Credit Guarantee Scheme for Farmers:- The Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF) was introduced here today by Shri Pralhad Joshi, the Union Minister of Consumer Affairs, Food and Public Distribution, and New & Renewable Energy. After farmers deposit goods in warehouses approved by the Warehousing Development and Regulatory Authority (WDRA), they can use a corpus of Rs 1,000 crore for post-harvest financing against electronic negotiable warehouse receipts (e-NWRs). According to the Union Minister, the goal of this program is to reduce farmers’ distress sales.
He asked the Warehousing Development and Regulatory Authority (WDRA) to bring warehouse developers within its authority and encouraged them to construct warehouses closer to farm fields, pointing out that registering every warehouse is the most difficult work. In this article we will provide you with all the important information related this program.
What is Credit Guarantee Scheme?
The Credit Guarantee Scheme has been launched by the government very recently for the benefit of farmers. This important program serves as a guarantee for loans taken out by farmers and traders secured by electronic negotiable warehouse receipts, or e-NWRs. The purpose of the CGS-NPF Scheme is to boost bankers’ confidence by promoting the granting of pledge finance against electronic Negotiable Warehouse Receipts (e-NWRs) to farmers and traders who keep their horticultural and agricultural products in warehouses that are registered with the WDRA. He went on to say that banks should treat farmers leniently when it comes to loan amounts and other financial matters, such as e-NWR receipts, based on his personal experiences.
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Purpose Of Credit Guarantee Scheme for Farmers
The credit guarantee programs tend to increase the availability and accessibility of funds for the targeted beneficiaries, as they are essential to economic growth. Demand for the credit guarantee program for e-NWR based pledge financing is high among stakeholders, particularly in the banking industry. A crucial component in improving farmers’ incomes will be the credit guarantee scheme’s expanded post-harvest lending against e-NWRs. Women, SC, ST, PwD, small and marginal farmers, and SC farmers who pay a nominal guarantee fee are the main targets of this initiative. FPOs and small traders (MSMEs) also benefit from this program. Lending to MSMEs and FPOs will have an 80–85% coverage rate, as will loans to small and marginal farmers up to rupees 75 lakh.
Short Summary of Credit Guarantee Scheme for Farmers
| Name of the scheme | Credit Guarantee Scheme for Farmers |
| Announced by | The Union Food and Consumer Affairs Minister |
| Beneficiaries | Farmers of the country |
| Benefits | The government will provide multiple benefits under this program |
| Year | 2024-25 |
| Application mode | Online |
| Official website | Will be launched soon |
Budget Allocation for Credit Guarantee Scheme for Farmers
The budget allocated for Credit Guarantee Scheme is around 1000 crore.
Eligibility Criteria
The eligibility criteria for applying under this program is given below:-
- The applicant should be the permanent resident of India.
- The applicant should be a farmer by profession.
- The applicant should be a small and marginal farmer.
- The applicant should not have any permanent source of income.
Guarantee Coverage
Loans extended to small and marginal farmers up to rupees 75 Lakhs will have coverage of 80 to 85% and loans extended to MSMEs/FPO ‘s /traders up to rupees 200 Lakhs will have coverage up to 75% under the scheme.
Loan Amount
The government will provide loans up to rupees 75 lakhs for agricultural purpose and Loans up to rupees 200 Lakhs for non-agricultural purpose. Tge loan amount which will be given to the small and marginal farmers will start from rupees 3 lakhs.
Benefits
The Benefits of this program are given below:-
- By launching this scheme there will be an increase in economic growth of the country.
- The scheme Will surely increase the agricultural practices in the country.
- This will also help small and marginal farmers to earn their livelihood.
- The scheme will provide loans for agricultural and non agricultural processes both.
Settlement Of Claim
| Eligible claim | First installment of claim (Percent of default amount) | 2nf installment of claim (Percent of default amount) |
| Up to rupees 75 lakhs | 75 Percent | 25 Percent |
| Above Rs. 75 Lakhs and upto Rs. 2 crore | 60 percent | 40 Percent |
Required Documents
The documents required for applying under this program are given below:-
- Aadhar card
- PAN Card
- Domicile certificate
- Bank passbook
- Bank account details
- Mobile number
- Email Id
Application Process
The applicant should follow the below given steps to apply under this program: –
Step 1:- firstly you should visit the Official website of the program to initiate the application process.
Step 2:- on the home page of official website, you need to click on the apply now button.
Step 3:- after this you will be redirected to a new page, you need to enter all the necessary details.
Step 4:- now attach all the required documents and enter the captcha code.
Step 5:- at last you need to scroll down to click on the submit button to complete your application process.
Helpline Number
- 1800222659
FAQS
What is the credit Guarantee scheme for farmers?
The scheme has been launched for the farmers of the country for providing them loans.
What is the Eligibility for applying under this program?
The applicant should be the permanent resident of India.
What are the Benefits of this program?
It will increase the agricultural practices in the country and will support the farmers.
Can I apply Online for this program?
Yes you can apply online for this program by visiting the official website of the program.