WORKING CAPITAL LOAN
Working Capital loan is extended to Dairy Co-operatives (including Milk Unions / Federations / Producer Companies) to tide over its financial need when their capital is likely to get locked up in the form of inventory of milk products/ raw materials.
Borrower must not be a defaulter in repayment of loan to NDDB / other Financial Institutions at the time of application.
Past accounts (up to the previous financial year) must be duly audited.
The Debt Service Coverage Ratio (DSCR) of the operations to cover the total liability towards NDDB should work out to a minimum of 1.25 times.
The borrower should post Operating Profit (EBIDT) consecutively in the last 3 financial years.
Current Ratio should be a minimum of 1.00.
Rate of Interest
Effective from 1 April 2016: 8.75% per annum
Effective from 1 March 2017: 8.15% per annum