NABARD slashes refinance rates to promote investment in agriculture
In a bid to encourage investments in agriculture, National Bank for Agriculture and Rural Development (NABARD) has cut the rate of interest by 20 basis points (bps) on their long term refinance facility to banks.
As per NABARD:
- Rates of refinance will now be 9.50% for 5 years and above and 9.70% for 3-5 years period.
- Banks availing more than Rs.500 crore in a single drawl will further be incentivized by 10 bps.
- Efficient agricultural technologies which enhance production & productivity will be provided a further incentive of 50 basis points, a step taken to fight food inflation by addressing the supply side constraint.
- The 50 basis points rebate will also be available for supporting single purpose under area development schemes, primarily to benefit small and marginal farmers.
- This step will help the Cooperative Banks, RRBs and Commercial Banks in stemming the declining trend of investment credit and will help in capital generation in agriculture.