MoU signed to facilitate low interest rate loans to farmers

MoU signed to facilitate low interest rate loans to farmers: In order to facilitate farmers in providing low-interest rate loans, Warehousing Development Regulatory Authority (WDRA) signed a memorandum of understanding (MoU) with the State Bank of India (SBI), India’s largest public sector bank on Monday.

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Reason: To promote awareness about the new loan product called Produce Marketing Loan to exclusively fund against e-NWRs (electronic Negotiable Warehouse Receipt). It also aimed to provide information to depositors about the benefits, besides doing further outreach activities to improve agricultural pledge finance in India.

It is envisaged that the low-interest rate loans to farmers would have far-reaching consequences with regard to the acceptance of e-NWRs among small and marginal farmers. It has the potential to make a significant impact on the finances of rural depositors by preventing distress sales and releasing better prices for the produce.