Institutions Eligible for Refinance:
State Co-operative Agriculture & Rural Development Banks (SCARDBs)
Regional Rural Banks (RRBs)
State Co-operative Banks (SCBs)
Commercial Banks (CBs)
State Agricultural Development Finance Companies (ADFCs)
Scheduled Primary Urban Co-operative Banks (PUCBs)
North East Development Finance Corporation (NEDFC)
Non-Banking Financial Companies (NBFCs)
Purposes:
Farm Sector :
Agriculture and allied activities such as minor irrigation, farm mechanisation, land development, soil conservation, dairy, sheep/goat rearing, poultry, piggery, plantation/horticulture, forestry, fishery, storage and market yards, bio-gas and other alternate sources of energy, sericulture, apiculture, animals and animal driven carts, agro-processing, agro-service centres, etc.
Non-Farm Sector :
Artisans, Small & Micro Enterprises, handicrafts, handlooms, powerlooms, etc
Loan Period :
Upto a maximum of 15 years
Refinance Windows
- Automatic Refinance Facility (ARF): Automatic Refinance Facility (ARF) will be extended to the Commercial Banks/State Coop Banks/ Regional Rural Banks/Primary Urban Coop Banks/ADFCs/NEDFi/NBFCs without any upper ceiling on quantum of refinance, bank loan or TFO for all kinds of projects under Farm Sector (FS) & Non Farm Sector (NFS). However, ARF will be extended to the SCARDBs for projects with TFO up to `50.00 lakh for all kinds of projects under Farm Sector (FS) and Non- Farm Sector (NFS).
- Pre-sanction Procedure: In case, any bank intends to avail refinance under pre-sanction procedure, they may submit projects to NABARD.
Project based lending ( Subject to Appraisal & Prior Sanction by NABARD )
Extent of Refinance
The extent of refinance will be as under (except SCARDBs):
- States in Eastern Region, North Eastern Region including Sikkim, Hilly States, Chhattisgarh and Lakshwadeep: 100% of eligible bank loans for all purposes.
- For Other Regions: 100% for all thrust areas as explained in Policy Circulars
- 95% for all other diversified purposes and 80% for Krishak Sathi Yojana.
- 70% to NBFCs for all eligible purposes.
For SCARDBs: The extent of refinance would be 90% across the country
Criteria for Refinance
Technical Feasibility of the project
Financial viability and bankability
Organisational arrangements for credit supervision
Ultimate Borrowers
Although refinance is provided to SCARDBs/SCBs/CBs/RRBs/ADFCs/PUCBs/NEDFC the ultimate borrowers of investment finance may be individuals, proprietory/partnership concerns, companies, state-owned corporations or co-operative societies.
Interim finance
SCARDBs are being extended interim finance in order to enable them to provide investment credit to ultimate borrowers and avail refinance within 3 months against the same. |
