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Bank of Baroda, for rural India, with rural India.

Scheme for Financing Farmer Producer Companies / Organizations (FPCs / FPOs)

  • Benefits
  • Features
  • Eligibility Criteria
  • Document Required
  • Fees & Charges
  • Most Important Terms and Conditions (MITC)

Scheme for Financing Farmer Producer Companies / Organizations (FPCs / FPOs) : Benefits

  • Provides loan provision for various registered Farmer Producer Organisations
  • Nil Pre- payment charges
  • Nil Processing Charges for aggregate loan upto Rs 3.00 Lakhs
  • Nil Inspection Charges for aggregate loan upto Rs 3.00 Lakhs
  • Credit Guarantee is available for collateral free loans to FPCs/FPOs by various agencies like SFAC/NABARD/NCDC/ CGTMSE etc.
  • Maximum Loan upto Rs 500 Cr

Scheme for Financing Farmer Producer Companies / Organizations (FPCs / FPOs) : Features

Loan facilities may be considered for any agriculture based activities by the FPC/FPO benefitting their farmer as

  • For agriculture and allied activities viz. dairy, fishery, animal Husbandry, poultry, bee keeping etc.
  • Purchase of Input material for supplying to the farmers.
  • Warehouse receipt finance.
  • Infrastructure for marketing activities.
  • Setting up of Common Service centers / Common Facilities.
  • Setting up of Processing Centre.
  • Common Irrigation Facility.
  • Custom Purchase/Hiring of Farm Equipment.
  • Purchase of High-Tech Farming Equipment.
  • Purchase of produce from members for forward linkage.
  • On lending to members for their various agriculture needs as mentioned above.
  • Other productive agricultural purposes - based on investment plan submitted.

Note: These are indicative list of activities, however applications may be considered for FPOs towards any other activities related to agriculture and allied activities.

Scheme for Financing Farmer Producer Companies / Organizations (FPCs / FPOs) : Eligibility Criteria

All registered Farmer Producer Organisations with at least 3 months of operations since registration.

Scheme for Financing Farmer Producer Companies / Organizations (FPCs / FPOs) : Document Required

  • Complete Loan Application
  • KYC Document of Directors.
  • Last six months bank statement
  • PAN, DlN, TlN, VAT etc. registration of FPCs
  • Audited statement of last 2 years or at least six-month for new FPCs
  • MoA and AoA of FPC
  • List of Board of Director and office bearers
  • Promoter's request letter addressed to the Bank Manager on original letter head of' FPC
  • Equity/CA Certificate.
  • Other document as per requirement of Credit Guarantee Scheme
  • ROC Search Report

Scheme for Financing Farmer Producer Companies / Organizations (FPCs / FPOs) : Fees & Charges

  • Pre- payment charges :Nil
  • Processing charges:
    1. Waived upto Aggregate Agriculture exposure upto Rs. 3.00 Lakhs
  • For Working Capital (Fresh/Review)
    1. Above Rs 3 lakhs to Rs 10 Lakhs - Rs 250/- Lakhs or part thereof +GST
    2. Above Rs 10 Lakhs- Rs 350/lakh or part thereof maximum Rs 35.00 Lacs
  • Term Loan:
    1. Above Rs 3 Lakhs - 1 % of the limit sanctioned with a maximum of Rs 100 lacs
  • Inspection Charges:
    1. Waived upto Aggregate Loan Agriculture exposure upto Rs. 3.00 Lakhs
    2. Above Rs 3 lakhs to Rs 10 Lakhs - Rs 250
    3. Above Rs 10 Lakhs to Rs 1 Crore - Rs 1000
    4. Above Rs 1 Crore - Rs 5000

Scheme for Financing Farmer Producer Companies / Organizations (FPCs / FPOs) : Most Important Terms and Conditions (MITC)

Quantum of Loan
  • Minimum - Rs 3.00 Lakhs
  • Maximum loan limit - Rs 500.00 Lakhs
Nature of Facility Cash Credit/ Term Loan
Margin Minimum 15%
Security Coverage
  • Hypothecation of assets like crop, livestock, equipment, machines etc. created out of bank's finance
  • Mortgage of assets created out of bank’s finance
  • Mortgage / charge on land
  • Personal Guarantee of Director/(s)
  • Third party guarantee, wherever available
Period of Loan and Repayment
  • Cash Credit: 12 months subject to annual renewal
  • Term Loan: Repayable in 3 to 7 years period including moratorium of 3 to 12 months depending upon the purpose of loan , economic life of asset and cash flow of the activity.
Repayment of the Term Loan Can be fixed at monthly/ quarterly/Half yearly/Yearly rests based on the proposed activity / cash flow of the project considered for financing
Security
  • Hypothecation of assets like crop, livestock, equipment, machines etc created out of bank's finance
  • Mortgage of assets created out of bank’s finance
  • Mortgage/charge on land
  • Personal Guarantee of Director(s)Third party guarantee, wherever available
Rate of Interest
Rate of Interest Limit Rate applicable
Limit above Rs. 3 lakhs and less than Rs. 25 lakhs. One-year MCLR+ SP+1.25%
Limit Rs. 25 lakhs and above.
For Loan period less than 3 years (Including CC Limit) One year MCLR+ SP+2.00%
Above 3 years and up to 5 years. One-year MCLR+SP+2.10%
Above 5 years and up to 7 years. One-vear MCLR+ SP+2.15%

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