Please refer to our Circular No. 189/DoR-50/2019-20 dated 21 June 2019 read with Circular No.76/DoR-26/2014 dated 23 April 2014 communicating NABARD’s policy for F. Y. 2019-20 for provision of short-term credit limits to State Cooperative Banks/Central Cooperative Banks for financing working capital requirements of State Handloom Development Corporations under Sec 21(1) of NABARD Act, 1981. It has been decided to continue broadly with the same policy for the year 2020-21. The eligibility criteria pertaining to this policy for the current financial year is furnished in Annexure.
2. Interest rate on NABARD's refinance under this line of credit is at present 5.55% p.a., payable at quarterly rests on the first day of each quarter i.e. on 01 July, 01 October, 01 January and 01 April every year, or on repayment of the entire principal amount. It is, however, subject to revision by NABARD from time to time. The parameters, terms and conditions and quantum of refinance as indicated in our Circular No.76/DoR-26/2014 dated 23 April 2014 may also undergo changes accordingly.
3. Kindly acknowledge receipt of the same.