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KVB Food and Agro Process Plus

KVB Food and Agro Process Plus is a tailor-made loan scheme for Agro and Food processing companies. A Company with a minimum of 2 years of profitable operations can avail this loan to grow their business.

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15 Lakhs

Min Working Capital limit

1,000 Lakhs

Max Working capital limit

180 Days

Usance period for FLC

Features and Benefits

Units engaged in processing / cleaning / sorting of pulses, viz. dal mills, flour mills, edible oil mills, etc., (other than rice mills).
Minimum 2 years of profitable operations.
Minimum rating at the entry level shall be KVB BB i.e. score of 51 and above.
Eligible constitution: Individual, sole proprietorship concern, partnership firm, LLPs, HUF, companies.
Fund based - OCC / SOD-RE / PCL / FBN / FBP / HPL(M) / TL(B).
TL(B) should not be granted for the purchase of land alone.
Non-fund based: ILC / FLC (for purchase / import of raw material / machinery). Buyers Credit also can be sanctioned.

Charges and Limits

Purpose	OCC / SOD-RE / PCL / FBN / FBP - Working capital requirement. HPL(M) - To purchase new or second-hand machinery (not older than 3 years). TL(B) - For the construction of building or for the purchase of factory land and building. The loan should not be granted for the purchase of land alone. For expansion, modernization and renovation of units also TL(B) / HPL(M) can be sanctioned. ILC / FLC - For purchase of raw material or purchase of machinery.
Validity / Tenor	OCC / SOD-RE / PCL / FBN / FBP / LC - One year. HPL(M) / TL(B) - Maximum 6 years (excluding holiday period & holiday period should not exceed 1 year) depending upon cash flows / DSCR. Usance period - 180 days for FLC and 120 days for ILC.
Limit	Working capital limits (both funded and non-funded put together)- Minimum Rs.15 Lakhs and maximum Rs. 1,000 Lakhs. TL(B) and or HPL(M) - Maximum Rs. 500 Lakhs Maximum exposure both working capital limits and term loans put together is Rs. 1,500 Lakhs
Margin	OCC - 25% on stocks and 35% on book debts not older than 90 days. SOD-RE - 40% on Primary Security. HPL(M) - 25% on the value of machinery, in case of second-hand machinery 50%. TL(B) - 40% on estimated construction cost. ILC / FLC - 15% cash margin. PC - 25% FBN - NIL FBP - 10%
Primary Security	OCC / PCL / FBN / FBP / ILC / FLC - Hypothecation of entire current assets. SOD-RE - Equitable mortgage on residential or commercial properties other than agricultural property (with minimum security coverage of 167%). HPL(M) - Machinery to be purchased out of bank finance. TL(B) - Land and building to be constructed out of bank finance.
Collateral Security	SOD-RE - Hypothecation of entire current assets. OCC / PCL / ILC / FLC / FBN / FBP / HPL(M) / TL(B). Equitable mortgage on residential or commercial properties other than agricultural property. Minimum collateral security coverage shall be 75%. No relaxation will be permitted. If immovable properties are not sufficient to cover the required margin, Term Deposits / NSCs / Life Insurance Policies (all or any of them) may also be accepted to cover the difference amount. However, third-party instruments are not acceptable. Third party properties may be accepted as per credit policy provisions.
Guarantors	Partners of the firms / directors of the company / title holders of the immovable properties given as security and husband of lady guarantors / lady partners / proprietrix as per credit policy provisions.