Nature of facility: Short term loan by way of Agri Cash Credit (PML).

Objective: To provide liquidity to farmers and to save them from selling their produce in distress.

Eligibility: The loan will be available only to those farmers who availed crop loans from the branch, which should not be overdue.

Produce/Crop Covered: The produce of all crops for which farmers were given crop loans are covered under the scheme.

Credit Limit: Upto Rs.10.00 lacs under the Produce Marketing Loan Scheme for agriculture produce to the extent of 75% of the value of minimum support price.

Rate of Interest: Same rate of interest as applicable to crop loan. 

Security Norms: Pledge/Hypothecation of the produce (including ware house receipts)

Repayment: 12 months (max.)

Disbursement: At the time of disbursement, the relative crop loans should be recovered/adjusted out of the produce market loan.

Inspection: Branch should inspect the stocks of produce at monthly intervals. 

Others:

• Credit limits extended under the scheme are treated as Direct Agriculture Advances under Priority Sector.
• The borrowers should submit periodical stock statements once in a month.
• The borrower should follow the quality/storage requirements laid down by bank.
• Stock should be kept separately and additional care is to be taken to maintain its quality.