Cold Storage Loan
The agricultural sector is the mainstay of our economy. It is a vast industry that supports the livelihood of many, especially in rural areas. Cold storage loan is a type of agricultural loan that is available to farmers/individuals/groups of individuals who run a business of cold storage. This loan is used to set up cold storage or for expanding the existing business of cold storage.
Cold storage is used to store produce/dairy products/meat products etc. that can be transported to many parts of the country. Running a cold storage set-up requires much capital investment so you can opt for a cold storage loan. National Bank for Agriculture and Rural Development is one of the biggest lenders of this type of loan.
Cold storage loans are secured loans. Hence, the borrower needs to pledge an asset as collateral. A Mortgage of land or the site of the cold storage can be used as collateral for this loan. It can be used to construct a new cold storage infrastructure or expand or modernize an existing facility. Most of the lenders provide funding of about 75% of the total project cost.
The following are eligible for the loan
- Group of Individuals
- Co-operative societies