The Hindu : Business : Corp Bank ties up with MCX

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Friday, Apr 01, 2005

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Business

Corp Bank ties up with MCX

By Our Special Correspondent

— Photo: Shashi Ashiwal

The Chairman and Managing Director of Corporation Bank, V. K. Chopra (left), with the Managing Director of Multi Commodity Exchange of India, Jignesh Shah, at a press conference in Mumbai on Thursday.

MUMBAI, MARCH 31. Corporation Bank today launched a new loan scheme, Corp Agriculture Produce Loan (CAPL), in association with the Multi Commodity Exchange of India Ltd. (MCX).

Farmers often resort to sale of agricultural produce immediately after harvest due to lack of withholding capacity and immediate need for ready cash.

The CAPL scheme is aimed at mitigating the potential losses being incurred by the farmers and also expanding the scope for extending finance to traders in agricultural commodities.

Under the scheme, loans up to Rs. 2 lakhs can be availed of 9 per cent annually and loans above Rs. 2 lakhs up to Rs. 20 lakhs will attract 9.50 per cent interest annually.

With a minimum margin of 20 per cent of the value of agriculture produce, loan can be availed of against warehouse receipts covering the agriculture produce stored in the warehouses of the Central Warehousing Corporation, State Warehousing Corporations and warehouses approved by the national level multi commodity exchanges like the Multi Commodity Exchange of India.

The loans are required to be repaid within 12 months from the date of disbursement or the validity period of the warehouse receipt whichever is less.

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