Bank of India Partners With Warehousing Development Regulatory Authority to Offer Low-Interest Loans to Farmers

The Warehousing Development Regulatory Authority (WDRA) and the Bank of India (BoI) have joined hands to facilitate low-interest rate loans for farmers and traders. In a significant move towards supporting agricultural financing, a Memorandum of Understanding (MoU) was signed on September 27, 2023, in the presence of key dignitaries.

The MoU signing ceremony was graced by Sh. T.K Manoj Kumar, Chairperson of WDRA, Sh. Rajneesh Karnatak, Managing Director and CEO of BoI, Sh. M. Karthikeyan, Executive Director of BoI, and other senior officials from both organizations.

The primary objective of this MoU is to raise awareness and promote the financing of electronic Negotiable Warehouse Receipts (e-NWRs) by providing low-interest loans to depositors. This initiative is poised to bolster agricultural pledge finance in India, offering farmers and traders a reliable source of credit at attractive interest rates.

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During the event, WDRA presented the significance of post-harvest pledge financing through e-NWRs, emphasizing its potential to enhance rural credit availability. Bank representatives shed light on the challenges faced by lending institutions in the agricultural sector, highlighting the importance of risk management. WDRA pledged its full regulatory support to build trust and confidence among all stakeholders involved in this transformative endeavor.

What sets this partnership apart is the commitment to offer these low-interest loans without necessitating additional collateral, making it a game-changer for farmers and traders looking to secure affordable financing for their agricultural operations.

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By forging this alliance, WDRA and Bank of India are taking a significant step towards fostering financial inclusion in rural areas, ultimately contributing to the growth and sustainability of Indian agriculture. This collaborative effort is poised to benefit countless farmers and traders across the country, providing them with the financial support they need to thrive in their endeavors.

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