Commodity Based Financing (CBF) is a unique product offered by Kissandhan. The basic principle of financing is the underlying asset/ commodity which is being taken as collateral. There is no restriction on location, commodity or quality which is being financed by the company. It offers financing for most of the commodities across the country.

Eligibility: Any entity dealing in commodities be it farmer, trader, processor, importer, exporter, SME etc is eligible for applying loan against commodities provided they have the underlying commodity meeting the criteria of the company.

Commodities: We offer loans against all major commodities mentioned below:

  • Barley
  • Cotton seed
  • Bajra
  • Bengal Gram
  • Groundnut
  • Guar
  • Khandsari
  • Maize
  • Moth
  • Mentha
  • Mustard / Rapeseed
  • Paddy / Rice
  • Soyabean
  • Sugar
  • Tur
  • Wheat
  • Lentil
  • Green gram
  • Black gram
  • Rajma
  • Jowar
  • Castor
  • Cotton
  • Coriander
  • Cardamom

Tenure of the loan

The tenure of the finance may differ commodity to commodity and can be upto a maximum of 12 months.


The margins varies depending on RBI guidelines, market scenario; volatility in commodity etc. The margin percentage may be changed any time without prior notice at the discretion of the company. Generally the margin is 30-40% of the value of the commodity.

Rate of Interest

Kissandhan Agri Financial Services Pvt Ltd is charging at Fixed rate of interest to his customer. Final rate of interest calculation depends upon the :-

  • Tenor
  • Internal/External Cost of Funds
  • Internal Cost Loading
  • Credit Risk and Other Factors
  • The Company intimates the borrower, the loan amount and rate of interest at the time of sanction of the loan along with the tenure and amount of the monthly installment.

    The rate of interest is arrived at based on the Pre-tax cost of funds, Credit risk premium and profit margin. The decision to give a loan and the interest rate applicable to each loan account is assessed on a case to case basis, based on multiple parameters such as the type of asset being financed, borrower profile and repayment capacity, borrower’s other financial commitments, past repayment track record if any, the security for the loan as represented by the underlying assets, loan to value ratio, mode of payment, tenure of the loan, geography (location) of the borrower, end use of the asset etc. Such information is collated based on borrower inputs and field inspection by the company officials. The rates of interest are subject to change as the situation warrants and are subject to the discretion of the management on a case to case basis. The Company has appropriate internal principles and procedures in place for determining interest rates and processing and other charges from time to time.

    Collateral or Security

    The underlying commodity shall be the main collateral asset however as per prudential credit norms, other security documents shall be required. The collateral may differ on case to case basis. Our team will be happy to guide you about all the requirements.

    Turnaround Time

    The company believes in quick sanction and disbursement and have defined Turn Around Time (TAT) for each service to ensure customer satisfaction. Kissandhan ensures that all processes are completed in the defined TAT without any delay.

    Documents required

    • Application Form
    • Loan Agreement
    • Pledge Agreement
    • Demand Promissory Note (DP note)
    • Other documents based on constituent entity
    • Security Documents as per credit requirement
    • KYC documents
      • Other documents based on constituent entity
      • Security Documents as per credit requirement
      • KYC documents
    • Power of Attorney