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Commodity Power
Axis Bank offers Commodity Power, Commodity Lite and Commodity Quik to provide finance to non-individuals against warehouse receipts or storage receipts. These loans can be taken against approved agri commodities stored in various private, professional or government warehouses.
Commodity Power
Axis Bank offers Commodity Power, a rural banking solution which provides finance against approved agri commodities stored in private, professional or government warehouses. The Commodity Power is a credit line facility offered to finance non-individuals against warehouse receipts or storage receipts. The advantages of Commodity Power include easy assessment of the overall loan eligibility, speedy sanctions and disbursements, as well as competitive interest rates. The eligibility criteria for the Commodity Power service are listed below. To know more about the documentation needed for Commodity Power, refer to the list below.
Documentation for Commodity Power
- Easy assessment of overall loan eligibility
- Competitive interest rate
- For loans on repo rate:
- Competitive interest rate will be linked to prevailing repo rate.
- Ceiling rate will be 18% per annum. PF 0.35% + applicable taxes
- Repo rate reset frequency – Quarterly from the date of disbursement.
- The bank is free to decide the spread over repo rate. The spread may undergo change during the tenure of the loan.
- Customers who have already availed disbursement or received sanction prior to October 1, 2019, will continue to operate on MCLR till subsequent renewal or change request.
- Existing customer can get in touch with our customer care, if they wish to switch to repo rate.
- For loans on MCLR
- Ceiling rate will be 18% per annum. PF 0.35% + applicable taxes. MCLR reset frequency shall be yearly.
Finance against approved agri commodities stored in various Private/Professional/Govt Warehouses.
Pledge of WRs / SRs with lien noted in favour of Axis Bank Limited.
3 years vintage in business required.
Commodity Lite
Commodity Lite is a rural banking solution offered by Axis Bank which provides finance against approved agri commodities stored in private, professional or government warehouses. The Commodity Lite service offers easy assessment of the overall loan eligibility, speedy sanctions & disbursements, minimal documentation and competitive interest rates with loan amounts up to ₹2 crores. The types of firms which are eligible for Commodity Lite include Proprietorship firms, Partnership firms, Limited Liability Partnerships (LLP), Hindu Undivided Family (HUF), Private Limited Companies, Public Limited Companies and Co-operatives. Refer to the information below to know more about the Commodity Lite facility offered by Axis Bank, as part of its rural banking solutions.
Except for below mentioned changes all other requirements are as per Commodity Power.
Limit: Up to ₹2 crores
Documentation: One year (latest) full set of financials (audited or CA certified), KYC and Statement of Operative Account.
Turnover Cap: Up to ₹35 crores
Commodity Quik
Axis Bank’s rural banking solutions features the Commodity Quik service, which offers finance against approved agri commodities stored in private, professional or government warehouses. The Commodity Quik service provides loans of up to ₹1 crore to firms which have a vintage of 1 year and a turnover cap of up to ₹35 crores. To know more about Axis Bank’s Commodity Quik facility, please refer to the information below.
Except for below mentioned changes all other requirements are as per Commodity Power.
Limit: Up to ₹1 crore
Vintage Requirement: 1 year vintage
Documentation: One CA certified /audited financials and KYC
Turnover Cap: Up to ₹35 crores
Fees & Charges
The Commodity Power fees and charges include processing charges for new cases and renewal of existing cases. To learn more about the Commodity Power fees & charges for breach of sanction terms, or in the event of default, please refer to the table below.
Fees and Charges
Services | Applicable Charges |
|---|---|
Processing Charges | |
Upfront | @0.25% plus GST of Sanction Limit at new sanction / renewal / enhancement |
Tranche wise | 0.35% plus GST of disbursed amount at every tranche of disbursement |
Penal Charges/ Other Charges | |
Financial Default*: 8% p.a. above applicable interest rate on the outstanding amount (subject to the aggregate not exceeding ₹1,00,000/- per instance). | |
Stamp Duty & other statutory document charges | As per applicable laws of state |
Auction/Liquidation and incidental charges are those expenses that are not budgeted or specified but are incurred by the bank on behalf of the customer | As per actuals |
Prepayment / Foreclosure Charges | 1. Prepayment charges (0.50% exclusive of GST) of the amount being prepaid only if prepayment is within one month from the date of disbursement. Otherwise Nil. 2. Prepayment penalty is not applicable in case of loan against electronic Negotiable Warehouse Receipt (eNWR). 3. In case of Micro and Small Enterprises (MSE) customers, no prepayment charges are applicable if; a. Loan amount is up to Rs.50 Lakhs under Fixed rate loans, or b. Loans with floating interest rates (irrespective of the loan limit) |
| Quality Testing Charges/ Fumigation Charges/ Collateral Management Charges/ Other Charges | These incidental charges if applicable are to be borne by the borrower on case to case basis. |
TAT for processing applications:
Axis Bank will convey its decision (within 2 weeks for credit limit upto `5 lakh and within 3 weeks for credit limit above ₹5 lakh and upto ₹25 lakh for Micro & Small enterprises borrowers) and (within 30 working days for other borrowers) from the date of receipt of the application provided the application is complete in all respects and is submitted along with all the documents as per 'checklist' provided in the application for loan and/or any additional documents as may be required by the bank for proper appraisal of the application. The computation of timelines shall starts from the day on which all documents required for a proper appraisal of the application are provided by the Customer to bank.
Important Links
For more information on rural lending- agri business centres, agri clinics and Rate of interest Disbursed visit these links.
Disclaimer
Pledge agro commodities’ stocks and avail finance
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