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.

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.
Processing Charges
  • For fresh / takeover - 0.25% + GST (50% concession).
  • For renewal - 0.20% + GST (50% concession).
Interest Rate
  • The applicable Rate of Interest (ROI) is linked to the Credit Score / Rating.
  • For details please refer the section on Interest Rates.
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