Cold storage loan is a type of agricultural loan for cold storage that is available to farmers/individuals/groups of individuals who run a business of cold storage. This loan is used to set up cold storage or for expanding the existing business of cold storage. These are used to store produce/dairy products/meat products etc. that can be transported to many parts of the country. To Run a cold storage set-up requires some amount of capital investment. Various banks and other lenders provide loans for cold storage. The National Bank for Agriculture and Rural Development is one of the biggest lenders of this type of loan.
Cold storage loans are secured loans. So, the borrower needs to pledge an asset as collateral. A Mortgage of land or the site of the cold storage can be used as collateral for this loan. It can be used to construct a new cold storage infrastructure or expand or modernize an existing facility. Most of the lenders provide funding of about 75% of the total project cost.
How to apply for loan for cold storage
Step 1: Check and compare all the business cold storage loan options offered by leading financial institutions.
Step 2: Pick the deal that suits your business requirements by just filling in the basic details like your name, mobile number, residence, loan amount, email address, annual turnover & profit, etc.
Step 3: After submitting the details, the bank’s representative will contact you to verify the documents to proceed with loan formalities.
Step 4: After verification, if the bank is satisfied, the bank will give you a sanction for the loan. After loan approval, the bank shall disburse the loan amount to your mentioned bank account.