For FPOs:

The minimum number of members in FPO will be 300 in plain area and 100 in the North East and hilly areas. However, the Departnent of Agriculture and Farmers Welfare may revise the minimum number of membership-based on experience.

For FPCs:

• It is a duly registered FPC as per section IXA of the Indian Companies Act.
• It has raised equity from its Members as laid down in its Articles of Association/Bye Laws.
• The number of its individual shareholders shall not be lower than 500.
• Minimum 33% of its shareholders are small, marginal and landless tenant farmers.
• Maximum shareholding by any one member other than an Institutional member is not 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.
• It has a duly elected management Committee.
• It has a business plan and budget for 18 months.

As per the requirements of the Borrower subject to Bank stipulated guidelines.

As per extant Bank guidelines based on the purpose of advance.

Primary

Hypothecation of the assets created out of the loan.

Collateral

For loans up to Rs. 1.00 Crore:

• If the loan is covered by Credit Guarantee Scheme of SFAC/NABARD etc, there shall not be any stipulation of collateral security and third party guarantee.
• Else, collateral security as per extant policy of the Bank shall be applicable.

For loans above Rs. 1.00 Crore:

Collateral security as per extant policy of the Bank shall be applicable.

[Personal Guarantee of Board of Directors or Managing Committee shall be obtained in addition to the other forms of securities obtained]

Term Loans: As per extant guidelines based on the purpose and income generation pattern of the  activity.

Working Capital: Sales proceeds are to be deposited to the account on daily basis. The limit shall be subject to annual renewal.

KCC: As per the norms of repayment of KCC scheme.

As applicable for advances under Agriculture sector as per the Bank’s circular on Loans & Advances Rate of interest

Credit Guarantee for financing FPC is at present available under SFAC.

For Service Charges, Please Click here