rating-IOB 6 and above

2.35%

11.20%

*1Y MCLR (8.85% at present)

Externally rated accounts:

External rating

Benchmark

Total Spread

Total interest

AAA

1Y MCLR

0.80%

9.65%

AA

1Y MCLR

0.90%

9.75%

A

1Y MCLR

1.20%

10.30%

BBB

1Y MCLR

1.35%

10.45%

 

Interest Concession

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

Processing Charges

Processing charges @ 0.40% of limit + GST to be collected for cash credit and NFB limits.

Upfront fees @ 0.71% of term loan amount + applicable GST to be collected.