
MoU signed to facilitate low interest rate loans to farmers
To
facilitate farmers in providing low interest rate loans, Warehousing
Development Regulatory Authority (WDRA) signed Memorandum of Understanding
(MoU) with a nationalized bank in an event.
The MoU
was signed with the intent of promoting awareness about the new loan product
called Produce Marketing Loan to
exclusively fund against e-NWRs (electronic Negotiable Warehouse Receipt) with
features such as Nil processing fee, No Additional collateral and attractive
interest rates.
The MoU
is aimed to provide information to depositors of the benefits, besides doing
further outreach activities to improve agricultural pledge finance in India.
It is
envisaged that the product will have far
reaching consequences with regard to acceptance of e-NWRs among small and
marginal farmers. It has the potential to make significant impact on the
finances of rural depositors by preventing distress sale and releasing better
prices for the produce.
Combined
with the inherent security and negotiability of the e-NWR system, the Produce
Marketing Loan will go long way in improving rural liquidity and increasing
farmers income. The MoU was signed with the State Bank of India (SBI).