With an aim to minimize distress selling by farmers, the government has launched the Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF). This scheme 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.
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. The credit guarantee scheme for e-NWR based pledge Financing is in demand from various stakeholders, especially the banking sector. The credit guarantee scheme will serve to increase post-harvest lending against e-NWRs and thereby, play a significant role in improving farmers’ income.
This scheme majorly focuses on Small and Marginal Farmers, Women, SC, ST and Divyangjan (PwD) farmers with a minimal guarantee fee. Besides, small traders (MSMEs), FPOs are also benefited under this scheme. Loans extended to small and marginal farmers up to Rs 75 lakh will have coverage of 80 to 85% and loans extended to MSMEs/FPO’s /traders up to Rs 200 lakh will have coverage up to 75% under the scheme.
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