A newly set-up non-banking finance company, NCML Finance aims to disburse Rs 250-crore loans against warehouse receipt for commodities kept in the custody of its parent firm, NCML.
NCML Finance, which was launched in April, is a wholly-owned subsidiary of agri-logistics company National Collateral Management Services Ltd (NCML).
“So far, we have disbursed about Rs 20 crore. Our target is to have a loan book of Rs 250 crore this fiscal,” NCML Managing Director and CEO Sanjay Kaul told PTI.
The company is lending Rs 25 lakh to Rs 1 crore for 6-9 months depending on the shelf-life of the commodity. The lending rate is 12-13 per cent, much lower than 18 per cent charged by unorganised local moneylenders, he said.
It is lending against warehouse receipt for grains, oilseeds and other commodities stored in NCML godowns.
NCML has a godown capacity of 1.5 mt, including own and hired ones.
Going forward, Kaul said the company plans to tap Aadhaar data for registering know-your-customer (KYC) details and use eSign technology to disburse loan in 24 hours.
“The process will reduce the number of documents to be taken from borrowers and eliminate the need for regular income proof, which is a major deterrent for small and marginal farmers in getting loan from banks,” he added.
The NCML board has committed an equity of Rs 335 crore to its NBFC subsidiary, which intends to offer a complete suite of financial products in the agri and rural domain.