Medium Term Refinance Scheme for financing Agricultural Projects
NABARD has been providing financial assistance by way of refinance to financial institutions for providing production and marketing credit for a period not exceeding 18 months (short term finance) besides for long term investment activities with a repayment period of 3 years onwards. In a market where interest rates are dynamic, Banks have been providing investment credit with shorter duration for financing various agricultural and allied activities and fixing repayment periods from 1 year but below 3 years and are not eligible to claim refinance for such financing .
With a view to providing more flexibility to the banks to manage their finances/funding programs, NABARD has decided to launch a new product as per the scheme detailed below, to its clients which besides covering all the components of medium term finance will also provide built-in flexibility in the repayment period.
For further details please click here.