Rs 10-crore Credit Guarantee Fund for FPOs


Bhubaneswar: NABAKISAN Ltd, a subsidiary of NABARD on Tuesday signed a MoU with the Agriculture and Farmers’ Empowerment Department for providing access to collateral free loan facilities by farmer producer organisations (FPOs) in the State from the financial institutions.

The MoU encompasses creation of a separate Credit Guarantee Fund to the tune of Rs 10 crore by the State Government which will be administered by NABKISAN Ltd and pave way to provide collateral free loans by the financial institutions of the State to the FPOs functioning in the State.

As per the MoU, the loans given by the Public Sector Banks and NABAKISAN to the FPOs will be guaranteed under the Credit Guarantee Fund.

Chief Minister Naveen Patnaik was present during the MoU signing ceremony between Agriculture and Farmers’ Empowerment, Horticulture Director Bijay Ketan Upadhyay and NABAKISAN CEO Neeraj Sharma.

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