The Hindu Business Line : Nabard makes loans easier for agri entrepreneurs

THE National Bank for Agriculture and Rural Development (Nabard) has liberalised its scheme for Agri Entrepreneurs to establish Agri Clinics and Agri Business Centres.

It has reduced the interest rate on its refinance to 5.5 per cent per annum, irrespective of the size of the loan. The earlier rate of interest on loan exceeding Rs 2 lakh was 6.75 per cent per annum.

Nabard has advised banks to reduce the rate of interest charged by them to the borrowers suitably. It has also asked the financing banks to provide entrepreneurs soft loan assistance for margin money in cases where loan amount exceeds Rs 5 lakh.

In a press release here, it advised banks to capitalise operating expenses for the first six months and include the same in the project cost. The decision to liberalise follows the announcement by the Union Finance Minister to set up at least 10 ACABCs in each district of the country, the release added.

Through the ACABCs, the agriculture graduates are being encouraged to accelerate the process of technology transfer to agriculture, provide supplementary source of input supply and services to farmers by Nabard. In the process, the agri entrepreneurs are getting gainful employment in the emerging areas of the agriculture sector.

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