Credit Guarantee Scheme

On 16th December 2024, the Union Government introduced the Credit Guarantee Scheme for e-NWR-Based Pledge Financing, enabling farmers to secure low-interest loans using their produce as collateral.

Key Points

Loan against Produce: Farmers can deposit produce in WDRA-registered warehouses and receive an electronic Negotiable Warehouse Receipt (e-NWR) to obtain loans.
Eligible Beneficiaries: Farmers, Farmer Producer Organisations (FPOs), farm cooperatives, and MSMEs can avail of the scheme.
Post-Harvest Relief: The initiative aims to prevent distress sales by ensuring farmers receive fair market prices for their produce.
Reduced Risks: The e-NWR serves as a guarantee, reducing risks for banks and lending institutions.
Institutional Finance Access: The scheme will integrate farmers into formal banking systems, increasing their financial inclusion.