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OLD MULTISTATE CREDIT SOCIETY MANAGMENT CHANGE,
CALL - 9820937711
Loan for your society via Nabard


How to get Loan from Nabard -

PACS being the registered cooperative society has been providing credit and other services to its members. It has been observed that PACS are generally meeting out the credit requirements of its members. However there is a need to provide other services to the farmers and hence PACS should be developed as a unit to meet all their needs. To ensure better returns on the agricultural produce, the farmers should not only be encouraged to use the latest technology to increase agricultural production but also to store their produce in a scientific way to minimise storage losses and provide pledge loan to bridge credit gap.

In order to enable PACS to provide more services to their members and generate income for themselves, an initiative has been taken to develop PACS as multi service centres. This will enable PACS to provide ancillary services to its members and diversify its activities. Assistance under PODF is available to SCB/CCB/PACS for this purpose.

PACS, being the registered cooperative society, has been providing credit and other services to its members. PACS are generally providing the following facilities to the members :

  1. Input facilities in form of cash or kind component to members.
  2. Agriculture implements on hiring basis.
  3. Storage facility.

Some of the PACS are also assisting farmers in marketing of their produce. It has been observed that PACS are generally meeting out the credit requirements of its members. However there is a need to provide other services to the farmers. The PACS should be developed as a unit for meeting all the needs of the farmers. To ensure better returns on the agriculture produce, the farmers should not only be encouraged to use the latest technology to increase agriculture production but also to store their produce in a scientific way to minimise the storage losses and provide pledge loan to bridge credit gap.

With the decrease in per capita landholding size over a period of time, it is not economical for the farmers to purchase the farm equipments. Moreover many new inventions have come in the recent years in the agriculture sector which needs to be brought to the farms. The use of the new technology & HYV will increase the productivity of the produce.

It has also been observed that most of the farmers go in for distress sale of the produce as they are in the need of immediate credit. Further adequate storage capacity is not available in the rural area where even the small farmers can store their produce and avail pledge loan.

PACS can play an important role in providing these facilities to the farmers. To increase the business portfolio of PACS so as to make it a self sustainable entity, it is essential that the PACS should provide additional services like providing agriculture implements on hiring basis, enabling collective purchase of inputs, having good quality storage capacity as per Negotiable Warehouse Receipt System, etc.

Accordingly, the following facilities can be taken up by PACS to the farmers :

  1. Agro-Storage centre :
    Upgradation of the existing storage facility or construction of new godown along with sorting/ grading unit as per Negotiable Warehouse Receipt System. This will enable them to issue warehouse receipts. Based on these receipts, the farmers can get loan against the crop stored and can cultivate the next crop. Thus the farmers will be facilitated to get better price by holding the crops without affecting the fund flow position.

  2. Agro-service Centre :
    Purchase of hi-tech agri-implements like power tiller, land leveller, rotary slasher, movers, seed driller, multi crop planter, paddy transplanter, sprayers, combine harvester etc. depending upon the requirements of members. The earning will be from the rental of these equipments.

  3. Agro-processing centre :
    1. Primary Processing: Sorting, grading unit, waxing/ polishing unit, pre-cooling chambers, etc.
    2. Secondary Processing: Value addition to produce e.g. Mini rice mill, atta chaki, horticulture produce processing etc.

  4. Agri -information centre :
    Testing lab for soil & water, creating panel of experts for providing services on payment basis, knowledge dissemination centre, arrange training to farmers. The testing lab & expert guidance will be available to farmers at a cost.

  5. Agri Transportation & Marketing Facilities :
    Procurement of produce, Direct market linkage after aggregation and/ or processing, setting up of rural mart etc. The PACS, which are either in the area of marketing or intend to undertake this activity, may create this channel to facilitate the farmers in marketing.

  6. Availability of Funds :
    1. Loan under PODF :
      NABARD will also support some of the PACS identified by the committee under PODF.

      Eligibility :

      PACS being a registered society having the membership of the farmers is eligible to be assisted under the fund. Under PODF, loan can be given for the above activities. Since the PACS are already an existing legal entity, the requirement of the grant support is not to the extent as in case of Producers Organisations. However, to facilitate PACS in taking up these activities for the benefit of the farmers, need based grant support will be available to PACS which should not be utilised towards the capital cost of the project. In any case the grant should not exceed 10% of the loan component. Interest free or low interest loan can also be considered in lieu of grant. The following activities can be supported under the grant/interest free loan/low interest loan component:

      1. Knowledge dissemination centre
      2. Training to farmers
      3. Initial administrative cost to start new business activities

      Margin by PACS :

      Minimum 10% of the project cost. However in case of rural godown the margin will be as per the scheme, in case the subsidy is claimed by PACS. As on now NABARD is not one of the eligible institution to claim subsidy under Grameen Bhandaran Yojana.

      Interest Rate :

      The interest rate under PODF is fixed by ALCO.

      Repayment :

      The repayment will be maximum 9 years including grace period of two years.

    2. Loan through CCB or RRB :

      To facilitate PACS to avail subsidy under Grameen Bhandaran Yojana, loan from PODF can be sanctioned to CCB on getting specific projects from PACS in its area of operation. The project of each PACS will be evaluated by RO and recommended to HO, where the ROs have not been delegated the sanctioning power. Since CCB will be taking the loan from NABARD for on lending to PACS, CCB may charge maximum additional 1% interest over and above the interest rate charged by NABARD. For example, if the loan is sanctioned to CCB @ 10%, CCB should not charge more than 11% from PACS. Loan can be routed through RRB (where DCCB is not in good health). Other terms & conditions will remain the same as per PODF guidelines.

      In case of loans routed through DCCBs/RRBs, NABARD will continue to be involved in identifying PACS, appraising proposals and monitor project implementation and loan recovery. However, this should not make the DCCBs/RRBs feel at any point of time that they are just a pass through agency.

    3. Loan from CCB/RRB or from own sources :

      PACS can either use their own sources or avail credit facilities from CCB & RRB. In such a case, the grant support from PODF is not available. CCB or RRB can avail of refinance facilities as per the usual terms & conditions. Regional Office will keep a track of the facilities being developed at PACS level and monitor the same at regular interval.

      In cases where loan is from the DCCB or RRB, or own resources are being used and financial support from NABARD is not being taken, NABARD would guide in project formulation, if necessary, so as to enable best utilisation of funds.

Multistate Co-Operative Society
01

Registration & Licencing for Credit Society, Group Housing Society, Consumer Co-operative Society, marketing co-operative society.


02

Without following legal path for running MSCS can put you in real trouble, We help you to run your society as per MSCS Act 2002.We will help you by providing information on different Act and run your society smoothly.


03

Our full time associate CA and CS will help your society to run as per the Accounting Standard. Our professionals will visit your society registered office and Branch office in each 4 months time for Audit purpose.We will take care of your societies Accounting and Auditing Matter.


04

As per MSCS Act 2002,you cann't start anything new in your society until unless your bye laws being amended .Electiopn also major role in MSCS ,So we do take care of your election procedure and amendment.


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