Financing Farmer Producer Companies
Features & Benefits
Purpose of the loan is to meet the financial needs of the Farmer Producers Companies (FPCs) by way of Term Loan or Working Capital as per the requirement. The Fund has been set up with the primary objective of providing a Credit Guarantee Cover to Banks for providing collateral free credit to FPCs in respect of loans not exceeding Rs.100.00 lakhs.
Eligibility
All FPC with six months of active operations from the date of registration shall be considered.
I. It shall be a duly registered FPC as defined in section IXA of the Indian Companies Act, 1956 (including any amendments thereto or re-enactment thereof) and incorporated with the Registrar of Companies (RoC )
II. It has raised equity from its Members as laid down in its Articles of Association/ Bye laws.
III. The number of its individual shareholders shall not be lower than 500. Minimum 33% of its shareholders should be small, marginal and landless tenant farmers.
IV. Maximum shareholding by any one member other than an Institutional member will not be more than 5% of total equity of the FPC. It has a duly elected/nominated Board with a minimum of five Members and having adequate representation from farmers and minimum one woman member.
V. It has a duly elected Management Committee.
VI. It has a business plan and budget for 18 months.
Other Terms & Conditions
Period
- Cash Credit – Maximum loan period up to 3 years
- Term loan – up to 7 Years.
Margin
- Cash Credit – 15%, Term Loan – 25%.
Primary Security
- Hypothecation of assets created out of bank’s finance
- Mortgage of developmental landed property wherever applicable
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Collateral Security – NIL
Guarantee
- Credit Guarantee is available for collateral free loans to FPCs offered by SFAC.
Interest Rates & Charges
Please visit the rates and charges page for details
Explore Other Agri Loans
AGRI FARM CREDIT LOANS
Features & Benefits
Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs) i.e. groups of individual farmers, provided banks maintain disaggregated data of such loans and Proprietorship firms of farmers, directly engaged in Agriculture and Allied Activities, viz. dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture. Loans sanctioned to Corporate farmers, Farmer Producer Organisations (FPOs)/(FPC) Companies of Individual Farmers, Partnership firms and Co-operatives of farmers engaged in Agriculture and Allied Activities are also eligible under farm credit subject to specific conditions.
AGRI INFRASTRUCTURE LOANS
Features & Benefits
Loans provided for construction of storage facilities, soil conservation and watershed development, Plant tissue culture and Agri-biotechnology, seed production, production of bio-pesticides, bio-fertilizer, and vermi composting are eligible to be classified under Agri infrastructure. Loans for construction of oil extraction/ processing units for production of bio-fuels, their storage and distribution infrastructure along with loans to entrepreneurs for setting up Compressed Bio Gas (CBG) plants are also eligible as per revised RBI guidelines.
AGRI ANCILLARY SERVICES
Features & Benefits
Loans to co-operative societies of farmers for purchase of the produce of members , Loans for setting up of Agri-clinics and Agri-business centres, Loans to Start-ups that are engaged in agriculture and allied services, Loans to Custom Service Units who undertake farm work for farmers on contract basis are eligible under this category. Loans provided for Food and Agro-processing up to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system is also eligible under Ancillary services. Loans sanctioned by banks to MFIs and NBFCs complying specific conditions stipulated by RBI for on-lending to agriculture sector will also qualify under this head. In addition to these Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-sized Adivasi Multi-Purpose Societies (LAMPS) for on-lending to agriculture will qualify under ancillary category for priority classification.