Start ups in the field of agriculture and rural development like irrigation, seeds, biopesticides, bio fertilizers, precision farming, agro processing, marketing, bio fuel, drinking water, sanitation, rural based traditional and non-traditional activities, energy, health, education etc. and any other field directly or indirectly benefitting rural areas. Start ups supporting Farmer Producer Organisations and working for the FPO Ecosystem Development would be given preference.
The broad areas of agri-entrepreneurship support to start-ups include
- Product development
- Product Market fit
- Go to Market
- Testing and Trials
- Test Marketing
- Mentoring/Advisory
- Professional Consultancy (to attract professors / experts from institutions to work with startups)
- PR issues
- Manpower for day to day operations
- The startup must be working in an innovative product or technology in farm / off farm sectors.
- Startup should be registered as Private Limited Company and should have an active registration at the time of application.
- It has to be an Indian start-up in the field of agriculture, allied or other identified sectors benefitting rural areas.
- This support is not meant for Indian Subsidiaries of MNCs / foreign companies. Persons holding Overseas Citizens of India (OCI) cards, Persons of Indian Origin (PIO) would be considered as Indian citizens for the purpose of this scheme. The shareholding by Indian promoters in the incubatee start-up should be at least 51%.
- Support will be in the nature of debt.
- The average ticket size of the loan per start up shall be in the range of Rs.40 to 50 lakh. However, the maximum loan per start up should not exceed Rs 1 Crore
- The maximum quantum of financial assistance to be sanctioned will be 85% of the project cost and margin of minimum 15% to be brought in by the start up.
- Primary Security: Mortgage and/ or hypothecation of assets/stock/receivables created if any.
- Collateral Security: Personal guarantees of BODs or third party guarantees or Pledge of Shares
Rate of interest is linked to Weighted Average Cost of Borrowing of NABKISAN or External Benchmark based Lending Rate whichever is higher and as per the rate of interest policy of NABKISAN applicable from time to time.
- A processing fee of 0.25% plus applicable taxes will be charged.
- All immovable assets, capital items, stocks financed by NABKISAN shall be insured