Sugar Pledge Loan Case Study

After listening to John’s business situation, we suggested a sugar pledge loan to him. The process of a sugar pledge loan is an efficient way to raise capital funding. In a Sugar Pledge Loan, sugar factories get the required funds against sugar as a pledge. So, this option is very convenient for sugar factories because they generally have huge stocks of sugar that are idle. Taking a pledge loan for sugar mills against that sugar is thus a good option. 

At first, we explained the entire sugar mill loan procedure to John and then helped John to execute the end-to-end process. After the registration of the application at the respective financial institution, the application was considered by the sub-committee and the standing committee. The advice and opinion of the standing committee were processed further for the approval of the government. Thus, the loans for sugar industries were disbursed in two installments after John complied with the conditions mentioned in the approval. Sometimes the amount of funds is so huge, that it cannot be funded by a single financial institution. It needs multiple banking institutions and arrangements for the consortium. Thus, we suggest to our clients whether the required amount can go in a single stand or if there is a need to arrange a cartel pool regarding the arrangement of the amount.