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Cent FPO Scheme



Collectivization of Farmer Producer Organization (FPOs) has emerged as a potential tool to transform Indian agriculture into a sustainable business by taking advantage of the scale by aggregation of input, demand, produce aggregation and collective marketing, and value addition, thus realizing the optimal returns for their produce.



Farmer Producer Organizations (FPOs)/Farmer producer Companies (FPCs)


Nature of facility

* Term Loan/Cash Credit/OD Book Debts against receivables

Non Fund Based (NFB) Limits- Bank Gaurantee(BG) 


Quantum of Loan

Farm Credit- Corporate Farmers- (FPOs/FPCs) up to Rs 5.00 Crores



Term Loan/CC/BGs- 25%

OD Book Debts-  40%



* Primary Security - Hypothecation of  Stock/Book Debts/plants &machineries. EM on land and Building

* Collateral –UptoRs 2 Crore-NIL

above Rs.2 Crore- 150%  of limit


Interest Rate

UptoRs 3,00,000/-
Above Rs 3.00 lakh to Rs 10.00 lacs
Above Rs 10 lakhs upto Rs.100 lakhs
Above Rs 100.00 Lakhs

MCLR + 1.35%
MCLR + 2.50%
MCLR + 3.00%
As per rating of borrower


Processing Charges

* Upto Rs 3 Lakh/- : Nil

* Above Rs 3 Lakh/- : @0.30 %


Upfront Fee


* Upto Rs 3 Lakh/- : Nil

* Above Rs 3 Lakh/- : 50% of 1.25% (i.e. 0.625 %) 



* CC/OD- To be renewed every year.

*Term Loan- Max 8 years (including max moratorium of 18 months)