Private bank finance available for agri projects

[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.

[mdathar]

Dear Sir,
Can we avail OD facility against urban security at Rourkela/Orissa please advice.
Thanks and Regards
md.Athar
National Enterprises

[darshakm]

DEAR MR.MD.ATHAR,

SORRY FOR NOT RESPONDING EARLIER.

WE REGRET OUR AREA OF COVERAGE DOES NOT INCLUDE ORISSA.

HOWEVER, I'LL PASS ON INFO. TO RELEVANT PEOPLE AND THEY'LL GET IN TOUCH WITH YOU.



DARSHAK MEHTA

[jagadeesan_vp]

we are interest stevia per one acre herbals cultivation you can given loan my lands security,loan amount is Rs 1,20, 000. yours condact phone no and address details send me sir,

[darshakm]

DEAR MR.JAGDEESHAN,

IF YOU REFER MY POSTING, PRIVATE BANK IS FINANCING AGRI BUSINESS .
HERE MONEY IS GIVEN AS AN O.D LIMIT TO CONDUCT TRADING BUSINESS AGAINST URBAN PROPERTY AS COLLATERAL.

IN YOUR CASE, YOU'RE LOOKING FOR A FARMER LOAN AGAINST HYPOTHECATION OF FARM LAND.

KINDLY APPROACH ANY NATIONALISED BANK OR GET YOUR LOAN REFINANCED THRU MICROCREDIT LIMITS OF NABARD.

DARSHAK MEHTA

[bhaskaram]

pl inform the possibilities for export credit for agro products.

[bhaskaram]

pl inform the possibilities for export credit for agro products.

[darshakm]

DEAR MR.BHASKARAM,

YES. THE AFORESAID SCHEME CAN ALSO BE FOR EXPORTS. FOR ANY AGRI TRADE COLLATERAL SECURITY IN FORM OF SELF OCCUPIED RESIDENTIAL PROPERTY EQUAL TO TWICE THE O.D. AMOUNT HAS TO BE PROVIDED.

HOWEVER, YOUR EXISTING BANKERS WOULD BE ABLE TO PROVIDE EXPORT PACKING CREDIT UPTO 60% WITHOUT ANY ADDITIONAL COLLATERAL SECURITY.

HENCE, I RECOMMEND YOU APPROACH YOUR BANKERS FOR THE SAME AS IT WOULD BE MAKE MUST MORE BUSINESS SENSE.

REGARDS

DARSHAK MEHTA

[rahulpatil211]

Sir,
We have industrial N.A Land to offer as collateral security for O.D for our Agri Business. Mail contact number, so we can discuss in details

[pramod patil]

Dear sir,
Are u / ur firm interested in finansing the projects other than agri.
Collateral security available (n.a.) in urban area having twice valuation. Amount required is @ 50 crore.

pramod patil