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5. 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.
Eligibility
1. 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.
2. 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.10 lacs.
Security :
1. 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. 50,000/-.
2. 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.
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