Rural Godown

Creating scientific storage capacity with allied facilities in rural areas to facilitate storing of farm produce, processed farm produce & agricultural inputs and promotion of grading, standardization & quality control of agricultural produce to improve marketability and prevent distress.

Construction of new Rural Godown, Warehouse, silos etc
Repairs/Renovation /purchase of existing Rural Godown, Warehouse, silos, etc.
Development of ancillary/supporting infrastructure like parking sheds, internal roads, garbage disposal arrangements, boundary wall, drinking water facility etc.

Individual farmers, Group of Farmers / growers, Non-Government Organizations (NGOs), Co-operatives, Companies, Corporations, Partnership and Proprietary firms, Agricultural Produce Marketing Committees/Boards, Agro processing corporations, SHGs, Federations, Marketing Boards and Growers‟ Associations.
The applicant should own agricultural land and should have space for construction of storage structures.
Technical guidance and supervision for construction of storage structure should be available.

Margin

Loan Amount	Margin should be Minimum
Under AIF Scheme, up to Rs. 2 Cr	10%
Above Rs. 2 Cr up to Rs. 10 Cr	20%
Above Rs. 10 Cr	25%
Loan for repair and renovation	25%

Quantum

No minimum and maximum ceiling

Security

A. For Term Loans

Prime Security :

Hypothecation of Assets created out of our Finance.
Mortgage of land where primary activities are undertaken, unit is constructed and which forms a part of developmental activity and connected with the activity.

Collateral Security :

For loan on leased hold landed property, if leasehold rights are not mortgaged Immovable or equivalent Collateral security should be obtained of minimum 100% of the loan amount, wherein at least 50% security by way of Residential/Commercial Properties (Land & Buildings backed by approved building plan ).

B. For Working Capital

Prime Security :

Hypothecation of assets created out of our Bank Finance.

Collateral Security (For WC Limit for On-lending to Farmers ):

Mortgage of Storage units.
Mortgage of landed property other than storage unit in the form of SARFAESI residential / commercial property.

Risk Category	Minimum Residential/ Commercial % of loan amount
Low Risk	25%
Normal Risk	35%
Moderate Risk	50%

Repayment Period

For Term Loan: Not exceeding 15 years including moratorium of maximum 2 years.
Working Capital Limit shall be valid for 12 months.