I keep reading that NABARD gives refinance to banks. I want to know if this helps me directly when I take a loan.
What does NABARD refinance mean and does it lower my interest as a farmer?
TTukaram Gaikwad8 महीने पहले · 238 व्यू
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🌾Farmer.in Krishi Teamविशेषज्ञ ✓8 महीने पहले
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.
TTukaram Pawar8 महीने पहले
Mujhe laga tha NABARD seedha kisaan ko loan deta hai, par branch ne bataya wo banks ko refinance karta hai. Maine apne dairy project ke liye bank se hi loan liya jo NABARD line me aata tha. Bank se pucho kaunsi refinance scheme chal rahi hai.
EEknath Gaikwad7 महीने पहले
The practical use for me was that when I asked whether my irrigation project fitted a NABARD refinanced scheme, the branch became more willing to sanction the term loan. So it helps to know the scheme name even though you never deal with NABARD directly. Ask your bank.