National Bank for Agriculture and Rural Development


	Eligible Projects

	Eligible Institutions

	MoU

	Project Specific Agreement

	NABARD's Involvement

	Exposure Limit

	Rate of Interest

	Borrower's Contribution

	Submission of Proposal

	Appraisal Fee and Application Form

Investment Credit Department

Re-Finance

Condtionalities of Refinance

Agencies	Conditionalities for refinance during 2007-08
SCB	Following types of SCBs are eligible
	Category A
	SCB with Gross NPAs up to 5% as on 31 March 2006, in net profit during 2005-06 and no accumulated losses as on 31 March 2006.

	Category B
	SCB with Gross NPAs above 5% and up to 10 % as on 31 March 2006, in net profit during 2005-06 and no accumulated losses as on 31 March 2006.

	Category C
	SCB with Gross NPAs above 10 % and up to 20% as on 31 March 2006 / SCB which satisfies gross NPA criteria, but not other criteria of category A / B.

SCARDB	Following types of SCARDBs are eligible
	Category A
	Recovery at 60% and above as on 30 June 2006.

	Category B
	Recovery at 50% and above, but less than 60% as on 30 June 2006.

	Category C
	Recovery at 40% and above, but less than 50% as on 30 June 2006.

	Category D
	Recovery at 30% and above but less than 40% as on 30 June 2006.

Commercial Banks	Scheduled Commercial Banks with Net NPAs not exceeding 5% as on 31 March 2006, in net profit in 2005-06 and without accumulated losses as on 31.03.2006 will be eligible for refinance during 2007-08.




Regional Rural Banks	Following types of RRBs are eligible
	Category ‘A’
	Net NPAs up to 5% as on 31 March 2006, in net profit during 2005-06 and no accumulated losses as on 31 March 2006.

	Category ‘B’
	Net NPAs above 5% and up to 10% as on 31 March 2006 and those satisfying net NPAs criteria, but not other criteria of category A.

	Category ‘C’
	Other than category A and B and those RRBs not complying with Section 42(6)(a)(i) of RBI Act, 1934.

Primary Urban Co-operative Banks	Following types of PUCBs are eligible
	should be a Scheduled Bank
	should have 'A' audit classification as on 31 March 2006.
	should have posted net profit during 2005-06.
	should not have accumulated losses as on 31.3.2006.
	Net NPAs should not exceed 5% as on 31 March 2006.

Other Conditionalities	Contents of Conditionalities
Securities	Commercial Banks, PUCBs have been exempted from furnishing any security for or availing refinance. However, they are required to hold the securities created out of their loans covered by refinance from NABARD in trust in terms of Section 29(2) of NABARD Act, 1981.

	RRBs which are eligible to be classified in Category 'A' and 'B' are exempted from the requirement of any security. RRBs in category 'C' are required to avail refinance against Govt. security / FDR of Scheduled Banks.

	SCBs and SCARDB s are required to avail refinance against Government Guarantee.

	SCBs can also avail refinance against pledge of Govt. / approved securities in lieu of Govt. Guarantee. However, waiver of Govt. Guarantee could be granted to SCBs under certain conditions.

Quantum of Refinance	Ranges from 90% to 100% for all agencies.

Interest Rate	Ranges from 9.0% to 9.5% depending on the agency.

Exposure Limit	The exposure limit has been fixed at 50% of the capital funds of NABARD as on 31.3.2007 for refinance during 2007-08 for each individual agency.

Repayment	Commercial Banks have the option to repay the refinance under ARF in respect of Farm Sector in 5 years.

	RRBs, SCBs, PUCBs, ADFC & NEDFC are required to repay the refinance as per the repayment schedule fixed for ultimate borrowers in such a manner that repayments that are likely to come from ultimate borrowers will be first utilised by the banks to liquidate NABARD refinance SCARDBs are permitted additional 2 years for repaying the refinance to NABARD.