PUNE: In a bid to empower farmers and traders with accessible financing options, the Warehousing Development Regulatory Authority (WDRA) has sealed a Memorandum of Understanding (MoU) with Punjab & Sind Bank (PSB).
The collaboration, aimed at bolstering awareness and accessibility to low-interest loans backed by electronic Negotiable Warehouse Receipts (e-NWRs), seeks to improve agricultural pledge finance in India.
Under the terms of the MoU, PSB is now offering loans against e-NWRs sans collateral, coupled with good interest rates.
Farmers can secure loans up to Rs 75 lakh under the agricultural sector, while other borrowers can avail loans up to Rs 5 crores.
During the signing ceremony, WDRA delivered a presentation showing the significance of post-harvest pledge financing through e-NWRs to enhance rural credit accessibility.
Representatives from PSB shed light on the hurdles encountered by lending institutions in this domain.