Purpose
Extending finance to Farmers, MSME, Traders, Processors, FPO etc. against Pledge of Electronic Negotiable Warehouse Receipts issued by Repositories (approved by WDRA) for agricultural produce stored in WDRA accredited warehouses.
Eligibility
Farmers, group of farmers, MSME, Traders, Processors, FPOs etc having stocks / goods kept in WDRA accredited godowns against Electronic Negotiable Warehouse Receipts (e-NWR).
Type of Loan
Demand Loan
Quantum of Loan
- Minimum:₹ 1.00 lakh
- Maximum:₹ 200.00 lakh
Margin
- For the loan amount up to ₹75 lakh: minimum margin- 25% of market value of goods kept in WDRA accredited godowns.
- For the loan amount above ₹75 lakh and up to ₹200.00 lakh: minimum margin- 30% market value of goods kept in WDRA accredited godowns.
Security
Primary Security:
Pledge of e-NWR duly endorsed in favor of bank for stocks / goods kept in WDRA accredited godowns.
Collateral Security:
- Third-party guarantee of two persons having sound financial net means, acceptable to the Bank and good for the loan amount.
- Tangible security having market value of minimum 100% of the loan amount.
- Tangible Collateral security shall be in the form of residential or commercial property OR Cash collateral in the form of Term Deposits.
- Realizable Value of property/principal amount of term deposits shall be considered while accepting collateral.
Personal Guarantee of the Promoter(s) / Director(s)/ owners of property (ies) wherever applicable, shall be obtained.
Repayment
Maximum 12 months or expiry date of receipt (whichever is earlier). Entire demand principal along with interest will be raised at the end of term of loan.
Laon Application Form