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Testimonials

SMC has offices throughout India, so we can reach clients efficiently practically anywhere.
Our personalized service and streamlined documentation gets your product to you faster.

Mr. Arvind Pal

Testimonials
SMC has offices throughout India, so we can reach clients efficiently practically anywhere.
Our personalized service and streamlined documentation gets your product to you faster.
Mr. Arvind Pal
Home > Capital Market Loans > Loan Against Commodities

Loan against Commodities

Get loan against Commodities stored in Warehouses, at attractive interest rates with speedy processing.Loan is available against following AgriCommodities:

Chana  |  Wheat  |  Jeera  |  Castorseed  |  Coriander (Dhaniya)  |  Guar / Guargum (Subject to change)

FEATURES


  • Suitable for commodity  traders, processors and aggregators
  • Limit: 50% – 75% of value of commodity (max Rs. 10 Crore per borrower)
  • Tenure: upto 1 month prior to validity date (max. 12 months)

 

ADVANTAGES


  • No hidden charges
  • No EMI (Flexibility in tenure and repayment options)
  • Quick turn-around time
  • Flexibility in tenure and repayment options
  • Interest rates are levied on daily reducing balance method
  • Seamless deliveries of funded stock on exchange platform.

 

 
 
 
For more information
please write to us at
response@smcfinance.com



  • 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, CM Charges, etc. as per policy from time to time.
  • Attractive rate of interest
  • Cheque bouncing charges Rs. 750/-

 

  • Basic 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.
  • Loan only against Agricultural commodities.
  • Tenure of the loan upto 1 month prior to final expiry date.
  • The commodity should be stocked in the approved warehouse only and the receipt of the same should be submitted to SMC Finance.
  • The limit depends upon the basis of eligibility.
  • Loan not available advance against bullion / primary gold and gold coins.

Who are eligible for Warehousing Receipt Finance?

Farmers, traders, processors 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 SMC 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 through our website

Call our toll free customer care centre (1800-110-909)

Visit the nearest SMC Finance branch 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 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 default on the loan. It is mandatory to pledge the stock to avail Warehouse Receipt Finance.

 

What are the margin requirements for the loan?

Margin varies from commodity to commodity with a minimum of 25% margin requirement.

 

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 eventuality of this happening, SMC Finance shall intimate the borrower to provide for the top up margin, this 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 cash or additional stock. In case, the borrower does not bring in additional margin within the stipulated time, SMC 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.

 

Who is a Collateral Manager (CM) and what is his role? (Need to be discussed with Vikas Ji)

CM issues Storage Receipt (SR) against the Warehouse Receipt (WR) issued by the L&T Finance approved warehouse owner and funding is availed against this (licensed WH), otherwise Storage Receipt (SR) issued by the empanelled Collateral Manager in L&T Finance approved godowns and funding is availed against this. Risks associated with quality, quantity etc. is mitigated by CM at all times.

 

What are the loan tenure options?

Loan tenure ranges up to 12 months

 

Can the loan be prepaid? If yes, what are the charges involved?

Yes, loan can be prepaid. There is no prepayment penalty charged for loans prepaid after 1 month of disbursement. In cases where loan is prepaid within one month of disbursement, a minimum interest of 1 month is charged along with the principal.

 

What are my repayment options?

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 working days after complete documents submission.

 

Is part release of commodity possible?

The loan is disbursed in tranches and borrower has an option to close one tranche at a time

 
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For more information
please write to us at
response@smcfinance.com



Capital Market Loans > Loan Against Commodities    
img1
Loan against Commodities

Get loan against Commodities stored in Warehouses, at attractive interest rates with speedy processing.Loan is available against following AgriCommodities:

Chana  |  Wheat  |  Jeera  |  Castorseed  |  Coriander (Dhaniya)  |  Guar / Guargum (Subject to change)

Testimonials

SMC has offices throughout India, so we can reach clients efficiently practically anywhere.
Our personalized service and streamlined documentation gets your product to you faster.

Mr. Arvind Pal

Testimonials
SMC has offices throughout India, so we can reach clients efficiently practically anywhere.
Our personalized service and streamlined documentation gets your product to you faster.
Mr. Arvind Pal
FEATURES

ADVANTAGES
 

ELIGIBILITY


  • 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.

SERVICE CHARGES


  • COMTRAK charges (Pledge Charges): At Actual
  • Nominal Processing Fees
  • Delivery charges, Insurance charges, CM Charges, etc. as per policy from time to time.
  • Attractive rate of interest
  • Cheque bouncing charges Rs. 750/-

DOCUMENTATION


  • Basic 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.

TERMS & CONDITIONS


  • Loan only against Agricultural commodities.
  • Tenure of the loan upto 1 month prior to final expiry date.
  • The commodity should be stocked in the approved warehouse only and the receipt of the same should be submitted to SMC Finance.
  • The limit depends upon the basis of eligibility.
  • Loan not available advance against bullion / primary gold and gold coins.

FAQS

Who are eligible for Warehousing Receipt Finance?

Farmers, traders, processors 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 SMC 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 through our website

Call our toll free customer care centre (1800-110-909)

Visit the nearest SMC Finance branch 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 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 default on the loan. It is mandatory to pledge the stock to avail Warehouse Receipt Finance.

 

What are the margin requirements for the loan?

Margin varies from commodity to commodity with a minimum of 25% margin requirement.

 

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 eventuality of this happening, SMC Finance shall intimate the borrower to provide for the top up margin, this 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 cash or additional stock. In case, the borrower does not bring in additional margin within the stipulated time, SMC 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.

 

Who is a Collateral Manager (CM) and what is his role? (Need to be discussed with Vikas Ji)

CM issues Storage Receipt (SR) against the Warehouse Receipt (WR) issued by the L&T Finance approved warehouse owner and funding is availed against this (licensed WH), otherwise Storage Receipt (SR) issued by the empanelled Collateral Manager in L&T Finance approved godowns and funding is availed against this. Risks associated with quality, quantity etc. is mitigated by CM at all times.

 

 

What are the loan tenure options?

Loan tenure ranges up to 12 months

 

Can the loan be prepaid? If yes, what are the charges involved?

Yes, loan can be prepaid. There is no prepayment penalty charged for loans prepaid after 1 month of disbursement. In cases where loan is prepaid within one month of disbursement, a minimum interest of 1 month is charged along with the principal.

 

What are my repayment options?

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 working days after complete documents submission.

 

Is part release of commodity possible?

The loan is disbursed in tranches and borrower has an option to close one tranche at a time

 

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