Purpose: To facilitate the farmers for storing their agricultural produce, food grains, oil seeds and inputs required for crop cultivation and allied activities.
Eligibility:
Farmers, group of farmers engaged in agricultural activities.
Applicable Area:
Applicable to all rural areas as per the definition of NABARD (i.e. having population up to 50,000) where sufficient production and potential is available.
Location:
The Godown should be constructed on borrower’s own land on well-drained site, not prone to flooding and away from a place likely to be affected by seepage of water.
Loan amount:
- Cost of construction should not exceed a maximum of `225/- per sft. (10% cost variation is permissible).The land cost should not be included in the project cost.85% of the cost of construction may be allowed as loan since this is our Bank’s own scheme.
- For the godowns of different sizes, the maximum permissible loan limits are indicated below:
Size of the Godown(Sft.) Estimated Cost (` in lacs) Margin @15% (` in lacs) Bank Loan (` in lacs) 650 1.46 0.22 1.24 750 1.69 0.25 1.44 1000 2.25 0.34 1.91 1500 3.38 0.51 2.87 2000 4.50 0.68 3.82 2400 5.40 0.81 4.59
Viability of the scheme:
To assess viability of the scheme for different sizes of godowns, the farmer must hold a minimum land holding as detailed below:
| Size of godown (Sft.) | Minimum irrigated land required | |
| Hectares | Acres | |
| 650 | 3.2 | 8.0 |
| 750 | 3.8 | 9.5 |
| 1000 | 4.8 | 12.0 |
| 1500 | 7.2 | 18.0 |
| 2000 | 9.6 | 24.0 |
| 2400 | 11.6 | 29.0 |
Repayment Schedule:
15 years, including a maximum grace period of 12 months.Normally construction of godown should be completed within 6 months from the first disbursement of the loan.Repayments are to be made in half-yearly instalment and yearly instalments, in case of long duration crop.
Rate of interest:
- Upto`2.00 lacs..@ 1.5% below PLR
- Above `200 lacs..@ PLR
Security:
Registered mortgage of the entire land holding of the borrower/borrowers including that on which godown is to be constructed along with the godown constructed thereon.
Insurance:
The godown building will be fully insured covering risk of flood, fire and earthquake.
Processing charges:
- Upto `25,000/-..NIL
- Over `25,000/- & upto `2.00 lacs..`250/-
- Over `2.00 lacs..`250/- per lac or part thereof
Inspection charges:
- Upto `25,000/-..NIL
- Over `25,000/- & upto `2.00 lacs..`200/- p.a.
- Over `2.00 lacs & upto `10.00 lacs..`500/- p.a.
- Over `10.00 lacs..`1000/- p.a.
