Loans and Subsidies for Cold Storage Warehouses
Cold Storage warehouses are large storied buildings to store various products. We use them to store various agricultural produce. Mostly, to store fruits and vegetables we use them. In addition, we can also preserve processed foods. Artificial cooling in them prevents the spoilage of food for a specific time period. They decrease the post-harvest losses of many crops. In the last post, you got the information on how to start Cold Storage Warehouse in India. In this article, we will let you know the Schemes and Subsidies for Cold Storages. Availing loans can lessen the amount of investment that directs for huge margins in the business.
NABARD Loan for Cold Storage Warehouse Establishment
To support various farmers, individuals, and unemployed people, NABARD is giving loans. Availing loans can decrease the cost of constructing a cold storage warehouse.
- Cold Storage Warehouses.
- Controlled Atmosphere (CA) stores.
- Bulk coolers, frozen units, reefer vans, package houses.
- For upgradation of Infrastructure facilities.
- Start-up Agri entrepreneurs.
- Private Organisations.
- Government Institutes.
- APMC’s (Agriculture Produce Marketing Committee).
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How to avail NABARD loan for Cold Storage Warehouse: Submit the project report to the regional Nationalised bank or APMC.
50 % of the total cost of establishing the Cold storage Warehouse.
In the case of reservation categories, the loan is 75 % of the total cost.
SBI Loan for Cold Storage Warehouse
Purpose of loan: To finance the private companies and individuals to start Cold Storage Warehouses.
- Private Companies.
- Good repute Individuals.
- The capacity of the warehouse must be 5000 MT.
- The Cold Storage Warehouse have post tax profits for a minimum of 3 years.
- However, SBI also considers new constructions to grant the loan.
Amount of Loan:
- Minimum Rs. 25 lakh.
- Maximum Rs. 1 Cr.
Security or Surety:
- Equitable mortgage of the total loan value.
- Personal guarantee or third party guarantee.
Repayment: Cash credit is brought for every season at a specific time period.
How to Avail SBI loan: Total project statement is submitted to the nearby bank branch. The amount of the loan is restricted to 60 % of the total value. The value of the receipts must not be less than 6 months.
How to Apply loan for Cold storage Warehouse: Visit the nearest SBI bank branch or contact the marketing SBI officer.
NHB Subsidy for Cold Storage Warehouse
NHB is National Horticultural Board. With support from the Ministry of Agriculture & Farmers Welfare, it is giving a subsidy. The status of the approval is updated at the portal.
How to Apply: IPA (In-Principle Approval) is mandatory. Submit the project report online at the NHB portal. After granting the application online, the individual is to send a self-attest copy to the Managing Director, NHB, Gurugram.
Subsidy Amount: NHB give subsidy to the eligible individuals on first come first basis until the funds lost.
This is all about how to get subsidies for starting a cold storage warehouse. For details on loans and subsidies for start-up agribusinesses, comment below.