NABARD Schemes for Agriculture

 NABARD Schemes for Agriculture

The National Bank for Agriculture and Rural Development (NABARD) is a development financial institution that provides credit facilities and other support to the agriculture and rural sectors in India. NABARD has launched several schemes to promote agriculture and rural development. Here are some of the schemes offered by NABARD:

1. NABARD Dairy Entrepreneurship Development Scheme (DEDS): This scheme aims to promote entrepreneurship in the dairy sector by providing financial assistance for the establishment of modern dairy farms, procurement of dairy processing equipment, and other related activities.
2. NABARD Rural Infrastructure Development Fund (RIDF): This scheme provides financial assistance for the development of rural infrastructure such as roads, bridges, irrigation projects, and electrification.
3. NABARD Watershed Development Fund (NWDF): This scheme provides financial assistance for the development of watersheds to improve the productivity of land and water resources in rural areas.
4. NABARD Micro Irrigation Fund (NMIF): This scheme provides financial assistance for the installation of micro-irrigation systems to enhance water use efficiency and crop productivity.
5. NABARD Farm Mechanization Promotion Fund (FMFPF): This scheme provides financial assistance for the purchase of farm machinery and equipment to enhance agricultural productivity and reduce drudgery.
6. NABARD Tribal Development Fund (TDF): This scheme provides financial assistance for the socio-economic development of tribal communities by promoting their livelihoods, entrepreneurship, and infrastructure development.
7. NABARD Farmer Producer Organization (FPO) Promotion Fund: This scheme provides financial assistance for the formation and strengthening of Farmer Producer Organizations (FPOs) to improve the bargaining power of farmers and promote collective farming.
8. NABARD Agri Business Development Fund (ABDF): This scheme provides financial assistance for the promotion of agribusiness enterprises such as food processing, marketing, and value addition.

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These are some of the major schemes offered by NABARD to promote agriculture and rural development. Each scheme has its own eligibility criteria, loan amount, repayment period, and interest rate. Interested individuals can visit the official website of NABARD for more information and to apply for the schemes.

NABARD has launched various schemes and initiatives to promote agriculture, rural development, and financial inclusion in the country. Some of the key NABARD schemes are:

• Farmers’ Club Programme: This scheme aims to promote farmers’ collectives and improve their income and livelihoods. The program provides financial assistance, training, and other support to farmers’ clubs for various income-generating activities.
• Rural Infrastructure Development Fund (RIDF): This scheme provides low-cost funds to state governments and rural local bodies for developing rural infrastructure such as irrigation, roads, and warehouses.
• National Livestock Mission (NLM): This scheme aims to promote livestock development and increase the income of small and marginal farmers. The program provides financial assistance, training, and other support for livestock rearing, breeding, and healthcare.
• Watershed Development Fund (WDF): This scheme provides funds for watershed development activities in rainfed areas to improve soil and water conservation, increase agricultural productivity, and enhance rural livelihoods.
• Microfinance Development and Equity Fund (MDEF): This scheme provides equity support to microfinance institutions (MFIs) to enable them to provide affordable credit to the rural poor, especially women.

These are just a few of the many schemes launched by NABARD to support rural and agricultural development in India.

NABARD’s contribution to agriculture:

NABARD is a development finance institution in India that focuses on supporting agriculture and rural development. While NABARD provides financial support and other services to the agriculture sector, the actual growth in the sector depends on various factors such as climate conditions, government policies, and market demand.

Therefore, it is difficult to estimate the exact amount of increase in growth in the agriculture sector through NABARD. However, NABARD has played a significant role in supporting the growth and development of the agriculture sector in India by providing credit facilities, promoting rural entrepreneurship, and supporting agricultural innovations and technologies.

According to NABARD’s annual report for the fiscal year 2020-21, the bank disbursed a total of Rs. 5,30,187 crore ($71.8 billion) for various developmental activities in agriculture and rural development sectors. This included providing credit support for crop production, livestock, fisheries, and rural infrastructure development.

Overall, NABARD has been instrumental in supporting the growth and development of the agriculture sector in India, and its efforts have contributed significantly to improving the livelihoods of farmers and promoting rural development.

