National Bank for Agriculture and Rural Development (NABARD) offers financing solutions with interest rates starting from 4.5% p.a. They offer short- and long-term refinancing along with direct lending. The tenure of the refinancing can range from 18 months to more than 5 years.
NABARD is a financial institution that was set up by the Indian government to promote sustainable agriculture and rural development in the country. The functions of NABARD include the propagation of technological innovations, financial and non-financial solutions, and institutional development.
The initiatives of NABARD include the constitution of an empowered rural India. The institution has three goal-oriented departments for achieving its motive:
The PMKSY had seven component schemes viz;
- Finance Department
- Developmental Department
- Supervisory Department
Some of the activities undertaken by NABARD for rural development include:
- Provision of refinance support
- Improving rural infrastructure
- Preparation of credit plans at a district level and encouraging banks to achieve these targets
- Supervision of Regional Rural Banks (RRBs) and Cooperative Banks
- Development of sound banking practices within the economically backward sections of India
- Training artisans to develop handicraft activities and offering them help in marketing their produce
- The SHG Bank Linkage Project that was developed by NABARD has become one of the most noteworthy micro finance projects at a global level.
- NABARD has designed the Kisan Credit Card that has benefitted crores of farmers in the country.
- NABARD takes credit for having financed one-fifth of the rural infrastructure of India.
- The institution pioneered watershed development for climate proofing.
This scheme was introduced by Dept. of Animal Husbandry and Dairying with the objective to generate self employment opportunities in dairy sector in the country. This scheme is being implemented through NABARD. Read More
National Livestock Mission (NLM) was introduced by Dept. of Animal Husbandry and Dairying with the objective of sustainable development of livestock sector, focusing on improving availability of quality feed and fodder. NLM has been divided into 4 submissions include all aspects of livestock development into the mission.
The Entrepreneurship Development and Employment Generation component (EDEG) falls under the subcomponent Livestock development of the NLM. The EDEG scheme is being implemented through NABARD. Read More
The Govt. of India has a vision to double farmers’ income by year 2022. In the light of this vision, it entails an urgent need for putting in place better farmer-market linkages. The Govt. proposes to develop the storage facilities which are very crucial in the marketing activity of Agri produce. The scientific warehousing (godowning) in the marketing activity has multipronged role in reducing storages losses of all sort , functioning as market place, promoting pledge financing and also Negotiable Warehouse Receipts (NWRS) resultantly addressing the issue of distress sell and facilitating futures trading. By selling agri. and allied produce in more marketable and processed form by farmers themselves in the market may considerably enhance their income Read More
The Govt. of India has a vision to double farmers’ income by year 2022. In the light of this vision, it entails an urgent need for putting in place better farmer-market linkages. Value addition to the raw agri produce is another way of enhancing the farmer’s income. The scheme supports various infrastructure development projects under this scheme. Read More