Nabard Loan For Warehouse And Cold Storage

In the 2014-15 Budget, NABARD was allocated a fund of Rs.5000 crores for the creation of an infrastructure relating to the storage of agricultural commodities. Consequent to the allocation, the fund has been named Warehouse Infrastructure Fund (WIF 2014-15). The fund envisages extension of loans to Public and Private sectors for construction of warehouses, silos, cold storages and other cold chain infrastructure. Further, the warehouse infrastructure fund would also be utilized for meeting the growing demand for scientific storage capacity for agricultural commodities in the entire country, especially in the Eastern, North Eastern states and food grain deficit States. In this article, we look at the procedure for obtaining Nabard Loan For Warehouse And Cold Storage.

Eligibility

The NABARD loan will be provided for proposals of projects involving creation of storage infrastructure, with a minimum aggregate capacity of 5000 metric tons (MT), for agricultural and allied produce including construction of:

Warehouses
Silos
Cold storage, controlled atmosphere (CA) stores, other cold chain infrastructure activities like pack houses / integrated pack houses, reefer vans, bulk coolers, individually quick frozen units, chilling/ freezing infrastructure, etc.

Modernization or improvement of the existing storage facility will also be considered on a merit basis. The following entities are eligible to receive the Nabard Loan For Warehouse And Cold Storage:

Corporates / Private Limited Company / Individual Entrepreneurs
State / Central Government Owned / Assisted Entities
Cooperative, Federations of Cooperatives, Producer Companies, Federations of Farmers’ Collectives
Primary Agricultural Credit Societies (PACS) / Cooperative Marketing Societies (CMS) or Similar Institutions.

Further, the NABARD loan will be provided only to dry and wet storage projects which conform to the norms / standards prescribed by Warehousing Development and Regulatory Authority (WDRA) / National Centre for Cold-chain Development (NCCD). The borrower must give an undertaking for obtaining accreditation / registration from WDRA for storage infrastructure / following the standards set by NCCD for cold chain infrastructure, on completion of the infrastructure.

Warehouse or Cold Storage Loan

Private Limited Companies, Entrepreneurs and Corporates: The NABARD loan for Cold Storage and Warehouse can be sanctioned for a tenure of 7 or more years for upto 75% of total project cost. If the tenure of loan repayment is 7 years or less, then the interest rate chargeable is Prime Lending Rate of NABARD + Risk Premium. If the tenure of loan repayment is 7 years or more, then the interest rate chargeable is Prime Lending Rate of NABARD + Risk Premium + Tenor Premium.

Cooperatives (and their Federations), APMCs or Similar Institutions: The NABARD loan for Cold Storage and Warehouse can be sanctioned for a tenure of 7 or more years for upto 95% of total project cost. If the tenure of loan repayment is 7 years or less, then the interest rate chargeable is Prime Lending Rate of NABARD + Risk Premium. If the tenure of loan repayment is 7 years or more, then the interest rate chargeable is Prime Lending Rate of NABARD + Risk Premium + Tenor Premium.

Agencies Owned / Sponsored by Government of India, Producer Companies: The NABARD loan for Cold Storage and Warehouse can be sanctioned for a tenure of 7 or more years for upto 95% of total project cost. If the tenure of loan repayment is 7 years or less, then the interest rate chargeable is Prime Lending Rate of NABARD + Risk Premium. If the tenure of loan repayment is 7 years or more, then the interest rate chargeable is Prime Lending Rate of NABARD + Risk Premium + Tenor Premium.

For more information about cold storage or bank loan, please visit IndiaFilings.com and talk to a Business Advisor.

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Frequently Asked Questions

Common questions about NABARD Loan for Warehouse and Cold Storage Solutions.

The Warehouse Infrastructure Fund (WIF 2014-15) was established to provide loans for the construction of warehouses, silos, cold storages, and other cold chain infrastructure. Its primary goal is to meet the growing demand for scientific storage capacity for agricultural commodities across the country, particularly in the Eastern, North-Eastern, and food grain deficit states.

The NABARD Loan for Warehouse and Cold Storage is available to various entities, including private limited companies, individual entrepreneurs, state/central government-owned or assisted entities, cooperatives, federations of cooperatives, producer companies, federations of farmers' collectives, and primary agricultural credit societies or cooperative marketing societies.

To be eligible for the NABARD Loan, the project must involve the creation of storage infrastructure with a minimum aggregate capacity of 5000 metric tons (MT) for agricultural and allied produce.

The NABARD Loan can be used for the construction of warehouses, silos, cold storages, controlled atmosphere (CA) stores, pack houses, integrated pack houses, reefer vans, bulk coolers, individually quick frozen units, chilling/freezing infrastructure, and other cold chain infrastructure activities.

Yes, the NABARD Loan can also be provided for the modernization or improvement of existing storage facilities, subject to merit-based evaluation.

The storage projects must conform to the norms and standards prescribed by the Warehousing Development and Regulatory Authority (WDRA) for dry storage and the National Centre for Cold-chain Development (NCCD) for cold chain infrastructure. The borrower must obtain accreditation/registration from WDRA or follow NCCD standards upon completion of the infrastructure.

Private limited companies, entrepreneurs, and corporates can receive up to 75% of the total project cost as a NABARD Loan for Cold Storage and Warehouse. The loan tenure can be 7 years or more, with different interest rates applicable based on the repayment period.

Cooperatives, federations, APMCs, or similar institutions can receive up to 95% of the total project cost as a NABARD Loan for Cold Storage and Warehouse. The loan tenure can be 7 years or more, with different interest rates applicable based on the repayment period.

Agencies owned/sponsored by the Government of India and producer companies can receive up to 95% of the total project cost as a NABARD Loan for Cold Storage and Warehouse. The loan tenure can be 7 years or more, with different interest rates applicable based on the repayment period.

For more detailed information about the NABARD Loan for Warehouse and Cold Storage or any other bank loan related to cold storage infrastructure, you can visit IndiaFilings.com and consult with a Business Advisor.