Pledge against Agriculture Commodities

Type of Facility

Cash Credit/Pledge Limit against Pledge of Commodity Arrival Report/Storage Receipt/Warehouse Receipt of

            i. Central/State Warehousing Corporation

            ii. Accredited Collateral Manager’s Storage Area/Godowns empaneled by Bank

Purpose

      To help Farmers avoid distress sale of their produce

      To enable prompt repayment of crop loan dues where applicable

Commodity

      Pulses, Turmeric, Maize, corn, Wheat, and other agricultural commodities acceptable by bank

Quantum of loan

Upto 60-75% of the value of commodities. Value of the commodities shall be lower of the following:

         · Value of the commodities based on the prices from the nearest Govt approved Mandi/NCDEX prevailing on the date of disbursement/Minimum support price wherever declared by government of India (Ministry of Consumer Afffairs).

            · Value advised by Collateral Manager/Warehouse Receipt

The maximum loan limit is Rs.50.00 lakhs per farmer

Eligibility

            · Farmers having own agricultural land.

            · Crop as per 7/12 extract of farmers will only be considered.

           · If the respective crop not mentioned on 7/12 extract, a certificate from Talathi certifying the farmer produces the said crop in his farm to be obtained.

            · Agri Commodities of traders will not be considered.

            · Satisfactory CIBIL

            · (ITR alongwith Balancesheet & Profit & Loss)

Approved Warehouse

            · Central/State Warehousing Corporation

            · Accredited Collateral Manager’s Storage Area/Godowns empaneled by bank

(Branch to carry out inspection to Godown and sanction is subject to satisfactory inspection report)

Margin

30%

Interest Rate

10% p.a. Exclusive of Collateral Manager charges/Warehouse charges

Prime Security

Agricultural commodities stored in the warehouse and CAR/SR/WHR

Collateral Security

NIL

Mode of Disbursement

         · For repayment/closure of crop loan taken for raising of crop

         · For onward credit to saving/current account of the borrower

Repayment

Commensurate with Stated shelf life of commodity or date of validity of CAR/SR/WHR in case not exceeding 6 months

Processing

Fee

Processing charges at 0.25%of loan amount + GST will be charged to the account at the time of availment of first drawal

Membership

2.5% of loan amount + entrance fee for membership

Guarantors to become nominal member

Collateral Manager

Charges

To be paid by applicant farmer

Documents required

• Loan Application in bank’s prescribed format
• KYC documents
• 7/12 Extract or Certificate from Talathi
• Bank statements for last 1 year
• Loan statements for last 1 year

Guarantor

• At least one guarantor of good Net worth with equal land holding of applicant & Satisfactory CIBIL

Special Terms & condition

Advance Interest for 6 month to be recovered and kept as deposit with branch till repayment of loan.