Tag Archives: agri finance in india

How to Apply for a Warehouse Receipt Loan at Agriwise: A Step-by-Step Guide

June 05, 2025

A warehouse receipt loan can be a lifeline for farmers, traders, and processors who need liquidity without having to sell their produce at suboptimal prices. Agriwise Finserv, a trusted name in agri-focused lending, offers this facility as part of its commodity finance portfolio, providing short-term working capital against the value of agricultural stock stored in approved warehouses.

India’s agricultural credit target has been set at ₹20 lakh crore for FY 2024–25, and the emphasis on inclusive rural finance is growing; understanding how to apply for a loan against warehouse receipt is more relevant than ever.
But how to apply for one? Here’s a step-by-step guide to navigating the process of applying for a warehouse receipt loan at Agriwise.

warehouse receipt loan

Step 1: Customer Walk-in or Lead Generation

The journey begins with the customer—whether a farmer, commodity trader, or processor—approaching Agriwise through its branch office, field location, or sales team. During this initial interaction, the Agriwise team shares key details about the agri loan product, including loan tenure, interest rates, eligibility, and repayment options. This conversation helps establish clarity and sets expectations, ensuring the applicant is well-informed before moving forward.

Step 2: Lead Creation in Loan Origination System (LOS)

Once the customer agrees to proceed, their details are digitally entered into Agriwise’s Loan Origination System (LOS). This step includes capturing:

  • KYC documents
  • Financial and business background
  • Details of the agricultural commodities to be pledged

Using LOS ensures a systematic and efficient onboarding process, reducing delays and paperwork.

WHR finance

Step 3: Credit Appraisal

Agriwise then conducts a thorough credit appraisal. A credit bureau check is performed to assess the borrower’s credit history, followed by an internal evaluation against Agriwise’s credit policy. Parameters like repayment behaviour, past borrowing records, and current eligibility are taken into account.

This step ensures that credit is extended responsibly, ensuring the security of both the borrower’s and lender’s interests.

Step 4: Case Sanction and Documentation

Once the application passes the credit check, the case is sanctioned. The borrower is then required to complete the documentation process, which includes signing the loan agreement and other pledge-related papers. Agriwise ensures that all documentation is transparent, giving the borrower complete visibility into the terms and conditions.

Step 5: Commodity Pledge and Warehouse Receipt Generation

The borrower deposits the agricultural commodities at an Agriwise-approved warehouse. A designated Collateral Manager (CM) checks the quality and quantity of the stock. Once satisfied, the CM issues a warehouse receipt in favour of Agriwise and forwards it to the credit operations team.

This warehouse receipt is the basis for the loan and reflects the value of the pledged commodity, making it the cornerstone of the loan against warehouse receipt process.

Step 6: Disbursement of Funds

Agriwise disburses funds to the borrower based on the value of the warehouse receipt. Generally, loans are offered up to 75% of the WR value, which is known as the Loan-to-Value (LTV) ratio.

This quick access to funds allows borrowers to manage their short-term working capital needs efficiently, be it to finance the next crop cycle, pay labour, or meet operational expenses—without the pressure to sell produce immediately.

agri finance

Step 7: Repayment and Collection

Repayment terms are flexible:

  • For farmers: Both interest and principal are repaid at the end of the loan term.
  • For traders and processors: Interest is payable monthly, and the principal is repaid at maturity.

Importantly, Agriwise does not levy foreclosure or part release charges. This flexibility gives borrowers the freedom to repay as per their cash flow, especially in times of market volatility.

Why Warehouse Receipt Loans Matter?

With only about 30% of India’s small and marginal farmers having access to formal credit, innovative solutions like warehouse receipt loans are crucial. They allow borrowers to realise better value for their produce by avoiding distress sales, while also ensuring that the agricultural supply chain continues to function smoothly.

These loans are particularly powerful because they are asset-backed, low-risk for the lender, and timely for the borrower—fitting perfectly into the broader ecosystem of commodity finance.

Conclusion

Agriwise’s approach to warehouse receipt loans combines the assurance of physical collateral with a fast, transparent lending process. Whether you’re a farmer waiting for better prices or a trader looking for liquidity, a loan against warehouse receipt can offer the breathing space you need—without compromising the value of your produce.

By turning stored crops into working capital, Agriwise continues to play a key role in strengthening India’s rural economy, one loan at a time.