NABARD Policy & Conditions:

NABARD provides financial and technical assistance to agriculture and rural development sectors. Here are some of the policies, terms, and conditions related to NABARD:

• Interest rates: The interest rate on NABARD loans varies according to the scheme and the category of the borrower
• Collateral: NABARD loans may require collateral or security in the form of property, stocks, or other assets. The amount of collateral required depends on the amount of the loan and the scheme.
• Eligibility criteria: To be eligible for NABARD loans, the borrower must be a farmer, self-help group, NGO, or rural entrepreneur engaged in agriculture or allied activities
• Loan repayment: The repayment period for NABARD loans may vary from scheme to scheme, but it typically ranges from 3 to 15 years. The repayment is usually done through instalments.
• Credit rating: NABARD may evaluate the creditworthiness of the borrower before approving the loan. The credit rating may be based on the borrower’s past financial record, repayment history, and other factors
• Loan amount: The loan amount may vary according to the scheme, borrower category, and the purpose of the loan. The borrower may be required to contribute a certain percentage of the project cost as a margin.
• Documentation: The borrower must submit certain documents, such as land records, income statements, and project reports, to apply for the loan.
• Loan disbursement: NABARD loans are typically disbursed in stages, depending on the progress of the project. The borrower may need to submit progress reports and receipts to receive the next instalment of the loan.
• Monitoring: NABARD may monitor the progress of the project and the use of funds to ensure that the loan is used for the intended purpose.
• Default: If the borrower fails to repay the loan, NABARD may take legal action to recover the loan amount, including seizing collateral, garnishing wages, or taking legal action.

These are some of the policies, terms, and conditions related to NABARD loans. Borrowers are advised to read the terms and conditions carefully before applying for a loan.

Establishment of NABARD:

NABARD (National Bank for Agriculture and Rural Development) was established on 12 July 1982 by an act of Parliament with the aim of promoting sustainable and equitable agriculture and rural development in India. The establishment of NABARD was based on the recommendations of the Shivaraman Committee, which was constituted in 1979 to review the arrangements for institutional credit for agriculture and rural development

NABARD is headquartered in Mumbai and has regional offices in all the states of India. The bank is owned by the Government of India, with the Reserve Bank of India (RBI) and the Government of India’s Ministry of Finance as its main stakeholders.

NABARD’s primary functions include providing credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts. The bank also works towards the promotion of integrated rural development and provides refinance facilities to lending institutions for rural development.

In addition, NABARD provides technical assistance to various agencies involved in rural development and also carries out research and development activities to support its mandate. The bank also plays an important role in promoting financial inclusion in rural areas by extending banking facilities to the unbanked population.

NABARD has various schemes and programs for rural development and agriculture, including the Rural Infrastructure Development Fund (RIDF), Microfinance Development Fund (MDF), and Watershed Development Fund (WDF), among others. These schemes and programs are aimed at promoting sustainable and equitable rural development in India.

Lesser-known factors of about NABARD:

NABARD is an Indian development finance institution that aims to promote sustainable rural development by providing credit, training, and technical assistance to agriculture and rural sectors.

Here are some lesser-known factors about NABARD schemes:

• Micro-irrigation and Solar Pump Sets: NABARD also provides funding for micro-irrigation and solar pump sets to enhance agricultural productivity and save water. Farmers can avail loans for installation of these systems at subsidized rates.
• Tribal Development Program: NABARD has a Tribal Development Program that aims to provide credit support, skill training, and livelihood opportunities to tribal communities in India.
• Watershed Development Fund: NABARD also has a Watershed Development Fund that supports integrated watershed development programs to improve soil and water conservation, enhance farm productivity, and increase income of rural households
• Farmer Producer Organizations: NABARD has been actively promoting the formation of Farmer Producer Organizations (FPOs) to help small and marginal farmers in India to access credit, markets, and technology. NABARD provides financial assistance for the formation of FPOs and capacity building of its members.
• Rural Infrastructure Development Fund: NABARD has a Rural Infrastructure Development Fund that provides long-term loans to state governments and rural infrastructure agencies for developing rural infrastructure like roads, bridges, irrigation systems, and markets.
• Sustainable Livelihoods: NABARD also focuses on promoting sustainable livelihoods in rural areas by providing credit support for non-farm activities like dairy, poultry, fishery, and agro-processing.
• Microfinance: NABARD also supports the microfinance sector in India by providing refinancing to microfinance institutions (MFIs) that lend to low-income households and micro-enterprises in rural areas.

