FAQ - Nabkisan Finance Limited

The most common questions

What are the different type of LOAN PRODUCTS for FPOs?

·        Working Capital Loan
·        Term Loan
·        Pledge Loan

What are the ELIGIBLE ACTIVITIES?

·        Working capital loan requirement forprocurement and sale of agricultural inputs and procurement of produce forcollective marketing, value addition and processing
·        Term loan for creation of commoninfrastructure
·        Pledge loans against Electronic Warehousereceipt (eNWR) ·        Any other business activity which is helping thePO and its members to generate income

What will be the loan quantum available?

· "Up to 85% of the working capitalrequirement or total project cost, within a maximum limit of 5-10 times thecompany's net worth, based on the assigned credit rating.
· "Minimum 15% margin for all categories

What are the FEE AND CHARGES?

· Processing Fee: Maximum of 1% plus applicabletaxes
· In case of repeat clients, lower processing feesshall be applicable · CG fees as applicable

Who are the eligible institutions?

· Producer Organizations, in farm and off-farmsector, registered under any statute of law
· Any other registered organization or Legalentities of similar kind

What are the ELIGIBILITY CRITERIA?

·        The PO should have been incorporated at leastfor six months prior to submission of loan application
·        At least one audited balance sheet as on thedate of application ·        A minimum subscribed share capital of Rs.2 lakh
·        Not have been in default to any organizationincluding other banks/FIs ·        Comply with legal requirements such as necessarylicenses, TIN/ GST number etc.
·        A regular CEO in place
·        A well laid out business plan at least for thenext one year
·        The PO should fall into the A+, A,B,B+,C+Category of POs based on NABKISAN rating tool

What is the INTEREST RATE charged?

·        Competitive interest rate
·        Transparent pricing (No Hidden fees)
·        Based on diminishing balance to reduce burden onFPOs

What is the REPAYMENT PERIOD?

· Maximum Repayment period is 7 years for termloans including moratorium period, if any
· Up to 18 months for working capital loansincluding moratorium period, if any