Canara

For loans up to Rs. 2,00,000/-:

• Hypothecation of assets created out of our finance.
• Compulsory coverage for Credit Guarantee under CGFMU.

For loans above Rs. 2,00,000/- and up to Rs. 3,00,000/- (with Tripartite agreement with Milk Union):

• Hypothecation of assets created out of our finance.
• Compulsory coverage for Credit Guarantee under CGFMU.

For loans above Rs. 2,00,000/- and up to Rs. 3,00,000/- (without Tripartite agreement with Milk Union):

• Hypothecation of assets created out of our finance.
• Compulsory coverage for Credit Guarantee under CGFMU.
• In case of developmental activities like construction of cattle shed, fish pond, poultry shed, or creation of other immovable assets, mortgage of land where primary activities are undertaken is required.
• If developments are undertaken on leased land and legislation permits mortgage of leasehold rights:
  • Mortgage of leased hold rights may be insisted.
  • Compulsory coverage for Credit Guarantee under CGFMU.
• If leasehold rights are not mortgaged, collateral security with a minimum value of 150% of the loan amount will be required. In such cases, coverage under CGFMU will be waived subject to obtaining permission from the RO Head.

For loans above Rs. 10,00,000/-:

• Hypothecation of assets created out of our finance.
• In case of developmental activities like construction of cattle shed, fish pond, poultry shed, or creation of other immovable assets, mortgage of land where primary activities are undertaken is required.
• If developments are undertaken on leased land and legislation permits mortgage of leasehold rights, mortgage of leasehold rights may be insisted.
  • If leasehold rights are mortgaged, immovable security should be obtained, valued at a minimum of 50% of the loan amount.
  • If leasehold rights are not mortgaged, immovable or equivalent collateral security should be obtained, valued at a minimum of 150% of the loan amount, with at least 50% of the security being Residential/Commercial properties (Land & Buildings backed by approved building plan).
• Availability of security by way of immovable property/ies secured by mortgage to a minimum extent of 100% of the loan/exposure as prime and collateral securities.

Loans granted for the purchase of dairy animals should be repaid within 5-7 years in suitable monthly/quarterly installments.

When the loan is granted for rearing heifers for the ultimate production of milk, the loan may be repaid within 5-6 years, including an initial grace period of 30 months.

Moratorium: Projects involving shed construction, pasteurization, etc., may have a moratorium of 12-18 months, on a case-by-case basis. Otherwise, 1-2 months moratorium may be considered.

Gestation Period: Should be linked with the lactation period to cover the dry period of the animal (generally, a 6-month gap is provided for the introduction of animals in batches to ensure continuity of milk production).