Eligibility Entities

Traders/ Commission agents/ Arthias dealing in Agriculture Commodities:

• Firm/Company should satisfy the investment criteria for equipment as defined under MSMED Act, 2006.
• Should have valid Udyam Registration Certificate (URC) and GST Registration.

Purpose

• Loan against the e-NWRs of Agriculture Produce is a short-term loan (maximum period 12 months) given to Traders against the security of fungible farm produce stored in WDRA Registered warehouses.
• This is aimed at enabling the traders to procure in large quantities of produce during season and sale over a period to avoid distress sale immediately after harvest when the prices are usually low, by providing necessary liquidity support against pledge of these agricultural commodities.

No finance against perishable commodities like fruits & vegetables etc.

Type of Warehouse / Storage Receipt eligible for finance

1. WDRA Registered warehouses.
2. e-NWRs (Electronic Negotiable Warehouse Receipts) issued by repositories identified by WDRA (Warehousing Development Regulatory Authority) i.e. NERL (National E-Repository Limited) and CCRL (CDSL Commodity Repository Limited)

Nature of Facility

Demand Loan (Repayable Within 12 Months)

Loan amount

• Minimum: Above Rs. 10 Lakh
• Maximum:   Rs. 200 Lakh

Margin

Minimum - 25% of the value of the commodity.

Rate of Interest

As per Bank’s guidelines.

Security

Primary:

• Pledge of Agri commodities in favor of Bank.
• Lien marked over a duly endorsed Electronic Negotiable Warehouse Receipt (e-NWR) in favour of bank in the books of e-Repository.

Collateral Security:

• All loans under the scheme shall be mandatorily covered under Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF). No further collateral security required.
• Cases not covered CGS-NPF: - Collateral shall be as per Bank’s policy.