{"id":27409,"date":"2024-12-17T17:28:19","date_gmt":"2024-12-17T17:28:19","guid":{"rendered":"https:\/\/www.class24.study\/current-affairs\/credit-guarantee-for-pledge-financing-scheme-extended-to-e-nwr-cgs-npf-6733\/"},"modified":"2026-09-10T04:49:21","modified_gmt":"2026-09-10T04:49:21","slug":"credit-guarantee-for-pledge-financing-scheme-extended-to-e-nwr-cgs-npf-6733","status":"publish","type":"post","link":"https:\/\/www.class24.study\/current-affairs\/credit-guarantee-for-pledge-financing-scheme-extended-to-e-nwr-cgs-npf-6733\/","title":{"rendered":"Credit guarantee for pledge financing scheme extended to e-NWR (CGS-NPF)"},"content":{"rendered":"\r\n
\r\n

India\u2019s food and consumer affairs minister Pralhad Joshi recently rolled out the Credit Guarantee Scheme for e-NWR-based pledge financing scheme (CGS-NPF) with a fund of Rs 1,000 crore. This scheme seeks to cut on distress selling by farmers by providing post-harvest finance using e-NWRs backed by pledged commodities whose storage is permitted by relevant warehouses. This encompasses small\/marginal farmers such as women, farmer\u2019s organizations\/ SHGs-SC\/ST\/PwD farmers, MSMEs, traders, and FPOs. The scheme allows cubing of up to 85% in the case of farmers and up to 75% in other cases. Through this initiative, the lending fraternity has been encouraged to support farmers in post-harvesting capabilities with the resulting impact on farmers\u2019 incomes and positive changes made to their perceptions of the banking system.<\/span><\/p>\r\n

Key Highlights<\/span><\/h2>\r\n

Launch and Objective:<\/span><\/h3>\r\n
    \r\n
  • \r\n

    The Credit Guarantee Scheme for e-NWR-based Pledge Financing (CGS-NPF) was recently rolled out where to Union Minister Pralhad Joshi in the second week of December 2024.<\/span><\/p>\r\n<\/li>\r\n

  • \r\n

    Purpose: The scheme envisages alleviating distress selling by farmers through the post-harvest credit of one thousand crore against e-NWRs.<\/span><\/p>\r\n<\/li>\r\n

  • \r\n

    Target Audience: Small and Marginal Farmers, Women, SC\/ ST Farmer, Disabled (PwD) Farmer, MSMEs, FPOs and Farmer Cooperatives.<\/span><\/p>\r\n<\/li>\r\n<\/ul>\r\n

    Guarantee Coverage:<\/span><\/h3>\r\n
      \r\n
    • \r\n

      85% for loans up Rs 3 lakhs for small and marginal farmers, women SC\/ST\/PwD.<\/span><\/p>\r\n<\/li>\r\n

    • \r\n

      80% coverage for loans above Rs. 3 lakh but less than Rs. 75 lakh to the same above group.<\/span><\/p>\r\n<\/li>\r\n

    • \r\n

      50% guarantee for loans up to Rs. 200 lakh for other borrowers, which includes the MSMEs traders etc.<\/span><\/p>\r\n<\/li>\r\n<\/ul>\r\n

      Features:<\/span><\/h3>\r\n
        \r\n
      • \r\n

        Total Corpus: Rs. 1,000 Crore.<\/span><\/p>\r\n<\/li>\r\n

      • \r\n

        Eligible Institutions: The two major classifications for bank are Scheduled Banks and Cooperative Banks.<\/span><\/p>\r\n<\/li>\r\n

      • \r\n

        Risks Covered: Credit risk associated with the receivables and risk associated with the warehouseman.<\/span><\/p>\r\n<\/li>\r\n

      • \r\n

        Guarantee Fee: 0.4% for farmers, 1% for non-farmers.<\/span><\/p>\r\n<\/li>\r\n<\/ul>\r\n

