Pledge Facilities for Purchasing of Harvesting Commodities

Purpose

• To purchase and stock  harvesting commodities
   

Eligible Borrowers

• Should be a customer of the Bank
• Should not be a willful defaulter
   

Maximum Loan Amount

• Rs.1,000 Mn

Repayment Period

• Paddy – 06 Months
• Other Crops – 09 Months

Security

• Pledge over stocks
• Joint and Several personal guarantee of Directors Or Guarantee of any other two persons acceptable by the bank
• Assignment over Insurance Policy obtained for minimum 133% of facility amount. The insurance should cover fire, burglary, riot, civil commotion, cyclone, terrorism, malicious damages, strike, explosion and flood over stocks. 

Special Conditions

• Pledge Agreement should be registered at the Land registry within 21 days from the date of execution exclusive Sundays and public holidays.
• If the borrower is a company pledge agreement should also be registered with the registrar of companies within 21 days 
• Sale proceeds of stocks should be deposited to the accounts of the borrower