SBI Agriculture Loan For Setting Up Of Cold Storages

The objectives of SBI Financing Cold Storage is to promote setting up of cold storage and reducing post harvest losses.

Eligible Organisations For Setting Up Of Cold Storages

Individuals / Farmers, Group Farmers / Growers, Companies, NGOs, Partnership / Proprietary Firms, Corporations, Cooperative Agricultural Produce Marketing Committees, Marketing Boards / Committees and Agricultural Industries Corporations.

Project Cost: An estimated project cost of upto Rs.16.00 crores may be considered.

Margin: 25% of the project cost.

Subsidy For Setting Up Of Cold Storages

The projects of upto 5000 MT capacity are eligible for capital subsidy of upto 25% of project cost subject to a maximum of Rs.50 lacs and in case of projects in NE States and hilly areas and those belonging to SC/ST, 33.33% of project cost, subject to a maximum of Rs. 60 lacs. Subsidy is provided by National Horticulture Board (NHB), through NABARD as a back-ended subsidy. For loans upto Rs.20 lacs inspections will be conducted by the Officials from the Banks concerned. For loans of above Rs.20 lacs, joint inspection will be conducted as above with NHB officials.

Pattern of Assistance: 25 % promoter’s Contribution (Margin), 50 % Term Loan from Bank, 25 % back-ended Capital Investment Subsidy by NHB.

Security For Setting Up Of Cold Storages: As applicable to Agricultural Term Loans.

Rate of Interest: As per rates applicable to ATLs.

Documentation: As applicable to ATLs.

Repayment: The loan has to be repaid within a maximum period of 9 years inclusive of a grace period of 2 years installments are fixed depending on the cash flow.

Classification: Indirect Finance to Agriculture under priority Sector.