Home > Loan Against Commodities
Loan Against Commodities
Loan against commodities caters to the financial needs of those involved in the commodities
business, such as farmers,
traders, processors and aggregations. Now, get loan against commodities stored in Warehouses
(Warehouse receipt), at
attractive interest rates with speedy sanction and disbursement with minimum documentation.
Loan is available against following Agri Commodities:
Chana | Wheat | Jeera | Castorseed | Coriander (Dhaniya) | Guar / Guargum (Subject to change)FEATURES
- Suitable for commodity traders, farmers, processors and aggregators
- Limit: The limit is assessed on the basis of financial parameters and proof of dealing in commodities, generally, 50% – 75% of the value of the commodity
- Tenure: Upto 1 month prior to validity date. Maximum tenure of 24 months
BENEFITS
- No hidden charges
- No fixed EMI schedule (Tenure and repayment are flexible)
- Quick Approval Process
- Seamless deliveries of funded stock on exchange platform
- Individuals (should be major)/ HUF/ Corporate / LLPs
- Commodity should be in Demat mode (COMTRAK), or Warehouse Receipt (WHR) of approved warehouse
- Loan tenure upto 1 month before validity / final expiry date
- COMTRAK charges (Pledge Charges): At Actual
- Nominal Processing Fees
- Delivery charges, Insurance charges, Collateral Manager Charges, etc. as per policy from time to time
- Attractive rate of interest
- Cheque bouncing charges Rs. 1000/-
- KYC Documents
- Constitutional Documents
- Proof of dealing in commodities (Mandi license, VAT Registration Certificate, etc.)
- Financial documents
- Application form
- Loan documents
- Original Lien marked Warehouse receipts / storage receipts / quality certificate
- FATCA Declaration
- Passport Size Photograph
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Who are eligible for Warehousing Receipt Finance?
Farmers, traders, processors and aggregators are eligible for the loan. -
What is the range of commodities that can be financed?
Cereals, pulses, spices, oilseeds, seed cakes and other agri-commodities approved by Mansa Mata Finance can be financed under warehouse receipt finance. -
How can I apply for the loan?
- You can apply for a loan in any of the following ways:
- Apply online by Clicking Here
- Call our Corporate head office
- Visit head office and speak to a Relationship Manager.
- What are the stages involved in acquiring loan? The stages involved in acquiring a loan are: application, appraisal, loan sanction, documentation and disbursement against warehouse storage receipts.
-
What is a commodity pledge? Is it mandatory to pledge the commodity?
Commodity pledge is offering commodity stock to a lender as a security for a loan. Though the asset will be pledged to the lender, it is still owned by the borrower unless he / she defaults on the loan. It is mandatory to pledge the stock to avail loan against Warehouse Receipts. -
What are the margin requirements for the loan?
Margin varies from commodity to commodity and case to case basis. -
What is a margin call and when does it happen?
It should be ensured that the margin at no point of time falls below the specified level. In the instance it happens, Mansa Mata Finance shall intimate the borrower to provide for the difference in margin which is called a Margin Call. -
What is the responsibility of the borrower in case of a margin call?
The borrower has to immediately provide the top up margin. The margin can be brought in by way of partial payment or additional stock. In case, the borrower does not bring in additional margin within the stipulated time, Mansa Mata Finance may offload the stocks in part or full at its discretion to ensure maintenance of the requisite margin. The loss if any from this action would be to the borrower's account. -
What are the loan tenure options?
Loan tenure ranges up to 24 months -
Can the loan be prepaid? If yes, what are the charges involved?
The same shall be decided on a case to case basis. -
What are my repayment options?
Quarterly or Monthly submission of interest is mandatory and principal is to be paid at the time before the final delivery of goods. -
How long will it take for the loan to be sanctioned?
A loan is generally sanctioned within 7-15 working days after completing submission of all requisite documents. -
Is part release of commodity possible?
The loan is disbursed in several tranches and borrower can repay one tranche or more at a time.