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Central Govtschemes

Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF)

Credit guarantee letting farmers take post-harvest loans against electronic warehouse receipts instead of selling in distress.

About this scheme

Launched in December 2024 with a corpus of Rs 1,000 crore, CGS-NPF is operated by the Warehousing Development and Regulatory Authority under the Department of Food and Public Distribution. It guarantees loans given by banks against electronic Negotiable Warehouse Receipts (e-NWR) issued by WDRA-registered warehouses. This lets a farmer deposit produce in a registered warehouse, borrow against the receipt, and sell later when prices improve, instead of a distress sale right after harvest. Farmers can also claim interest subvention on post-harvest loans against e-NWR for up to six months.

Benefits

  • Credit guarantee cover of 80-85% for loans up to Rs 75 lakh to small and marginal farmers
  • Post-harvest pledge loans against produce stored in a registered warehouse
  • Interest subvention available on post-harvest loans against e-NWR for up to six months
  • Ability to hold produce and sell when market prices improve
  • Scientific storage with insurance cover at WDRA-registered warehouses

Who can apply

  • Farmers, FPOs and traders storing produce in a WDRA-registered warehouse
  • Produce must be of a notified commodity meeting quality standards
  • e-NWR must be issued electronically through a registered repository
  • Borrower must apply through a participating lending institution

Documents required

  • Aadhaar card
  • Bank account details
  • Warehouse deposit receipt and assaying report
  • Electronic Negotiable Warehouse Receipt
  • Land record or produce ownership proof

How to apply

  • 1Deposit produce at a WDRA-registered warehouse and get it assayed
  • 2Warehouse issues an electronic Negotiable Warehouse Receipt
  • 3Apply to a participating bank for a pledge loan against the e-NWR
  • 4Bank sanctions the loan with credit guarantee cover under CGS-NPF
  • 5Repay and take delivery, or transfer the e-NWR to a buyer on sale

Important dates

Launched
December 2024; corpus of Rs 1,000 crore

Available in: All India

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