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New Credit Guarantee Scheme (CGS) 2024
December 21 , 2024
12 hrs 0 min
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- The Centre has unveiled a credit guarantee scheme (CGS) to help small farmers who engage in distress selling.
- The scheme provides a corpus of Rs 1000 crore to help farmers.
- It will aid especially small and marginal to access post-harvest loans using electronic warehouse receipts.
- Under the revamped credit guarantee scheme, banks will issue Agri loans against warehouse receipts (e-NWR).
- The farmers will also get the opportunity to submit their produce and get issued e-NWRs by the Warehousing Development and Regulatory Authority (WDRA) registered repositories.
- It will act as collateral for banks to issue required loans.
- Farmers can sell their produce when the price goes up.
- The current post-harvest lending stands at around Rs 40,000 crore out of total agricultural lending Rs 21 lakh crore.
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