Cash
Finance
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This facility
is generally provided against pledge of goods. Under this type of financial accommodation
the facility amount is disbursed in specially opened account for the purpose. The
pledged goods are released to the borrower against cash payment only. In
case the goods pledged are seasonal in nature, the customer would be required to
adjust the facility before the season ends. Rollover shall not be allowed.
Policy:-
Basic criteria to qualify for advances against pledge of
goods is as follows:-
- Facility is disbursed in specially opened CF A/C for the
purpose
- It shall be ensured that Goods tendered for pledge are:-
- Free from credit restrictions imposed by State Bank of Pakistan
- Not perishable, do not require special Storing arrangements/conditions
and have short expiry period.
- Easily marketable and their price is not highly fluctuating.
If so higher margins shall have to be approved & retained
- Where variation in pricing is observed during periodic evaluation,
the customer shall be advised to make good the shortfall in the drawing power.
- Where variation in pricing is observed during periodic evaluation,
the customer shall be advised to make good the shortfall in the D.P.
3.The borrowers hold an absolute un-encumbered
title to the goods
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Copyright
© 2008 The Bank of Punjab