Scheme For Providing Dairy Loan For Purchase Of Cow To Members Of Cooperative Milk Producers' Societies

Scheme For Providing Dairy Loan For Purchase Of Cow To Members Of Cooperative Milk Producers' Societies

  1. Objectives
    1. To increase the income of members of Cooperative Milk Producers Societies helping them to purchase higher yielding cattle.
    2. To increase the income and supply of milk to Cooperative Milk Producers Societies.
  2. Minimum Economic Size
  3. The Central Cooperative Bank through its branches shall extend loan facility for the purchase of one cow.

  4. Eligibility Criteria
    1. The applicant should be a member of cooperative milk producer’s society.
    2. He should have cattle shed arrangements enough to house the existing animals and also proposed to be purchased.
    3. He should be the supplier of milk to the society during at least past one year.
    4. He should be the cultivating green fodder or should have definite arrangements for its supply.
    5. He should have sufficient experience/knowledge in the dairy farming.
    6. He should be the nominal member of the Central Cooperative Bank
  5. Amount of Finance
  6. The Bank shall provide loan for one cow with ceiling of Rs.50000/- or cost of the animal whichever is less.

  7.  Marginal Money
  8. The applicant shall contribute minimum 10% of the total cost of animal as margin money. However margin money for scheduled caste, Backward Class and Economically backward members shall be 5%.

  9. Rate of Interest
  10. The bank shall charge interest @ 10.5% per annum from the members of the Milk Producer’s Cooperative Societies which will be subject to change as per prevalent market rates from time to time.

  11. Repayment of Loan
  12. The loan shall be repayable in 5 years, in equal monthly installments along with interest.

  13. Securities/Documents
  14. The member shall furnish the following security/documents to the Central Cooperative Bank:

    1. Time Pronote
    2. Guarantee by two persons, one should be owner of at least one acre of land and other should be local responsible person upto the satisfaction  of the bank.
    3. Hypothecation of milk animal to be financed by the Bank. 
    4. He shall sign and get signed tripartite Agreement between the borrower, the Cooperative Milk Producer’s Society and the Bank.
  15. Application Form
  16. The application form for dairy loan will be submitted by the member on prescribed form as per annexure ‘A’ through the Cooperative Milk Producer’s Society.

  17. Appraisal
  18. The Branch Manager of the Central Coop.Bank shall visit the farm to appraise the technical feasibilities and economic viability of the proposal..

  19. Procedure to be followed
  20. An eligible person shall apply for the loan on the prescribed proforma attached as Annexure “A” to the Branch Manager of Central Cooperative Bank through the Village Milk Producer Cooperative Society. The President of the Milk Producers Cooperative Society shall place the application before the Managing Committee of the society for consideration of the application for its recommendation to the Bank. If the Managing Committee approves the application then the President shall forward it to the Branch Manager of the Branch of the Central Cooperative Bank in whose area of operation the society falls. After the application along with resolution of the society is received in the branch of the bank, the Branch Manager shall apprise the loan case as per the appraisal form
    After the appraisal of the loan case the Branch Manager will sanction the loan and get the necessary documents executed from the borrower.
    After the execution of documents the Manager shall disburse the loan amount by crediting the SB account of the borrower.