PURPOSE
To provide Venture Capital Assistance to agri-business projects and to set up a Project Development Facility to assist producer groups/organizations in formulation of economically viable agri-business projects.
ELIGIBILITY:
Assistance under the scheme will be available to Individuals, Farmers, Producer Groups, Partnership / Propriety firms, Self help groups, Companies, agripreneurs, units in agri-export zones, and Agriculture graduates Individually or in groups
Projects are dependent upon agricultural or allied produce,
Projects provide direct access to producers as assured market,
Projects encourage farmers to diversify into high value crops aimed to increase farm incomes,
The Bank has accepted the project for grant of term loans after satisfactory techno-commercial feasibility.
MARGIN NORMS:
As applicable to individual scheme under which finance is extended.
EXTENT OF LOAN (Need Based) :
The intending project must be over Rs.50 lakh in size (Rs. 25 lakh in case of North-Eastern States and other Hilly Areas). Projects recommended by State SFACs can be considered for higher assistance under the Project Development Facility (PDF).
EXTENT OF VENTURE CAPITAL ASSISTANCE:
The amount of Venture Capital Assistance shall be the lowest of
-
10 per cent of the project cost OR
- 26 per cent of project equity OR
- Rs.75.00 lakh.
REPAYMENT OF LOAN :
Repayment of loan shall be 5-6 years excluding gestation period.