The Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF) is an innovative policy initiative in India aimed at supporting underserved agricultural sectors. Operated by the National Credit Guarantee Trustee Company Ltd, this scheme allows farmers and agri-businesses to obtain short-term credit by pledging electronic warehouse receipts (e-NWRs) for commodities stored in registered warehouses. It effectively addresses post-harvest liquidity issues while minimizing default risks for lending institutions, making it a pivotal financial tool in enhancing agricultural finance and sustaining rural economies.
The Credit Guarantee Scheme for e-NWR based Pledge Financing in India helps farmers and agri-businesses obtain short-term credit, ensuring reduced default risk.
The CGS-NPF allows stakeholders to use electronic warehouse receipts to obtain financing while managing risk effectively, bridging liquidity gaps in agriculture.
Operated by the NCGTC, this scheme provides guarantees on loans backed by e-NWRs, which is vital for underserved sectors in rural India.
By allowing farmers to pledge their stored commodities as collateral, the CGS-NPF offers a smart solution to post-harvest financial challenges.
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