NABARD has been providing RFA on selective basis to those NGOs/MFIs which are experimenting various model of micro finance, especially in the area where sustainability of the system is yet to be established. The assistance is aimed at facilitating the supported agencies to provide funds to the disadvantaged and excluded strata of the society at an affordable cost.
Eligibility Criteria:
NGOs/MFIs/NBFCs which are working in the field of rural development for three years and minmum two years experience in micro finance,
MFI should have been rated by Credit Rating Agencies approved by NABARD, if the loan outstanding of the MFI exceeds Rs.50 lakh.
RFA with a ceiling of RS.10 lakh per entity for start-up MFIs and on case to case basis to other than start-up MFIs subject to a maximum of Rs.10 crore per entity
MFI should not be charging usurious rate of interest from the ultimate client and effective rate of interest including all charges should not normally be more than 25% p.a.
Rate of Interest : The rate of interest charged by NABARD on RFA at present is minimum at 3.5% p.a and to a maximum of 3% above bank rate p.a.
Repayment period: 5 to 7 years inclusive of one to two years of moratorium period.
(for further details please visit to our nearest office)
