Loans on collateral basis: NBP starts facilitating farmers through ‘EWRF’ system

KARACHI: National Bank of Pakistan (NBP) has started facilitating farmers through Electronic Warehouse Receipt Financing.

The NBP is now facilitating farmers in acquiring loans through Electronic Warehouse Receipt Financing (EWRF). The simple process will allow farmers to open their accounts, provide collateral and receive a loan up to 70 percent of the collateral’s price.

EWRF system aims to make farmers’ journey easy and profitable from crop cultivation to sale. The loan facility can be obtained for a period of up to 6 months by securing an electronic warehouse receipt as collateral.

To open an account in the electronic warehouse receipt the farmers can contact the warehouse operator of Naymat Collateral Company Management with their CNIC and photo.

After account opening, farmers can store their products in the relevant warehouse, where after confirming the quality and quantity, the warehouse receipt will be issued. Farmers can use this receipt to obtain the loan from the bank where required support will be extended to complete the documentation process to avail loan facility as per needs.

EWRF also facilitate the applicant to pay back the dues when the farmers have a fair price for crops, thus giving them the advantage to have a return on their harvest after paying warehouse rent and Naymat collateral fee.

Copyright Business Recorder, 2022