Credit Guarantee Scheme for e-NWR based pledge Financing:
The Union Minister of Consumer Affairs, Food and Public Distribution and New & Renewable Energy launched the Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF).
- It aims to provide credit facilities to small farmers to prevent them from distress selling.
- It provides a corpus of Rs 1,000 crore for post-harvest finance availed by farmers against electronic negotiable warehouse receipts (e-NWRs) after depositing commodities in Warehousing Development and Regulatory Authority (WDRA) accredited warehouses.
- Loans up to 75 lakhs for agricultural purposes and Loans up to Rs. 200 Lakhs for non-agricultural purposes.
- Eligible Institutions: All scheduled banks and all cooperative banks.
- Eligible Borrowers: Small and Marginal Farmer (SMF)/Women/SC/ST/PwD Farmers, other farmers, MSMEs, Traders, FPOs and Farmer cooperatives.
- Risks covered: Credit and warehouseman risk
- Guarantee coverage: 85% for loans up to Rs. 3L and 80% for loans between 3 to 75 lakhs for small and marginal farmers/women/SC/ST/PwD and 75% for other borrowers.
- The credit guarantee schemes are expected to enhance the availability and accessibility of finances for the targeted beneficiaries, as they play an important role in economic growth.
- It will serve to increase post-harvest lending agai