Powering Agribusiness Growth Through Smart Financial Planning

May 28, 2025

Agribusinesses in India are shifting from traditional methods to structured, commercial models. However, this evolution comes with financial challenges that demand proactive and strategic planning. Agri finance plays a pivotal role in this transformation—enabling farmers, FPOs, and agri-entrepreneurs to navigate volatility, bridge credit gaps, and unlock long-term growth.

Credit to the agriculture sector by commercial banks and regional rural banks is likely to cross Rs 31.5 lakh crore, a new record, in FY26 due to an increased formalisation of the rural credit structure, a senior official with NABARD said. In FY25, commercial banks, cooperatives and regional rural banks had disbursed over Rs 28.98 lakh crore, out of which around 60% was towards short-term crop loans and the rest was towards investment loans in agriculture and allied sectors.

agri finance

Why  Agri Finance Planning Is Crucial in Agribusiness?

Despite agriculture contributing over 18% to India’s GDP, the sector faces a formal credit shortfall due to several reasons. This credit gap often forces agribusinesses to rely on informal sources, making them vulnerable to debt cycles and missed growth opportunities.

How can financial planning and agri finance make a difference?

  • Efficient Capital Allocation: From seeds and fertilisers to irrigation and machinery, managing input costs requires precise budgeting. Strategic finance ensures that resources are allocated wisely without overextending financial leverage.
  • Seasonal Cash Flow Management: While agri revenues are seasonal, expenses are continuous. Tools like working capital loans, invoice discounting, and warehouse receipt finance help maintain liquidity throughout the crop cycle.
  • Risk Mitigation: Agri businesses face climate risks, pest infestations, and price shocks. Financial planning enables the implementation of contingencies, insurance coverage, and inventory holding strategies to mitigate such uncertainties.
  • Enabling Scale and Modernization: With proper financial insights, agribusinesses can confidently invest in solar energy, food processing, or logistics infrastructure—paving the way for increased productivity and sustainability.

farm land loans

Agriwise: The New-Age Agri Finance Partner

Agriwise is an agri-fintech NBFC offering a comprehensive suite of financial products tailored specifically for the agricultural and allied sectors. Here’s how they’re reshaping agri finance in India:

1. Secured Business Loan (Loan Against Property – LAP): Ideal for agri-MSMEs, this loan product allows entrepreneurs to unlock the value of their property for business development and expansion.

  • Loan amount: INR 5 lakhs to 5 crores
  • Tenure: Up to 15 years
  • Collateral: Residential, commercial, or industrial property
  • Benefits: Balance transfer, top-up facility, and attractive interest rates

2. Warehouse Receipt Finance: This short-term working capital loan enables farmers, traders, and processors to access credit against stored agri produce in professional warehouses.

  • Loan amount: Up to INR 10 crores
  • LTV: Up to 75% of commodity value
  • Network: Extensive pan-India warehouse coverage

3. Invoice Bill Discounting (Supply Chain Finance): Convert receivables into instant cash flow with this invoice financing solution, critical for smooth supply chain operations.

  • Loan amount: Up to INR 10 crores
  • LTV: 100% of invoice value
  • Credit tenure: 90 days
  • Target segments: Agri & Allied, FMCG, Pharma

4. Farmer Financing: Designed for individual farmers and Farmer Producer Organisations (FPOs), this product provides funding for critical inputs such as seeds, fertilisers, and pesticides.

  • Custom loan amounts based on crop type
  • Fast disbursal for timely input procurement
  • Support for sustainable farming initiatives

5. Solar Financing: Agriwise supports green transformation with loans for solar energy systems—ideal for farms, agri units, and MSMEs.

  • Without collateral: Up to INR 7.5 lakhs for 60 months
  • With collateral: Up to INR 25 lakhs for 84 months
  • Mounting types: Roof, ground, or shed-mounted systems

agricultural loans

Conclusion

Smart financial planning is a necessity for success in modern agribusiness. As India’s agriculture moves toward becoming a high-growth, tech-enabled sector, financial planning will define who thrives and who merely survives. It’s not just about access to credit—it’s about strategic use of that credit, guided by risk awareness and future vision.

Agriwise exemplifies the future of agri-financing. By offering specialised products that cater to the entire value chain—from small farmers to large-scale processors—it empowers agribusinesses to plan better, invest smarter, and grow sustainably.