The central government of India launched the Credit Guarantee Scheme for Farmers 2025. To provide low-interest loans to the farmers and various other facilities for post-harvest finances the central government of India has introduced the Credit Guarantee Scheme. The farmers are eligible to receive low-interest loans from the banking or landing institutes so they don’t have to sell their crops at a lower rate. The Union Minister of Consumer Affairs, Food and Public Distribution Mr. Pralhad Joshi announced the launch of the scheme on 16th December 2024. All the farmers who clear the eligibility criteria must visit the official website and fill out the application form online.
About Credit Guarantee Scheme
The Union Cabinet of India approved the Credit Guarantee Scheme to help the small and marginal farmers of India. Under this scheme, eligible farmers are able to get a loan from the institutes with the help of their produce. To get low-interest loans the farmers have to submit their produce to the warehouse who are registered under with the Warehousing Development and Regulatory Authority (WDRA). After successfully submitting their crops the farmers will receive an electronic negotiable warehouse receipt (e-NWR). By showing their electronic negotiable warehouse receipt (e-NWR) at the bank or Financial institute the farmers can avail the benefits of low-interest loans.
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Budget Allocation for Credit Guarantee Scheme for Farmers
For the smooth implementation of the Credit Guarantee Scheme for farmers, the central government of India has set up a total budget of INR 1,000 crore. The central government of India has set up a huge budget to make sure that each small and marginal former will receive the benefits of a low-interest loan. All the small and marginal farmers who will get selected under the scheme will receive a loan amount of up to INR 75 lakh with a credit guarantee of 80- to 85%. Loan amounts of up to INR 200 lakh will be given to the citizens who belong to the non-agricultural sector with a credit guarantee of 75%.
Objective of Credit Guarantee Scheme
The main objective of launching the Credit Guarantee Scheme is to uplift the social status and standard of living of all the financially unstable farmers of India. With the help of this scheme, the farmers did not have to sell their crops below the minimum price set up by the government. The low interest amount will allow the farmers to carry out their post-harvest expenses without worrying about any financial problems. This scheme is a significant step of the central government of India toward uplifting the lives of small and marginal farmers.
Key Highlights of Credit Guarantee Scheme
| Key Highlights | Details |
| Name of the Scheme | Credit Guarantee Scheme for Farmers |
| Launched By | Central Government of India |
| Launch Date | 16th December 2024 |
| Announced By | Union Minister of Consumer Affairs, Food and Public Distribution Mr. Pralhad Joshi |
| Purpose | Provide low-interest loans |
| Beneficiaries | Farmers |
| Target Beneficiaries | Small and marginal formers |
| Advantage | Provide low-interest loans |
| Eligibility Criteria | Small and marginal formers |
| Required Documents | Aadhaar Card, Ration Card, Mobile Number |
| Application Process | Online |
| Official Website | |
| Financial Commitment | INR 1000 crore |
| Expected Benefits | Low interest loans |
| Contact Number |
Eligibility Criteria
- The farmers must be up permanent resident of India.
- The farmers must be small and marginal farmers.
Guarantee coverage
- All the small and marginal farmers who will get selected under the scheme will receive a loan amount of up to INR 75 lakh with a credit guarantee of 80- to 85%.
Loan Amount
- The loan amount of up to INR 75 lakh will be given to the selected small and marginal farmers.
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Benefits
- The selected farmers under the scheme will receive low-interest loans from the Government of India.
- With the help of this scheme, the farmers can carry out their post-harvesting expenses easily.
- With the help of the loan amount, the farmers don’t have to sell their produce at a lower price than the market.
- For the smooth implementation of the scheme, the farmers have set up a total budget of INR 1000 crore.
Settlement of Claim
| Eligible claim | 1st installment of claim (% of default amount) | 2nd installment of claim (% of default amount) |
| Upto Rs. 75 Lakhs | 75% | 25% |
| Above Rs. 75 Lakhs and upto Rs. 2 crore | 60% | 40% |
Required Documents
- Aadhaar Card
- Ration Card
- Mobile Number
Salient Features
- Easy access to loans: The farmers can just get low-interest loans by submitting their produce in warehouses registered under authorities.
- Low interest: The loans under the scheme will be given to the farmers at very low interest to make the repayment process easy and affordable.
- Low risk: The farmers are not able to repay the loan they do not have to worry because the authorities, reduce risk for both the receiver and the lender.
- No selling pressure: With the help of the loan amount the farmers did not have to sell their produce right away at a low rate.
Application Process Of Credit Guarantee Scheme for Farmers
STEP 1: All the farmers who want to avail the benefits of this Credit Guarantee Scheme are requested to visit the official website and fill out the application form online.
STEP 2: Once the farmers reach the homepage of the official website they must locate and click on the option called “Apply now”.
STEP 3: The application form will now appear on your desktop screen the farmers must enter all the details that are asked and attach all the necessary documents.
STEP 4: After entering all the details the farmers must quickly review it and click on the option “submit” to complete their process.
Helpline Number
- 1800 115 565
FAQs
Who launched the Credit Guarantee Scheme for Farmers?
The Government of India launched the scheme Credit Guarantee Scheme for Farmers.
Who announced the scheme Credit Guarantee Scheme?
Union Minister of Consumer Affairs, Food, and Public Distribution Mr. Pralhad Joshi announced the scheme Credit Guarantee Scheme.
Who is eligible to avail the benefits of the Credit Guarantee Scheme?
All the small and marginal formers of India are eligible to avail the benefits of the Credit Guarantee Scheme for Farmers.