Merchandise Loan Facility

A short-term loan provided against pledged merchandise or related documentary evidence (e.g., Warehouse Receipts).

👥 Purpose: To relieve customers from cash flow problems caused by money tied up in inventory.

💼 Key Features:

• • Loan amount is a discounted percentage of the merchandise’s value (e.g., 90% for cleaned coffee, 70-80% for other goods).
  • Can be one-time or revolving.
  • Tenure is typically 90 days, extendable to 180 days for certain items like coffee and iron bars.
  • Merchandise is released upon payment.