Farmer Producer Organizations

Purpose

• Working capital loan

  To procurement and sale of agricultural inputs and procurement of produce for collective marketing, value addition and processing.

• Term loan

  Setting up of common infrastructure for agri & processing activities.

• Pledge loan

  Against Electronic Negotiable Warehouse Receipt (eNWR) and any other business activity which is helping the PO and its members to generate income.

• Growth loan

  To provide flexible working capital finance to eligible FPCs, federations for procurement and aggregation of outputs, inputs, handloom, handicraft, MSME activities, value chain financing and trade receivable financing.

Eligibility

• The PO should have been incorporated at least for six months prior to submission of loan application. At least one audited balance sheet as on the date of application.
• A minimum subscribed share capital of ₹ 2.00 lakh.
• Not have been in default to any organization including other banks/FIs.
• Comply with legal requirements such as necessary licenses, TIN/ GST number etc.,
• A regular CEO in place
• A well laid out business plan at least for the next one year.
• The PO should fall into the A+, A,B+, B, C+ category of POs based on NABKISAN rating tool.

Security, interest & repayment