SBI Produce Marketing Loan (PML) For Farmers





The objective of SBI Agriculture Produce Marketing Loan (PML) is to help farmers avoid distress sale of their produce. To offer the facility of loan against the stocks stored in farm houses, in addition to loan against warehouse receipts.

SBI Produce Marketing Loan (PML) For Farmers

Eligibility for Produce Marketing Loan (PML)

Farmers who have availed crop production loans from the branch or who have availed crop loan from other Bank or who have not availed crop loan from any Bank can avail SBI Agriculture Produce Marketing Loan.

Sanction limit for Produce Marketing Loan (PML)

60 to 80% of values of produce depending upon the place of storage, subject to a maximum limit of Rs.10 lacs.

Margin for Produce Marketing Loan (PML)

Loan sanctioned against goods stored in Farmer’s godown : 40%. Loans sanctioned against Ware House Receipts (WHR): 20% to 35%.

Security for Produce Marketing Loan (PML)

1. Loan sanctioned against goods stored in Farmer’s godown:

  1. Primary: Hypothecation of stocks.
  2. Collateral: Mortgage / Charge over Land or Third Party guarantee for loans above Rs. 50,000/-.

2. Loans sanctioned against Warehouse Receipts (WHR):

  1. Primary: Pledge of stocks.
  2. Collateral: No collateral is required for loans upto the maximum permitted limit of Rs.10 lacs under the scheme.

Repayment of Produce Marketing Loan (PML)

Loan has to be repaid within a maximum period of 12 months.

Insurance for Produce Marketing Loan (PML)

If value of stock exceeds Rs.15000/-, cover for the full value from approved insurance company.

Inspection of Produce Marketing Loan (PML)

Loans upto Rs.25,000/- once in two months and for loans above Rs. 25,000/- monthly.

Tags