nainitalbank.co.in Rural / Agricultural Banking : Nainital Bank

Organization : Nainital Bank
Scheme Name : Rural / Agricultural Banking
Country: India

Rural / Agricultural Banking : http://www.nainitalbank.co.in/english/Rural_Agri.aspx
Home Page : http://www.nainitalbank.co.in/English/Home.aspx

Rural / Agricultural Banking :

Scheme Of Bank Finance To Rice Millers :
The salient features of the scheme :
Working Capital Assessment :
Bank may consider enhancement in the limit of parties having satisfactory performance during the last season.

Related : Nainital Bank Business Banking : www.statusin.in/21468.html

The rice mill units are categorized as small (manufacturing) sector units and as per RBI guidelines these units are eligible for getting working facility on the basis of Nayak Committee recommendations. However, the Rice Mills being seasonal industry, Bank have/had adopted any one of the following methods for sanctioning a rational and required working credit limit to them, which will continue to be applied.
** As per Nayak Committee recommendations – MPBF- 20% on the basis of projected sale turnover.
** IInd method of lending as per Tandon Committee norms.
** Under traditional method of lending adopted in our bank for assessment of working capital requirements of rice mill which is a seasonal industry, the maximum inventory and receivables holdings have been proposed to be continued as per last year’s Rice Mill policy, which are as under:

The level of creditors shall be taken on an average for last financial year subject to maximum 15 days since during peak period it remains very low and working capital is assessed on the basis of peak period requirements. The level of creditors during current year will also depend upon the availability of paddy i.e. its shortage may reduce the level of creditors to a NIL level also.

Interest rate :

Keeping in view that this is a seasonal industry and it carries the effects of government policy for the industries, as such the financial ratios during peak season/ at the year-end may differ from average ratios, thus the prescribed negative scoring applicable to usual commercial and industrial accounts may be exempted.

Note –Scheme is for selected branches only

Seed Processing Unit :
Financing to Seed Processing Units :
The salient features of the scheme are as under :
Working Capital Assessment :
** The enhancement in the limits of the parties will be considered on merits, who have performed well in the current season and has broadly fulfilled other guidelines of the scheme.
** Where the parties are engaged in seed processing activities in both Rabi & Kharif crops, the limits to such seed processing units may be suitably sanctioned for a period of 12 months instead of bifurcating the same for peak & non-peak period for one crop.
** However the MBPF shall be assessed on the basis of peak level requirements.
** In case of the parties engaged in the activities of rice milling & seed processing (both) the assessments for rice mills and seed units will be made separately and separate limits thereof shall be fixed.

Rate of Interest :
(For working capital and fresh term loan facilities)

The existing as well as the proposed rate of interest for the activity is given below :

** fresh advance proposal not to be considered having credit rating of RC or below.
** As the seed processing is a seasonal activity and it carries the effects of government policy etc., the financial ratios during peak season/ at the year end may differ from average ratios, thus the prescribed negative scoring applicable to usual commercial and industrial accounts is exempted for the seed units.
** The interest rate will be subject to change as per revision in regulatory/banks policy on interest rate structure.

*Note –Scheme is for selected branches only

Short Term Crop Loan :

The interest Subvention @ 2% p.a. will be available to Banks on loans for meeting short term credit requirement (subject to maximum period of one year) for cultivation of crops and Post harvest expenses only, up to Rs. 3.00 lakh per farmer provided the lending institution make available short term credit at the ground level at 7% per annum to farmers.

The eligible categories of farmers for claiming interest subvention:
Naini Kisan Credit Card (NKCC) Scheme :
For providing interest subvention to eligible farmers under Bank’s Naini Kisan Credit Card (NKCC) schemes, one separate account to be opened under the Short Term Crop Loans-lnterest Subvention with ROI @ 7% p.a. for a maximum period of one year for cultivation of crops and/or Post harvest expenses only maximum up to Rs. 3.00 lakh per farmer out of the total calculated limit as per the scale of finance as prescribed by DLTG of respective.

Naini Bank Kisan Gold Card (NBKGC) Scheme :
** lt is an agriculture credit Scheme for providing production and investment credit to farmers based on land holdings and income criteria.
** Maximum amount for interest subvention will be eligible as per the scale of finance as NKCC scheme above.
** interest subvention will be available only on the amount which qualifies under NKCC scheme (as per the scale of finance prescribed by DLTC).
** One separate account should be opened under the (Short Term Crop Loans-lnterest Subvention) with ROI @ 7% p.a. for a maximum period of one year for cultivation of crops and/or Post harvest expenses only maximum up to Rs. 3.00 lakh per farmer.
** The total loan amount of both the accounts should not exceed the maximum eligible limit as per the scale of finance prescribed under NBKGC scheme.
** If the Short Term Crop Loans eligible for interest subvention are not repaid on or before the due date fixed by the bank or within a maximum period of one year, whichever is earlier, then the normal interest rate as applicable for the particular Crop Loan/ scheme will be charged.
** Since on default of repayment of Short Term Crop Loan on due date or within one year of withdrawal/disbursement, whichever is earlier, normal rate of interest has to be charged