Eligible Institutions: Start-ups working in the field of agriculture and rural development, with an established business model, looking to scale up their operations
Eligible activities: Loans shall be extended in the form of direct finance, for the purposes indicated below:
• Value Chain Financing
• Green finance: Clean Energy, climate change mitigation and adaptation, waste management
• Water, Sanitation and Hygiene (WASH) including Climate Ready WASH
• Rural Infrastructure
• Logistics
• Food/ Agro Processing
Eligibility Criteria:
i. This support is available for innovative Indian start-ups in agriculture and allied sectors that directly benefit farmers/FPOs, offering services like financing linkages.
ii. Eligible start-ups must be registered as Private Limited Companies with DPIIT certification and have at least 51% Indian promoter shareholding.
iii. The start-up must not have pending dues or be blacklisted by any government agency
Loan Quantum:
i. The amount would be absolutely need based.
ii. The maximum quantum of financial assistance to be sanctioned will be 85% of the project cost and margin of minimum 15% to be brought in by the start-up.
Interest Rate:
i. Rate of interest and processing fee shall be as per policy of NABKISAN
ii. Minimum of 2% of the loan sanctioned plus applicable taxes will be charged towards processing fee.
Repayment Period: Maximum Repayment period is 18 Months for working capital loans and 7 years for Term Loan including moratorium period, if any
Security:
i. Primary Security: Mortgage and/or hypothecation of assets/stock/receivables created, if any.
ii. Collateral Security:
• Personal guarantees of promoters is compulsory.
• Liquid collateral in the form of lein marked FD in the range of 25% - 50% depending on case-to-case basis or in the form of mortgage of SARFAESI compliant property in the range of 50% -75%.
