NRLM Interest Subvention scheme - Refinance Policy for Schematic lending 2018-19
Ref. No. NB.DoR/2540/ PPS-176 /NRLM – Interest Subvention Scheme / 2018-19
Circular No.  08 / DoR - 01 / 2019
07 January 2019
The Managing Director
State Cooperative Banks
Dear Sir,
NRLM Interest Subvention scheme - Refinance Policy for schematic lending 2018-19
Please refer to our letter no. NB.DoR / 194/ PPS-9 / 2018-19  (Cir. No. 76 / DoR - 22 / 2018) dated 11 April 2018 conveying the refinance policy for investment credit for the year 2018-19. It has since been decided that NABARD will provide concessional refinance to State Cooperative Banks against the loans extended by them to all women SHGs in 250 districts identified under NRLM operationalized by the Ministry of Rural Development, GoI (Ref. NABARD, MCID, HO Cir. No. 295/ MCID – 10 / 2018  dated 14 December 2018). The rate of interest on refinance under the scheme will be 4.50% p. a. subject to the condition that the State Cooperative Bank will lend to all women SHGs up to ₹ 3.00 lakh per SHG, at an interest rate of 7.00% p. a. in identified 250 districts.
2. The other parameters as regards eligibility criteria, extent of refinance, automatic refinance facility as also other terms and conditions as communicated to you vide our aforesaid policy circular dated 11 April 2018  remain unchanged.
3. In the event of default in repayment of principal and / or payment of interest, the State Cooperative Banks will be liable to pay to NABARD, penal interest on the amount of default at 10.25% p. a. for the period for which the default persists.
4. Format of drawal application under this scheme is enclosed. The same may be submitted to our concerned Regional Office.
5.  The interest subvention claims under the scheme may be submitted in the prescribed format, on quarterly basis, as per the instructions in vogue.
Yours faithfully
(G.R. Chintala)
Chief General Manager
Encl.:  i] Format of drawal application        
           ii] Annexure to drawal application