• 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. 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.

    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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