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.

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 Banks and also Non-Borrower Farmers, who store their produce/ stocks in a Warehouse / cold storage.

Loan amount

60 to 80% of value of produce depending upon the place of storage subject to a maximum of Rs.50 lacs.

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 Farmers godown:

Primary : Hypothecation of stocks.

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

Loans sanctioned against Warehouse Receipts (WHR):

Primary : Pledge of stocks.

Collateral: No collateral is required for loans upto the maximum permitted limit of Rs.10 lakhs under the scheme.

DISBURSEMENT:

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

How to repay?

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.

How to apply for this loan

Contact Branch Manager/Field staff.