🔆 CREDIT GUARANTEE SCHEME FOR E-NWR BASED PLEDGE FINANCING ✅ What are Credit Guarantee Schemes? • Credit Guarantee ensures the loan to the applicant is backed by the scheme, providing the guarantee for a larger portion of the loan amount, eliminating the need for external collateral. 🔆 ELECTRONIC-NEGOTIABLE WAREHOUSE RECEIPTS (E-NWR) ✅ Definition: • E-NWR is a receipt issued for commodities stored in warehouses, allowing transfer of ownership without physical delivery. • E-NWR is available only in electronic form and the receipts are recognized in the market as collateral. ✅ Regulation: • The Warehousing Development and Regulatory Authority (WDRA) regulates the entire operation of the E-NWR system. 🔆 ABOUT CREDIT GUARANTEE SCHEME FOR E-NWR BASED PLEDGE FINANCING ✅ Objective: • To help farmers easily access post-harvest loans by leveraging electronic warehouse receipts. ✅ Total Corpus: • ₹1,000 Crores ✅ Coverage: • Up to ₹75 lakhs for agricultural purposes, ₹200 lakhs for non-agricultural purposes. ✅ Eligible Institutions: • All scheduled banks and cooperative banks. ✅ Eligible Borrowers: • Small & marginal farmers, women, SC/ST/PwD farmers, MSMEs, traders, FPOs, and Farmer cooperatives. ✅ Risks Covered: • Credit and warehouse risks. ✅ Guarantee Coverage: • 85% for loans up to ₹3 lakh. • 80% for loans between ₹3 lakh and ₹75 lakh for small and marginal farmers/ women/ SC/ST/PwD. • 75% for other borrowers. 🔆 BENEFITS OF THE SCHEME ✅ Increase Post-Harvest Lending: • Post-harvest lending stands at ₹40,000 crore out of ₹21 lakh crore of total agricultural lending. Lending against E-NWRs is just ₹4,000 crore. ✅ Improved Trust for Banks: • Scheme addresses the default risk arising from credit risk and warehouse risks. ✅ Access to Vulnerable Section: • Focus on small, marginal farmers, women, SC, ST, and PwD farmers with a minimal guarantee fee. ✅ Avoid Distress Selling by Farmers: • Prevents forced sale of produce at low prices by allowing farmers to pledge produce in warehouses and access loans. #creditguaranteescheme #agriculture #farmerempowerment #governmentschemes