Warehouse Receipt Financing

Parameters Features
Nature of Facility Cash Credit facility (for limits of Rs. 1 cr. and above) / Working Capital Demand Loan / Revolving Demand Loan.
Purpose The scheme is being extended to finance traders/owners of goods/manufacturers for own processing against Warehouse Receipts issued by Collateral Managers (C.M) with whom we have tie-up.Further, WHR issued by CWC / SWC would also be eligible for WHR finance.
Eligibility Criteria Traders/owners of goods/manufacturers for own processing against WHR issued by CM/CWC/SWC.
Quantum of loan (Min/Max) Need based Financing based on eligibility.
Margin (%) Margin ranges from 25% of Market Price to 35% of Market Price depending on facility and tie-up or without tie-up. Discretionary powers has been provided for concessions to authorities/committees at Circle level.
Pricing Competitive Pricing Linked to MCLR
Security
  • Primary- Pledge / Hypothecation of underlying stocks for which WHR has been issued by the Collateral Manager / CWC / SWC, with lien marked in favour of Bank.
  • Collateral- Personal Guarantee of partners / directors, wherever applicable.
Repayment Period WCDL: The loan should be liquidated as and when the produce is sold during the validity period not exceeding 12 months.
Cash Credit: Repayable on demand. To be brought to credit balance and DP made Nil / reduced when the quality certificate expires.
RDL:All the individual DLs under RDL should be liquidated after closure of the underlying loan & liquidation of Bank’s dues. In addition, branches should diarise the due date of each WHR and should also ensure that the WHRs are released only after closure of the underlying loan & liquidation of Bank’s dues.
Processing Fee Unified Charges (Includes Processing charges, Inspection charges and Facility Fees) are being levied which ranges from Nil to Rs.3 Lacs based on the quantum of loan.