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Rural

Scheme for financing against pledge of Warehouse Receipt and/ or Hypothecation of Farm Produce

Purpose

  • To provide finance/ funds to the farmers for their farm/ off-farm needs.
  • To help farmers avoid distress sale of their produce.

Eligibility

  • Non defaulting individual farmers (owner/ tenant farmer & share cropper), group of farmers (JLGs), engaged in production of crops suitable for storage in warehouse/ godown/ cold storage/ regulated market yards, etc.
  • Farmers enjoying KCC facility as well as non-borrower farmers are eligible.  

Quantum of finance

70% to 60% of market value of farm produce depending upon accreditation of warehouse with WDRA. Max. Rs.50 lakh.

Security

Farmers enjoying KCC

  • Hypothecation of farm produce/ pledge of warehouse receipts

Other farmers

  • Pledge of warehouse receipts.

Margin

30% to 40%

WDRA Accredited – 30%

Non Accredited - 40%

Rate of Interest

Other than Small & Marginal Farmers

  • Upto Rs.3 lakh - 1% over Base Rate
  • Over Rs.3 lakh to Rs.10 lakh – 1.5% over Base Rate
  • Over Rs.10 lakh to Rs.50 lakh – 2% over Base Rate
 
  • Small/ Marginal Farmers – who are enjoying KCC facility may get Interest subvention for maximum period of 6 months – upto a limit of Rs.3 lakh.

Repayment

To be liquidated within 12 months from the date of disbursement.