• Financing Farmer Producer Companies(FPCs)- Bank of Baroda

Financing growth & transforming rural India.

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 Lakhs

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%

Frequently Asked Questions (FAQs)

  • What are the benefits of farmer producer company?

    Following are the benefits of loan for farmer producer company:

    • Scale-up of business by bringing together small and marginal farmers
    • Promotes bargaining power through collectivisation
    • Provides economics of aggregations
    • Creates better social impact
  • Who is eligible for FPO scheme?

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

  • What is the maximum loan limit for FPO and FPC?

    For FPOs, it is Rs. 5 crores. However, Rs. 100 crores can be given under the scheme for financing Food & Agro Processing Units.

  • How does the FPC scheme support farmers and producers?

    FPC scheme helps in establishment of common infrastructure, which can be used by all the members or can generate business income for all the members.

Related Products

Add this website to home screen

Are you Bank of Baroda Customer?

Yes No

This is to inform you that by clicking on continue, you will be leaving our website and entering the website/Microsite operated by Insurance tie up partner. This link is provided on our Bank’s website for customer convenience and Bank of Baroda does not own or control of this website, and is not responsible for its contents. The Website/Microsite is fully owned & Maintained by Insurance tie up partner.


The use of any of the Insurance’s tie up partners website is subject to the terms of use and other terms and guidelines, if any, contained within tie up partners website.


Proceed to the website


Thank you for visiting www.bankofbaroda.in

X
We use cookies (and similar tools) to enhance your experience on our website. To learn more on our cookie policy, Privacy Policy and Terms & Conditions please click here. By continuing to browse this website, you consent to our use of cookies and agree to the Privacy Policy and Terms & Conditions.