New Delhi: Warehousing Development Regulatory Authority (WDRA) has signed a memorandum of understanding (MoU) with State Bank of India to make it easier for farmers to obtain loans with low interest rates.
An official release stated that the Memorandum of Understanding (MoU) was signed with the goal of raising awareness of the new loan product known as "Produce Marketing Loan," which would only finance against e-NWRs (electronic Negotiable Warehouse Receipts). This loan will have favourable interest rates and no extra collateral, as well as no processing fees.
"It is envisaged that the product will have significant effects on how small and marginal farmers embrace e-NWRs. By eliminating distress sales and releasing higher prices for the produce, it has the potential to have a substantial influence on the financial situation of rural depositors" it was added.
The "Produce Marketing Loan" will significantly boost rural liquidity and boost farmer income when combined with the built-in security and negotiability of the e-NWR system.
Over time, lending against e-NWRs has increased steadily. The loan amount has already surpassed Rs 1,500 crore in FY 2022–2023.
The WDRA assured the in-attendance bankers that it would provide all assistance necessary for bankers to ensure the security of loans secured by electronic NWRs. WDRA is the organisation responsible for establishing Negotiable Warehouse Receipts (NWRs) in the nation and overseeing the regulation of the warehousing industry.
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