CURRENT AFFAIRS

Detailed explanation-1: -The Credit guarantee Fund has been set up with the primary objective of providing a Credit Guarantee Cover to Eligible Lending Institutions (ELI’s) which are providing collateral free loans to Farmer Producer Companies (FPCs). It has raised equity from its Members as laid down in its Articles of Association/Bye laws.

Detailed explanation-2: -NABARD is a Development Bank with a mandate for providing and regulating credit for the development of agriculture, small-scale industries, cottage and village industries, handicrafts and other allied economic activities in rural areas to promote prosperity of rural areas.

Detailed explanation-3: -SFAC launched the Equity Grant and Credit Guarantee Fund Scheme (EGCGFS) for FPOs enabling the FPOs to access a grant up to INR 15.00 lakh to double members’ equity and seek collateral-free loan up to INR 1.00 crore from banks, which in turn can seek 85 per cent cover from the Credit Guarantee Fund (CGF).