Dear Sir,
I dont feel these sort of idea would actually work. Why you need to have a collateral security such as godown or whatever for agriculture loan... why can you go in hypothecation of assets for which the loan is itself provided. If a car can be financed and hypothecation done then why not agriculture... you want securities for investing in a business which is the fastest growing across the globe... You gave an example i give you an offer and just tell me if ou can help.
I want to buy agriculture land around 10 acres worth 30 lakhs in total... Provide me loan for it.... Hypthecate the land itself as security.. have it in your banks name and sin an MoU saying that if i am nt able to repay the loan in five years the land would be auctioned off. And if the loan is is paid off with the interests it would be transferred to my name.. additionally provide me loan for plantations of trees in the same land...and the earnings from selling of the logs of trees after five years would come to you, immaterial i pay the loan back or not.But i would be allowed to earn from the sale of its carbon credits.
I am an indian with a government Pan Card. Iwont be able to provide any business history as this is a new venture.. My address would be the land i am taking loan for as i would live there and take care of crops.
Now i feel this is a sensible offer in which i get land for cultivation, you get collateral security as well good returns.
Now if you have any sensible offer to match this rather than explaining why banks take collateral security, i feel that would help the small & marginal farmers. you can always call me on nine nine eight one eight four two one or mail me at rajneeshbatta at the rate yahoo dot come.
Apart from that i have own developed technology which one of its own across the globe... its a self adaptable and sustainable mushroom grow hose which produces its own power, is remotely controlled through sensors and actuators, can grow mushrooms all the year round even in hottest of places.
Now if you have aggressive marketing and you match my requirements... i assure you a minimum 10 crore+ worth of finance business every year. There are people who want to work..i have the technolgy..the product, i can market the produce... now you provide us with the finances... And on behalf of entire agriculture information community i assure you of support from all of us
Boss people talk about finance but i am looing for an organisation who cn understand the requirement at grass root level which he can knw when he has faced them or if he is ready to interact and believe with the people who have faced the real problems. why would a man with godown and shops would require loan from you... the landless man or a man with smal landholdings, which are abundant in india, require loan.... they can work they can pay u off bt rather all the banks are interested to give out loansto rich people, but still bad debt cases are increasig...now its time if you can trusts our capabilities and give us (smaal and marginal farmers of india) a chance to deliver... you support us financially and i assure you you would see absolutely new emerging face of indian agriculture... till now small farmers have not been able to contribute much to agriculture development but now we want to.. but is anyone there to give us a chance....
There are banks who provide loans for tractors, irrigation systems... but not for land and seeds... what i would do with tractor and irrigation finance when i have no land to work on... i am a MBA, Ex-IBM, Ex-Wipro- Territory manager, and hopefully one out of the very few who are experts in new horticulture technology..i am a amatyer reseracher too and an exporter too... i have orders in hand for almost 40 contaners and have the material sourcing and production too. support me with finance... i would wait for your reply if in reality you guys are serious and aggressive in your marketing efforts
REGARDS
RAJNEESH BATTA
Director- Agrotech Green Innovations
Quote:
Originally Posted by darshakm
AGRI BUSINESS FINANCE
WE REPRESENT A LEADING PRIVATE BANK FOR MONEY REQUIRED FOR AGRI BUSINESSES.
FIRSTLY IT IS BANKING FACILITY LIKE O.D FOR AGRI-BUSINESS AND IS NOT A FARMER LOAN.
PEOPLE IN AGRI BUSINESS CAN GET UP IN VARIOUS SCHEMES FROM 25 LAKHS UP TO 5 CRORES.
HOWEVER, THIS LOAN IS AGAINST SELF OCCUPIED RESIDENTIAL PROPERTY AS COLLATERAL SECURITY. THIS PROPERTY HAS TO BE IN URBAN / SEMI URBAN AREA EQUIVALENT TO 200% OF O.D LIMIT.
I.E FOR EXAMPLE . IF PROPERTY MARKET VALUE IS 50 LAKHS, MAX. O.D IS 25 LAKHS.
IF SOME BUSINESSMEN HAVE GODOWNS / SHOPS / COMMERCIAL PREMISES, EVEN THEY CAN BE CONSIDERED FOR COLLATERAL, TO ENHANCE O.D.LIMITS.
INTEREST RATES FOR O.D IS 11.75 - 12%
BUT INTEREST IS CHARGED ONLY ON THE PORTION AND PERIOD OF O.D. FACILITY AVAILED.
THERE IS ALSO SCHEME FOR REGD. AGRO BASED SMALL SCALE INDUSTRIES CAN AVAIL FACILITIES FROM 5 - 25 LAKHS WITHOUT ANY SECURITY / COLLATERALS.
THIS SCHEME IS ALSO FOR NEW S.S.I'S.
BUT BEFORE APPLICATION FOR LOAN, S.S.I REGN IS MUST.
THERE ARE SPECIAL SCHEMES FOR FARMERS OF SUGARCANE, DAIRY, POULTRY, PLANTATION CROPS ETC BUT IN EACH OF THESE CASE THE COLLATERAL IS GIVEN BY THE INDUSTRY TO WHOM THEY'VE ALREADY LARGE LIMITS SANCTIONED.
ALSO THERE IS SCHEME FOR COMMODITY TRADERS AGAINST WAREHOUSE RECEIPT SCHEME. BUT HERE MINIMUM VALUE OF GOODS SHOULD BE OVER 3 CRORES STOCKED IN ONE CLUSTER AREA.
I DO AGREE WITH MEMBERS USING THIS FORUM THAT BANKS ARE NOT AT ALL COMFORTABLE WITH DIRECT FARMER FINANCING.
HOWEVER, ONE MUST TRY & UNDERSTAND BANKER'S POINT OF VIEW.
IN NAME OF PRIORITY SECTOR / AGRI FINANCE, THRERE HAVE BEEN LOT OF FRAUDS BY CERTAIN CO-OP / SCHEDULED BANKS HAVE LED RBI TO PASS STRICTURES.
ON OTHER SIDE, POOR FARMERS HAVE BEEN RUNNING TO PRIVATE LENDERS.PRIVATE LENDERS HAVE BEEN CHARGING EXHORBITANT INTERESTS FOR UNSECURED LOANS TAKING ADVANTAGE OF SITUATION.
INSTEAD OF LOOKING FOR AGRI FUNDS LESS THAN 7-8 % INTEREST, FARMERS MUST UNDERSTAND AND LOOK FOR SCHEMES HIGHER INEREST RATES.
IN CONCLUSION
TWO IMPORTANT THINGS TO NOTE
PUBLIC SECTOR / NATIONALISED BANKS HAVE SCHEMES OF DIRECT FARMER FINANCING. HOWEVER, IT HAS A PROCEDURAL NORM WHICH EVERY BODY IS AWARE OF.
PUBLIC SECTOR BANKS GIVE FUNDS BASED ON CASE TO CASE BASED MERITS DEPENDING ON COMFORT LEVEL AT BRANCH LEVELS.
PRIVATE BANKS HAVE MORE AGRESSIVE MARKETING.
HOWEVER, THEIR APPROACH IS THEY'RE COMFORTABLE ONLY WHEN INDUSTRY IN INVOLVED IN CHAIN AND OR READILY LIQUIDABLE PROPERTIES ARE AVAILABLE AS COLLATERAL.
PRIVATE SECTOR BANKS GIVE FUNDS BASED ON ON COMFORT LEVEL IN THE PARTICULAR SECTOR PERFORMANCE.
AT END OF THE DAY
BANKS FUNDS ARE BETTER ANY DAY THAN PRIVATE MONEY LENDERS.
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