Credit Guarantee Scheme for e-NWR based Pledge Financing

News:The Union Minister of Consumer Affairs, Food, and Public Distribution, launched the Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF).

About Credit Guarantee Scheme for e-NWR (Negotiable warehouse receipt)

• It aims to provide credit facilities to small farmers to prevent them from distress selling.
• Nodal Ministry– Ministry of Consumer Affairs, Food, and Public Distribution.
• Implemented by– Warehousing Development and Regulatory Authority (WDRA).
• It establishes a corpus of Rs 1,000 crore to support post-harvest financing for farmers through electronic negotiable warehouse receipts (e-NWRs). This is facilitated after depositing commodities in Warehousing Development and Regulatory Authority (WDRA)-accredited warehouses.
• Coverage:
  • Loans up to Rs. 75 lakhs for agricultural purposes.
  • Loans up to Rs. 200 lakhs for non-agricultural purposes.
• Eligible Institutions– All scheduled banks and cooperative banks.
• Eligible Borrowers- Small and Marginal Farmers (SMF), Women, SC/ST/PwD Farmers, other farmers, MSMEs, Traders, Farmer Producer Organizations (FPOs), and Farmer Cooperatives.
• Risks Covered- Credit risk and warehouseman risk.
• Guarantee Coverage:
  • 85% for loans up to Rs. 3 lakhs.
  • 80% for loans between Rs. 3 to 75 lakhs for small and marginal farmers, women, SC/ST/PwD.
  • 75% for other borrowers.
• Guarantee Fee- 0.4% p.a. for farmers and 1% p.a. for non-farmers.