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Short-Term Loan for the Potential Rice Trader

Short-Term Loan for the Potential Rice Trader
 
Loan’s Objective
  • Being a revolving fund for purchasing rice from Public Warehouse Organization Ministry of Commerce Thailand
  • Being collateral in compliance with the agreement of rice purchasing from Public Warehouse Organization Ministry of Commerce Thailand
 
Applicant Qualifications:
  • Being the rice miller or rice trader which listed its company to Department of Internal Trade , Ministry of Commerce in compliance with the Rice Trading Act 1946 and still operating its business   
  • Being the bidder with the qualification in comply with the regulation of Public Warehouse Organization Ministry of Commerce Thailand 
  • Being a successful bidder of Public Warehouse Organization Ministry of Commerce Thailand by means of traditional auction and basis auction and being in compliance with the agreement of rice purchase made with Public Warehouse Organization Ministry of Commerce Thailand     
  • Being existing KTB customer; in case that the customer has many credit lines with many banks, its core credit line and core asset must be with the Bank. Moreover, repayment record must be good.   
  • Possessing financial examination as normal debtor and having never broken the government rule or been in Black List 
  • Possessing profit in operating performance in accordance with the revenue department for at least 2 years. Shareholders’ equity must not be in deficit (In case that the company has listed its company as a juristic person for less than 3 years. On the other hand, if the company’s previous business was rice miller, the operating performance of previous business is acceptable.)  
  • Having business plan, cash flow and obvious sales plan for this application with the purpose for consideration 
 
Credit Type: 
  1. Credit line for temporary P/N in the maximum of 70% of net purchase value which agreement of rice purchase made with Public Warehouse Organization Ministry of Commerce Thailand stated that the maximum net purchase value shall not be over than 200 M.THB. In order to consider approving revolving fund for purchasing rice according to the project, the following documents are required, agreement of rice purchase made with Warehouse Organization Ministry of Commerce Thailand and other related document for instance sale of rice plan.  

    a. However, the Bank shall directly grant loan to Warehouse Organization Ministry of Commerce Thailand, the seller, by means of cheque 
     
  2. Credit line for L/G aim to guarantee the agreement of rice purchase from Warehouse Organization Ministry of Commerce Thailand in reference to the net purchase

    2.1 Each L/G issuance, the document of project participation must be shown every time.
    2.2 Amount and duration of L/G issuance are subject to condition specified in the agreement of rice purchase from Warehouse Organization Ministry of Commerce Thailand
 
Collateral
  • The existing collateral is applicable  
  • Goods entities can be pledged as collateral
  • Personal guarantee is required 
  • Assignment of claims in the deposit at least 30% 
 

Interest Rate and Fee 

Credit Type

Interest Rate

Fee

1.  In case of credit line for P/N

 

 

 

 

Interest rate is subject to the Bank’s announcement (MLR, MOR, MRR). The Bank shall consider increasing/ decreasing interest rate and fee according to the appropriateness of  respective customer  

Both Front End Fee and Management Fee shall be charged 0.25 percent in each credit line.




 

2.  In case of credit line for Letter of Guarantee (L/G)

-

At least 1.50 percent per year
 

 

Total Credit limit for this Project 
The Bank set credit limit of this project totaling to 5,000 million Baht 
 
 
Project Duration 
The department originating credit must consider approving credit within 31 December 2014. 

 

For more details, please contact:

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