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Cold Storage Loan

India is a country that produces a large quantity of agricultural produce that needs storage without which the product will spoil in no time and it won't have any use after it is spoilt. Therefore the need to have cold storage arises.

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The agriculturists will not only have to produce but also store their produce in a way that it is protected from rain, heat and rodents. The financial institutions have realised the need for having cold storages and they have special schemes offered to the farmers to finance their own storages. It is also difficult for the farmers to pay rent to others storage so that they can keep their produce.

Eligibility Criteria for Availing Cold Storage Loans

The following persons are eligible to take the cold storage loan:

Individuals
Group of individuals
Cooperative societies
Partnership concerns
Joint sector companies

They can construct a warehouse, silos, cold storage, pack houses, bulk coolers, chilling and freezing infrastructure.

Loan Amount Offered for Cold Storage Loan

The individuals who are eligible to get the cold storage loan will get a minimum loan of Rs.25 lakhs and a maximum of Rs.1 crore. The loan disbursal is restricted to 60% of the value of the produce.

Loan Amount	Rs. 25 lacs to Rs 1 crore
Tenure	6 to 9 years
Maximum Funding	60% to 75% of the total project cost
Collateral	Needs to be provided which covers 100% of the loan amount Personal guarantee of the promoters/partners/directors

Security Required

The eligible individual will have to keep a collateral security which covers 100% of the loan amount. The proprietor of the warehouse must offer his personal guarantee as well.

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Renewal in Cold Storage Loan

The Cold Storage Loan can renewed every year and is subject to satisfactory conduct of the facility.

Repayment period of Cold Storage Loan

The maximum repayment period is 9 years and is allowed and it includes a grace period of one year.

Insurance for Cold Storage Loan

The warehouse, machinery or any other asset that you have built from the loan amount, must be insured against theft, fire and other calamities. It is best to even opt for the breakdown policy.

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