FAQs

After a complete assessment of the requirements of an FPO, we customise our solutions – input loan, output loan, catalytic infrastructure and market linkages – to suit their specific needs. We adopt a strategic approach of enabling FPOs with aggregation, market linkages and offering advisory services to scale their business faster.

Upon the assessment of the FPO based on the rating tool and field visit report of the RM, FPOs have to share the following documents for preparation of CAM (proposal) and further appraisal process. Based on the scrutiny, we will decide total sanction limits and other services to be facilitated. Documents required to process the FPOs loan application:

1. Aadhar card (front and back) and PAN card copies of board of directors.
2. KYC documents of the FPO – GSTN, PAN, MOA, by-law, registration certificate, trade license, FSSAI license
3. Business plan for the current year and beyond.
4. Audit report of last two to three years.
5. IT returns documents of last two to three years.
6. Bank statement for the previous year.
7. Month wise purchase and sales details.
8. Top five suppliers and buyers details.
9. Board of directors details like name, mobile number, father name, village, agriculture experience, education, land holding.
10. A few sample purchase and sale invoices
11. Letter of request asking for input/output/infrastructure/value addition loans.
12. Name of cheque signatories.
13. A brief information on the FPO and the promoting institution.
14. Seed, fertilizer and pesticide licenses with latest renewals.
15. A few photos of input shop, collection centre, BOD meeting, Office etc.
16. Mandi license to trade.

Samunnati’s rate of interest varies based on the quantum of credit, time period to repay etc. As of Dec 2020, the average rate of interest is around 14% (reducing basis). FPOs can repay the credit on EMI basis, bulk payment and partial basis based on income generation activity in which FPO is investing.

FPOs can repay loans in easy instalments, bulk payment, by paying interest on a monthly basis or repaying the principal amount at the end of tenure as per the sanctioned limits. All the financial solutions facilitated by Samunnati are on reduced interest basis. If FPO fails to repay the loan amount within the agreed time period, penal interest would be added for the additional period.

Being an NBFC, Samunnati provides only credit facilities and doesn’t work on savings and insurance schemes unlike other formal financial institutions. The rate of interest depends on the equity mobilized and loan amount taken from lending institutions. Besides, Samunnati provides additional value by facilitating advisory services and enabling FPOs to grow and prosper together.

Samunnati believes in nurturing the FPOs and making them bankable. FPO as such is a new concept and they are striving to establish and function as a successful entity. With a strong hope of FPOs to prosper in future and enabling value chains, Samunnati offers holistic solutions without taking any collaterals or mortgages.

We believe technology can be leveraged to propel growth for FPOs. On a pilot basis, we are working with a few tech based solution providers like WRMS (Weather risk management systems Private Limited), Cropin, Skymet, Google and various other players who are trying to build a secure model for FPOs.

After assessing the FPO, verifying documents, preparing a proposal, issuing a sanction letter and receiving documents as per sanction letter, Samunnati grants the loan. The entire process takes around 8-10 working days.

Samunnati makes direct payment to ensure every transaction happens smoothly. In all the below instances, we debit the account of FPO and credit the account of the suppliers or service provider:

1. Input loan – Payment to the input suppliers
2. Output loan – Payment to farmers/producers
3. Catalytic infrastructure – Payment to the contractors or material suppliers
4. Value addition – Payment to the material suppliers

No. Samunnati doesn’t levy any per-closure charges. Although, we always insist the FPOs to plan their repayment based on the activities they are engaged in.

If the FPO fails to repay the loan amount, Relationship Managers – who work closely with the FPO – understand the situation and give the FPO an opportunity to repay by allowing an extension and adding penal charges to the loan. If the intentions of the FPOs are not clear, then RM in consultation with the management can proceed for legal terms and action.

Samunnati Agro Solutions (wholly owned company of Samunnati NBFC) does trading and Trade finance which enables (Agri) suppliers and buyers to do trade without any hassle. Any unsold inputs is the producer’s responsibility to dispose, hold or sell. But on request, we do help the FPO to clear the stock by connecting them with other FPOs and traders in the vicinity.

There is no templated path to success. Similarly, every dairy business has different challenges, targets, and resources to work with. At Samunnati, we understand this and create customised financial and non-financial solutions. If you are Dairy FPO, please fill in the contact form on our website. Our Relationship Managers will reach out and help you chart success for your dairy business.