|
Model
scheme for financing Hi-Tech commercial dairy
Eligibility:
-
Farmers having two or more milch animals. New farmers
trained in dairy farming by the Dairy Development Board/ Agriculture
Universities/ Other Agencies. Agriculture graduates may also avail loan under
Agri. Business Scheme.
Purpose:
-
To set up new Hi-Tech commercial dairy units & also for
extension of the existing dairy units.
Quantum of loan:
-
For a unit of 20 cattle (Detail Annexure)
Term Loan - Rs.8.50 lac per unit
Working Capital - Rs.2.50 lac per unit
(owever the amount of loan shall depend on the actual cost of the project)
Margin: -
Margin
on Term Loan - 15%
Margin on Working Capital - 25%
(If an
applicant already owns some assets required for the commercial dairy unit then,
upto their value these can be considered as part of margin.
Rate of
Interest: -
Both for Working Capital & Term Loan @ 2% below PLR i.e. 11% p.a. as per present
rate .
A further concession of 1% p.a. on regular
repayments shall be granted on Term Loan only on yearly basis at the end of the
financial year on loans of those farmers whose repayment is regular during the
year. In case of any default during currency of the loan, the concession already
granted shall be withdrawn & no concession shall be granted in future.
Disbursement of loan:
-
For the construction of shed:
-
a) 50% of cost of shed will be disbursed
at the beginning.
b) Remaining 50% of cost of shed will be
disbursed after verifying the end use of the first 50% amount.
For the purchase of
animals:
- After completion of shed, loan will be given
initially for 10 animals. As soon as the farmer completes the purchase of first
lot of 10 animals, the loan for the remaining 10 animals will be released after
six months. In order to help the animals of his choice the loan amount for
animals will be released by transferring the amount to his Saving Bank account.
Repayment period:
-
Term Loan:
- Loan shall be repaid in 7 years in
78 monthly installments with a moratorium period of 6 months.
Working Capital:
- To be sanctioned for one year &
renewed thereafter.
Security:
-
Primary:
- Hypothecation of shed, livestock &
other moveable assets financed by the Bank.
Collateral:
- Registered mortgage of agriculture
land or equitable mortgage of property having value at least 100% of total loan
amount. In case the borrower does not own land in his name, then the land
standing in the name of his father shall be mortgaged and he shall be made a
guarantor also.
Insurance:
-
Insurance to be done comprehensively for animals for
death as well as permanently disability.
processing fee:
- Nil
Upfront fee:
- Nil
Inspection fee:
-
Nil
Annexure
Cost estimate for establishing a model dairy of 20 milch animals
A. Capital Cost
|
1. |
Cost
of 20 cross Breed Cows @ Rs.35,000/- per animal including transport charges |
700000.00 |
|
2. |
Cost
of animals shed & store cum office |
236000.00 |
|
3. |
Milking equipment at site |
50000.00 |
|
4. |
Cost
of animal cooling unit (fans, water spraying unit etc.) |
14000.00 |
Total Fixed Expenditure
|
1000000.00 |
|
|
Less
Margin @ 15% i.e. borrowers contribution |
150000.00 |
|
|
Bank’s Finance (Term Loan) |
850000.00 |
B.
recurring expenditure
|
1. |
Cost of Green fodder
30
Kg/ Day/ Animal@ Rs.70/- per quintal on average basis |
153300.00 |
|
2. |
Cost of dry fodder
10
Kg/ Day/ Animal@ Rs.250/- per quintal |
182500.00 |
|
3. |
Cost of feed/ concentrates
3 Kg/
Day/ Animal@ Rs.615/- per quintal |
134685.00 |
|
4. |
labour charges
@
Rs.3000/- p.m. for 2 labours |
72000.00 |
|
5. |
miscellaneous expenses
@
Rs.1500/- Anilmal p.a. (as veterinary expenses, electricity & water supply
expenses). |
30000.00 |
|
|
Total |
572485.00 |
|
|
cost of feed for calves |
|
|
1. |
Cost of Green fodder
15
Kg/ Day/ calf/ @ 70/- per quintal |
76650.00 |
|
|
Cost of dry fodder
1 Kg/
Day/ calf @ Rs.250/- per quintal |
18250.00 |
|
|
Total |
94900.00 |
|
|
Total recurring expenditure |
667385.00 |
|
|
Less
Margin @ 25% i.e. borrowers contribution |
166846.00 |
|
|
Working capital (as cash credit limit) Maximum Rs.250000/-
(Working capital provided for 6 months recurring expenditure) |
250270.00 |
|
|
|
|
|
|
Income |
|
|
|
Sale
of Milk
(Average milk in lts. Per annum X No. of Animals X Appx. Cost of milk/ lts.)
i.e. 3500 X 20 X 13. |
910000.00 |
|
|
Value
of Manure |
10000.00 |
|
|
Total Income |
920000.00 |
|
|
Income/ Expenditure analysis |
|
|
|
Total
Income |
920000.00 |
|
|
Total
Expenditure |
667385.00 |
|
|
Income after expenditure p.a. |
252615.00 |
|
|
Monthly income |
21051.00 |
|
|
Less
Loan instalment |
15000.00 |
|
|
Net
monthly income |
6051.00 |
| |
Note:
-
This is a model scheme keeping in view the prevailing market rates. However, it
may vary ± to the extent of 15%.
2. Working Capital is calculated assuming that
the farmer will keep stock of feed etc. for 6 months. However, bank may consider
the stock period for a minimum period of one month to maximum period for 6
months and accordingly working capital can be calculated and limit fixed in
consultation with the farmer. |
