The fundamental service offered by NIRSAL Plc is the NIRSAL Credit Risk Guarantee (CRG). The CRG is a risk-sharing agreement in which NIRSAL indemnifies the lender or investor of the Principal and accumulated Interest up to the limit of a pre-agreed CRG rate, so protecting financiers and investors from probable losses in a finance/credit transaction. The NIRSAL CRG’s offer reassures banks and investors, encouraging them to lend to the agricultural sector.
The NIRSAL CRG protects agriculture loans from losses over the duration of the underlying credit contract, which involves a financier and players from all parts of the agricultural value chain. It excludes overdrafts and covers credit in the form of term loans and/or debt instruments including short, medium, and long-term notes.
The credit risk of default on the loan principal and accrued interest is also covered by the NIRSAL CRG. It is purchased annually for 1% of the loan amount (upfront payment) and subsequent outstanding loan balances.
Credit Risk Guarantee (CRG) Categories
- Smallholder/scale Farmers and Farmer Organizations
- Primary Producers on a Large Scale
- Mechanization on a Large Scale
- Integrated Farms
- Farms that work together
- Providers of Logistics
- Suppliers of agricultural inputs and equipment, as well as agro-dealers
Method CRG Application
An interesting candidate for NIRSAL Credit Risk Guarantee (CRG) should click the link below to apply