KVB Rice Plus

KVB Rice Plus

KVB offers a product for the rice mills that offers flexibility in meeting funds requirement during peak season, by which these requirements can be met by Short Term Loans / Working Capital Demand Loan during seasonal requirements apart from regular cash credit / secured overdraft limits.

Base rate(w.e.f. 05/10/2015) → 10.40%

Features
  • Available for all rice millers with more than 3 years of profitable operations
  • CC / SOD upto 4 months stock holding level and WCDL / STL upto 2 months stock holding level.
  • Term Loan (TL) for Factory Building and Plant & Machinery available for setting up of new units or for expansion modernization of existing units and for investment in new factory building and Plant & Machinery
Working Capital Limits - OCC / SOD / WCDL / STL:
Eligibility All rice millers with more than 3 years of profitable operations - Relaxations can be considered in case of new rice mill units which are established by promoters of existing profitable units
Purpose For Working capital requirements
SCHEME ROI (floating) p.a.
KVB Rice Plus
OCC 11.15% (BR + 0.75%)
SOD 11.40% (BR + 1.00%)
STL/WCDL 11.40% (BR + 1.00%)
Term Loan 11.40% (BR + 1.00%)
Facilities CC / SOD upto 4 months stock holding level and WCDL / STL upto 2 months stock holding level.
Margin CC - 25% ON STOCKS and 40% on BOOK DEBTS
SOD - 40% ON PRIMARY SECURITY
WCDL - 25% ON STOCKS
STL - NIL
Tenor (months) CC / SOD - 12 months
WCDL / STL - 3 months
# The WCDL / STL can be availed more than once during a year depending on the harvest season and the pattern of procurement of paddy
Processing Fees CC / SOD - 0.40% for fresh and 0.30% for renewals
WCDL / STL - 0.75%
Security

Primary security :
CC / WCDL - First charge on all existing and future current assets of the firm 
SOD - EM charge on Rice Mill land and factory building [excluding Plant & Machinery] and other immovable assets given as security. Agriculture land shall not be accepted as security 
STL - EM charge on Rice Mill land and factory building [excluding Plant & Machinery] and other immovable assets given as security. Agriculture land shall not be accepted as security Minimum security coverage shall be 100% excluding the applicable security coverage available for CC / SOD limit. 

Collateral security:
CC / WCDL - EM charge on Rice Mill land and factory building [excluding Plant & Machinery] and other immovable assets given as security. Minimum collateral security coverage required shall be 75%. 
SOD / STL - Additional charge on all existing and future current assets of the firm.


Wherever rice mill is on lease basis, residential / commercial properties may be accepted as a security. 

Guarantor/s Proprietor / Partners of the Firm and the title holders of the immovable property given as security
Financing Term Loans - Building, Plant & Machinery:
Key features Terms and conditions
Eligibility All rice millers with more than 3 years of profitable operations - Relaxations can be considered in respect of New rice mill units, which are established by promoters of existing profitable units
Purpose For setting up of new units OR expansion / modernization of existing units and for investment in factory building, Plant & Machinery
Facilities Term Loan (TL) for Factory Building and Plant & Machinery as per requirement as the case maybe
Margin 25% for Machinery and minimum 40% for Building
Tenor (months) 60 months (Max)
Processing Fees 1.00%
Primary security Hypothecation of Plant and Machinery acquired out of Bank Finance
Collateral security EM charge on Rice Mill land and factory building [excluding Plant & Machinery] and other immovable assets given as security. Minimum collateral security coverage required shall be 75%. Agricultural property may be accepted as security subject to approval of Central Office of the Bank and value of agricultural properties offered as security shall not be more than 25% of total securities.

Wherever rice mill is on lease basis, lease period should cover term loan repayment period. Term Loan (Building) will not be granted on leased premises.
Guarantor/s Proprietor / Partners of the Firm and the title holders of the immovable property given as security

This facility is applicable only to Rice Mills falling with investment in Plant and Machinery upto Rs.10.00 crores