Purpose & Scope:

EWRF is a new product developed by MCB- Agriculture Credit Department in line with SBP/SECP guidelines and approved by the management. EWRF is a collateralized commodity transaction where the commodity itself provides security for the loan. In other words, as opposed to traditional modes of agricultural financing, EWRF allows the use of the crop as loan security instead of land/property.

The purpose of financing against e-Warehouse Receipt is to protect the farmers from the compulsion to sell the produce immediately after harvest during adverse market conditions of lowest prices due to abundant supply. The target market consists of farmers / Farmer cum traders / traders. The product has been tested and used to extend credit to farmers of Maize and rice in selected areas through the system of accredited warehouses managed by Collateral management Company in line with Collateral management Regulations 2019 notified by SECP.

Salient Features:

• The financing is quickly made available when the farmer has deposited his produce in the accredited warehouse under EWRF mechanism
• The farmer is protected from stress sale
• Can sell his produce at appropriate time
• Can better realize profitability
• Finance availed can be used by the farmer for his next crop
• The rate of markup is highly suitable.