5.Loans against Warehouse Receipt
Purpose: The following forms of financing against Warehouse Receipts are being done by us
- Each cold storage/private warehouse will be treated as one unit.
- The credit worthiness/track record of cold storage owner and private warehouse owner including farmer borrower/small traders with the branch are to be satisfied.
- The owner of the cold storage/private warehouse to extend collateral security against the prudential limit as the farmer borrower/small traders are sponsored and guaranteed by him.
Produce Market loans: To those farmers who have availed crop loans from the bank for raising the concerned crop in that season. (Refer to the guidelines to be followed for this product furnished elsewhere in this booklet)
Financing against warehouse receipts issued by State / Central Warehouses : When the commodity is stored in State/Central Warehouses.
Financing against Warehouse Receipts issued by Private Warehouses / Godowns / ColdStorages: When the commodity is stored in private warehouses/ godowns/ cold storages that are financed/not financed by us.
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6. Loans against Warehouse Receipt of National Bulk Handling Corporation Ltd (NBHCL)
Purpose : To finance farmers/processors/traders/owners of goods against warehouse receipts of warehouses managed by NBHCL by way of demand loans.
Eligibility : Any one dealing in commodities.
Eligible amount of finance: Demand Loan: 75% of the value of the warehouse receipt, valued at the market value OR 80% of the minimum support price declared by State /Central Government, whichever is lower.
Processing charges : Nil where loan is sanctioned and disbursed and 300/- per lac in case the loan is sanctioned but theborrower does not avail.
Margin: 25% (minimum) of the value of the warehouse receipt, valued at the market value OR 20% (minimum) of the minimum support price declared by State / Central Government, whichever is higher
Insurance: Comprehensive Insurance cost to be borne by the warehouse receipt owner.
Security:
- Primary : Charge over warehouse receipt (resulting in charge over underlying goods), with lien marked in favour of the bank.
- Collateral : Personal guarantee of partners or directors has the case may be.
Repayment : The loan should be liquidated as and when the produce his sold during the interim period not exceeding 12 months.
Moratorium : None. The loan would be repayable in a maximum period of 12 months. Interest as and when due would be payable.
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Source: https://www.sbhyd.com
