Produce Marketing Loan

Agri & RuralCrop LoanGold LoanFarm mechanization Loan
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Produce Marketing Loan

Purpose

  • To help farmers avoid distress sale of their produce
  • To enable prompt repayment of crop loan dues and provide liquidity to farmers to meet contingency needs.
  • To offer the facility of loan against the stocks stored in farm houses, in addition to loan against warehouse receipts.

Features

  • Loan amount : 60% to 80% of value of produce depending upon the place of storage subject to a maximum of Rs.50 lacs.
  • Loan has to be repaid within a maximum period of 12 months depending upon the crop and specific circles have different caps for different models of godowns.

Who are eligible for the loan?

  • All non-defaulter borrowers of our branches, who can store the produce either in their own farm/premises itself or in a Warehouse / cold storage.
  • Crop loan borrowers of other Banks and also Non-Borrower Farmers, who store their produce/ stocks in a Warehouse / cold storage.

Documents you need to produce

  • Stock statement for valuation and evidence of stocks at the residence of the borrower/ godown Warehouse receipt, duly endorsed, if stocked at warehouse.

Security

Loan sanctioned against goods stored in Farmers godown

  • Primary : Hypothecation of stocks.

  • Collateral:Mortgage / Charge over Land or Third Party guarantee for loans above Rs.1,00,000/-.

  • Disbursement : After liquidating the crop loan ,surplus will be made available for drawl.

Loans sanctioned against Warehouse Receipts (WHR)

  • Primary : Pledge of stocks.

  • Collateral: Mortgage / Charge over Land or Third Party guarantee for loans above Rs.1,00,000/-.


Interest Rates

6.80%* p.a.

w.e.f. 01.01.2021

*T&C Apply.

 

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