CreditMantri Finserve Private Limited
4th Floor Sudhama, 36 Vijayaraghava Road,T Nagar, Chennai, Tamil Nadu 600017
Have any queries? Click here for more details
All written queries will be responded within 1 working day.
We'd love to help you through every step along the way.
Is your Credit Score >750?
Agricultural sector is the mainstay of our economy. It is a vast industry that supports the livelihood of many especially in the rural areas. Cold storage loan is a type of agricultural loan that is available to farmers/individuals/group of individuals who run business of cold storage. This loan is used to set up cold storages or for expanding existing business of cold storages.
Cold storages are used to store produce/dairy products/meat products etc., which then get transported to many parts of the country. It is an important part of the food chain and is a critical element to ensure far flung areas of the country get required agricultural produce in good condition. It is a thriving business in our expanding economy.
Running a cold storage set-up requires much capital investment and this type of loan is aimed at such needs. Many banks in the country offer this type of loan. National Bank for Agriculture and Rural Development is one of the biggest lenders of this type of loan.
About Cold Storage Loan
Cold storage loan helps agriculturists who are in the business of providing cold storage facility/warehouse to store agricultural commodities. This is a crucial stage in the entire food chain process and ensures that these commodities reach all corners of the country in good condition. There are some terms and conditions to avail this loan and it varies from bank to bank. It is a secured type of loan and requires a collateral as a guarantee. Cold Storage loan also helps in setting up the business for the first time and is useful in ensuring enough capital is available for day to day operations.
With the agricultural sector as the largest sector in the Indian economy, such loans are useful in supporting new business and growing current ones. Some of the salient features of this loan are:
Following are the eligibility criteria laid out for those who would like to avail this loan:
While interest rates are typically based on the loan amount and the tenure of the loan, the interest rate on cold storage loans are fixed on the CRA as applicable to Agricultural Advances. These figures are subject to change depending on the financial policies of the financial institutions and Government impetus for the sector. The repayment period is capped at 9 years with most lenders.
Some of the other details of this loan which is a wide range available with most banks are:
Needs to be provided which covers 100% of the loan amount
Personal guarantee of the promoters/partners/directors
In order to apply for a cold storage loan, it is best to visit the closest bank branch of your preferred banking partner. It will be possible to discuss the details of your project in person with the concerned at the bank. This will help in establishing an interest in lending a loan as well as quick processing of your application. Another option for rural based businessmen is to approach marketing officers who visit designated areas on a regular basis. They will be able to assist with the updated details of the loan and guide you through the process.
As is the case with regular loans, there are some documentations required for availing this type of loan:
Some of banks that offer Cold Storage Loans are:
1. What is cold storage loan?
Cold storage loan is offered to those in the business of providing cold storage facility to protect produce/agricultural commodities from decaying before reaching various parts of the country.
2. Is there a requirement of collateral for this type of loan?
Yes, the borrower needs to provide an asset guarantee or collateral that covers 100% of the loan amount. Mortgage of land/site of the cold storage is considered as a collateral.
3. Is the loan to be renewed on an annual basis?
Yes, this type of loan is to be renewed on a 12-month basis. The bank will assess the satisfactory conduct of the facility and then only renewal process is completed.
4. What is maximum amount of loan that can be availed?
Most of the lenders offer a maximum loan amount of Rs. 1 crore under this category.
Get low interest loans & Lifetime FREE credit cards
Get customized Credit Health Report
Improve your creditworthiness
12 Month Loans
3 Month Loans
6 Month Loans
Animal Husbandry Loan
Business Instalment Loan
Cash Credit Loan
Collateral Free Loans
Dairy Farm Business Loan
Ecommerce Loans In India
Faq Loan Against Property
Government Loans For Small Scale Businesses
Home Improvement Loans
Instant Short Term Loans
Kitchen Modernization Loans
Loan Against Credit Card
Loan Against Fixed Deposit
Loan Against Insurance Policy
Loan Against LIC Policy
Loan Against Rent Receivables
Loan Against Securities
Loan Against Shares
Loan For Agriculture
Loan For Beauty Parlours
Loan For Businesswomen
Loan For Chartered Accounts
Loan For Construction
Loan For Day Care Centre
Loan For Land Purchase
Loan For Marraige
Loans For Advocates
Loans For Army Personnel
Loans For Defence Personnel And Widows
Loans For Disabled
Loans For Graduates
Loans For Minorities
Loans For People On Benefits
Loans For Restaurants
Loans For Scheduled Caste
Loans For Schools
Loans For Startup Business
Loans For Taxi Drivers
Loans For Unemployed People In India
Loans For Warehouse
Long Term Loans
Medical Equipment Loan
Micro Small And Medium Enterprises Loan
Personal Loan For Low Credit Score
Personal Loans For Self Employed
Reverse Mortgage Loans
Same Day Loans
Small And Medium Sized Enterprises Loans
Small Business Loan For Women
Small Business Loans
Top Up Loans
Working Capital Loan
CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.