Punjab Gramin Bank – Scheme for financing dairy development programs

By | June 17, 2011

Purpose                      – Financing individuals for purchase of good quality high yielding milch animals, viz., cows/buffaloes or cross bred cows for milk production.  Financing individuals for purchase and rearing of calves’ up to the stage of first lactation.

Eligibility –           Individual borrowers undertaking dairying as subsidiary activity, individual borrowers undertaking commercial dairy as main activity etc

Quantum of Loan –           Need-based loan should be provided.  A unit of 2 milch animals is considered viable minimum size for such an activity for continuous production of milk.  Cost of the milch animals should be in conformity with the unit cost circulated by Head Office.

Financing of three milch animal units under Swaranjayanti Gram Swarozgar Yojana (SGSY) may be considered

Security Norms –           Up to Rs.50, 000/- Hypothecation of animals/crops/assets created out of bank loan; Above Rs.50, 000/ – Hypothecation of animals/crops/assets created out of bank loan; and charge on land as per Agricultural Credit Operations and Miscellaneous (Provisions) Act of the State concerned/Mortgage of agricultural land valued at 150% of amount of loan for other farmers and 100% of the loan amount for small farmers/marginal farmers; OR

Repayment of Loan   – Loan for purchase of milch animals should be repaid within 5-6 years (spread over 2-3 lactations). Due date of repayment should be fixed on annual basis etc.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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