Automatic Refinance Scheme (ARF)
The various schemes formulated over the years have been categorized into five distinct and compact schemes.
A. Composite Loan Scheme (CLS)
Under this scheme, refinance is given to meet the block and /or working capital requirements of small/micro enterprises. Maximum refinance available is Rs. 10 lacs per unit.
B. Integrated Loan Scheme (ILS)
Under this scheme, refinance is given to block capital and working capital for one operating cycle. Maximum refinance available is Rs. 15 lacs per borrower.
C. Self-Employment Scheme for Ex-servicemen (SEMFEX)
The scheme has been in operation since 15 January 1988. SEMFEX is specially designed to provide a comprehensive package of credit for encouraging ex-servicemen to undertake agricultural and allied activities or to set up off-farm units in rural areas to earn their livelihood and lead a dignified life. NABARD provides refinance assistance under Automatic Refinance Facility (ARF) to eligible banks for a wide spectrum of manufacturing, processing and service sector activities under RNFS (Investment Credit).
D. Soft Loan Assistance for Margin Money (SLAMM)
The scheme is to provide financial assistance to prospective entrepreneurs who have the requisite talent and skill of entrepreneurship but lack necessary monetary resources to meet the margin requirements stipulated under relevant refinance schemes of NABARD.
E. Small Road and Water Transport Operators (SRWTO)
Under this scheme, financial assistance is provided for acquisition of transport vehicles, which are to be used for transportation of farm produce/industrial products to rural/urban marketing centers, including passenger transport vehicle and water transport units. Margin money assistance will be extended on a very selective basis, up to 10% of the cost of the vehicle.
Housing in the rural areas, for both agriculturists and non-agriculturists, serves both business as well as dwelling needs, thereby leading to overall rural development. NABARD is giving refinance (investment credit) to eligible banks to support rural housing.
The Ministry of New and Renewable Energy (MNRE), Government of India and the Jawaharlal Nehru National Solar Mission (JNNSM) are working earnestly to address India’s energy security challenges. In order to achieve this objective, the MNRE has launched a capital cum interest subsidy scheme for creation of off-grid, decentralised solar powered energy harvesting devices through application of photo voltaic technology. These devices will be used for purposes of lighting, heating, etc. at the level of domestic and mini commercial applications. NABARD is the nodal agency for assessing feasibility and providing refinance for eligible projects.