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Warehouse is necessary to store your produce in a manner that it is protected from the sun, rodents and other factors that deteriorate the product. Warehouses are necessary for farmers to store their products till they are sold.
The maximum loan limit is Rs.300 million and it is based on the financial parameters and the proof of dealings of the commodity. The maximum tenure offered is 12 months. The tenure varies based on the commodity that is being financed.
Individual farmer, partnerships and limited companies can avail this warehouse loan. The eligible commodities are soybeans, cotton, mustard, maize, wheat, sugar, paddy, cashew, castor, chilli and turmeric.
The benefits of the loan for warehouse are as follows:
You need to contact the sales manager of the financial institute that you wish to take the loan from. Then you have to submit all the necessary documents and the limit on the loan is set based on your eligibility to repay the loan. The loan is then disbursed after the bank inspects the stock.
Farmers can get a minimum of Rs.25,000 and a maximum of Rs.10 lakhs. Traders get a minimum of Rs.25,000 and s maximum of Rs.5 crores. Processor get minimum of Rs.10 lakhs and a maximum of Rs.100 crores.
The mean interest rate for the farmers is 11.18% and for non-farmers it is 11.28%.
Processing fee of up to 1% is charged on each disbursement of the loan. Collateral management charges are applicable for private warehouses. Other charges include, statutory charges, stamp duty on documentation, monitoring and inspection charges, quality checking charges as applicable.
You will be required to submit the following documents: