It allows farmers to avail loans against electronic Negotiable Warehouse Receipts (e-NWRs) after depositing their commodities in Warehousing Development and Regulatory Authority (WDRA) accredited warehouses.
About e-NWRs
- It is a digital version of the traditional warehouse receipt, governed by the Warehousing (Development and Regulation) Act of 2007.
- It allows goods deposited in a registered warehouse to be transferred or sold through endorsement.
- Since 2019, WDRA has made the issuance of NWR mandatorily in electronic form.
Key Features of the Scheme
- Ministry: Ministry of Consumer Affairs, Food & Public Distribution
- Total Corpus: Rs 1,000-crore for post-harvest finance
- Coverage: Loans up to Rs. 75 lakhs for agricultural purpose and up to Rs. 200 Lakhs for non-agricultural purpose.
- Eligible Institutions: All scheduled banks and cooperative banks.
- Eligible Borrowers: Small and marginal farmers, women, SC/ST/PwD farmers, MSMEs, traders, FPOs, and farmer cooperatives.
- Risks Covered: Credit and warehouseman risks.
- Guarantee coverage: 85% for loans up to Rs. 3 lakh and 80% for loan between 3 to 75 lakhs for small and marginal farmers/women/SC/ST/PwD.
- 75% for other borrowers.
Significance of the Scheme
- Minimise distress selling by farmers: Ensuring availability and accessibility of finances for the targeted beneficiaries.
- Instill confidence in bankers, addressing the default arising out of both credit and warehouseman risk.
About WDRA
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