E-Kisan Upaj Nidhi: Finance Against Pledge of Warehouse Receipts (NWR) | Scheme For Farmers.

E-Kisan Upaj Nidhi is an Initiative of the Warehousing Development of Regulatory Authority (WDRA) to facilitate the framers. Under the scheme, financial assistance is provided to farmers in obtaining post-harvest loans from banks against their stocks stored in the WDRA-registered warehouse.

Since the enactment of the Warehousing (Development and Regulation) Act of 2007, warehouses have become fully negotiable instruments. They can be traded, sold, swapped, used as collateral to support borrowing, or accepted for physical delivery.

E-Kisan Upaj Nidhi

The Negotiable Warehouse Receipts (NWR)/electronic – Negotiable Warehouse Receipts (e-NWR)  issued by the warehouse registered with the Warehousing Development and Regulatory Authority (WDRA) provide secure collateral for banks by ensuring holders of the existence and quality of agricultural commodities in the warehouses.

• Farmer tenure is commensurate with the stated shelf life of the commodity or date of validity of the e-NWR in any case not exceeding 12 months.
• An e-NWR has a time validity that is co-terminus with the validity of the commodity or withdrawal of the commodity fully from the warehouse, after which it expires.

Key Features

• The cost of the produce is determined by the market price of the day or the MSP announced by the government, whichever is less.
• The period of the pledge loan is 6 months (180 days) and is applicable for 1% or 3% interest subsidies in the loan amount from MSAMB.
• Market committees are also eligible for 1% or 3% incentive interest subsidies on the loan, without which they distribute the pledge loan from the self-fund.
• Mortgage loans are also alsoprovided by the market committees on receipt of State or Central Warehousing Corporation.

Unit	Specification
Type of Facility	Demand Loan with a maximum tenor of 12 months.
Quantum of Loan	Based on the valuation of the pledged commodity, the lowest of Minimum support price, whenever declared or A current market price or value mentioned in e-NWR/WHR. Limit = (Quality * Valuation) – Margin.
Maximum Loan	Against e-NWRss- Up to Rs.75.00 lakhs. Against other WHRs – Up to Rs.50.00 Lakhs.
Margin	25-40% (Based on the type of warehouse where the product is stored).
Moratorium	NA
Repayment	Commensurate with the stated shelf life of the commodity or date of validity of the WHR/e-NWR in any case not exceeding 12 months.
Security	Primary: Hypothecation/Pledge of e-NWR/Warehouse Receipts issued by WDRA registered Warehouses/Collaterally Managed Godowns/SWC Godoen/Cold storages. Collateral: For WHRs by warehouses managed by Ban’s approved Collateral Managers and e-NWRs: NIL. For WHRs by other Warehouses (Not managed by bank’s approved Collateral Managers): Mortgage of Land for loans above Rs.10.00 lakhs.

Loan Interest

• CC having farmers can avail pledge loans against e-NWRs at the rate of 7% p.a. for 6 months.
• Rate of Interest differs from bank to bank.

For Loans below Rs.50.00 lakhs-

1. For tenor up to 6 months: Upto Rs.3.00 lakhs- 7% (Subject to subvention available from GOI up to 6 months for small and marginal farmers only) else 6 months MCLR + 0.80% p.a. Above Rs.3.00 lakhs to Rs.50.00 lakhs- 6 months MCLR + 0.80% p.a.)
2. For tenors above 6 months: 1-year MCLR + 0.80% p.a.
3. For WHRs issued by banks approved collateral manages: 1 year/6 m, months MCLR + 2.90% p.a.
4. For other WHRs- 1-year MCLR + 3.60% p.a.
5. The calculation of a rate of interest on the Loan amount:

• Up to 180 days- 6%.
• 180 days to 365 days- 8%
• Above 365 days- 12%.

• For Loans Rs.50.00 lakhs and above- CRA-based pricing.

Also Read This: DAY-NRLM: Deendayal Antyodaya-National Rural Livelihoods Mission | Ministry of Rural Development.

Who is Eligible?

• Farmers have commodities stored in a WDRA-registered warehouse.
• Farmers should have an e-NWR issued against such commodities.

Documents Required

1. Application for with two photos.
2. ID & address proof.
3. eNWRs/WHRs/NWRs
4. Land Records (7/12).
5. Security documents for Loan.
6. Any other document as per sanction.

Application Process

1. To apply for the e-Kisan Upaj Nidhi Scheme, Visit the Official website – https://wdra.gov.in/digital/index.htm.l
2. After opening the link, click on the New Registration and fill in the mandatory details carefully.
3. Upload all the necessary documents mentioned in the form and then click on submit.
4. Your application form has been successfully submitted to the e-Kisan Upaj Nidhi Scheme.
5. You will receive the application number of the same, Note it carefully for further requirements.

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Source and Reference 

https://www.jansamarth.in/e-kisan-upaj-nidhi_pl

https://wdra.gov.in/digital/index.html

https://pib.gov.in/PressReleseDetailm.aspx?PRID=2085018&reg=3&lang=1

https://sbi.co.in/web/agri-rural/agriculture-banking/miscellaneous-activities/produce-marketing-loan