Borrower is allowed to store the commodity in own / leased warehouses, which will be managed by a professional Collateral Management company appointed by the bank. The Collateral Manager ensures quality, records stock movement and guards the warehouse from unforeseen risks. Bank funds against the stock under the custody of the Collateral Manager as per the sanction terms.

Production and marketing dynamics of each commodity are thoroughly understood by the Bank to give considerable importance to the underlying commodity vis-à-vis other credit assessment parameters.

The funding is usually done for a period of one cropping / harvest season depending on the commodity.

Funding is limited to specific transaction and is a measured flow of credit. Hence, it encourages prompt execution of trade deals, which in turn improves turnover and profits.