National bank for agriculture and rural development.
it is an apex development bank with a mandate for providing credit flow for promotion and development of agriculture, small scale industries and all other allied economic activities in rural area.
inn simple words- NABARD is the mother and father of all agriculture and development activities in the rural area.....
main function is to provide refinance to lending institutions in rural area.
now what this REFINANCE means?
it means NABARD does not provide loans directly to the individual and business. loans needed by individual and business for agriculture and rural development projects is provided by commercial banks, rrb, co operative banks, nbfc working in rural area.
NABARD in turns sanction some percentage of the total loan ( 50% to 95%).
other function of nabard
it is an apex development bank with a mandate for providing credit flow for promotion and development of agriculture, small scale industries and all other allied economic activities in rural area.
inn simple words- NABARD is the mother and father of all agriculture and development activities in the rural area.....
main function is to provide refinance to lending institutions in rural area.
now what this REFINANCE means?
it means NABARD does not provide loans directly to the individual and business. loans needed by individual and business for agriculture and rural development projects is provided by commercial banks, rrb, co operative banks, nbfc working in rural area.
NABARD in turns sanction some percentage of the total loan ( 50% to 95%).
| Criteria for refinance | |||||||||||||||||||||
| 1. | Technical feasibility of the project and adequate response from prospective beneficiaries | ||||||||||||||||||||
| 2. | Financial viability and adequate incremental income to ultimate borrower to repay the loan within a reasonable period | ||||||||||||||||||||
| 3. | Organisational capability to ensure close supervision. | ||||||||||||||||||||
other function of nabard
| Prepares, on annual basis, rural credit plans for all the districts in the country. These plans form the base for annual credit plans of all rural financial institutions | ||
| • | Undertakes monitoring and evaluation of projects refinanced by it | |
| • | Promotes research in the fields of rural banking, agriculture and rural development | |
| • | Functions as a regulatory authority, supervising, monitoring and guiding cooperative banks and regional rural banks for article archives click here | |
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