Composite Term loan

  • To provide adequate and need based financial assistance for commercial cultivation of Flowers.
  • All individuals/entities having registration with Dept of Floriculture.
  •  Applicant/s should have at least 1 Kanal of cultivable land (on which the green house is to be constructed), either in his/their own name or on lease hold basis (with mortgage rights) for availing loans for construction & operation of upto 2 green houses and at least 2 Kanals for 3 green houses. In case of Gladiolus cultivation the applicant/s should have at least 4 kanals of land either owned in his/their own name or on lease basis with mortgage rights.
  • In case the land belongs to parents/spouse, then they shall be involved as co-borrowers.
  • Applicant must have know-how of floriculture. He must either have a Degree/Diploma in Agriculture from a recognized institution, or he must have undergone training from the Floriculture Department or some other recognized institution like E DI.
  • Applicants having a track record of over 3 years experience in production and sales of flowers shall also be eligible .They shall be exempt from the educational/ training criteria.
  • Finance for more than one Green house or for cultivation of Gladiolus on more than 4 Kanals of land shall be provided only to the floriculturists having a sound track record of at least 4 years.
  • Age of applicants should be between 18 to 65 years.
  • Applicant must be a State Subject.

The quantum of the product finance and the requisite margin money shall be as per below.

The unit cost, Margin & maximum amount of finance shall be as follows:
A) Finance for cultivation under Green Houses
a) Composite loan for cultivation of 
i) Lillium Amt in 
a) Unit Size 20 x 80 ft
b) Capital Cost for construction of Greenhouse's 3,50,000
c) Operative Expenses 2,25,000
d) Total Cost 5,75,000
e) Margin @ 20% of d. 1,15,000
f) Total Loan Amount 4,60,000
g) TL component 2,80,000
h) WCTL Component 1,80,00
ii) Carnation  
a) Unit Size 20 x 80 ft.
b) Capital Cost for construction of Greenhouse's 3,50,000
c) Operative Expenses 1,15,000
d) Total Cost 4,65,000
e) Margin @ 20% of d. 93,000
f) Total Loan Amount 3,72,000
g) TL component 2,80,000
h) WCTL Component 92,000
iii) Rose  
a) Unit Size 20 x 80 ft
b) Capital Cost for construction of Greenhouse's 3,50,000
c) Operative Expenses 70,000
d) Total Cost 4,20,000
e) Margin @ 20% of d. 84,000
f) Total Loan Amount 3,36,000
g) TL component 2,80,000
h) WCTL Component 56,000
B) Finance for cultivation of Gladiolus in Open Fields
a) Unit Size (size of land) 4 Kanals
b) Capital Cost 2,20,000
c) Operative Expenses 3,00,000
d) Total Cost 5,20,000
e) Margin @ 20% of d. 1,04,000
f) Total Loan Amount 4,16,000
g) TL component 1,76,000
h) WCTL Component 2,40,000
  •  The size of Green House used for above calculations is of the size 20 x 80 ft. However, branches may finance other sizes also .The cost, finance etc involved in such cases must be calculated proportionately.
  • The Term Loan & WCTL indicated in case of Gladiolus is for a unit size of 4 Kanals of land. However, branches may allow other sizes, subject to a minimum of 4 Kanals of land and maximum of 12 Kanals of land.
  • Margin amount is to be paid upfront in proportion to the amount disbursed.
  • This amount has been calculated for 1 Green house in case of flowers grown in Green houses, and for 4 Kanals of land in case of Gladiolus which is grown in open fields. The cost of Green house has been calculated for a standard size of 80 x 20 ft.; for different sizes the cost should be calculated on pro rata basis. Similarly, a common Green house has been used for calculating the finance amount. In case, the borrower wants finance for hi-tech ones, the cost amount over and above the one used for common green house has to be contributed by the borrower.

    Maximum finance for upto 3 Green houses can be provided, subject to a maximum of 15 lacs. In case of Gladiolus the maximum finance shall be for 12 kanals of land holding subject to the ceiling of  15 lacs. Proposals for higher finance shall be treated as project finance and subjected to normal assessment as is done in case of other cases in that category.
  • Security to be obtained :

    Upto Rs 5 lacs
     1) Hypothecation of the stocks &Assets created.
     2) Third Party Guarantee of Two person

    Above Rs 5 lacs to Rs 15 lacs
     1) Hypothecation of the stocks & Asset created
     2) Mortgage of immovable property, preferably the land on which the activity is undertaken, having value at least equivalent to 100% of the sanctioned amount. Security of additional immovable property should be taken in case the value of land is less than the sanctioned amount.
  • The moratorium period shall be 6 months.
  • At the end of moratorium period, the outstanding loan amount inclusive of interest during moratorium is to be repaid in 9 equal half-yearly installments. Maximum repayment period shall be 5.0 years inclusive of moratorium.
  • 0.5% of the loan amount sanctioned subject to a maximum of Rs 3,000.