Government Launches Credit Guarantee Scheme to Ease Loan Access for Farmers via e-NWR

The Union Government yesterday launched the ‘Credit Guarantee Scheme for e-NWR-Based Pledge Financing.’ Under this scheme, farmers will now be able to get a loan through their produce. After submitting their produce to warehouses registered with the Warehousing Development and Regulatory Authority (WDRA), they will be issued an electronic negotiable warehouse receipt (e-NWR). This receipt can be used as a guarantee against default to obtain low-interest loans from banks and other lending institutes. Farmers, farmers’ producer organisations, farm cooperatives, and MSMEs will be eligible under this scheme.

Launching the scheme in New Delhi, Consumer Affairs, Food, and Public Distribution



Minister Pralhad Joshi said that this is another pivotal initiative by the government to bring farmers into the institutional network of banking and finance. Highlighting its benefits, Mr Joshi said that this scheme will prevent post-harvest distress sale that forces many farmers to sell their produce at below market price. 

He added that this will also reduce risks for banks and eligible lending institutes by providing a secure portfolio. Mr Joshi called for making more quality warehouses and urged banks to be more liberal in lending to farmers. The minister highlighted that this scheme will be a key step in making India’s food secure.