India is a nation where agriculture forms the backbone of the economy and the quest for a robust support system for farmers and agro-based industries is utmost essential. Recognizing this, Bank of Maharashtra presents an effective solution: the Maha Krishi Samrudhi Yojana (MKSY), providing financial assistance to Food and Agro-Based industries, Agri Infrastructure Projects engaged in processing activities and to create Agriculture Infrastructure facilities under Agriculture.
To address these issues and foster innovation, Bank of Maharashtra offers Maha Krishi Samrudhi Yojana (MKSY) that meets the needs of a diverse range of eligible entities including Individuals, Proprietorship, Partnerships Concerns, FPCs, and Public and Private Limited Companies, Limited Liability Partnership concerns, and under the scheme, even the takeover of new/existing food and agro-processing units under agriculture is taken into consideration. It caters to various needs, including financing for:
1) Setting up new or expanding existing food and agro-processing units
2) Land acquisition
3) Construction of buildings
4) Purchase of plant and machinery
Flexibility and Support: Tailored Financing Options
MKSY understands the diverse needs of Agri-Businesses and provides a cluster-based approach across India. This approach aligns with the Government of India's One District One Product (ODOP) initiative. The scheme offers a variety of financing options to suit specific requirements, such as:
1) Term loans
2) Working capital
3) Export credit (pre-shipment and post-shipment)
4) Bill purchases and discounts
5) Letters of Credit (LCs)
6) Bank Guarantees (BGs)
With a maximum limit of up to Rs. 100.00 Crore (total exposure from the banking system), MKSY provides substantial financial backing to propel agricultural ventures forward. MKSY: Balancing Risk and Affordability
Under the scheme, For Term Loans, Bank extends finance upto 90% of the cost of the project on a case-to-case basis and for working capital limits minimum margin of 25% is to be maintained. For all accounts with aggregate exposure above Rs.25.00 lakhs, Internal Credit Rating is mandatory, and for all loan accounts having aggregate exposures of above Rs.25.00 crores, External Credit rating is mandatory with minimum credit risk rating to be “BBB”.
Interest Rates and Concessions: Promoting Financial Wellness
The Bank is offering loans under MKSY Scheme at competitive rates which start from RLLR (Currently @ 9.30%) + 0.10% and are decided on various parameters such as Credit Risk Rating, Collaterals offered, CIBIL MSME Rank among others.
Additionally, the Bank has also waived processing fees for borrowers with CIBIL MSME Rank of CMR-1 & CMR-2. The Bank has also extended concessions in processing fees for borrowers or units with CIBIL MSME Rank between CMR-3 to CMR – 6 ranging from 25-50%.
Easing the Burden: Repayment Structures and Fee Waivers
MKSY offers flexible repayment structures. Term loans have a maximum repayment period of up to 10 years, including a moratorium period, while working capital is repayable on demand. Regular reviews and renewals are conducted for working capital facilities and term loans exceeding INR 25.00 Lakh, ensuring financial sustainability for borrowers. Additionally, the bank has eliminated processing fees for CIBIL MSME borrowers with good credit ratings (CMR-1 to CMR-2) and offers significant concessions for borrowers with CMR-3 to CMR-6 ratings. This approach reduces the financial burden on borrowers and fosters long-term business growth.
Bank of Maharashtra's Maha Krishi Samrudhi Yojana is more than a financial scheme; it's a movement towards empowering the agricultural sector with the right tools, resources, and support systems. By fostering a conducive environment for growth, innovation, and sustainability, MKSY is charting the path towards a resilient agricultural future for India. To get more information, please visit: https://bankofmaharashtra.in/maha-krishi-samrudhi-yojana
