19 November 2025
Ref. No. NB.DoR /118200/ LT Policy-9 / 2025-26
Circular No. 279/DoR-71/ 2025
The Managing Director
All State Cooperative Banks
Madam/Dear Sir
Long-term refinance for investment credit for agriculture - Long Term Rural Credit Fund 2025-26 (LTRCF) – State Cooperative Banks (StCBs)
As you are aware, the Government of India has created the Long Term Rural Credit Fund (LTRCF) with NABARD to enhance the refinancing operations to Rural Cooperative Banks and Regional Rural Banks to meet the long-term investment credit needs in agriculture. The operational guidelines for LTRCF for the financial year 2025-26 are enclosed herewith.
2. The interest rate on refinance from NABARD will be 4.50% p.a. (with quarterly rests), subject to revision by NABARD from time to time. StCBs are encouraged to pass on the benefit of low-cost funds to the ultimate borrower. The bank needs to use the concessional funds under LTRCF for creating assets under Agriculture for eligible purposes.
3. It must be ensured that 25% of the corpus of the fund is utilised in identified districts where the credit flow is comparatively low (list of districts enclosed).
4. The Circular is also available on NABARD website www.nabard.org under the tab Information Centre.
5. Please acknowledge receipt.
Yours faithfully
(Dr. K.S. Mahesh)
Chief General Manager