Financial And Loan Assistance
What is a Financial and Loan Assistance?
Financial and Loan Assistance is a secured loan. The borrower requires to pledge a collateral as an asset. It may be used to build a new infrastructure for cold storage or expand the existing facility. However, in majority cases, funding is at 75% of the project total cost.
What is the need for a cold storage loan?
Financial and Loan Assistance helps agriculturists in providing cold storage warehouse or facility to store commodities. It is a crucial stage where the food chain process ensures commodities reach the country in all corners. It is a secured loan type and requires collateral as assurance. Call NSSPL before you seek a loan for cold storage. It helps setting up business and is useful to ensure there is enough capital for daily operations.
Cold storage loan features
The agricultural sector is the largest in the Indian economy and for every new business loans are useful. The salient features are:
- A secured loan is the cold storage loan and so the borrower has to pledge an asset as collateral.
- Funding is available for the total project cost up to 75%.
- Site or land mortgage in the cold storage may be used as loan collateral.
- Groups or individuals as a group, companies or co-operative societies are eligible for this loan type.
- Construct the storage infrastructure or modernize into existing facility.
What is the eligibility criteria?
Financial and Loan Assistance has eligibility criteria to avail the assistance.
- Group of individuals or individuals
- Banks check promoters reputation
- Companies/Cooperatives/ Partnership concerns/Proprietary
- Accounts are maintained as per rules
- Capacity storage must not exceed 5000MT
- Existing facility should be in working condition and should show profits for past 3 years to avail this loan.
- For new projects, submit the feasibility to bank for assessment.
The top banks offering Financial and Loan Assistance are:
SBI, Canara Bank, NABARD, IDBI Bank, Corporation Bank, Vijaya Bank, and Union Bank of India
Tips to apply for cold storage loanThe documentations required to avail this loan includes:
- Filling the application form duly
- Borrowers photograph
- Warehouse receipts pledge showing agricultural commodities stocks in warehouses of warehousing state/central corporations
- Hypothecation of stored produce with the farmer