PLEDGE LOANS AGAINST THE WAREHOUSE RECEIPT
ISSUED BY COLD STORAGE
Salient Feature of the Loan Product
- Loans to individual farmers including SHGs or JLGs, i.e. groups of individual farmers and also traders.
QUANTUM OF FINANCE
Farmers – Maximum upto Rs.25 Lakh
Traders – Maximum upto Rs.100 Lakh
Traders have to offer minimum collateral of the 50% of the loan amount in the form of immovable property or liquid securities like Fixed Deposits, gold etc, acceptable to the Bank.
Primary – Pledge of receipts covering stocks of agricultural commodities in approved private cold storage
Collateral – The cold storage property should be mortgaged (The mortgage charge may be primary/secondary or pari passu charge). The maximum loan limit to a cold storage will be fixed at 200% of the value of the collateral available to the Bank.
(A) Before Disbursement :
(i) KYC documents
(ii) Cold Storage Receipt standing in the name of the loan applicant duly
endorsed in Bank’s favor
(iii) Hypothecation Agreement
(iv) Promissory Note (DPN)
(v) Agreement between the Bank and the Cold Storage owner.
(B) After Disbursement :
(i) Insurance should be invariably done with Insurance companies from
SUCO Bank has a corporate agency.
(ii) Commercial Crops – 50% (like Chili)
RATE OF INTEREST
(ii) Rate of interest for Traders: 10.50% p.a.