Business → Products → Loans → Commercial → KVB Rice Plus

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.

Apply Now

60 Months

Max Tenor

0.40 %

Processing fee for fresh CC / SOD

No

Margin for STL

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.
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.

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

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)
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.