January 16, 2023
Jasmine John

National Bank for Agriculture & Rural Development (NABARD)

The National Bank for Agriculture and Rural Development (NABARD) is the apex development bank in India and it has been promoted by the Reserve Bank of India. It was established in 1975 with a mission to support the development of agriculture, rural areas, micro and small industries, and other economic activities in the country. It is aimed at providing financial assistance to small and marginal farmers, landless and other small farmers, SC/ST entrepreneurs, rural artisans and craftsmen, rural co-operative societies, and other rural development institutions. NABARD has been playing a crucial role in the development of rural India by channelizing credit to the weaker sections of society. The Government of India has also been taking various initiatives to develop the agricultural sector and provide better credit facilities to the farmers in the country. The main objective of the various schemes of NABARD is to provide credit flow in rural areas and promote agriculture development. The various schemes of NABARD are discussed below.

NABARD Refinance Schemes

NABARD refinance schemes are:

1. long-term and 

2. short-term.

 The long-term refinance will be availed by banks at a lower interest rate, while the short-term refinance is done with a higher interest rate than what is offered by banks. Both these options are meant for those who need quick money to improve their business or personal finances and save on interest payments over time.

The Interest Subvention Scheme (IS) allows you to avail of a loan from your state cooperative bank on doing so at low rates of interest which can be as low as 1% per month. However, some conditions must be fulfilled before availing of this scheme:

1. You must have an active membership with NABARD;

2. Your account should be in good standing; and

3. You must have made minimum repayment towards any outstanding loans taken from other banks including State Cooperative Banks (SCBs).

NABARD Refinance Scheme Provides Refinance Support

NABARD refinance scheme provides refinance support to banks, cooperative institutions, and institutions registered under section 25 of the companies act 1956 for short, medium, and long-term requirements of agricultural and rural development lending.

NABARD's Refinancing Facility Scheme (RFS) is a financing program that was launched in July 2016. This scheme aims to facilitate refinancing/refinancing by providing funds at a low-cost rate and reducing the interest burden on banks' loan portfolios associated with NABARD loans.

Long-Term Refinance

 Through state co-operative agriculture and rural development banks (scardbs) to primary agricultural credit societies (pacs), marketing societies, co-operative federations/unions, district central co-operative banks (dccbs), state co-operative banks (scbs) for meeting credit requirements for both crop & non-crop purposes.

NABARD has always supported the development activities of SCARDBs by providing them with long-term funds at competitive rates through a specialized window called the "Refinancing Window". The refinancing window, which was started in 2002 with a loan amounting to ₹ 5 crores by NABARD, has now been enhanced so that it provides additional support up to ₹ 20 crores per annum (excluding interest). This facility is available only after Cabinet Committee on Economic Affairs (CCEA) approves it.

Short-Term Refinance 

Through commercial banks and regional rural banks to pacs, marketing societies, primary land development banks (pldbs), and dccbs for meeting capital expenditure on agricultural assets; post-harvest operations & consumption loans to farmers; crop loans; procurement of fertilizer; working capital finance to sugar mills, etc., & non-farm sector activities like poultry, dairying, etc.;

Interest Subvention Scheme

Interest subvention is a scheme for small and marginal farmers that provides interest subvention to farmers. The scheme is available for both crop and non-crop loans.

To avail of this scheme, you need to apply to your bank/ financial institution by using the prescribed form. You can also visit any NABARD branch or call them on 18001026099 if you are unable to get access through your bank’s website.


In this article, we have looked at the various schemes of NABARD. These are designed to provide credit flow in rural areas and promote agriculture development. To facilitate this process, NABARD has designed different schemes which can be availed by people in need.


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