Produce Marketing Loan - Agricultural Banking | SBI - Agri & Rural

Features

• Type of Facility: Demand Loan.
• Quantum of Loan: Based on the valuation of the pledged commodity (lowest of a. minimum Support Price, wherever declared or b. Current market price). Thereafter the higher margin will be retained for arriving at the advance value/limit. The maximum loan limit under PML is Rs 50 lakhs per farmer.
• Margin: 25-40% (Based on the type of warehouse where product is stored)
• Moratorium: NA
• Repayment: Commensurate with stated shelf life of the commodity or date of validity of the WHR/NWR in any case not exceeding 12 months.
• Security:
  • Primary:Hypothecation/Pledgeofagricultural producestored in the warehouse and/or PledgeofWarehouse Receipts(WHR).
  • Collateral: a. Farmer’sOwnWarehouses: Mortgage of Land for loans above Rs.1,00,000/- b. Other Warehouses (Not managed by Bank’s approved Collateral Managers): Mortgage of Land for loans above Rs.10,00,000/- c. Other Warehouses (Managed by Bank’s approved Collateral Managers): NIL
• Disbursement: After liquidating the crop loan, surplus will be made available for drawl.