Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM)- Refinance Policy for schematic lending 2019-20
1.  Please refer to our letter No. NB. DoR/3204/PPS-9/2018-19 (77/DoR -23/2019) dated 25 March 2019 conveying the refinance policy for investment credit for the year 2019-20. 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. 317/ MCID - 06/ 2019 dated 12 December 2019). 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 eligibility criteria, extent of refinance, automatic refinance facility as also other terms and conditions as communicated vide our aforesaid policy circular dated 25 March 2019   remain unchanged.
3.   Repayment of the refinance along with interest thereon may be made as per the repayment schedule indicated in the sanction letter. 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
(Jiji Mammen)