KBL Commodity Pledge Loan
If you are an individual, partnership firm, or company engaged in trading or processing agricultural commodities, the KBL Commodity Pledge loan offers a unique opportunity for financing. This loan allows you to obtain funds against the pledge of your agricultural produce, providing the necessary liquidity for your operations. With a tenure based on the shelf life of the commodity, flexible repayment terms, and the potential to secure up to 70% of the value of your produce, this loan is tailored to meet the specific needs of agricultural traders and millers. Whether you need working capital for purchasing or processing agricultural commodities, this loan provides a straightforward and accessible way to finance your next venture. Read more
Why this loan is for you
Designed to give you just what you need
Flexible tenure and repayment terms to suit agricultural trade needs
Access up to 70% of the value of produce for working capital
Option for lump sum repayment before due date or at the time of release of pledged goods
Make matters simple and straightforward
A smart calculator for smart spending and savings
Emi Calculator
You will pay
₹13,800/Months
Eligibility criteria
- Individuals, HUF, partnership firms, Companies and other legal entities in agriculture
- Engaged in trading/processing of agricultural commodities for at least 3 years.
- Commodities with shelf life as decided by the owner
Documents required
- PAN card
- Aadhaar card
- Udyam registration certificate
- Certificate of vending or identity card issued by urban local bodies (ULBs)
- License or approval from regulatory authority
As easy as 1,2,3...
Apply for a KBL Commodity Pledge Loan in 3 simple steps
Step 1
Visit your nearest branch
Go to your nearest Karnataka Bank branch
Step 2
Start with your basic details
Provide your basic details and keep your documents handy
Step 3
We’ll take care of the rest
Our branch officials will notify you when your loan is sanctioned
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A financing scheme provided by Karnataka Bank for traders and millers against the pledge of their agricultural commodities. It offers funds against the deposit of original Storage Receipts, allowing you to obtain working capital for your agricultural operations.
The maximum loan amount is ₹2 crores, and the minimum loan amount is ₹10 lakh.
You can secure up to 70% of the value of the produce kept in cold storage, warehouse, or godown.
The period of the loan shall be 3 months less than the validity period specified in the storage receipt or 12 months, whichever is less, based on the shelf life of the commodity as decided by the holder of the commodity.
The loan is secured by the pledge of agricultural goods through the deposit of original Storage Receipts, evidencing the stock of specified produce, issued by the empanelled Collateral Managers.
The bank charges a processing fee or upfront fee. This includes charges for legal, valuation, and background information reports.
Additional interest concessions are offered for women entrepreneurs, MSMEs with Zero Defect Zero Effect (ZED) Certification, and for security coverage above 125%
The interest rates for the loan are linked to the External Benchmark based Lending Rate (EBLR). In the context of Karnataka Bank's loans, EBLR or External Benchmark Lending Rate is a crucial reference rate. It's essentially the standard against which the interest rates of loans are gauged and adjusted. This rate is determined by external market factors and serves as a transparent and dynamic benchmark. By tying loan interest rates to the EBLR, we ensure that loan pricing is fair, responsive to market conditions, and in line with regulatory guidelines, providing a clear and consistent basis for borrowers to understand how their loan interest rates are set.
If you miss an EMI, it's important to contact the bank as soon as possible. While there may be some flexibility, consistently missing payments can affect your credit score and eligibility for future loans.
There is no processing fee for loans up to ₹5 lakhs. A processing fees of up to 0.50% would be applicable on loans above ₹5 lakhs.
Business loans provide the financial backbone for businesses looking to expand, invest in new equipment, or manage working capital. These loans can be a catalyst for growth and innovation, offering the necessary funds to turn business aspirations into reality. With options to apply a business loan online, businesses can start their application process with ease, ensuring quick and efficient access to funds. This primary commodity loan option provides the backing needed to maximize market opportunities. Apply for a commodity loan online and unlock the potential of your products. The KBL Commodity Pledge Loan is among the best agri-business loans, designed with favorable terms to enhance liquidity for farmers and agri-entrepreneurs. With this loan, leverage your commodities to keep your business competitive and cash-flow positive.
The interest rates on business loans vary based on factors like loan amount, tenure, and the financial health of the business. Typically, these loans have competitive interest rates, making them a viable option for business financing. It's crucial for borrowers to understand the terms of the loan, including the interest calculation method, to plan their finances effectively.
Do prepare a solid business plan to support your loan application. Keep your financial documents organized and updated for the application process. Don't underestimate the importance of reading and understanding the loan agreement, particularly the repayment terms and any associated fees.
