Objective: To provide liquidity to farmers and to save them from selling their produce in distress.

Nature of facility: Short term loan by way of Agri Cash Credit (PML).

Features: The loan will be available only to those farmers who availed crop loans from the branch, which should not be overdue.

Produce/Crop Covered: The produce of all crops for which farmers were given crop loans are covered under the scheme.

Credit Limit: Upto `10.00 lacs under the Produce Marketing Loan Scheme for agriculture produce to the extent of 75% of the value of minimum support price.

Rate of Interest: Same rate of interest as applicable to crop loan.

Security Norms: Pledge / Hypothecation of the produce (including ware house receipts)

Repayment : 12 months (max.)

Disbursement: At the time of disbursement, the relative crop loans should be recovered/adjusted out of the produce market loan.

Inspection: Branch should inspect the stocks of produce at monthly intervals

Others:

1. Credit limits extended under the scheme are treated as Direct Agriculture Advances under Priority Sector.
2. The borrowers should submit periodical stock statements once in a month.
3. The borrower should follow the quality/storage requirements laid down by bank.
4. Stock should be kept separately and additional care is to be taken to maintain its quality.
   

For further details click here 

Source: https://www.sbhyd.com