Type of Loans: Working capital, term loans or mix of both.
Purpose: PACS are one of the legal forms of Producer Organizations and NABARD took special initiative to support PACS for developing as “Multi Service Centre (MSC)”. This enables PACS to become "One stop shop for providing ancillary services to its members and also to diversify its activities by providing additional services like custom hiring of agricultural implements, enabling collective purchase of inputs, having good quality storage capacity as per Negotiable Warehouse Receipt System, processing units, marketing facilities, etc. NABKISAN has also recognised PACS as an important institution for financing various activities in rural areas and has been extending financial assistance to them. Societies are recognised as one of the eligible institutions under the Financing facility of ₹ 1,00,000 crore for funding Agriculture Infrastructure Projects at farm-gate & aggregation points. The impetus is for development of farm-gate & aggregation point, affordable and financially viable Post Harvest Management infrastructure. As per the scheme guidelines, NABKISAN may extend the loans to PACS.
Eligibility:
i. PACS/ other society/ PCARDB should be in profits for the last three years with no accumulated losses.
ii. The PACS/ other society/ PCARDB should be under Category ‘A’ or ‘B’ of audit classification.
iii. Profit making PACS/ othersociety/ PCARDB falling under category ‘C’ can also be financed directly if they provide security to the extent of 100% of the financial assistance.
iv. PACS/ other society/ PCARDB should be having sufficient borrowing power and have enabling provisions to borrow from financial institutions.
Security:
Primary Security: Mortgage and/ or hypothecation of assets created.
Collateral Security for Category ‘A’ & ‘B’ PACS/ other societies: Collateralsecurity to the extent of 75% of financial assistance sanctioned, for ‘A’category and 90% for ‘B’ category.
a.Category ‘C’ PACS/ other societies: May be considered for finance only oncase-to-case basis provided security up to 100% of financial assistance sanctioned/disbursed is given.
b. Liquid securities will be by way of lien on FDs kept with category ‘A’ and ‘B’ CCBs in case of PACS or other banks in case of all societies including PACS, to the value up to 25% of the security and/or thebalance by way of mortgage of non-agriculture property.
c. The collateral security prescribed may be to the extent of percentage of loan sanctioned as per the percentage stipulated at the time of sanction.
However, the power to relax the norms may be vested with MD & CEO as to allow liquid collaterals as a percentage of amount disbursed or on outstanding loan amount, on a case-to-case basis.
Similarly, MD & CEO may approve pro-rata release of security as and when outstanding is reduced by more than 50% of amount disbursed, subject to satisfactory track record regarding repayments, credit history of the clients and receipt of request in this regard from the client.
Rate of interest & Processing fees: Rateof interest & Processing fee is linked to the ALCO rate of Borrowing of NABKISAN and as per the rate of interest policy of NABKISAN applicable fromtime to time.
Repayment period: Up to 7 years*
