SBI enters agreement with WDRA for facilitating low interest rate loans to farmers

17 Jan 2023 , 02:53 PM

The Warehousing Development Regulatory Authority (WDRA) has signed an agreement with the State Bank of India to assist farmers in obtaining low-interest loans.

According to an official statement, the Memorandum of Understanding (MoU) was signed with the intention of raising awareness about the new loan product called ‘Produce Marketing Loan,’ which will exclusively fund against e-NWRs (electronic Negotiable Warehouse Receipts) and will include features such as no processing fee, no additional collateral, and attractive interest rates.

The ‘Produce Marketing Loan,’ when combined with the inherent security and negotiability of the e-NWR system, will go a long way toward improving rural liquidity and increasing farmer income. The Memorandum of Understanding was signed with the State Bank of India (SBI).

The WDRA, as the country’s warehousing regulator and the agency in charge of establishing Negotiable Warehouse Receipts (NWRs), assured the bankers present that it would provide all assistance to ensure the safety of loans made against electronic NWRs.

Loaning against e-NWRs has steadily increased over the years. The loan amount has already surpassed Rs1,500 crore in the fiscal year 2022-23.

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