Produce Marketing Loan - Agricultural Banking | SBI - Agri & Rural
Produce Marketing Loan
Purpose
- To help farmers avoid distress sale of their produce.
- To enable prompt repayment of crop loan dues, where applicable.
- To offer the facility of loan against the security of fungible farm produce either stored at farmer’s own place/ Godown or stored in accredited/ Non- accredited warehouses.
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.
Documents Required
- Application Form.
- Stock statement for valuation and evidence of stocks at the residence of the borrower/ Godown, Warehouse receipt, duly endorsed, if stocked at warehouse.
- Security documents for loan.
- Any other document as per sanction.
Interest Rate
a. NWR or e NWRs (Not managed by Bank’s approved Collateral Managers):
Limit | Rate of interest |
---|---|
Upto Rs.3 lakhs | 9%p.a. (including interest subvention @ 2% p.a., if applicable) |
Above Rs.3 lakhs to Rs.50 lakhs | 360 bps above 1 year MCLR |
b. Godowns managed by Bank’s approved Collateral Managers:
Tenure of loan | Interest Rate |
---|---|
Upto 6 months | 80 bps above 6 months MCLR |
Above 6 months & upto 1 year | 110 bps above1 Year MCLR |
Other Charges: As applicable from time to time.
For detailed and updated information, please contact our nearest Branch.
Last Updated On : Friday, 03-06-2022

Interest Rates
2.70% p.a.
Upto 1 lakh(w.e.f. 31.05.2020)
2.70% p.a.
Above 1 lakh (w.e.f. 31.05.2020)
2.70% p.a.
Upto 1 lakh (w.e.f. 31.05.2020)
2.70% p.a.
Above 1 lakh (w.e.f. 31.05.2020)
5.45%
3 years to less than 5 year
5.50%
5 years to less than 10 years
Miscellaneous Activities
Limited Time Offers - Unlimited Joy

Criteria
- Features
- Eligibility
- Terms and Conditions

Interest Rates
2.70% p.a.
Upto 1 lakh(w.e.f. 31.05.2020)
2.70% p.a.
Above 1 lakh (w.e.f. 31.05.2020)
2.70% p.a.
Upto 1 lakh (w.e.f. 31.05.2020)
2.70% p.a.
Above 1 lakh (w.e.f. 31.05.2020)
5.45%
3 years to less than 5 year
5.50%
5 years to less than 10 years