🏦 NABARD Schemes
Complete guide to NABARD schemes — RIDF, LTIF, Rural Housing Fund, FIDF, AIF, SHG-BLP, WIF, MIF, TDF, Agri-Clinics, JLG, Farmers' Club. Exam-ready with key numbers, interest rates, and eligible borrowers.
NABARD Schemes
NABARD (National Bank for Agriculture and Rural Development) operates a wide range of financing schemes and funds covering rural infrastructure, agriculture, housing, fisheries, microfinance, and tribal development. These schemes are a core topic in NABARD Grade A/B and other agricultural banking exams.
| Parameter | Details |
|---|---|
| Established | 12 July 1982 |
| Headquarters | Mumbai |
| Nature | Apex Development Bank |
| Ownership | 100% Government of India |
| Role | Refinance + Direct finance + Development + Supervision |
RIDF — Rural Infrastructure Development Fund
RIDF is NABARD's flagship infrastructure financing scheme, created to utilize Priority Sector Lending (PSL) shortfall funds of commercial banks.
| Parameter | Details |
|---|---|
| Full Name | Rural Infrastructure Development Fund |
| Launched | 1995–96 (Union Budget) |
| Current Tranche | RIDF XXIX (29th tranche, 2023–24) |
| Cumulative Allocation | ₹4,98,411 crore (as of RIDF XXIX) |
| Annual Allocation (2023–24) | ₹40,475 crore |
| Interest Rate | Bank Rate-linked (since 1 April 2012) |
| Repayment | 7 years including 2-year grace period |
| Loan Coverage | 80–95% of project cost |
Eligible Borrowers (RIDF)
- State Governments and Union Territories
- State-owned corporations and undertakings
- Panchayat Raj Institutions (PRIs)
- State Government-sponsored organisations
Eligible Activities (3 Categories)
| Category | Examples |
|---|---|
| Agriculture & Related | Soil conservation, irrigation, watershed, agri markets |
| Social Sector | Rural drinking water, schools, rural health, sanitation |
| Rural Connectivity | Rural roads, bridges, inland waterways |
Exam Tip: RIDF was created from PSL shortfalls — banks failing PSL targets deposit the shortfall into NABARD's RIDF. A new tranche is announced every Union Budget. RIDF XXIX = 2023–24.
LTIF — Long Term Irrigation Fund
LTIF fast-tracks the completion of stalled Medium and Major Irrigation projects across India.
| Parameter | Details |
|---|---|
| Full Name | Long Term Irrigation Fund |
| Launched | Union Budget 2016–17 |
| Cumulative Sanctioned | ₹85,790 crore (Central + State share) |
| Projects Covered | 99 original + 4 special = 103 projects across 18+ states |
| Eligible Borrowers | State Governments; NWDA (Central share till 2020–21) |
4 Special Projects Added
- Polavaram (Andhra Pradesh) — largest single allocation (~₹11,217 crore)
- North Koel (Bihar & Jharkhand)
- Relining of Sirhind & Rajasthan Feeders (Punjab)
- Shahpur Kandi Dam (Punjab)
Exam Tip: From 2021–22, Central share comes from GoI budget directly — LTIF now covers only State share.
Rural Housing Fund (RHF)
RHF supplements resources of Housing Finance Companies to extend housing credit to rural EWS and LIG households.
| Parameter | Details |
|---|---|
| Full Name | Rural Housing Fund |
| Launched | 2008–09 (Union Budget) |
| Corpus | ₹2,000 crore (initial) → ₹6,000 crore (by 2015–16) |
| Loan to EWS | Up to ₹5 lakh |
| Loan to LIG | Up to ₹10 lakh |
| Interest Rate | Concessional (Bank Rate-linked) |
Eligible Intermediaries: HFCs, RRBs, Primary Co-operative Societies, StCBs
Exam Tip: RHF ≠ PMAY-G. RHF is a NABARD fund providing credit via HFCs/banks. PMAY-G (2016) is a subsidy/grant scheme channeled via NRIDA for house construction.
FIDF — Fisheries and Aquaculture Infrastructure Development Fund
FIDF develops fisheries infrastructure to boost fish production and double fishermen's incomes.
| Parameter | Details |
|---|---|
| Full Name | Fisheries and Aquaculture Infrastructure Development Fund |
| Launched | Budget 2018–19; operationalized 2019 |
| Total Corpus | ₹7,522.48 crore |
| Interest Rate | 5% p.a. (3% subvention by GoI) |
| Loan Tenure | Up to 12 years (including 2-year moratorium) |
| Nodal Ministry | Ministry of Fisheries, Animal Husbandry & Dairying |
FIDF — Tri-Agency Funding Model
| Agency | Contribution |
|---|---|
| NABARD | ₹5,266.40 crore |
| NCDC (National Cooperative Dev. Corp.) | ₹1,316.09 crore |
| Scheduled Commercial Banks | ₹939.99 crore |
Eligible Entities: State Govts/UTs, State Fisheries Development Boards, NFDB, Co-operatives, FPOs, individual entrepreneurs.
Exam Tip: FIDF ≠ PMMSY (2020). FIDF uses tri-agency model: NABARD + NCDC + SCBs. GoI interest subvention = 3%, making effective rate = 5%.
