The National Bank for Agriculture and Rural Development (NABARD) on Thursday announced a refinance scheme which will offer incentives to banks for giving loans for setting up warehouses for agricultural commodities.
Ahmedabad: The National Bank for Agriculture and Rural Development (NABARD) on Thursday announced a refinance scheme which will offer incentives to banks for giving loans for setting up warehouses for agricultural commodities.
"Under the scheme, NABARD will extend financial assistance by way of refinance to banks against the loans disbursed by them for construction of warehouse infrastructure for the agricultural commodities," NABARD Ahmedabad CGM H R Dave said here.
"NABARD will charge interest of 8 percent per annum, while interest rate on loans to the borrowers would be decided by the banks. We will also extend an interest rebate of 1.5 percent to borrowers who repay loans on schedule," he said speaking at a gathering of bankers here.
The scheme has been conceptualised out of Rs 2,000 crore dedicated fund in the Budget 2011-12. Authorities hope it will help create 9 million tonnes of additional storage capacity for the agricultural produce.
The scheme is open to all kinds of banks.
As per the recently announced central scheme, all Kisan Credit Card holding farmers can now avail loans at 7 per cent interest rate for maximum six months for storage of produce post-harvest.
Dave stressed the need for good warehouses to meet the requirements of the growing agriculture sector. He put a special emphasis on the need to encourage accredited warehouses -- as stipulated by the Warehousing Development Regulatory Authority (WDRA) -- so as to make farmers eligible for benefits of the loan scheme.