Warehouse Receipt Finance

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Warehouse Receipt Finance
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What is Warehouse Receipt Finance?

Warehouse Receipt Finance refers to a financial service where loans are provided against commodities stored in warehouses approved by banks. It allows traders, processorsand farmers to leverage their stored goods as collateral to secure funds, facilitating liquidity while the commodities remain in storage. This form of financing typically involves the issuance of a warehouse receipt, which acts as proof of ownership of the stored goods.It enables the borrower to access credit based on the assessed value of the commodities.

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Checkout the benefits

  • Easy auto digital documentation with e-signature.

  • Simplified sanction process for loans up to ₹5 crore.

  • Real-time online Storage Receipts (SR) notifications on mobile.

  • Initiate digital disbursement and repayment requests anytime.

  • Check instant disbursement amount via auto commodity valuation.

  • Quick credit process with Insta Pledge Loan.

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Frequently Asked Questions

For Warehouse Receipt Financing, HDFC Bank offers a simplified sanction process for loans up to ₹5 crore. This streamlined approach makes it quicker and easier for businesses to access funds.

Here are the steps involved in the Loan Against Warehouse Receipts process:

  • First, you store goods in an approved warehouse and get a receipt. 

  • Then, approach a lender with this receipt as collateral. They'll assess the goods' value and your creditworthiness. 

  • If approved, you'll get a loan, typically 70-80% of the goods' value.

  • You repay the loan plus interest when you sell the goods or by the agreed-upon date. 

  • The lender releases the receipt, and you can claim your goods.

Yes, most lenders allow partial repayments on Warehouse Receipt Financing loans. It's a flexible option that can help reduce your interest costs. You might be able to repay in instalments or make lump-sum payments when you have extra cash.

All types of traders, processors and farmers storing bank-approved commodities in bank-approved warehouses are eligible.

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What are the features of HDFC Bank's Warehouse Receipt Financing?

The key features of HDFC Bank's Warehouse Receipt Financing include: 

  • Covers 45 commodities including rice, wheat, soybean, etc. 
  • Stock management via HDFC Bank's approved Collateral Managers.
  • Affordable interest rates and charges. 
  • Stock insurance against fire and burglary. 
  • Featured with 1st ever mobile application for pledge transactions.

What are the benefits of Warehouse Receipt Financing?

Warehouse Receipt financing offers several benefits, these include:

  • Digital documentation with e-Signature.
  • Simplified sanction for loans up to ₹5 crore.
  • Real-time online storage receipts via mobile app.
  • On-screen commodity funding price and margin during disbursement.
  • Instant disbursement and repayment requests via the app.
  • Insta pledge loan credit.

What are the documents required for Warehouse Receipt Financing?

The documents required for warehouse receipt financing include

  • Duly filled in application form.
  • Latest financial statements for the last 2 years (or copy of land records for farmers).
  • One-year bank statement.
  • KYC documents: Address proof (Voter ID, Electricity Bill, etc.) and Photo ID/Signature proof (PAN Card, Voter ID, etc.).
  • Any other documents as required, all self-attested.

What are the fees and charges for Warehouse Receipt Financing?

HDFC Bank's Warehouse Receipt Financing offers competitive pricing and minimal additional fees or charges for customers.