Commercial Dairy Development Scheme

Commercial Dairy Development Scheme

Objective

To increase the income of Milk Producers by helping them to purchase high yielding milch cattle and to purchase necessary equipments for the purpose.

Minimum Economic Size

The Central Cooperative Banks through its branches shall extend loan facility to the individuals, Partnership Firms, Corporate Bodies and any other Cooperative Organizations formed for Commercial Dairy Development to purchase the milch cattles, constructions of sheds and for necessary equipments under this scheme. Loan shall be advanced directly by the Central Cooperative Bank to the loanee by admitting them as a nominal member.

Eligibility Criteria

i. He should have sufficient cattle shed arrangements to house the animals if any and also house to be purchased out of loan.
ii. He should have sufficient experience/knowledge in dairy farming.
iii. He should have definite arrangement for green/fodder supply.

Amount of Finance

The Bank shall provide maximum loan up to 25.00 lacs. The cost of milch cattles should not exceed Rs.50,000/- for each animal or as decided by the Bank from time to time.

Margin Money

The applicant shall contribute minimum 15% of the total cost of the animal and equipment as margin money.

Rate of Interest

The Bank shall charge interest at 10% per annum with half yearly rests or as decided by the Bank from time to time.

Securities

The Loanee shall furnish the following securities:

i. Time Pronote
ii. Guarantee of two persons who should be nominal members of the bank.
iii. Mortgage of Agriculture Lan, Plot, Residential House and Commercial Property whose value not less than 150% of the loan amount. The value of the land shall be same as determined by the District Administration Punjab.
iv. Hypothecation of milch cattle animals and equipments to be financed by the Bank.

Repayment of Loan

Maximum period of repayment of loan is five years.

Appraisal

The Branch Manager of the Central Coop.bank shall visit the farm to appraise the technical feasibilities and economic viability of the proposal.

Procedure to be followed

An eligible person shall apply for the loan on the prescribed proforma attached herewith to the Branch Manager of Central Cooperative Bank. After the appraisal of the loan case the Branch Manager will sanction the loan and get necessary documents from the Borrowers. After execution of documents the Branch Manager shall get the margin money deposited from the applicant in his Saving Bank Account. The Manager shall disburse the loan through Draft/Pay Order/Cheque in favour of third party from whom the borrower has to purchase buffaloes/cows and equipments by debiting the loan account for then loan and saving account for margin money.

Insurance

The livestock and equipments financed under the scheme shall be fully insured and it should be clearly mentioned in the Insurance Policy the livestock is hypothecated with Financing Bank.