Money Back Guarantee
A producer company in India is a company registered under the Companies Act with mutual objectives of agriculture production, procurement, post-harvesting processing activities, import goods, selling and distribution, export of primary production of the members to earn more benefits. A producer company is a committee of 10 or more people and 2 institutions with a joint objective of dealing with agricultural and post-harvesting processing activities. In simple words, it is a cluster of farmers who joint hands for better living and to improve their income.
Producer Company is formed by the number of individuals who are primary producers and in need of timely financial assistance. Therefore, a special provision was passed as per companies act for loan sanctioning to the members of the producer company.
Financial assistance can be provided to the members of the Producer Company through the following:-
The credit facility will be available to a member of the producer company for a period of not more than 6 months.
Loans and advances
Loan and advances will be issued to the members against security for a period of not more than 7 years from the date of loan disbursement.
NABARD (National Bank for Agriculture & Rural Development) Loan
To meet the requirement of the Producer Company, financial assistance is provided by the NABARD (National Bank for Agriculture & Rural Development). In the year 2011, Producer Organization Development Fund (PODF) of Rs. 50 Crore has been set up by the NABARD out of the NABARD operating surplus.