Seasonal Facility

What is Seasonal facility?

Seasonal Facility is a loan provided by the bank for the sole purpose of financing the crop programme of the farmer for that particular season. The Seasonal facilities are not used to buy long-term assets or investments but are used to finance daily operational needs of the farmer during the season such as accounts payable, wages etc. Seasonal Facilities are short term in nature linked to the season and paid off upon receipt of the crop sales proceeds.

Seasonal facilities are secured either on the crop itself through assignment of receivables on the crop or through mortgages.