Purpose: This loan finances fisheries start ups and expansions.
Eligibility: Only persons with sufficient training and experience in fisheries farming will be eligible for the loan.
Quantum of Loan: The maximum amount that can be granted as loan is decided based on the unit cost of the project as decided by the governing norms of the bank.
Margin: There is a margin of 15% to 25% in case of this loan.
Rate of Interest: The rate of interest for loans up to Rs. 50,000/0 is 9.75% per annum. In case of loans above Rs.50,000/- up to Rs. 2 lakhs, the rate of interest is 2% below PLR and for loans above Rs. 2 lakhs up to Rs. 5 lakhs, the rate of interest is 0.5% below the PLR. For loans above Rs. 5 lakhs, the rate of interest is 0.5% above the PLR.
Repayment: The maximum period within which the repayment has to be done is 5 years to 7 years depending on the project.
Security: The hypothecation of crop and objects purchased by the finance provided by the bank is taken as primary security. Collateral security has to be submitted as per the conditions laid down by the bank.
Other features: There are processing fee charged for this loan just like the home loan or any other loan from the bank.