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Refinance against Investment Credit |
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This is a long-term refinance facility. It is intended to create income generating assets in the following: |
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Agriculture and allied activities |
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Artisans, small scale industries, Non-Farm Sector ( Small and Micro Enterprises), handicrafts, handlooms, powerlooms, etc. |
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Activities of voluntary agencies and self help groups working among the rural poor |
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The credit is normally provided for a period of 3 to 15 years. |
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Investment credit leads to capital formation through asset creation. It induces technological upgradation resulting in increased production, productivity and incremental income to farmers and entrepreneurs. |
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Eligible Institutions |
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State Cooperative Agriculture and Rural Development Banks (SCARDBs), State Cooperative Banks (SCBs), Regional Rural Banks (RRBs), Scheduled Commercial Banks, Scheduled Primary Urban Cooperative Banks, North East Development Finance Corporation Ltd. (NEDFI), ADFCs (ADFT, ABFL & NABFINS) and NBFCs are eligible for refinance from NABARD for investment credit in the rural sector. |
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Eligible Purposes |
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Some of the major purposes covered under Investment credit are Minor Irrigation, farm mechanisation, plantation/ horticulture, animal husbandry, storage/market yards, fisheries, post-harvest management, food/agro processing, non-farm sector including rural industries, microfinance, purchase of land (for small/marginal Farmers, share croppers etc.), rural housing and disbursements under poverty alleviation programmes like PMRY, SGSY and SC/ST Action Plan etc. Hi-tech projects and agri-export zones are identified as thrust areas and NABARD helps in techno-financial appraisal of such projects besides providing refinance. |
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Criteria |
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The technical feasibility of the project, financial viability and generation of incremental income to ultimate borrowers thereby enabling them to have a reasonable surplus after repayment of the loan installments are the necessary conditions to be satisfied for sanctioning investment credit. |
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The beneficiaries of the programme are individuals / group of individuals, SHGs, proprietory / partnership concerns, companies, state-owned corporations or cooperative societies. |
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The extent of refinance will be as under (except SCARDBs): |
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| i. States in Eastern Region, North Eastern Region including Sikkim, Hilly States, Chhattisgarh and Lakshwadeep: 100% of eligible bank loans for all purposes. |
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| ii. For Other Regions: 100% for all thrust areas as explained in Policy Circulars. |
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| iii. 95% for all other diversified purposes and 80% for Krishak Sathi Yojana. |
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| iv. 70% to NBFCs for all eligible purposes. |
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| For SCARDBs: The extent of refinance would be 90% across the country |
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Disbursements for 2011-12 |
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| Read more about Investment Credit |
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