NABARD

The interest rate provided by NABARD under different NABARD schemes is laid out in the table below.

NABARD acts as a nodal agency for generating benefits under the Credit Linked Capital Subsidy Scheme or CLCSS. The scheme was introduced by the Ministry of Micro, Small and Medium Enterprises in the year 2000 with the intention of technology upliftment. The Small Scale Industries or the SSI units are the target beneficiary under CLCSS.

This subsidy scheme coming under the areas to be served by NABARD has the following salient feature.

• Generating subsidy to the SSI units involved in the specific product or sectors as stated under the scheme.
• Initiating improvement in non-product industries.
• Reaching out to both newly formed and already existing registered SSI units.

Since its inception, NABARD has been involved in broad-ranged initiatives starting from providing finance to set up financial institutes. Detailed information about some of these initiatives are listed as follows:

Food park and food processing unit loan

Introduced in the year 2014, this term loan caters to the authorized food parks as well as the food processing units in the respective food parks.

Objective

• Improving the food processing sectors.
• Opening job opportunities.
• Minimizing agricultural food wastage.
• Eligible institutions
• State Governments
• Government promoted institutions
• Companies, enterprises, cooperatives, corporates etc.
• Special Purpose Vehicle
• Joint ventures
• Cooperative federation
• Farmers Producer Organization

Warehouse, cold chain infrastructure and cold storage loan

Improving the storage infrastructure of agricultural products is the driving power of this loan. It covers new as well as exciting storage infrastructures on the basis of merits.

Objective

• Building warehouses.
• Constructing silos.
• Setting up cold storage and related facilities.
• Creating or/and upgrading marketing infrastructure facility of the Agricultural Produce Marketing Committee.
• Eligible institutions
• State Governments
• Companies, enterprises, cooperatives, corporates etc.
• Institutions, Farmers Producer Organization, Cooperative federation and so on owned or run by the Government
• Produce Marketing Committee

Marketing Federation loan

NABARD offers this short-term credit facility to the marketing federation. This loan covers the marketing and production of agricultural products, agricultural commodities, milk as well as the supply of inputs required for the stated sections.

Objective

• Acquiring milk and agriculture products.
• Collecting, storing and value-adding of selected commodities.
• Marketing of said commodities.
• Eligible institutions
• Cooperatives and federations involved in agriculture
• Cooperatives and federations owned by Government
• Cooperatives and federations involved in dairy
• Registered companies

Rural Infrastructure Development Fund

Rural infrastructure development projects approved by the Government authorized nodal department are financed by this NABARD fund.

Objective

• Funding social Sectors.
• Funding in agriculture and associate industries.
• Funding rural connectivity.
• Eligible institutions
• State Governments
• Union territories
• Cooperation owned by states
• Organizations supported by Government
• Panchayat Raj institutions
• Self Help Groups
• NGOs

Cooperative bank direct refinance

This NABARD scheme extends financial assistance to cooperative banks. The finance under the scheme is to be spent on expanding the lending resources of the cooperative banks and diversifying the business operations.

Objective

• Providing short term multi-purpose credit products.
• Providing refinance assistance to cooperative banks to be forwarded to the sugar factories.
• Eligible institutions
• RBI authorized CCBs and StCBs belonging to categories A and B
• Sugar factories with a positive net worth
• Factories with no default repayment history

Producer Organization Development Fund

This fund grants loans and credit supports for building capacity, linkages and share capitals.

Objective

• Attaining all requirements of producer organizations.
• Sustaining said entities.
• Eligible institutions
• Registered Producers Organizations
• Registered implementing agencies
• Non-government Organization
• Community-Based Organizations
• NABARD approved organizations

NABARD Infrastructure Development Assistance

NABARD Infrastructure Development Assistance or NIDA furnishes credit support to the rural infrastructural development projects. The interest rates and the tenure is set evaluating the risk credibility of the applicant. PPF, annuity-linked offerings, mezzanine capital and so on are on the product list of this scheme.

Eligibility criteria

• Detailed project report, including technical details.
• Business plan outlining the financial viability of the respective project and loan applicant.

Assistance for Primary Agricultural Credit Societies

Registered cooperating societies are referred to as Primary Agricultural Credit Societies that provide credit and other services to its members. Agriculture storage centres, agriculture processing centres, agriculture marketing centres, agriculture service centres along with agriculture information centres are eligible for this assistance.

