SBI Loan for Private Cold Storage / Private Ware Houses For On lending To Farmers





SBI has a unique financial Scheme For Financing Private Cold Storage / Private Ware Houses For On lending To Farmers who has agricultural commodities to be stored in the third party warehouses or cold storages.

SBI Loan for Private Cold Storage / Private Ware Houses For On lending To Farmers

Purpose of Private Cold Storage / Private Ware Houses For On lending To Farmers

For financing private cold storages/warehouses for on lending to farmers against agricultural commodities stored in the cold storage / warehouse.

Eligibility for Private Cold Storage / Private Ware Houses For On lending To Farmers

All private cold storages/warehouses if the promoters are of good repute and Integrity, capacity of the cold storage more than 5000 MT, registered post-tax profits for the last 3 years, all their existing accounts classified as "standard asset". New cold storages can also be considered with the permission of the controlling authority.

Limit: Will be equivalent to 60% of the value of their operating capacity or 60% of the average value of produce/commodities stored during the past 12 months whichever is lower. Minimum: Rs.25.00 lacs; Maximum: Rs.1.00 crores.

Type of Facility: Clean Cash Credit.

Security for Private Cold Storage / Private Ware Houses For On lending To Farmers

  1. Primary: NIL.
  2. Collateral: EM of the warehouse / cold storage to cover100% of loan. Personal guarantee of the proprietor /partners / directors.

Interest rate: Interest rate is fixed based on the CRA as applicable to Agricultural Advances. Units with CRA rating of SB4 and below should not be financed.

Renewal/Repayment: The limit is valid for 12 months and needs to be renewed every year. The cash credit account should be brought into credit balance by the end of November each year.

Segmentation: "Indirect Agricultural Advances" under priority sector.

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