1. Covid-19 pandemic has brought an unprecedented sequence of events leading to liquidity stress in financial sector. Proactively, NABARD has taken several measures to reduce disruptions and maintain unhindered flow of credit to financial institutions thereby helping unreached segment of society to meet their credit needs. Further, RBI has made an allocation of Rs.5000 crore to NABARD as Additional Special Liquidity Facility (ASLF) for extending as refinance to smaller NBFCs of asset size less than Rs. 500 crore and Micro-finance Institutions (NBFC-mFIs).
2. The policy guidelines for extending refinance under Addl. SLF to NBFC-mFIs are given in Annexure.
3. The current interest rate for the funds available under ASLF facility is `Repo Rate + 3oo bps' with applicable risk premium. Since, NABARD is extending Additional SLF for a period of 18 months against RBI guidelines of 12 months, the balance outstanding amount will be charged at a rate as applicable to normal refinance lending for the remaining period. Rate of interest is subject to change from time to time by RBI and NABARD.
4. The refinance proposals may be submitted through Regional Offices of NABARD where the Corporate/ Head Office of the NBFC-mFI is located.
5. The Circular is also available on NABARD website www.nabard.org under the tab information Centre.
6. Please acknowledge receipt.