30 July 2025

Please refer to our Circular No. 260 /DoR – 86 /2024 dated 29 October 2024 conveying the refinance operational guidelines for investment credit under DAY NRLM for the year 2024-25. It has since been decided that NABARD will provide concessional refinance to the Regional Rural Banks and State Cooperative Banks against the loans extended by them to all women SHGs under NRLM operationalized by the Ministry of Rural Development, GoI (Ref. No. NABARD, DMFI, HO Cir. No. 167/ DMFI-07 / 2025 dated 10 July 2025) as under:

2. The eligibility criteria, extent of refinance, automatic refinance facility as also other terms and conditions remain unchanged as per extant guidelines.

3. Repayment of the refinance along with interest thereon may be made as per the repayment schedule indicated in the sanction letter. In the event of default in repayment of principal and / or payment of interest, the RRBs/StCBs will be liable to pay to NABARD, penal charges on the amount of default at 10.25% p.a. (plus applicable taxes), for the period for which the default persists.

4. Format of drawal application under this scheme is enclosed. The same may be submitted to our concerned Regional Office.

5. The interest subvention claims under the scheme may be submitted in the prescribed format, on quarterly basis, as per the instructions in vogue.

6. You may kindly note that subsidized refinance released to banks against loans extended to Women SHGs under the scheme is not eligible for interest subvention of DAY-NRLM scheme of GoI.

7. You may kindly submit detailed loan asset pool to NABARD RO.

Yours faithfully

(Dr K.S. Mahesh)

Chief General Manager

Encl: as above

DRAWAL APPLICATION FOR SANCTION AND RELEASE OF REFINANCE UNDER NRLM INTEREST

SUBVENTION SCHEME

The Chief General Manager/ General Manager/Officer-in-Charge National Bank for Agriculture and Rural Development Regional Office,

______________________

Dear Sir

NRLM Interest Subvention - Application for sanction
and release of Refinance against lending to Women SHGs

We advise having sanctioned and disbursed during the quarter ended June / September / December / March * ------- (year) a sum of `...................... (Rupees .......................................... ...........................................................) to Women Self Help Groups / NGOs for on-lending to SHGs, the details of which are given in the enclosed statement. We request you to sanction and release refinance of`......................... (Rupees .................................................................................) there against.

2. We certify that the above refinance is being claimed for the amount for which Women SHGs have been provided credit upto Rs. 3.00 lakh at 7% interest rate p.a. / above Rs. 3 lakh and upto Rs.5 lakh at interest rate equivalent to their 1 year-MCLR or any other benchmark lending rate or 10% per annum whichever is lower.

3. We agree to abide by all the terms and conditions of NABARD for financing at ground level and that of refinance, stipulated from time to time.

4. We agree to repay the refinance in _____ half-yearly instalments, irrespective of the repayment period fixed by us at the borrower level.

5. We also certify that the payment made to the borrowers are done electronically except when cheques are drawn on banks which are not on NEFT/ RTGS mode.

6. We request you to release the refinance through our account No ____ with ______ branch of the bank ________ with IFSC code No ______, MICR code No _______.

7. In case of any error in credit to the account given above, we will be accountable for the same.

8. We undertake to repay the amount to NABARD as per demand to NABARD's account through electronic mode.

9. We are aware that the subsidized refinance drawn under the scheme against the loans extended to Women SHGs is not eligible for interest subvention of DAY-NRLM scheme of GoI.

Yours faithfully

Signature of the

Authorized official

* Strike out whichever is not applicable

Repayment Schedule