Under ‘Atmanirbhar Bharat Abhiyan’ or ‘Self-reliant India Scheme’, NABARD will extend additional emergency working capital or refinance support of Rs. 30,000 crore for farmers. This funding will be over and above the Rs 90,000 crore to be provided by NABARD through the normal refinance route this financial year. Some of the key takeaways are mentioned below:
- Rural Co-operative Banks and Regional Rural Banks shall be the main source for credit
- To benefit approximately 3 crore farmers across India
- To meet post harvest (Rabi) and current Kharif requirements in May/June
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 for rural development. The institution’s 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.
Below mentioned are the interest rates charged by NABARD for refinance to banks and NBFCs under various schemes:
|NABARD Scheme Interest Rate 2020 (per annum)|
|Short Term refinance assistance||4.50% onwards|
|Long Term refinance assistance||8.50% onwards|
|Regional Rural Banks (RRBs)||8.35% onwards|
|State Cooperative Banks (StCBs)||8.35% onwards|
|State Cooperative Agriculture and Rural Development Banks (SCARDBs)||8.35% onwards|
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.
NABARD Scheme is also responsible for the development of the cottage industries, rural and village projects, Small Scale Industries (SSIs), etc. Let’s further discuss features and schemes offered by NABARD authority.