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Scheme for Financing against Warehouse Receipts to farmers

Scheme for Financing against Warehouse Receipts to farmers
Type of FacilityShort Term Loan (STL)
PurposeLoan 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.
ValuationMarket Price or Value shown in warehouse receipt whichever is lower
Margin25% 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
RepaymentThe loan should be liquidated as & when the produce is sold during the interim period not exceeding 12 months
Other Terms & ConditionsWarehouse receipt should be duly endorsed in favour of bank