Credit Guarantee Scheme for e-NWR based Pledge Financing

 Source:  PIB

 Context: 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):

• Launched in: December 2024.
• Ministry: Ministry of Consumer Affairs, Food, and Public Distribution.
• Aim: To provide credit guarantee for loans availed against e-NWRs, ensuring financial support for farmers and traders while minimizing risks.
• Features:
  • Total Corpus: ₹1,000 crore.
  • Loan Coverage:
    1. Up to ₹75 lakh for small and marginal farmers.
    2. Up to ₹200 lakh for MSMEs and traders.
  • Guarantee Coverage:
    1. 85% for loans up to ₹3 lakh.
    2. 80% for loans between ₹3 to ₹75 lakh for SMFs/women/SC/ST/PwD.
    3. 75% for MSMEs, traders, and FPOs.
  • Guarantee Fee: 0.4% p.a. for farmers and 1% p.a. for non-farmers.
• Implemented by: Warehousing Development and Regulatory Authority (WDRA).
• Eligible Institutions: All scheduled banks and cooperative banks.

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