These are some of the lesser-known factors about NABARD schemes. NABARD has been playing a crucial role in promoting rural development in India and has been instrumental in providing credit and other support to the agriculture and rural sectors in the country.

Features of NABARD:

NABARD, short for National Bank for Agriculture and Rural Development, is a specialized financial institution in India that is dedicated to supporting rural development and agriculture. It was established in 1982 by an act of parliament with the aim of promoting sustainable rural development and to provide credit facilities to farmers, agricultural institutions, and rural industries.

Here are some of the key features of NABARD:

• Rural Development: NABARD’s primary objective is to promote sustainable rural development through various initiatives, such as providing credit for agriculture, rural infrastructure development, and promoting non-farm activities in rural areas.
• Refinance Facility: NABARD provides refinance facility to various financial institutions, such as commercial banks, regional rural banks, state cooperative banks, and microfinance institutions. These institutions, in turn, provide credit to farmers and rural entrepreneurs.
• Priority Sector Lending: NABARD ensures that a certain percentage of the total lending of commercial banks is directed towards the agriculture and rural sector, as per the guidelines issued by the Reserve Bank of India.
• Rural Infrastructure Development: NABARD provides financial assistance for various rural infrastructure projects, such as irrigation, watershed development, rural electrification, and construction of rural roads.
• Promotion of Self-Employment: NABARD promotes self-employment in rural areas by providing credit for setting up small-scale industries, handicrafts, and other rural-based businesses.
• Microfinance: NABARD plays a crucial role in promoting microfinance in rural areas by supporting various microfinance institutions and self-help groups.
• Research and Development: NABARD undertakes research and development activities in the field of agriculture and rural development to promote innovation and sustainable practices.
• Financial Inclusion: NABARD is committed to promoting financial inclusion in rural areas by facilitating the establishment of banking facilities and promoting the use of digital payments.

Overall, NABARD plays a crucial role in promoting rural development in India by providing financial assistance and support to farmers, rural entrepreneurs, and institutions working in the agriculture and rural sector.

Loan facility in NABARD:

NABARD provides various loan facilities to promote agriculture, rural development, and other allied activities. Here are some of the loan facilities offered by NABARD:

• Short-Term Loans: These loans are provided for a period of up to 18 months and are mainly used for crop production and related activities. The interest rate charged on these loans is generally lower than that of other loans.
• Medium-Term Loans: These loans are provided for a period of 5 to 7 years and are used for activities like horticulture, livestock, poultry, fisheries, and other allied activities. The interest rates on these loans are usually higher than short-term loans.
• Long-Term Loans: These loans are provided for a period of 10 to 15 years and are used for activities like land development, farm mechanization, irrigation, and other infrastructure-related activities. The interest rate on these loans is generally higher than that of medium-term loans.
• Microfinance: NABARD also provides microfinance loans to self-help groups, joint liability groups, and other microfinance institutions for income-generating activities in rural areas.
• Rural Infrastructure Development Fund (RIDF): NABARD provides loans to State Governments for developing rural infrastructure like roads, bridges, irrigation, and drinking water supply.
• Warehouse Receipt Finance: This facility enables farmers to get loans against the warehouse receipts issued for their stored crops.
• Dairy Entrepreneurship Development Scheme (DEDS): This scheme aims to promote dairy entrepreneurship in rural areas by providing loans for activities like dairy farming, milk processing, and other allied activities.

To avail of these loan facilities, interested individuals or organizations need to approach NABARD or its authorized lending institutions with their proposals. The eligibility criteria and documentation requirements may vary based on the type of loan facility and the purpose of the loan.

