A successful harvest is the result of months of hard work. However, it is not always wise to sell your harvest directly after it is collected. Many farmers, FPOs, traders, processors, and agribusinesses need cash flow for their daily operations until the crop is sold.
Through Kissandhan this process is made easy as it provides collateral loans against stored crops. With authorized storage and a simple financing process, one can access cash with the crops being intact.
Depositing the Harvest and Quality Assessment
The harvesting process begins with placing the harvested commodity at a warehouse. After arriving at the warehouse, the commodity is subjected to a quality test to determine its quality and price. Such a quality assessment establishes the value of the product eligible for financing.
When the evaluation is done, the commodity is put in storage at the warehouse. Such storage also allows lending the commodity out to the borrower during the entire period until the borrower decides to complete the loan process.
The Warehouse Receipt That Enables Financing
Warehouse receipts are given once the evaluation and storage of the commodity have taken place. The receipt acts as proof that the stored commodity is in a certified warehouse and is issued so that collateral loans can be obtained.
The warehouse receipts enable the borrower to get finance without selling the commodity or the need to move it. During this period, the commodity is still stored safely. The money thus obtained can be used by farmers, traders, and agri-businesses for meeting their business needs and carrying on with agricultural operations.
Fast Approval and Quick Disbursal
The access to timely finance is vital in executing agricultural and business operations efficiently. At Kissandhan, financing for eligible borrowers is simplified, making it easy for obtaining money quickly.
When a borrower submits all necessary documents, he or she can get the money as quickly as within 24 hours. This speedy process enables borrowers to generate funds precisely at the time when they need them, keeping their commodity properly stored in accredited warehouses until they receive the money.
Due to the right blend of a systematic approach to financing and a quick disbursal of money, Kissandhan allows borrowers to carry out their agricultural and business activities without waiting for the sale of their stored commodity.
Maintaining Capital Flow Throughout the Season
The financial necessities can differ from one crop to another, depending on the season and agro sector. In an attempt to meet those differences, Kissandhan provides flexible repayment options for loan tenures between 3 to 12 months under its Commodity-Based Finance scheme.
During the period of the loan, the commodity is preserved safely in the approved warehouse while the borrower is receiving the needed funds. Thus, the borrower can program its financial obligations and avoid selling or withdrawing the commodity during the process of financing.needs allowing the borrower to benefit from the process at all loan stages.
Loan Settlement and Strategic Market Entry
As the borrower makes the decision to repay their loan, the warehouse receipt is released. After the
Flexible periods of loan repayment make the financing opportunity better suited for various agricultural process of repayment has occurred, the stored commodity is then eligible for withdrawal from the warehousing facility or sale in the market.
Since the commodity is kept in the warehouse for the entire loan period, borrowers are still the owners of the commodity. This allows them to make plans for the commodity after they have repaid the loan.
This method of operation allows the financing and commodity management to happen in every phase of the loan process.
A Smarter Way to Unlock the Value of Your Harvest
Managing the working capital is one of the crucial components of any form of agriculture business, especially post-harvest. Kissandhan makes it easier for farmers, FPOs, traders, processors, and agri-business enthusiasts to avail financing. Kissandhan presents various unique features and personalized repayment schedules in order to provide convenience to the borrowers. Kissandhan has also made arrangements that all the eligible borrowers can avail loans without delaying their operational activities throughout the time the commodity is lying in the warehouse.
One of the major products that facilitate the timely procurement of required finances by the borrowers against their commodities in the warehouse is collateral loan. Through this process, borrowers can simply deposit the commodity in the accredited warehouse and complete the quality check process, after which they will receive a warehouse receipt.
Who is eligible to get collateral loans?
Farmers, FPOs, traders, processors, SMEs, and any other qualifying agricultural firms are eligible for collateral loans.
Why is it necessary to evaluate the commodity prior to getting financing?
The evaluation of the quality enables one to set the appropriate grade and price of the commodity which is being provided to the borrower.
What does warehouse receipt refer to?
The term describes a document that is necessary for the loan to be issued to the borrower after the commodity has been stored at the warehouse.
What is Kissandan's repayment period?
Kissandhan allows the borrower to pay the loan amount within a flexible repayment period of 3-12 months.
