Loan: Farmers will now get loan at 7 percent interest without any guarantee..

Food and Consumer Affairs Minister Piyush Goyal introduced a digital platform to facilitate farmers to get loans against their produce kept in registered warehouses.

On this occasion, he said that this will help in increasing the income of the farming community and the inclination towards farming will increase. The minister also announced that the Warehousing Development and Regulatory Authority (WDRA) will soon reduce the security deposit for warehouse owners to 1% of the warehouse value from the current 3%.

Goyal introduced a digital gateway called 'e-Kisan Upaj Nidhi' at an event. Its objective is to provide farmers the facility to take loans from banks against their stores kept in WDRA-registered warehouses. Loans are provided on the basis of electronic salable storage receipts (e-NWRs). At present, there are more than 5,500 registered warehouses under WDRA. On the other hand, the total number of agricultural warehouses is estimated to be around 1 lakh.

7% interest rate loan without any guarantee-
The minister stressed on modernizing Indian agriculture by using technology to increase farmers' income. Goyal said that with the offering of this gateway, farmers will easily get loans at a 7% interest rate without any guarantee.

Goyal stressed that with the 'e-Kisan Upaj Nidhi' and e-NAM, farmers will be able to access the technology of an interconnected market that will enable them to get their produce at a Minimum Support Price (MSP) or benefits from selling its produce to the government at a higher price. He said that government procurement through MSP has increased 2.5 times in the last decade.

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