16 December 2025
Ref.No.NB.DoR/LT Policy/PPS-9/116134-116164/2025-26
Circular No. 246 /DoR- 49 /2025
Chief Executive Officer
All Small Finance Banks
Madam/ Dear Sir
Provision of Short-term refinance by NABARD to Small Finance Banks (SFB)
– Operational Guidelines for the year 2025-26
The operational guidelines for FY 2025-26 are broadly based on eligibility criteria as given in
Annexure I attached to this letter.
2. NABARD will extend refinance support to Small Finance Banks (SFBs) for Short Term loans,
not exceeding a period of 12 months, under Section 21(1) read with Section 21(4) of NABARD
Act, 1981. Refinance will be provided to the extent of 80% of the eligible short-term loans
outstanding in the books of SFB as on the date of application. ST refinance will have a minimum
lock-in period of 30 days, after which repayment may be made by SFB without any penalty
charge.
3. The eligible purposes for ST refinance will include short term / working capital loans for
agriculture and allied sectors, non-farm sector including artisans, weavers, handicrafts,
marketing of agri. produce, agri. inputs, non-farm produce, bonafide trade activities, etc.
4. SFBs may arrange to forward applications for sanction of ST refinance as per the proforma
enclosed (Annexure II), to NABARD Head Office, with a copy endorsed to concerned Regional
Office of NABARD in the State where Head Office of the SFB is located.
5. Please acknowledge receipt of this circular.
Yours faithfully
(Dr. K S Mahesh)
Chief General Manager