Menu

INFORMATION CENTRE

INTEREST RATE
Interest Rates

DETAILS OF RATES OF INTEREST CHARGED BY NABARD FOR REFINANCE TO BANKS UNDER VARIOUS SCHEMES
(w e f 31 January 2017)
 
S.No Particulars Interest Rate (%)
1 Short Term refinance assistance:
a State Cooperative Banks for financing crop loans  4.50
b RRBs for financing crop loans  4.50
c DCCBs directly financing for crop loans  4.50
Commercial Banks./RRBs in respect of their finance to PACS towards crop loans
 4.50
SAO – Additional Limit to StCBs / RRBs  7.5
ST - SAO to eligible Low Risk SCARDBs
 7.5
g
ST(OSAO)
 7.5
 h  StCBs/RRBs - Conversion of Short Term- crop loans into Medium Term loans (3% less than the interest rate charged by banks to ultimate beneficiaries subject to minimum interest rate at 8.20%)  8.20
2 Long Term refinance assistance  
 a  LT loan to State Govt. for contribution to share capital of coop. credit institutions  8.5
 b  RRBs/ StCBs / SCARDBs  
   - Refinance for 5 years and above  8.4
   - Refinance for 18 months to less than 5 years  8.5
 c  PUCBs  
   - Refinance for 5 years and above

 8.8
   - Refinance for 18 months to less than 5 years  9.0
 d  Refinance to Banks on loans to MFIs for onlending to clients will be at 3% less than the interest rate charged by banks subject to a minimum interest rate as indicated below:  
   RRBs  
   - Refinance for 5 years  8.40 (minimum)
   - Refinance for 18 months to less than 5 years  8.50 (minimum)
 e  LT Refinance for agriculture and allied sectors to StCBs and RRBs under Long Term Rural Credit Fund (LTRCF)  5.15
 f  NBFC  3 yrs
   AAA rated regd. NBFCs #  9.25 (Min)
   AA rated regd. NBFCs **  9.5 (Min)
   A rated regd. NBFCs  Not Eligible
 
# Highest safety rating offered by CRISIL as CRISIL AAA for Long Term Debt Instruments or equivalent rating of any of the Rating agencies approved by RBI/SEBI. ** Refinance will be allowed on case to case basis
 
 e  NBFC-mFI  CARE Grading MFI 1 or equivalent by others – 10.50 (min)
     CARE Grading MFI 2+ or equivalent by others - 10.75 (min)
 3  Warehouse Infrastructure Fund (WIF) (w.e.f 25 September 2013)  
 a State Governments Bank rate – 1.50%
 b Entities promoted by State / Central Governments (with State Govt. Guarantee) Bank rate – 1.50%
 c &Entities promoted by State / Central Governments(without State Govt. Guarantee) PLR + risk premium
 d Other entities PLR+risk premium
* Current Bank Rate – 7.75%
# Current Prime Lending Rate (PLR) – 9.00% for Priority States (Eastern, North Eastern and food deficit states) and 9.25% for other states.
@ Risk Premium – Ranges from 0.25%, 0.50% and 0.75% based on the level of project risk
 
 4  Food Processing Fund (FPF) (w.e.f 14 February 2017)  
 a State Governments Bank rate – 1.50%
 b Entities promoted by State / Central Governments (with State Govt. Guarantee) Bank rate – 1.50%
 c &Entities promoted by State / Central Governments(without State Govt. Guarantee) PLR + risk premium
 d Other entities PLR+risk premium
* Current Bank Rate – 7.75%
# Current Prime Lending Rate (PLR) – 7.85%
@ Risk Premium – Ranges from 0.10 to 0.3% based on the level of project risk