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INFORMATION CENTRE

INTEREST RATE
Interest Rates

A) DETAILS OF RATES OF INTEREST CHARGED BY NABARD FOR REFINANCE TO BANKS UNDER VARIOUS SCHEMES
(w e f 28 February 2017)
 
S.No Particulars Interest Rate (%)
1 Short Term refinance assistance:
a State Cooperative Banks for financing crop loans  4.50
b RRBs for financing crop loans  4.50
c DCCBs directly financing for crop loans  4.50
Commercial Banks./RRBs in respect of their finance to PACS towards crop loans
 4.50
SAO – Additional Limit to StCBs / RRBs  7.5
ST - SAO to eligible Low Risk SCARDBs
 7.5
g
ST(OSAO)
 7.5
 h  StCBs/RRBs - Conversion of Short Term- crop loans into Medium Term loans (3% less than the interest rate charged by banks to ultimate beneficiaries subject to minimum interest rate at 8.20%)  8.20
2 Long Term refinance assistance  
 a  LT loan to State Govt. for contribution to share capital of coop. credit institutions  8.5
 b  RRBs/ StCBs / SCARDBs  
   - Refinance for 5 years and above  8.0
   - Refinance for 18 months to less than 5 years  8.1
 c  PUCBs  
   - Refinance for 5 years and above

 8.8
   - Refinance for 18 months to less than 5 years  9.0
 d  Refinance to Banks on loans to MFIs for onlending to clients will be at 3% less than the interest rate charged by banks subject to a minimum interest rate as indicated below:  
   RRBs  
   - Refinance for 5 years  8.40 (minimum)
   - Refinance for 3 years to less than 5 years  8.50 (minimum)
 e  LT Refinance for agriculture and allied sectors to StCBs and RRBs under Long Term Rural Credit Fund (LTRCF)  4.9
 f  NBFC

AAA RATED #

  LT Refinance for 5 years and above
8.25(min)
  LT Refinance for 3 years to less than 5 years 8.35(min)
  LT Refinance for 18 months to less than 3 years 8.45(min)
 
AA RATED
 
 g LT Refinancefor5 years and above 8.5 (min)
  LT Refinance for 3years to less than 5 years 8.6(min)
  LT Refinancefor 18 months to less than 3 years 8.7(min)
  A RATED (N.E / Hilly Region)
  LT Refinance for 5 years and above 8.5 (min)
  LT Refinance for 3years to less than 5 years 8.6(min)
  LT Refinancefor 18 months to less than 3 years 8.7(min)
  # Highest safety rating offered by CRISIL as CRISIL AAA for Long Term Debt Instruments or equivalent rating of any of the Rating agencies approved by RBI/SEBI.** Refinance will be allowed on case to case basis
3 NBFC-mFI

NBFC-MFI (mfR1 Grade)

LT Refinance for 5 years and above
10.50(min)

LT Refinance for 3 years to less than 5 years 10.60(min)

LT Refinance for 18 months to less than 3 years
10.7(min)

NBFC-MFI (mfR2 Grade)

LT Refinance for 5 years and aove
10.75(min)

LT Refinance for 3 years to less than 5 years 10.85(min)

LT Refinance for 18 months to less than 3 years
10.95(min)

NBFC-MFI(mfR3 Grade) (N.E / Hilly Region)

LT Refinance for 5 years and above
10.75(min)

LT Refinance for 3years to less than 5 years 10.85(min)

LT Refinance for 18 years to less than 3 years
10.95(min)
 
 
B)  Direct Lending
 
 
  4  Warehouse Infrastructure Fund (WIF)  
 a State Governments Bank rate – 1.50%
 b State Government Corporation (with State Govt. Guarantee) Bank rate – 1.50%
 c Entities promoted by State / Central Government owned/assisted (without State Govt. Guarantee) PLR + risk premium
 d Other entities PLR+risk premium

* Current Bank Rate – 6.25%
# Current Prime Lending Rate (PLR) for WIF loans– 9.00% for Priority States (Eastern, North Eastern and food deficit states) and 9.25% for other states.
@ Risk Premium – Ranges from 0.25%, 0.50% and 0.75% based on the level of project risk
 

 5  Food Processing Fund (FPF)  
 a State Governments Bank rate – 1.50%
 b Entities promoted by State Governments (with Govt. Guarantee) Bank rate – 1.50%
 c &Entities promoted by State Governments(without Govt. Guarantee) PLR + risk premium
 d Other entities PLR+risk premium

* Current Bank Rate – 6.25%
# Current Prime Lending Rate (PLR) for FPF loans– 7.45%
@ Risk Premium – Ranges from 0.10 to 0.30% based on the level of project risk