New Delhi (India), June 28: India is a nation where agriculture forms the backbone of the economy and finding a strong support system for farmers and agri-industries is extremely essential. Recognizing this, Bank of Maharashtra introduces Maha Krishi Samridhi Yojana (MKSY), which offers financial assistance to food and agriculture industries, agricultural infrastructure projects involved in processing activities and development of agricultural infrastructure facilities.
The MKSY scheme provides a comprehensive solution for individuals, proprietorship companies, associations, Farmer Producer Companies (FPCs), public and private limited companies, LLPs working in the food and agro-processing sector.
Promote growth in agriculture
Bank of Maharashtra understands the process of financing agribusinesses and therefore, to encourage the growth and expansion of agribusinesses and attract new farmers/agribusiness entrepreneurs/borrowing units to grow and expand, The MKSY plan is designed to meet financial needs. needs of all agricultural companies. The characteristics of the scheme are the following:
The MKSY scheme extends financing to new and existing units of food processing and agricultural products/Agricultural Infrastructure Projects (including acquisition of other banks/FIs) under “Agriculture”.
According to MKSY, scheme loans can be granted for financing new projects/expansion of existing units, i.e. for acquisition or construction of land and buildings, plant and machinery, etc., based on the cost of the project. It also includes the acquisition of an existing unit.
The scheme adopts a cluster-based approach on the basis of PAN India to finance borrowing units, providing various types of fund-based and non-fund-based credit facilities such as term loans, working capital facilities and export credits, such as before and after shipping. facility, invoice purchase, invoice discounting, letters of credit (LC) and bank guarantees (BG) with a maximum loan limit of up to Rs 100.00 million.
Fostering Growth: MKSY's Approach to Margins and Ratings
As per the plan, for term loan and working capital limits, the Bank provides financing at lower margins depending on the project. For all accounts with aggregate exposure above Rs 25.00 crore, internal credit rating is done by the Bank and for all loan accounts with aggregate exposure above Rs 25.00 crore, external credit rating It is mandatory with a minimum credit risk rating of "BBB". ”.
Savings and support: interest rates and concessions
Loans under the MKSY scheme are offered by the Bank at competitive rates and are decided based on various parameters such as credit risk rating, collateral offered and CIBIL MSME classification among others.
Additionally, the Bank has also waived processing fees for borrowers with CIBIL MSME rank of CMR-1 and CMR-2. The Bank has also extended concessions on processing fees for borrowers or units with CIBIL MSME classification between CMR-3 and CMR-6, ranging from 25% to 50%.
Ongoing support to provide financial relief
The bank understands the challenges of managing finances. Payment structures and processing fees have been set up to lighten the financial burden:
According to the plan, the repayment period of term loans is up to 10 years, including the moratorium period, which is decided on the basis of the purpose of the investment, the economic life of the assets and the cash flows of the business .
For Working Capital loans, an annual review/renewal would be carried out. All working capital loans would be repayable on demand.
Unlocking the potential in agriculture
MKSY's unique features include its cluster-based approach, which aligns with the One District One Product (ODOP) initiative of the Ministry of Food Processing Industries, Government of India. The scheme also aligns with the directions of the Department of Agriculture and Farmers Welfare, Government of India, demonstrating its commitment to supporting existing and new agro-products and food processing units.
Bank of Maharashtra's Maha Krishi Samrudhi Yojana is a testament to our support and commitment to India's agricultural advancement. It strengthens the shared vision of an agriculture-centric society by providing not only loans but also a healthy ecosystem for growth.
For more information visit: https://bankofmaharashtra.in/maha-krishi-samrudhi-yojana
.
The MKSY scheme provides a comprehensive solution for individuals, proprietorship companies, associations, Farmer Producer Companies (FPCs), public and private limited companies, LLPs working in the food and agro-processing sector.
Promote growth in agriculture
Bank of Maharashtra understands the process of financing agribusinesses and therefore, to encourage the growth and expansion of agribusinesses and attract new farmers/agribusiness entrepreneurs/borrowing units to grow and expand, The MKSY plan is designed to meet financial needs. needs of all agricultural companies. The characteristics of the scheme are the following:
The MKSY scheme extends financing to new and existing units of food processing and agricultural products/Agricultural Infrastructure Projects (including acquisition of other banks/FIs) under “Agriculture”.
According to MKSY, scheme loans can be granted for financing new projects/expansion of existing units, i.e. for acquisition or construction of land and buildings, plant and machinery, etc., based on the cost of the project. It also includes the acquisition of an existing unit.
The scheme adopts a cluster-based approach on the basis of PAN India to finance borrowing units, providing various types of fund-based and non-fund-based credit facilities such as term loans, working capital facilities and export credits, such as before and after shipping. facility, invoice purchase, invoice discounting, letters of credit (LC) and bank guarantees (BG) with a maximum loan limit of up to Rs 100.00 million.
Fostering Growth: MKSY's Approach to Margins and Ratings
As per the plan, for term loan and working capital limits, the Bank provides financing at lower margins depending on the project. For all accounts with aggregate exposure above Rs 25.00 crore, internal credit rating is done by the Bank and for all loan accounts with aggregate exposure above Rs 25.00 crore, external credit rating It is mandatory with a minimum credit risk rating of "BBB". ”.
Savings and support: interest rates and concessions
Loans under the MKSY scheme are offered by the Bank at competitive rates and are decided based on various parameters such as credit risk rating, collateral offered and CIBIL MSME classification among others.
Additionally, the Bank has also waived processing fees for borrowers with CIBIL MSME rank of CMR-1 and CMR-2. The Bank has also extended concessions on processing fees for borrowers or units with CIBIL MSME classification between CMR-3 and CMR-6, ranging from 25% to 50%.
Ongoing support to provide financial relief
The bank understands the challenges of managing finances. Payment structures and processing fees have been set up to lighten the financial burden:
According to the plan, the repayment period of term loans is up to 10 years, including the moratorium period, which is decided on the basis of the purpose of the investment, the economic life of the assets and the cash flows of the business .
For Working Capital loans, an annual review/renewal would be carried out. All working capital loans would be repayable on demand.
Unlocking the potential in agriculture
MKSY's unique features include its cluster-based approach, which aligns with the One District One Product (ODOP) initiative of the Ministry of Food Processing Industries, Government of India. The scheme also aligns with the directions of the Department of Agriculture and Farmers Welfare, Government of India, demonstrating its commitment to supporting existing and new agro-products and food processing units.
Bank of Maharashtra's Maha Krishi Samrudhi Yojana is a testament to our support and commitment to India's agricultural advancement. It strengthens the shared vision of an agriculture-centric society by providing not only loans but also a healthy ecosystem for growth.
For more information visit: https://bankofmaharashtra.in/maha-krishi-samrudhi-yojana
.
