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.