Objective

Lending to Farm credit including Allied activity, Agriculture infrastructure & Ancillary activity (Except Food & Agro activity).

Target Group

Individuals, Proprietary concern, Partnership Firm, Private limited company, Public limited company, LLP, OPC etc

Purpose

Working Capital - Financing for stocks/receivables /other operational expenditures.

Term Loan - Purchase of fixed assets such as machineries, equipment, construction of factory/ warehouse/ cold storage/ poly house/ rural godown/ office and its interior decoration & furnishing/installation of solar systems etc., purchase of Commercial vehicles/ tractors / power tillers, setting up Food and Agro processing units, Agri Clinics/Agri Business Centre's, Agri-infrastructure projects.

Amount of Loan

• Minimum- Above Rs. 10.00 Lakh,
• Maximum- Rs.10.00 Crores

Security

Prime Security:

Liquid assets such as Life Policies of LIC of India and private companies approved by IRDA, NSC/KVP etc. or immovable property.

Collateral Security:

Working capital (FB & NFB): -

Hypothecation of fully paid stock and book debts. Branch to conduct unit visit on quarterly basis to ensure that unit is functioning.

Term Loan: -

Hypothecation/mortgage of assets created out of the Term Loan.  

Rate of Interest

Refer - Interest Rates at a Glance (Click here)

Repayment Period

10 years including moratorium period (Monthly, Quarterly, Half yearly and annually based on the activity undertaken).

Holiday

Maximum 18 Months

For other details, please contact your nearest IOB branch.