Pledge loans or key loans will be issued by the Credit Society against the produce pledged in the custody of the Society in its own building or hired go downs which are approved by the Bank. Loans not exceeding 70% of the market value of such produce will be issued. The market rate of the produce shall be the rate prescribed or notified by the marketing society or S.K.A.C.M.S. Ltd., or the A.P.M Committee. The required margin will also be maintained and if any deficit is noticed on account of fall in the rate etc. The deficit will be recovered from the member.
The period of repayment of such loan will be ninety days from the date of issue and may be extended for further period of ninety days totaling 180 days in all from, the date of first issue.
The Bank will issue loans on re-hypothecation of such goods not exceeding 60% of the market value of the goods or at such rates fixed by the Bank from time to time.
The sale proceeds of such goods pledged after marketed shall be credited first towards the pledge loans issued and violation of any of the conditions will disqualify such societies for fresh pledge loans by the Bank in future.