National Bank for Agriculture and Rural Development (NABARD) is a development financial institution in India that manages credit-related concerns like planning, policy, and operations for agriculture and rural undertakings. NABARD is a provider of funding for agriculture-related activities and rural development. Its prime focus area is the growth and development of rural areas nationwide. NABARD works around three main areas that include finance, development, and supervision of the agriculture sector.
Table of Contents :
NABARD Scheme – Features – January 2023 | |
Direct Lending – Highlights | |
Warehouse Infrastructure Fund (WIF) | Bank rate* – 1.50% – State Governments |
Bank rate – 1.50% – State Government Corporation (with State Govt. Guarantee) | |
PLR** + Risk Premium – Entities promoted by State / Central Government-owned/assisted (without State Govt. Guarantee) | |
Current Bank Rate* | 4.25% |
Current PLR** | 7.75% |
Food Processing Fund (FPF) | Bank Rate – 1.50% – State Governments |
Bank Rate – 1.50% – Entities promoted by State Governments (with Govt. Guarantee) | |
PLR + Risk Premium – Entities promoted by State Governments(without Govt. Guarantee) | |
Current Bank Rate for FPF | 4.25% |
Current PLR for FPF | 5.80% |
Note: Interest rates are p.a. and updated as on January 2023.

Apply for Startup Loans at Low Interest Rates Apply Now
NABARD Scheme – Interest Rate on refinance to Banks (p.a.) | |
Short Term refinance assistance | 4.50% for the below entities:
5.50% for ST – Additional SAO/ST(Others)/ ST (SAO ) -SCARDBs (Annual Product) 8.10% for StCBs/RRBs – Conversion of Short Term – Crop loans into Medium Term loans |
Long Term refinance assistance | 5.80% – Long Term loan to State Govt. for contribution to share capital of coop. credit institutions |
Regional Rural Banks (RRBs) & State Cooperative Banks (StCBs) | 6.40% – Refinance for 5 years and above 6.00% – Refinance for 3 years to less than 5 years 5.55% – Refinance for 18 months to less than 3 years |
State Cooperative Agriculture and Rural Development Banks (SCARDBs) | 6.45% – Refinance for 5 years and above 6.05% – Refinance for 3 years to less than 5 years 5.55% – Refinance for 18 months to less than 3 years |
Direct Lending | Bank Rate – 1.50% |
Note: The mentioned interest rates are subject to change and depend on the sole discretion of the NABARD authority and RBI. GST and service tax shall be levied extra on the mentioned charges. (Updated as of January 2023.)
NABARD Scheme is also responsible for the development of cottage industries, rural and village projects, Small Scale Industries (SSIs), etc. Let’s further discuss the features and schemes offered by the NABARD authority.

Apply for Business Loan @ low interest rate Apply Now