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Loan NABARD

NABARD Rural Enterprise Credit

Refinance support for rural and agri-allied businesses

Maximum benefit
Varies by product line
Typical processing
45–90 days from application to disbursement (varies by scheme)
Apply on official portal

About this scheme

National Bank for Agriculture and Rural Development (NABARD) operates multiple credit schemes targeting rural enterprises, farm sector, off-farm rural activities, micro-finance, and producer organisations. NABARD does not lend directly to individuals (with limited exceptions); it refinances banks, RRBs, cooperatives, and NBFCs that lend to rural beneficiaries. Major products: Long-term refinance, Schematic refinance for specific sectors, FPO Schemes, Tribal Development Fund, and Watershed Development.

What you get

  • Refinance at concessional rates passed to borrower (typically 2-3% lower than market)
  • Long-term loans up to 15 years for agri/rural infrastructure
  • Sectoral schemes: Dairy Entrepreneurship Development, Solar Pump Scheme, Animal Husbandry Infra
  • Producer Organisation Development Fund (PODF) for FPOs
  • Tribal Development Fund — special scheme for ST areas
  • Watershed Development Fund — for irrigation infrastructure
  • Micro-finance refinance to MFIs serving rural women SHGs

Who qualifies

Rural enterprises — farm, off-farm, micro-finance, dairy, fisheries, poultry, food processing, agri-storage, agri-infrastructure. Eligible entities: individual farmers, FPOs, cooperatives, partnership firms, proprietorships, LLPs, private limited companies operating in rural India. Some NABARD schemes are routed exclusively via banks/RRBs — apply through your nearest participating lender.

Industries (NIC divisions)
Crop productionAnimal productionForestry / fishingFood processingBeveragesTobacco

All business types qualify.

Available across India (central scheme).

How to apply

  1. 1Identify the specific NABARD scheme that matches your project (visit nabard.org)
  2. 2Approach a participating lender — RRB, cooperative bank, scheduled commercial bank, or NBFC
  3. 3Lender appraises your application using NABARD scheme criteria
  4. 4Lender requests refinance from NABARD; approval typically within 30–45 days
  5. 5Lender disburses loan to you; NABARD refinances the lender at concessional rate
  6. 6Standard EMI servicing as per loan agreement with the lender

Key terms and conditions

  • NABARD refinance terms passed through to borrower as lower interest rates
  • Specific sectoral schemes have specific tenure and margin requirements
  • Insurance of assets typically mandatory
  • Hypothecation + collateral as per lender's scheme requirements
  • Annual or quarterly progress reporting to lender

What disqualifies you

  • Urban-focused projects not eligible — rural orientation required
  • Pure trading without agri/rural link excluded
  • Speculative activities excluded
  • Default to any institutional lender disqualifies
  • Each scheme has specific exclusion list — refer to scheme guidelines

Documents typically required

  • Project report
  • Land/business documents
  • Bank loan sanction letter
  • Promoter KYC

Frequently asked questions

Q. Do I apply to NABARD directly?
Generally no — NABARD refinances banks, not individual borrowers. Apply to your nearest bank/RRB/cooperative and ask for NABARD-refinanced schemes.
Q. What is the rate I will get on a NABARD-refinanced loan?
Typically 1-2% below the lender's comparable rate for similar non-refinanced products. Ask your lender for the effective rate.
Q. Is NABARD only for farming?
No — NABARD covers rural off-farm activities (dairy, poultry, fisheries, food processing, agri-infrastructure, rural manufacturing). The common thread is rural location.

The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.