Investment Credit Department is vested with the core function of providing refinance in respect of term loan for both Farm Sector and Non - Farm Sector activities for a period upto 3-15 years and is released to only eligible institutions viz. SCARDBs, SCBs or a scheduled bank or any other financial institution, approved by Reserve Bank of India (RBI) as defined under Section 25 of NABARD Act.

NABARD refinance covers wide range of activities like Minor Irrigation, Land Development, Dry Land Farming, Watershed Development, Farm Mechanisation, Plantation & Horticulture, Poultry / Dairy / Other Animal Husbandry Activities, Fisheries, Bio-gas, Forestry, Storage/Market Yard, Non Farm Sector (Small Scale Industry & Tiny Cottage Village Industries), Self Help Groups, Self Employed / Professionals, Small Road and Water Transport Operators, Agri-clinics & Agri Business Centres, Financing in Agri Export Zones / Contract Farming/ Organic Farming, Agro Processing, Non Conventional Energy, Rural Housing, Govt. Sponsored Programmes, etc.

Keeping in view the potential and the demand for a particular type of project in a particular area, NABARD prepares Area Development Projects in consultation with the line departments of the State Govt. and the bankers in the area. Under the ADP, targets are decided and achievements monitored at periodical intervals.

Investment Credit Department has also opened a window for direct lending by way of Co-financing under Section 30 of NABARD Act 1981 for projects involving sunrise technology / national priorities / thrust-areas like agro processing / large outlays / long gestation period / long repayment period.