Ø      Eligibility :

à  Milk vendors collecting milk either from retail or wholesale, supplying to various chilling plants.

à  Preferably vendors having tie up with reputed Dairy/Hotels/Sweet stalls etc.

Ø      Objective :

à  Infusion of more investment credit for capital formation under dairy sector.

à To generate and accelerate the demand for short-term credit in agriculture and other allied activities.

Ø      Purpose :

à     Term loan
·         Purchase of vehicle used in transportation
·         Other accessories required.

à     Secured Over Draft
·         To meet the credit requirements for purchase and maintaining milch animals owned by him/other farmers who supply milk to the vendors (borrowers) or group of dairy farmers.

Ø      Loan Amount :

à  15 times of the average cost of milk procured by the milk vendors per day or 90% Cost of vehicle/other equipments.

à  Minimum milch cattle two by any borrower/farmer preferably crossbred animals.

Ø      Margin :

à  30% of wholesale market prices of the produce.

Ø      Rate of Interest :         

à     Repayment upto 36 months(Sec OD)

         < Rs. 0.50 lakhs                           @ BPLR -2.50% (10.00%)

Rs.0.50 – Rs.2.00 lakhs                 @ BPLR -1.00%(11.50%)

> Rs.2.00 lakhs – 5.00 Lakhs        @ BPLR +0.50%  (13.00%)

> 5.00 Lakhs                                 @ BPLR +1.00 %( 13.50%)

à     Repayment above 36 months (Term Loans)

           < Rs. 0.50 lakhs                          @ BPLR+TP -2.50% (10.50%)

Rs.0.50 – Rs.2.00 lakhs                 @ BPLR +TP-1.00%(12.00%)

Above Rs 2.00-5.00 Lakhs            @ BPLR+TP+0.50% (13.50%)

Above Rs 5.00 Lakhs                   @ BPLR+TP+1.00%(14.00%)       

Ø      Security :

à  Mortgage of landed purchased/house site value equivalent to double of loan amount.

à  Guarantee from a suitable person. Circle Head may waive third party guarantee wherever it is felt appropriate.

Ø      Repayment :

à  10 to 14 half yearly installments.

à  Interest to be serviced as and when debited and facility to be reviewed and renewed every year. Turn over should be four to five times of the limit.