FAQs on e-Kisan Upaj Nidhi

Since the enactment of the Warehousing (Development and Regulation) Act, 2007, warehouse receipts have become fully negotiable instruments. They can be traded, sold, swapped, used as collateral to support borrowing, or accepted for physical delivery. The Negotiable Warehouse Receipts (NWR) / electronic- Negotiable Warehouse Receipts (e-NWR) issued by the warehouses registered with the Warehousing Development and Regulatory Authority (WDRA) provide secure collateral for banks by assuring holders of the existence and quality of agricultural commodities deposited in the warehouses.
 

The single source of information for the e-NWR will be the repository. Warehouseman or authorized personnel of warehouseman issues e-NWRs on the repository platform.

An e-NWR has a time validity that is co-terminus with the shelf life of the commodity or for the time period the goods are accepted for the purpose of deposit, whichever is earlier.

 

Usually, the margin requirement is of 25% in the loans against e-NWRs. However, margin requirements differ from bank to bank.

 

KCC having farmers can avail pledge loans against e-NWRs at the rate of 7% p.a. for a period of 6 months.

Rate of Interest differs from bank to banks

  • For Loans below *50.00 lakhs-
    1. For tenor upto 6 months: Upto 3.00 lakhs - 7% (subject to subvention available from GOI upto 6 months for small and marginal farmers only) else 6 months MCLR + 0.80% p.a. Above 3.00 lakhs to 50.00 lakhs- 6 months MCLR + 0.80% p.a.
    2. For tenor above 6 months: 1-year MCLR + 0.80% p.a.
  • For Loans *50.00 lakhs and above- CRA based pricing.

 

At present, WDRA authorized two repositories viz. NERL and CCRL for managing e-NWRs.
Usually, Maximum tenure is to commensurate with the stated shelf life of the commodity or date of validity of the e-NWR in any case not exceeding 12 months. However, tenure of loan differs from banks to banks.

Minimum and maximum Loan Minimum loan is decided as per individual bank rules. In case of SBI, for agricultural loans, amount is 1 lakh & Maximum loan amount that can be availed under the scheme is 75 lakhs.

 

Yes. However, the outstanding in their KCC (production loan) should be fully liquidated from the amount of loan sanctioned, before crediting any amount to the borrower for consumption/use.