        Financial Implications:<\/span><\/h3>\r\n
          \r\n
        • \r\n

          Initially, the 80-85 % guarantee will be provided on those loans that have been given up to Rs. 75 lakh to the farmers.<\/span><\/p>\r\n<\/li>\r\n

        • \r\n

          75 percent will be covered up to Rs.200 lakh for the loans given to MSMEs, traders and FPOs.<\/span><\/p>\r\n<\/li>\r\n<\/ul>\r\n

          Government\u2019s Commitment:<\/span><\/h3>\r\n
            \r\n
          • \r\n

            Minister Joshi said that this scheme is viable for food security and called for banks to become less conservative in funding farmers.<\/span><\/p>\r\n<\/li>\r\n

          • \r\n

            The scheme sits well with Prime Minister Mr. Modi\u2019s agriculturist-friendly profile.<\/span><\/p>\r\n<\/li>\r\n

          • \r\n

            The platform called e-Kisan Upaj Nidhi works on bringing tailor-made lending methods targeting farmers without their frequent trips to the bankers.<\/span><\/p>\r\n<\/li>\r\n<\/ul>\r\n

            Claims Settlement:<\/span><\/h3>\r\n
              \r\n
            • \r\n

              Loans up to Rs. 75 lakh: The first installment constitutes to 75% of the total sum of the contract while the second installment is only 25% of the total sum of the contract.<\/span><\/p>\r\n<\/li>\r\n

            • \r\n

              Loans above Rs. 75 lakh and up to Rs. 2 crore: One payment is equal to 60% of the cash and another payment corresponds to 40% of the cash.<\/span><\/p>\r\n<\/li>\r\n<\/ul>\r\n

              Additional Goals:<\/span><\/h3>\r\n
                \r\n
              • \r\n

                Increase Warehouse Registration:<\/strong> It leads registered warehousing to 40,000 as the government initiates in the next 1-2 years.<\/span><\/p>\r\n<\/li>\r\n

              • \r\n

                Focus on Farmers\u2019 Welfare: <\/strong>The plan is aimed at increasing working capital in post-harvest sectors, for the farmers and traders, and improving relations between the banks and the borrowers.<\/span><\/p>\r\n<\/li>\r\n<\/ul>\r\n

                Conclusion<\/span><\/h3>\r\n

                Credit Guarantee Scheme for e-NWR-based Pledge Financing is a critical initiative aimed at solving farmers’ post-harvest financial challenges. With \u20b91,000 crore as corpus, it ensures accessible loans, reduces distress selling, and supports small\/marginal farmers, MSMEs, and FPOs. This scheme strengthens warehousing infrastructure, builds trust in banks, and aligns with the government\u2019s commitment to rural development and food security.<\/span><\/p>\r\n<\/div>\r\n","protected":false},"excerpt":{"rendered":"

                Pralhad Joshi ne e-NWR ke liye Rs. 1,000 crore ka Credit Guarantee Scheme (CGS-NPF) shuru kiya, jo post-harvest finance aur farmers ki income ko support karega.<\/p>\n","protected":false},"author":6,"featured_media":27410,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[589,597,600,587,601,599,588,594,591,596,592,590,263,595,598,593],"class_list":["post-27409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-1000-crore-scheme","tag-agricultural-financing","tag-agriculture-news","tag-credit-guarantee-scheme","tag-december-2024-current-affairs","tag-distress-selling-solution","tag-e-nwr-financing","tag-farmer-income","tag-farmers-loan-support","tag-fpos","tag-msme-loans","tag-post-harvest-credit","tag-pralhad-joshi","tag-rural-finance","tag-shg-farmers","tag-warehousing-scheme"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/27409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/comments?post=27409"}],"version-history":[{"count":2,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/27409\/revisions"}],"predecessor-version":[{"id":28563,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/27409\/revisions\/28563"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/media\/27410"}],"wp:attachment":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/media?parent=27409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/categories?post=27409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/tags?post=27409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}