NABARD schemes for farmers:

These schemes aim to provide financial support, technical assistance, and other resources to farmers, enabling them to improve their agricultural practices, increase their income and ultimately improve their standard of living. Here are some examples of NABARD schemes that are helpful to farmers:

• Kisan Credit Card Scheme: This scheme provides farmers with credit for agricultural and other allied activities. The credit can be used for inputs like seeds, fertilizers, pesticides, and machinery, as well as for expenses related to agriculture and allied activities.
• Dairy Entrepreneurship Development Scheme: This scheme provides financial assistance for setting up modern dairy farms, including the purchase of milch animals, construction of sheds, and other infrastructure.
• Micro Irrigation Fund: This scheme provides financial assistance to farmers for the installation of micro-irrigation systems, which can help them conserve water and improve crop productivity.
• Warehouse Infrastructure Fund: This scheme provides loans for the construction of warehouses, cold storage facilities, and other storage infrastructure, which can help farmers store their produce and prevent spoilage.
• Rural Infrastructure Development Fund: This scheme provides loans for the development of rural infrastructure, including roads, bridges, and other facilities, which can help farmers transport their produce to markets and increase their access to resources.

Overall, these and other NABARD schemes are designed to support farmers and help them improve their agricultural practices and increase their income. By providing financial assistance, technical support, and other resources, these schemes can play an important role in strengthening the agricultural sector in India and improving the lives of farmers.

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Banks linked with NABARD:

NABARD (National Bank for Agriculture and Rural Development) is an apex development bank in India that specializes in providing credit and other financial support to agriculture, rural development, and microfinance sectors.

NABARD is linked with several banks in India, including:

1. State Bank of India (SBI)
2. Punjab National Bank (PNB)
3. Bank of India (BOI)
4. Union Bank of India (UBI)
5. Canara Bank
6. Bank of Baroda (BOB)
7. HDFC Bank
8. ICICI Bank
9. Axis Bank
10. Kotak Mahindra Bank

These banks have signed agreements with NABARD for various purposes such as providing loans, implementing rural development schemes, and promoting agriculture and allied activities.

Limitations of NABARD:

NABARD (National Bank for Agriculture and Rural Development) is an apex development financial institution in India that aims to promote sustainable and equitable agriculture and rural prosperity through credit and other support services. While NABARD has played a crucial role in the development of the agriculture and rural sectors in India, it also has several limitations.

Firstly, NABARD’s reach is limited to the organized agricultural and rural credit market, which includes only a small proportion of the rural population. This leaves out a large number of small and marginal farmers who are in need of credit and other support services.

Secondly, NABARD’s lending policies and procedures are often criticized for being bureaucratic and rigid, which makes it difficult for farmers and other rural entrepreneurs to access credit. The collateral requirements and interest rates are often seen as too high, making it difficult for small and marginal farmers to borrow from NABARD.

Thirdly, NABARD’s role is primarily limited to providing credit and other support services, but it does not have much control over the marketing of agricultural produce. As a result, farmers often do not get fair prices for their crops, which reduces their income and makes it difficult for them to repay their loans.

Fourthly, NABARD’s resources are limited, and it has to compete with other development financial institutions and commercial banks for funds. This limits its ability to provide credit and other support services to a larger number of farmers and rural entrepreneurs.

Despite these limitations, NABARD has been instrumental in promoting rural development in India. However, it needs to address these limitations and work towards creating a more inclusive and equitable credit and support system for the rural population.

Conclusion:

NABARD (National Bank for Agriculture and Rural Development) has launched several schemes and programs aimed at promoting sustainable and inclusive rural development in India. Some of its prominent schemes include the Rural Infrastructure Development Fund (RIDF), Micro Irrigation Fund (MIF), and Dairy Entrepreneurship Development Scheme (DEDS).

RIDF provides credit support for rural infrastructure projects such as irrigation, rural roads, and market yards, while MIF aims to promote efficient water use in agriculture through micro-irrigation systems. DEDS, on the other hand, aims to promote entrepreneurship in the dairy sector by providing credit support for setting up dairy units and procurement of milk.

These schemes have played a significant role in promoting rural development in India and have helped in creating livelihood opportunities and improving the socio-economic status of farmers and rural entrepreneurs. NABARD continues to develop new schemes and programs to promote sustainable agriculture and rural development in India.

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