Features

• The Producer Organization Development Fund generates assistance for Primary Agricultural Credit Societies since they are registered societies.
• The tenure for this loan can be expanded to a maximum of 9 years.
• The Asset Liability Committee sets the interest rates under the scheme.

Assistance for Alternative Investment Funds

Alternative Investment Funds or AIFs receive financial assistance from the National Bank for Agricultural and Rural Development for various activities.

Objective

• Assisting existing NABARD finance and co-finance services and development activities.
• Motivating agricultural and rural development linked entrepreneurship.
• Helping units with lack of funds for operation up-gradation.
• Assisting units involved in infrastructure development.
• Promoting investments in innovative initiatives.
• Making model units easily reproducible for rural areas.

Eligible institutions

• AIF registered as per the SEBI Regulations.
• Sectors agnostic funds investing 200% of the contribution committed by NABARD.
• Investment managers associated with respective AIF for at least five years.
• Asset Management Companies structured in accordance with statutory and regulatory obligations.

Long Term Irrigation Fund

NABARD came with the Long Term Irrigation Fund or the LTIF for the major and medium irrigation projects.

Objective

• Funding the major and medium irrigation projects.
• Tracking progress and ensuring fast completion of stated projects.

Eligible institutions

• State Governments
• National Water Development Agency operating under the Water Resources Ministry

This scheme, generally known as UPNRM, serves the Natural Resource Management-based rural livelihood initiatives that are operated by communities. However, the initiatives or projects to have passed the principal guiding level assessment are only considered for the funding.

The category, target audience, together with the channel partners help in the interest rates determination.

Pradhan Mantri Awas Yojana - Gramin

PMAY-G welfare and development scheme works with the vision of providing all living in rural areas with sustainable housing. Since the scheme is working for rural development, it is eligible for financing under the NABARD bank.

In addition to the capital received from budgetary sources, NABARD disburses the remaining capital service required for the construction of the pucca houses under the scheme.

Refinance offering

Below illustrated are the refinance offerings made by the National Bank for Agricultural and Rural Development.

Seasonal agriculture operations

Furnished to State Cooperative banks along with Regional Rural Banks as a short term finance for production activities.

Other related operations

The below mentioned are eligible for the short term credits.

• Agriculture and associated activities
• Crop marketing
• Fisheries
• Industrial cooperative societies
• Labour contract
• Forest labour cooperative societies
• Rural artisans
• Chemical fertilizer stocker
• Chemical fertilizer buyer
• Chemical fertilizer distributor

Weavers

Short term refinance is provided for the following.

• Operating and marketing capital requirement of individual weavers.
• Operating capital and marketing requirement of handloom weaver group.
• Operating capital requirement of Weaver coops societies via state coop banks
• Operating capital requirement of Weaver coops societies via scheduled commercial banks.

Long term Refinance

Banks are provided with NABARD long term, and medium-term refinance to be distributed among the farmers and artisans belonging to the rural areas.
Below laid out are the activities covered under the long term refinance scheme.

• Agriculture and other related activities
• Small scale industries
• Small scale artisans, power looms and handlooms
• Small scale non-farm sectors
• Self Help Groups initiatives

Eligible institutions

• Commercial Banks
• Regional Rural Banks
• District Central Cooperative Banks
• Non-Banking Financial Companies
• State Agriculture Development Finance Companies
• State Cooperative Banks
• State Cooperative Agricultural and Rural Development Banks
• North East Development Finance Corporation
• Scheduled Primary Urban Cooperative Banks

Schemes under the off-farm sector

NABARD has introduced three categories for supporting the off-farm sectors of the rural areas.

Automatic Refinance Facility

The automatic refinance facility extends credit service via these five loan schemes.

• CLS or the Cosmopolitan Loan Scheme
• ILS or the Integrated Loan Scheme
• SEMEX or the Self Employed Loan Scheme
• SLAMM or Soft Loan assistance for the Margin Money
• SRWTO or the Small Road and the Water Transport Operators

Rural Housing Facility

This NABARD facility provides for housing for those living in the rural areas irrespective of being associated with agriculture

Renewable Energy

NABARD offers to refinance for the subsidy scheme introduced by the New and Renewable Energy Ministry. The scheme aims to create solar-powered devices to restore energy security.