All private cold storages/warehouses which are either debt free or financed by us subject to the following conditions:
- The promoters of the cold storage/warehouse are persons of good repute and integrity.
- The capacity of the cold storage should be more than 5000 MT.
- The cold storage/warehouse should be in good running condition and should have registered post-tax profits for the last 3 years
- Conduct of the accounts of the cold storage/warehouse with our bank/other banks should be satisfactory and all their existing accounts classified as “standard asset”.
- New cold storages can also be considered for finance under the scheme subject to the controlling authority being satisfied about the promoter’s integrity and the project’s viability.
|Purpose||:||For financing private cold storages/warehouses for on lending to farmers against agricultural commodities stored in the cold storage/ warehouse.|
|Assessment of credit limit||:||Equivalent to 60% of the value of their operating capacity or 60% of the average value of produce/commodities stored during the past 12 months whichever is lower. The sanction of limit is subject to the cold storage/warehouse submitting an undertaking to the Bank covering the points as detailed in Cir. No. AGR/2008-09/35 Dt. 29.11.2008|
|Disbursal||:||The disbursal of the loan amount will be restricted to 60% of the value of produce/commodities stored and belonging to farmers to whom onlending has been done by the cold storage/warehouse.|
|Ceiling on loan amount||:||Minimum: `25.00 lacs;
Maximum: `100.00 lacs
|Interest rate||:||CRA as applicable to Agricultural advances. Units with CRA of SBH (AGR-4) and below SHOULD NOT be financed i.e. only with CRA of AGR 1-3 may be financed.|
|Repayment||:||The cash credit account should be brought into credit balance by the end of November each year and will continue with the credit balance till the commencement of the next season.|
|Insurance||:||The structure as well as the commodities/produce stored should be insured by the owners of cold storage/warehouse for its full value and a copy of the insurance policy should be kept on record by the Bank.|
|Sanctioning authority||:||These advances are to be treated as clean. Therefore, the sanctioning powers have to be exercised as per the powers delegated to the authority for sanction of “clean advances” i.e. by HOCC III / HOCC II / HOCC I.|
|Segmentation||:||The loans sanctioned under the scheme are to be classified as “Indirect Agricultural Advances” under priority sector.|
|Renewal||:||The limit is valid for 12 months and needs to be renewed every year.
Renewal of the limit is subject to satisfactory conduct of the facility.