Rural Cold Storage Construction Loan

A Rural cold storage construction loan is financial assistance provided to individuals or groups for the construction of cold storage facilities in rural areas. These facilities are crucial for preserving agricultural produce, reducing post-harvest losses, and ensuring better prices for farmers.

Key features of the loan:

• Purpose: To fund the construction of cold storage facilities in rural areas.
• Eligibility: Farmers, Farmer Producer Organizations (FPOs), cooperatives, and other eligible entities can apply.
• Loan amount: Varies depending on the size and capacity of the cold storage.
• Repayment period: Typically ranges from 7 to 15 years.
• Interest rates: Competitive interest rates are offered, often with government subsidies.
• Subsidies and incentives: Various government schemes offer subsidies and incentives for cold storage construction.

Benefits of cold storage construction:

• Reduction in post-harvest losses: Keeps agricultural produce safe for longer.
• Improves farmers’ income: Enables farmers to sell their produce at better prices.
• Employment Generation: Creates employment opportunities in rural areas.
• Value Addition: Facilitates agro-processing activities.