Process Flow of Pledge Loan
1. Farmer On boarding & warehouse deposit
- Farmer visits the warehouse with his crop for deposit.
- Farmer/depositor fills Form no.06 of MSWC before depositing commodity.
- Farmer also submits physical copy of his KYC documents at warehouse.
- Warehouseman creates Depositors Account in the SAP system of MSWC.
- SAP/Block chain generated warehouse receipt is issued to Depositor/Farmer. Warehouse receipt contains description of Material, weight, quantity of bags, quality of commodity and prevalent market rate of deposited commodity.
2. Loan Application/Procedure
- If farmer depositor desires to avail a pledge loan against warehouse receipt, he chooses his bank, presents warehouse receipt to concern bank and applies for pledge loan.
3. Loan processing at Bank
- Bank officers verifies the pledge loan application, KYC documents of the applicants and warehouse receipt.
- After scrutinizing KYC documents and making due diligence of the eligibility of the applicant depositor approves pledge loan.
- Before disbursing loan amount to the farmer depositor bank gets lien marked on the warehouse receipt by concern warehouseman. In some cases bank physically verifies the stock deposited in the warehouse.
- After completion of the procedure loan amount is disbursed to the farmers bank account.
4. Loan Repayment & Delivery
- Once loan is repaid by the borrower / farmer or a trader, the bank issues NOC to release bank lien on warehouse receipt.
- After reliving a bank line depositor farmer/trader by paying warehouse charges can take delivery of the commodity stored in the warehouse or transfer the commodity on the warehouse receipt to third person merely by endorsement of the warehouse receipt.