The NIRSAL Credit Risk Guarantee (CRG) is the core service provided by NIRSAL Plc. The CRG is an instrument issued to protect financiers and investors from possible losses in a finance/credit transaction through a risk sharing arrangement under which NIRSAL indemnifies the lender or investor of the Principal and accrued Interest to the limit of a pre-agreed CRG rate. The offer of the NIRSAL CRG serves as a comfort to financiers and investors, encouraging them to lend to the agribusiness.
The NIRSAL CRG secures agribusiness loans against losses over the life of the underlying credit contract between a financier and actors across all segments of the agricultural value chain. It covers credit in the form of term loans, and/or debt instruments such as short, medium, and long-term notes, excluding overdrafts.
The NIRSAL CRG also covers the credit risk of default on loan principal and the accrued interest. It is purchased at 1% (upfront payment) of the loan value and subsequent outstanding balances of the loan annually.