Credit Guarantee Scheme for e-NWRs

The Credit Guarantee Scheme for e-NWRs is designed to bolster financing against electronic Negotiable Warehouse Receipts.

Facilitating Loans:

• The core aim is to enable farmers and other eligible entities to easily obtain loans by pledging their stored commodities through electronic Negotiable Warehouse Receipts (e-NWRs).

Risk Mitigation:

• The scheme provides a credit guarantee, which reduces the risk for lending institutions. This encourages banks and cooperative banks to extend credit against e-NWRs.

Supporting Farmers:

• A significant focus is on supporting small and marginal farmers, as well as women, SC/ST/PwD farmers, by offering favorable guarantee coverage. This helps them avoid distress selling of their produce.

Expanding Access to Finance:

• By covering both credit and warehouseman risks, the scheme broadens access to post-harvest finance, contributing to improved financial inclusion in the agricultural sector.

Promoting e-NWRs:

• The scheme encourages the adoption of e-NWRs, which are digital versions of traditional warehouse receipts. This promotes transparency and efficiency in the warehousing and financing ecosystem.