Commodity Funding |
A commodity such as agri products (beans, maize, cotton, sugar etc), metal,
oil or another fixed physical substance that investors buy or sell, usually via
- List of Commodities: Gold, Silver , Soya bean, RM Seed, Guar seed, Guar
gum, Chana, Pepper, Turmeric, Maize, Jeera , Red Chili, Cocud (cotton seed
oil cake), castorseed, mentha , oil, Steel, Wheat, Barley, Gur, Coriander (dhaniya)
& Sugar etc .
- Actual Funding is dependent upon the Collateral Value of Commodity.
- On repayment of Loan, the commodity collateral is transferred to the
- Margins range from 20% to 30% on a case to case basis. There is a
commodity wise variation in margin.
- The interest will be charged only on used funded amount.
- If the client wants funding on Final Expiry Date (FED) goods he / she
has to take the approval first.
- Loan Amount - Min. 1 Cr & Max. - 14 cr. for a single client.
- If the demat goods has been transferred in demat account directly by the
clients then on the very next day through RTGS the funded amount will be
transferred into client’s bank account on the basis of market valuation.
- In the case of arbitrage funding no MTM will be received/ paid to / from
the clients & in that case required margin just only 10%.
- In the case of NON FED (Final Expiry Date) funding at the time of giving
the delivery to the exchange there is no need to clear the funding first.
KFSL will release the goods first & after receiving the funds from the
exchange, KFSL will deduct the loan amount with interest and the remaining
amount will be paid to the client through RTGS.
- At the time of to take the delivery from the exchange client will paid
only margin i.e. case to case basis that mean no need to pay full payment.