Short Term Refinance
NABARD provides short-term refinance for various types of production, marketing and procurement activities.
It provides:
1. Refinance in the form of a consolidated limit to SCBs on behalf of all eligible DCCBs for financing Seasonal Agricultural Operations (SAO) which covers such activities as are undertaken in the process of raising various crops and are seasonal in nature. The activities include among others, ploughing and preparing land for sowing, weeding, transplantation where necessary, acquiring and applying inputs such as seeds, fertilizers, etc., and labour for all operations in the fields for raising and harvesting the crops. The crop loans provided to farmers by the banks are based on crop loan manual. Provisions and changes effected from time to time.
2. Refinance in form of a consolidated limit to SCBs on behalf of all eligible DCCBs and RRBs to provide crop loans to Tenant Farmers/oral Lessees by organizing them into groups on the lines of JLG and SHG.
3. Refinance in the form of ST Credit limit to State Cooperative Banks on behalf of Central Cooperative Banks for financing (a) marketing of crops, including pledge of agricultural produce kept in godowns; (b) Working capital requirement of agriculture and allied activities; (c) Industrial cooperative societies (other than weavers); (d) Labour contract; forest labour cooperative societies engaged in collection and marketing of minor forest produce; labour contract cooperative engaged in civil work in rural areas; (e) rural artisans including weaver members of PACS/FSS/LAMPS; (f) Fisheries sector; (g) Purchase and stocking, distribution of chemical fertilisers and other agriculture inputs;
4. Refinance in the form of short-term credit limit to Regional Rural Banks for financing (a) marketing of crops including pledge of agricultural produce kept in godowns; (b) Fisheries sector;(c) certain approved purposes other than Seasonal Agricultural Operations (SAO).
5. Refinance support by way of short term credit limits to Scheduled Cooperative Banks (SCBs) on behalf of District Central Cooperative Banks (DCCBs) for financing the working capital requirements of (i) Primary Weavers' Cooperative Societies (PWCS) for production and marketing of cloth (ii) Working capital requirements of individual weavers, weaver members of defunct/non working cooperative societies, Handloom Weavers Groups (HWGs) and Master Weavers (MWs) for production and marketing of the cloth (iii) Apex/Regional Weavers' Cooperative Societies for procurement and marketing of cloth/trading-in-yarn and (iv) refinance to Apex societies through SCB to meet working capital requirements of those PWCS where DCCB is Section 11 non compliant bank (in case bye-laws of the apex society permit).
6. Refinance support by way of short- term (ST) credit limits to Commercial Banks (CBs) for financing the working capital requirements of Primary Weavers' Cooperative Societies.
7. Refinance support to State Cooperative Banks and Commercial Banks for financing the working capital requirements of State Handloom Development Corporations (SHDCs) for production/procurement and marketing of handloom goods.
8. Refinance support by way of short term credit limits to CBs/Regional Rural Banks (RRBs) for financing working capital and marketing requirements of Individual weavers/Handloom Weaver Groups (HWGs)/ Master Weavers (MWs), weaver members of defunct/non working weaver societies, Mutually aided Cooperative Societies, Societies outside the Cooperative folds and Producer Group Companies.
9. Short Term refinance support to Regional Rural Banks (RRBs) fro financing Seasonal Agricultural Operations (SAO) for meeting the production credit needs of farmers and Other than SAO (OSAO) such as production and marketing activities of artisan (including handloom weavers) and village/ cottage/tiny sector industries as also for financing persons belonging to weaker sections and engaged in trade/business / service.
Medium term finance:
>> Refinance to SCBs and to RRBs against the loans converted, rescheduled/rephased of farmers affected by natural calamites under Medium term stabilization arrangement for periods varying from 3 years to 5 years.
>> Share in ground level conversion:
Cooperative Banks: NABARD (60%), State Government (15%), 25% to be shared by SCB and DCCB in mutually agreed basis.
RRBs: NABARD (70%), Sponsor Bank (25%) and RRBs (5%).
Abbreviations used
SCB- State Cooperative Bank.
DCCB- District Central Cooperative Bank.
SHG- Self Help Group.
RRB- Regional Rural Bank.
SHDC- State Handloom Development Corporation.
PHWCS- Primary Handloom Weavers Cooperative Societies.
HWG- Handloom Weaver Group.
JLG- Joint Liability Group.
MW- Master Weaver.
LAMPS- Large Adivasi Multipurpose Primary Societies.
ACSF- Agriculture Credit Stabilisation Fund.
FSS- Farmers Service Societies.
SCARDB- State Cooperative Agriculture and Rural Development Bank.
PCARDB- Primary Cooperative Agriculture and Rural Development Bank. |
