Government to Launch Rs 1,000 Crore Credit Guarantee Fund for Farmers Using e-NWRs
The government is set to introduce a Rs 1,000 crore credit guarantee fund to enhance lender confidence in pledge financing against electronic Negotiable Warehouse Receipts (e-NWRs) for farmers and traders using WDRA-registered warehouses. This fund aims to mitigate credit risk and improve loan uptake, providing much-needed financial support and facilitating easier access to credit for farmers.
- Country:
- India
The government will soon unveil a Rs 1,000 crore credit guarantee fund aimed at boosting lender confidence in pledge financing against electronic Negotiable Warehouse Receipts (e-NWRs) for farmers and traders utilizing WDRA-registered warehouses, Food Secretary Sanjeev Chopra announced Wednesday.
Chopra highlighted that the fund aims to address anticipated credit risks of lenders and increase the currently low pledge financing levels. He noted that, despite government efforts, pledge financing failed to gain satisfactory traction due to bankers' reluctance.
The new fund is expected to escalate loans against e-NWRs to Rs 1,05,000 crore in the next decade, up from the current Rs 3,962 crore. Additionally, the government is optimizing foodgrain storage and transportation processes to improve efficiency and reduce costs.
(With inputs from agencies.)
ALSO READ
BJP is proud that our government had the opportunity to tear down the wall of Article 370: PM Modi in Lucknow.
Modi has made Deendayal's Antyodaya vision as his mission, to ensure coverage of all poor for government schemes sans discrimination: PM Modi.
Tamil Nadu Government Agrees to Permanently Employ 1,000 Nurses
Controversy Surrounds Proposed Government Inquiry into Devastating Hamas Attack
Gangster Convicted for 2009 Threat to Government Scientists
Google News