Scheme for Financing against Warehouse Receipts to farmers

 

Scheme for Financing against Warehouse Receipts to farmers

Type of Facility

Short Term Loan (STL)

Purpose

Loan against receipts of warehouse/cold storage is available to provide liquidity to the farmers & prevent them from resorting to distress sale of their produce at the time of harvest.

Valuation

Market Price or Value shown in warehouse receipt whichever is lower

Margin

25% of the valuation

Rate of Interest

 Loans upto Rs 3.00 lakh to Small & Marginal farmers who has availed MKCC limit: @7% p.a. upto six months

 For all others: At Base rate +2%

Security

 Loan upto Rs 25.00 lakh:

1. Charge on Warehouse Receipts being endorsed in favour of bank

2. Lien should be noted with concern warehouse

 Loans above Rs 25.00 lakh:

1. Charge on Warehouse Receipts being endorsed in favour of bank

2. Lien should be noted with concern warehouse

3. Mortgage of land

4. Third party guarantee having sufficient net worth

Repayment

The loan should be liquidated as & when the produce is sold during the interim period not exceeding 12 months

Other Terms & Conditions

Warehouse receipt should be duly endorsed in favour of bank