What does NABARD refinance mean and does it lower my interest as a farmer?

NABARD does not usually lend to individual farmers directly; it refinances the banks and cooperatives that lend to you. Refinance means NABARD gives the lending institution funds at a concessional rate against the loans they have given for farm investment, like dairy, irrigation, farm mechanisation, land development, plantation and rural infrastructure. This gives banks, especially cooperative banks and regional rural banks, the liquidity and confidence to make longer-term agri loans. The benefit reaches you indirectly through easier availability of investment credit and, in some refinanced schemes, slightly softer terms. So you still apply to your bank or cooperative, not to NABARD, but it helps to know whether your project fits a NABARD-refinanced line, because the branch may then be more willing to sanction. Ask your bank which NABARD refinance schemes they are currently using and what terms apply.