SCHEME FOR FINANCING SEED PRODUCERS/PROCESSORS

  • OBJECTIVE: To facilitate financing to seed producers/ processors.
  • ELIGIBLE ENTITIES: Individuals, Private Companies, Corporates, Self Help Groups (SHGs)/ Joint Liability Groups (JLGs) and other legal entities.
  • NATURE OF LOAN:
      1. Term loan – The same may be provided for setting up of processing unit which will include packers, cleaners, graders, separator, godown etc.
      1. Working Capital for seed processing
      1. Working Capital Demand Loan for credit extended to outsourced farmers for seed multiplication.
  • QUANTUM OF LOAN: Need Based as per the total financial outlay of the project.
  • MARGIN:
    • Term Loan:
      • (i) Purchase of Land- Minimum 25%
      • (ii) Others- Minimum 15%
    • Working Capital – Minimum 25%
    • Working Capital Demand Loan- Minimum 25%
  • REPAYMENT:
      1. Term Loan: Repayment period will depend upon the cash flow and will be up to 7 years including a grace period of maximum upto one year.
      • The instalment will be on half-yearly interval after an initial moratorium of 6 to 12 months depending upon the case.
      • However, extension in repayment period beyond 7 years may be allowed by next higher sanctioning authority on the merit of the proposal.
      1. Working Capital for seed processing: The tenure of CC would be one year. CC limit would be renewed every year.
      1. Working Capital Demand Loan for extending credit to farmers: The repayment of the advances under the scheme shall be maximum upto 12 months or commencement of cash generation whichever is earlier.