KVB Rice Plus

KVB offers a product for the rice mills that provides flexibility in meeting fund requirements 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.

Features and Benefits
  • Available for all rice millers with more than three years of profitable operations.
  • CC / SOD up to 6 months stock holding level and WCDL / STL up to 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 a new factory building and Plant & Machinery.
Charges and Limits

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
Facilities CC / SOD up to 6 months stock holding level and WCDL / STL up to 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 a lease basis, residential / commercial properties may be accepted as 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

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 new units OR expansion / modernization of existing units and for investment in a factory building, Plant & Machinery.
Facilities Term Loan (TL) for Factory Building and Plant & Machinery as per requirement.
Margin 25% for Machinery and minimum 40% for Building.
Tenor (months) 60 months (Max)
Processing Fees 1%
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 a security subject to the approval of the 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 a 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.

Note: This facility is applicable only to Rice Mills falling with investment in Plant and Machinery up to Rs. 10 crores.

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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