Pissiculture is one of the allied activities classified under priority sector lending. Both term loan and cash credit facilities can be considered under the scheme.
The facility is extended by the banks for cost of digging of pond or renovation of existing pond, stocking of spawn/fingerlings of fish, seeds, nets, application of lime cakes, fertilizers, weedicides, maintenance and establishment cost, labour charges, storage, processing, transport etc.
The appraisal of the limit covers following important points.
* Production arrangement: The particular of pond/tank, water area and land under possession of the proposed borrower.
* Project appraisal should cover the following details: total water area, effective water area for pissiculture (Acres), Nature of fisheries, variety of fish grown/to be grown, nutrition requirement of fish, water supply and other maintenance details, processing arrangement, storage facility, transport arrangement, marketing arrangement etc.
* Commercial Viability of the project should cover: Demand-supply, profit margin, Names of the main buyers, names of major competitors and their total market shares, costing and pricing mechanism of the product, dependence on single or few customers or suppliers, prevailing Government policies, embargo etc. are to be evaluated and clearance from appropriate government agencies, Consents, approvals & environment clearance aspect to be verified.
* Interest rate on various priority sector loans will be linked to base rate of the bank. Please note that priority sector guidelines do not laydown any preferential rate of interest.
* Margin as applicable for other priority sector advances as per RBI directives from time to time.
* Financial appraisal, Repayment schedule of the loan, margin proposed, and security proposed, names of the guarantors etc. are as applicable for appraisal of term loan/working capital limit.
Related articles: (a). Devote your time for execution of documents. (b). The method of term loan appraisal and (c) 5 steps of credit appraisal.