To address the issue of rural migration and to give boost to the agriculture and rural sector in the post COVID era, NABARD introduced three special refinance schemes as detailed under.
1 Special Refinance Facility – Transformation of PACS as Multi-Service Centre (MSC) and World’s Largest Grain Storage Plan (WLGSP)
To support the transformation of the Primary Agriculture Cooperative Society (PACS) as Multi-Service Centres (MSC) in order to establish the supremacy of cooperatives as a grass root member driven business organisation, providing both financial and non-financial services to enhance the benefits of mutual interest. Further, leveraging convergence with WLGSP under Cooperative Sector to augment PACS in adapting to the changing landscape of Agriculture and their transformation into a strong and modern business entity in rural areas.
2 Special Refinance Scheme-Agriculture Infrastructure Fund
The Special Refinance Scheme for financing under Agriculture Infrastructure Fund (AIF) aims to address existing infrastructure gaps and promote investment in agriculture infrastructure. The scheme encourages rural financial institutions to fund projects under AIF and eligible beneficiaries by offering concessional refinance. Eligible activities include post-harvest management projects like warehouses, silos, pack houses, cold chains, logistics facilities, and community farming assets such as organic inputs production, bio stimulant production units, and infrastructure for smart and precision agriculture.
3. Special Refinance Scheme-Aspirational District
The Special Refinance Scheme for Aspirational Districts and Districts with low Priority Sector Lending (PSL) aims to promote sustainable economic activities, livelihood, and employment opportunities in aspirational districts and districts with low PSL. The scheme addresses the low offtake of credit by providing concessional refinance, ensuring the upliftment of the socio-economic status of the rural population in these districts.
4. Special Refinance Scheme for Installation of Solar Rooftop Systems for Residential Sector
The Special Refinance Scheme for Installation of Solar Rooftop Systems for Residential Sector is designed to promote solar energy in rural areas and towns. The scheme provides concessional refinance for solar rooftop systems ranging from 200 Watt to 10 KW. The refinance is sanctioned under the Automatic Refinance Facility (ARF), simplifying the process for financial institutions to obtain financial accommodation from NABARD.
5. Special Refinance Scheme-Rural Housing with SRT
The Special Refinance Scheme for Rural Home Loans bundled with Solar Roof Top (SRT) aims to promote solar power in rural residential buildings by bundling home loans with rooftop solar systems. Implemented by NABARD, the scheme offers an interest rate rebate of 0.5% on a reimbursement basis with a corpus of ?200 crore. The refinance is sanctioned under the Automatic Refinance Facility (ARF), enabling banks to obtain financial accommodation from NABARD without detailed pre-sanction formalities.
6. Special Refinance Scheme (SRS) for Animal Husbandry Infrastructure Development (AHID)
The scheme aims to address infrastructure gaps and mobilize investment in the Animal Husbandry sector and to extend refinance at a concessional rate for the eligible activities identified under the GOI scheme of AHIDF.
7 Special Long Term Refinance Scheme for promoting Micro Food Processing Activities.
The objectives of the scheme is to encourage banks to lend micro-food processing activities and create sustainable livelihood and employment opportunities for rural youth as well as reverse migrants due to COVID-19 pandemic in the rural areas.
The scheme also envisages modernization and enhancing the competitiveness of the existing individual micro enterprises and ensure their transition to formal sector in rural areas. The refinance scheme will give fillip to the recently launched “PM Scheme for Formalisation of Micro food processing Enterprises (PM FME)” under Aatmanirbhar Bharat Abhiyan by MoFPI, GoI under which about Rs.25,000 crore investment is expected in the sector. The concessional refinance at 4% is available to eligible financial institutions viz., commercial banks, SFBs, StCBs, RRBs and NABARD subsidiaries.
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