Scheme Name

Scheme for assisting Traditional Fishermen of Kerala to procure Mechanized Deep Sea Fishing Vessels (DSFV).

Objective

The objective of the scheme is to assist the traditional fishermen through their societies in acquiring DSFV.

Beneficiary

The applicant should be a Primary Cooperative society having affiliation under MATSYAFED. The society should be recommended for the loan by the Fisheries Department.

Loan amount

90% of the project cost, subject to an upper limit of Rs.70 lakh per society per vessel.

Nature of facility

Term Loan

Working Capital

The beneficiary society shall undertake to arrange the working capital requirements for operating the unit.

The beneficiary society shall also undertake to bring in funds required to meet expenses in excess of the Project cost stipulated, if any, as and when required. 

Rate of Interest

The rate of interest shall be as applicable to the CMEDP scheme. At present, the gross interest shall be 10% with an upfront State Government subsidy of 3% and 2% rebate for prompt repayment. The net effective interest at present is 5%. The subsidy will be provided only if accounts are maintained in the standard category. The 2% rebate will be allowed if the entire principal, interest and other expenses demand is serviced on or before the 5th of every month.

Repayment period

Maximum of 60 months including a maximum of 06 months moratorium.

The society should service the loan on a fortnightly basis as per the cash flow of the unit.

Mode of Disbursement

The Fisheries Department shall transfer the Central & State Assistance and the beneficiary society shall transfer the Beneficiary contribution to the OEM of the Vessel (i.e., Cochin Shipyard) in the first phase.  The required loan component shall be transferred to the OEM subsequently, as an advance payment on the recommendation of the Fisheries Department, as per the schedule of OEM.