Credit Guarantee Scheme for Farmers 2025: Apply Online, Features and Benefits

The Credit Guarantee Scheme for Farmers, specifically the Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF), was recently launched by Shri Pralhad Joshi, the Union Minister of Consumer Affairs, Food and Public Distribution, and New & Renewable Energy. Under this scheme, farmers who deposit their produce in warehouses approved by the Warehousing Development and Regulatory Authority (WDRA) can avail themselves of a financing corpus of Rs 1,000 crore. This post-harvest financing will be provided against electronic negotiable warehouse receipts (e-NWRs).

The primary objective of this initiative is to help farmers avoid distress sales, providing them with the opportunity to secure fair value for their goods. The Union Minister emphasized the need for the Warehousing Development and Regulatory Authority (WDRA) to extend its authority to include warehouse developers. He also encouraged the construction of warehouses closer to agricultural fields to make the process more efficient. Additionally, he pointed out that the registration of warehouses remains a significant challenge. This article aims to provide essential details about this program and its benefits for farmers. 

What is Credit Guarantee Scheme?

The Credit Guarantee Scheme (CGS) was recently introduced by the government to provide significant benefits to farmers. This program offers a guarantee for loans taken by farmers and traders, which are backed by electronic negotiable warehouse receipts (e-NWRs). The primary goal of the CGS-NPF scheme is to strengthen bankers' trust by encouraging them to offer pledge finance against e-NWRs. This will assist farmers and traders who store their agricultural and horticultural products in warehouses registered with the Warehouse Development and Regulatory Authority (WDRA). Furthermore, it is emphasized that banks should adopt a flexible approach toward farmers in terms of loan amounts and other financial considerations, including e-NWR receipts, based on the experiences shared.

Solar Rooftop Subsidy Yojana

Purpose Of Credit Guarantee Scheme for Farmers In India

The Credit Guarantee Scheme for Farmers aims to enhance the availability and accessibility of funds for its target beneficiaries, which is crucial for promoting economic growth. There is significant demand for credit guarantee programs, especially for e-NWR (electronic Negotiable Warehouse Receipt) based pledge financing, particularly from the banking sector. A key element in boosting farmers' incomes is the expansion of post-harvest lending through this credit guarantee scheme, using e-NWRs as collateral.

The scheme primarily targets women, SC, ST, PwD, small and marginal farmers, as well as SC farmers who pay a minimal guarantee fee. Additionally, Farmer Producer Organizations (FPOs) and small traders (MSMEs) are also beneficiaries of the program. Lending to MSMEs and FPOs will be covered with an 80–85% guarantee, as will loans to small and marginal farmers, up to a limit of ₹75 lakh.

Short Summary of Credit Guarantee Scheme for Farmers 2025

Budget Allocation for Credit Guarantee Scheme for Farmers

The budget allocated for Credit Guarantee Scheme is around 1000 crore.

Eligibility Criteria

The following criteria must be met to apply for this program:

• The applicant must be a permanent resident of India.
• The applicant must be a farmer by profession.
• The applicant must be a small or marginal farmer.
• The applicant should not have any permanent source of income.

Guarantee Coverage

• Loans extended to small and marginal farmers up to ₹75 lakh will have a coverage of 80% to 85%.
• Loans extended to MSMEs, FPOs, and traders up to ₹2 crore will have coverage of up to 75% under the scheme.

Loan Amount

• The government will provide loans up to ₹75 lakh for agricultural purposes.
• Loans up to ₹2 crore will be provided for non-agricultural purposes.
• The loan amount for small and marginal farmers will start from ₹3 lakh.

Benefits Of Credit Guarantee Scheme for Farmers

The benefits of the Credit Guarantee Scheme for Farmers are as follows:

• The launch of this scheme will contribute to the economic growth of the country.
• It will promote and enhance agricultural practices across the nation.
• Small and marginal farmers will be able to earn their livelihood through the support provided by the scheme.
• The scheme will offer loans for both agricultural and non-agricultural purposes.

Settlement Of Claim

Required Documents

The documents required for applying under this program are given below:-

• Aadhar card
• PAN Card
• Domicile certificate
• Bank passbook
• Bank account details
• Mobile number
• Email Id

Application Process  - Credit Guarantee Scheme for Farmers Apply Online

To apply under the Credit Guarantee Scheme for Farmers, follow these steps:

• Visit the official website of the program to start the application process.
• On the homepage, click on the "Apply Now" button.
• You will be redirected to a new page. Enter all the necessary details required for the application.
• Attach all the required documents and enter the captcha code for verification.
• Finally, scroll down and click on the "Submit" button to complete your application.

Helpline Number

1800222659

Summary of Credit Guarantee Scheme for Farmers 2025

The Credit Guarantee Scheme for Farmers aims to provide financial support to farmers by offering loans backed by electronic negotiable warehouse receipts (e-NWRs). Announced by the Union Minister of Consumer Affairs, this scheme focuses on small and marginal farmers, women, SC, ST, PwD, and MSMEs. It ensures increased access to post-harvest financing, enhancing agricultural growth and economic stability.