The central government has given great news to the farmers who are expecting loans, the central government has taken a big initiative to make it easy for the farmers to get loans after harvesting. Union Food Minister Pralhad Joshi launched the Rs 1,000 crore loan guarantee scheme.
The objective of the scheme is to remove the reluctance of banks to lend to farmers against Electronic Negotiable Warehouse Receipts (e-NWR) registered by the Warehousing Development and Regulatory Authority (WDRA).
Launching the project, Minister Pralhad Joshi said, “We have set up a fund of Rs 1,000 crore to encourage banks to provide post-harvest loans.” This will simplify access to credit for farmers and provide them with greater financial support.
Food Secretary Sanjeev Chopra said that currently a major chunk of farm credit goes to crop production, but only Rs 40,000 crore for post-harvest operations.He said the loan under e-NWR is limited to Rs 4,000 crore only. But in the next 10 years the target has been set to increase to Rs 5.5 lakh crore.
He emphasized that this goal is possible only with the concerted efforts of the banking and warehousing sectors. Secretary emphasized the need to increase awareness among farmers about guaranteed finance, e-Kisan Upaj Nidhi Online Streamlining, checking deposit charges and increasing the number of warehouse registrations from 5,800.
Under the E Kisan Upaj Nidhi Yojana, farmers can take loans without any guarantee . Under the scheme, the government also provides warehouses to farmers for free. Under this scheme, the bank charges you 7% interest on the loan. The middle class farmers are to be made self-reliant through the E Kisan Upaj Nidhi Yojana.