Paddy Pledge Loans
Pledge loan facilities have been instrumental in assuring a better price for the farmers, in providing finance to Paddy Millers and Paddy Wholesale dealers to purchase adequate stocks during the harvesting season to maintain a reasonable price on rice affordable by the ordinary consumer realizing the importance of the national need.
For Whom
For Rice Millers and speculative paddy collectors in cultivating areas and in milling areas.
Product Features
Loans are granted in Yala Season ( May, June, July, August and September) and Maha Season (October, November, December, January and February).
Maximum Credit Limit
- The upper limit of pledge loans under Forward Sales Contract is Rs. 50 M
- There is no upper limit for normal Paddy Pledge Loans.
Repayment Period
- Maximum repayment period for loans obtained for the purchase of maize is 270 days.
- Maximum repayment period for paddy and other crops is 180 days.
Securities
Guarantors and pledge over paddy stocks to be purchased
or
Mortgage over immovable properties / Securities acceptable to the Bank
To facilitate the farmers with a reasonable as well as a fixed price and to improve the quality of the paddy production, Central Bank of Sri Lanka implemented a Forward Sales Contract Scheme to established pledge loans.
Most of the borrowers are in Polonnaruwa, Anuradhapura, Ampara, Kurunegala and Hambantota Districts and in Marandagahamula area in the Gampaha District. |
