Scheme for Financing against Pledge of ware house Receipt and/or Hypothecation of Farm produce
Purpose:
To provide finance/ funds to the farmers for their farm/ off-farm needs.
To help farmers avoid distress sale of their produce.
Eligibility:
Non defaulting individual farmers (owner/ tenant farmer & share cropper), group of farmers (JLGs), engaged in production of crops suitable for storage in warehouse/ godown/ cold storage/ regulated market yards, etc.Farmers enjoying KCC facility as well as non-borrower farmers are eligible
Quantum of finance: 70% to 60% of market value of farm produce depending upon accreditation of warehouse with WDRA. Maximumm Rs.50 lakh.
Security:
- Farmers enjoying KCC –
- Hypothecation of farm produce/ pledge of warehouse receipts
- Other farmers –Pledge of warehouse receipts.
- Margin: 30% to 40%
- WDRA Accredited – 30%
- Non Accredited - 40%
Rate of Interest :
Other than Small & Marginal Farmers –
- Upto Rs.3 lakh - 1% over Base Rate
- Over Rs.3 lakh to Rs.10 lakh – 1.5% over Base Rate
- Over Rs.10 lakh to Rs.50 lakh – 2% over Base Rate
Small/ Marginal Farmers – who are enjoying KCC facility may get Interest subvention for maximum period of 6 months – upto a limit of Rs.3 lakh.
Repayment: To be liquidated within 12 months from the date of disbursement
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