SBI provides two bank loan schemes to seed processors in which first scheme enables loan against seed processor receivables due to them from the seed growers and the second one as SBI Mortgage Loan furnishing mortgage of property of adequate value.
1. Bank Loan Scheme For Financing Seed Processors
The objectives of Scheme For Financing Seed Processors is to extend SBI's financial assistance to the seed processors against their receivables due to them from the seed growers.
Eligibility for Seed Processor Bank Loan
Seed processors / units enjoying good reputation & credit worthiness, holding a valid license from the concerned State Department of Industries for installation of Seed Processing Plant, having valid certificate from Seed Certification Department, Doing business for the last 3 years, having receivables from the farmers, who have posted profits during the past two years of operation.
Facility for Seed Processor Bank Loan
Agriculture Cash Credit (Hypothecation of receivables not older than 6 months).
Loan amount for Seed Processor Bank Loan
Need based ACC limit without upper ceiling but above Rs.2.00 lacs.
Rate of Interest for Seed Processor Bank Loan
Interest rate will be charged @ 1% below SBAR min 9.75% for limits above Rs 2 lacs but below Rs 25 lacs. For limit above Rs 25 lacs as per CRA rating.
Margin for Seed Processor Bank Loan
40% of the value of the receivables.
Security for Seed Processor Bank Loan
- Primary: Assignment/hypothecation of receivables from the farmers.
- Collateral: EM of residential/ commercial property worth 1.5 times the limit.
Assessment for Seed Processor Bank Loan
As applicable to trade advances. A simple certification / debts of receivables not older than 6 months and a maximum of 60% of aggregate value of receivables should be fixed as the credit limit.
Loan to be liquidated within a maximum period of 6 months for each crop season i.e., Rabi & kharif. Statement of eligible receivables should be obtained at half yearly intervals.
2. Mortgage Loan To Seed Processing Units
The objective of Mortgage Loan To Seed Processing Units is to Provide hassle free finance to Seed Processing Units who are willing to furnish mortgage of property of adequate value to SBI.
Eligibility for Mortgage Loan To Seed Processing Units
Existing customers, new connections including takeovers, first generation entrepreneurs as well as promoters of existing units
Nature & type of facility for Mortgage Loan To Seed Processing Units
Fund Based - Cash Credit
Quantum for Mortgage Loan To Seed Processing Units
Minimum Rs.5,00,000 & Maximum - Rs.1.00 crores.
Assessment of Limits for Mortgage Loan To Seed Processing Units
65% of the realizable value of the property subject to a maximum of 40% of the projected annual turnover.
Margin for Mortgage Loan To Seed Processing Units
35% of realizable value of property
Processing Fee for Mortgage Loan To Seed Processing Units
Working capital limits (Fund Based +Non Fund Based) - For limits above Rs.5 lacs-Rs.250/- per lac or part thereof. Maximum Rs.10 lacs.
Security for Mortgage Loan To Seed Processing Units
- Primary: Hypothecation of stocks and receivables.
- Collateral: Tangible security of minimum of 153% of loan amount in the form of Equitable Mortgage of land & building.
Repayment for Mortgage Loan To Seed Processing Units
Stock Statement for Mortgage Loan To Seed Processing Units
Stock statement ot be submitted only once at the time of execution of documents and as on 28th February every year.
Inspection for Mortgage Loan To Seed Processing Units
Inspected by the field staff, once before sanction and at after disbursal for Standard Asset: once a year by Field Officer, for Sub standard Asset: the account to be reviewed immediately and the inspection to be done at quarterly intervals.