Financing Farmer Producer Companies (FPC)

• Purchase of Input material for supplying to the farmers
• Warehouse receipt finance
• Marketing activities
• Setting up of Common Service centers
• Setting up of Processing Centre
• Common Irrigation Facility
• Custom Purchase/Hiring of Farm Equipment
• Purchase of High-Tech Farming Equipment
• Other productive purposes – based on submitted investment plan

All registered Farmer Producer Companies with at least six months of operations since registration.

FPCs applying for collateral free loan based on Credit guarantee from SFAC under EGCGF shall comply with the eligibility criteria as specified in the EGCGF scheme document.

Minimum – above Rs 3.00 Lakhs

Maximum loan Limit –Rs.1.00 Crs.

Cash Credit/ Term Loan

* Additional concession of 0.5% is allowed.

15% of the loan amount

For cash credit: 12 months

For Term Loan: Repayable in 3 to 9 years period depending upon the purpose of investment, economic life of asset and cash flow of the activity.

Repayment of the term loan can be fixed monthly/quarterly/half yearly/yearly based on the purpose of loan /cash flow of the FPC.

Hypothecation of structure/ equipments/ machinery purchased or created out of bank finance

For credit facilities up to Rs 100.00 lakhs and CG from SFAC sought- No collateral security required

For credit facilities without CG from SFAC and credit facilities of more than Rs 100.00 lakhs – As per Bank’s policy.