AGRICULTURE AND ALLIED LOANS

Kerala Bank's Loan scheme for Medium, long-term Agriculture needs

KB FPO LOAN
Farmers Producer Companies/Organisation Loan

Farmers Producer Organisation (FPO) is an organisation of farmer-producers that provide support to small farmers with end-to-end services covering almost all aspects of cultivation from inputs, technical services to processing and marketing. FPOs play an important role in aggregation of farm inputs and direct marketing of agriculture produce for better price realization to the farmers especially small and marginal farmers.
Loan limit	Maximum up to Rs 60 lakh or limited up to 6 times net worth of FPO whichever is less.
Repayment Period	Term Loan: in tune with repayment period of concerned KB-loan schemes limited to a maximum period of 8 years. While considering the income generating activities, the nature of repayment may differ monthly, quarterly, half yearly. Working Capital:12 months subject to renewal annually
Eligibility	Farmer Producer Companies/Organizations shall be registered under legal provisions Members and stake holder of the FPCs/FPOs shall be farmers, milk producers, fishermen etc. The productive land under an FPC/FPO shall be around 500 to 4000 ha. The minimum number of farmer producers in FPC is 300. FPC/FPO with six months of active operations from the date of registration minimum capital of Rs 5.00 lakh,positive net worth and one audited balance sheet In case of FPCs/FPOs eligible for Credit Guarantee Scheme, SFAC guidelines issued on the scheme to be followed.
Nature of Limit	Term loans and/ or Working capital or both.
Security	Primary Security: All assets created out of Bank's finance shall be charged in favour of Bank by way of hypothecation. Collateral Security: No collateral security shall be obtained in case the loans are covered under credit guarantee scheme implemented by NABARD. (In special cases, if eligible, landed property having value of 150% of the loan amount may be accepted)

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