VAE 511: Livestock Entrepreneurship (1+0)

Lending terms - General

LENDING TERMS

• Each Regional Office (RO) of NABARD (www.nabard.org) has constituted a State Level Unit Cost Committee under the Chairmanship of RO-in-charges and with the members from developmental agencies, commercial banks and cooperative banks to review the unit cost of various investments once in six months.
• The same is circulated among the banks for their guidance.
• These costs are only indicative in nature and banks are free to finance any amount depending upon the availability of assets.

Margin Money

• NABARD had defined farmers into three different categories and where subsidy is not available the minimum down payment as shown below is collected from the beneficiaries.

S.No.	Category of Farmer	Level of predevelopment return to resources	Beneficiary's Contribution
1	Small Farmers	Upto Rs.11000	5 %
2	Medium Farmers	Rs.11001 - Rs.19250	10%
3	Large Farmers	Above Rs. 19251	15%

Interest Rate

• As per the RBI guidelines the present rate of interest to the ultimate beneficiary financed by various agencies are as under :

S.No.	Loan Amount	CB's and RRB's	SLDB/SCB
1	Upto and inclusive of Rs.25000	12%	As determined by SCB/SLDB subject to minimum 12%
2	Over Rs. 25000 and upto Rs. 2 lakhs	13.5%	As determined by SCB/SLDB subject to minimum 12%
3	Over Rs. 2.0 lakhs	As determined by the banks	As determined by SCB/SLDB subject to minimum 12% Security will be as per NABARD/RBI guidelines issued from time to time. Repayment Period of Loan Repayment period depends upon the gross surplus in the scheme. The loans will be repaid in suitable monthly/quarterly installments usually within a period of about 5 years. In case of commercial schemes it may be extended upto 6-7 years depending on cash flow analysis. Insurance The animals may be insured annually or on long term master policy, where ever it is applicable. The present rate of insurance premium for scheme and non scheme animals are 2.25% and 4.0% respectively. Security