AIF — Agriculture Infrastructure Fund
AIF provides medium- and long-term debt for post-harvest management infrastructure at farm-gate level.
| Parameter | Details |
|---|---|
| Full Name | Agriculture Infrastructure Fund |
| Launched | 15 May 2020 (Aatmanirbhar Bharat) |
| Corpus | ₹1 lakh crore |
| Scheme Duration | FY 2020–21 to FY 2032 |
| Interest Subvention | 3% p.a. on loans up to ₹2 crore |
| Credit Guarantee | CGTMSE for loans up to ₹2 crore |
| NABARD Role | Refinance to RRBs and Co-operative Banks (7-year tenor) |
| Implementing Ministry | DAC&FW (Agriculture Ministry) |
Eligible Borrowers: PACS, FPOs, SHGs, JLGs, farmers, agri-entrepreneurs, start-ups, multipurpose co-operative societies, PPP projects.
Exam Tip: AIF is a GoI Central Sector Scheme — NABARD is the refinancing arm, not primary implementing agency. Interest subvention applies only to loans ≤ ₹2 crore.
SHG-BLP — Self Help Group – Bank Linkage Programme
SHG-BLP is the world's largest microfinance programme, linking SHGs to formal banking for rural financial inclusion.
| Parameter | Details |
|---|---|
| Full Name | Self Help Group – Bank Linkage Programme |
| Pilot Launch | 1992–93 (500 SHGs pilot); mainstreamed from 1996 |
| Scale | 16.19 crore households covered |
| Women SHGs | 80%+ of all SHGs are exclusively women's groups |
| NABARD Support | 100% refinance to banks for SHG lending |
SHG Panchsutras (5 Principles)
- Regular group meetings
- Regular savings
- Internal lending on demand
- Timely repayment
- Proper books of accounts
SHG Promoting Institutions (SHPIs): NGOs, RRBs, DCCBs, PACS, Farmers' Clubs, SHG Federations, Individual Rural Volunteers (IRVs).
Exam Tip: Pilot started 1992–93 with 500 SHGs. Panchsutras are frequently asked in exams. MoU with DAY-NRLM for synergy. 80%+ women-only groups.
TDF — Tribal Development Fund
TDF supports tribal communities via the Wadi (orchard) model — a natural resource-based livelihood approach.
| Parameter | Details |
|---|---|
| Full Name | Tribal Development Fund |
| Established | 2003–04 from NABARD's own profits |
| Initial Corpus | ₹50 crore seed corpus |
| Model | "Wadi" — small orchards + subsidiary activities (poultry, vegetables) |
| Partners | State Govts, GoI ministries, NGOs, corporates |
Wadi = tribal orchard. Tribal households receive fruit orchards + subsidiary livelihood support for sustained income through Natural Resource Management (NRM).
Exam Tip: TDF is part of NABARD's NRM portfolio alongside Watershed Development Fund (WDF) and Farm Sector Promotion Fund (FSPF). Corpus comes from NABARD's own profits, not government grants.
WIF — Warehouse Infrastructure Fund
WIF funds construction of warehouses, silos, cold chains, and agricultural storage infrastructure.
| Parameter | Details |
|---|---|
| Full Name | Warehouse Infrastructure Fund |
| Launched | 2013–14 and 2014–15 (Union Budget — both years) |
| Total Corpus | ₹10,000 crore (₹5,000 crore each year) |
| Min. Capacity | 5,000 MT aggregate (no minimum for Govt. entities) |
Eligible Structures: Warehouses, silos, cold storages, CA stores, pack houses, reefer vans, bulk coolers, IQF units, APMC market infrastructure modernisation.
Eligible Entities: State/Central Govts, co-operatives, FPOs, PACS, corporates, APMCs, SPVs under PPP.
MIF — Micro Irrigation Fund
MIF helps States expand drip and sprinkler irrigation beyond PMKSY-PDMC (per-drop-more-crop) provisions.
| Parameter | Details |
|---|---|
| Full Name | Micro Irrigation Fund |
| Operationalized | 2019–20 |
| Total Corpus | ₹10,000 crore (₹5,000 cr initial + ₹5,000 cr added Oct 2024) |
| Interest Subvention | 3% (initial); revised to 2% (from Oct 2024 augmentation) |
| Eligible Borrowers | State Governments only |
| Nodal Ministry | Ministry of Agriculture & Farmers' Welfare |
| Coverage Achieved | 23.21 lakh ha (envisaged: 24.84 lakh ha) |
DEDS — Dairy Entrepreneurship Development Scheme
⚠️ DISCONTINUED from 2020–21 (GoI letter 27.08.2020). Replaced by National Livestock Mission (NLM).
| Parameter | Details |
|---|---|
| Full Name | Dairy Entrepreneurship Development Scheme |
| Launched | 2005–06; restructured 2010 |
| Subsidy — General | 25% of project cost (back-ended) |
| Subsidy — SC/ST / Hilly | 33.33% of project cost (back-ended) |
| Implementing Agency | NABARD (channeled through financing banks) |
Back-ended subsidy = released after satisfactory performance, not upfront. Covered 20 components: small dairy farms, calf rearing, dairy processing, vermicomposting, etc.
Agri-Clinics & Agro Business Centres
| Parameter | Details |
|---|---|
| Eligible | Agriculture graduates (diploma holders with 50%+ also eligible) |
| Max Members | 5 (joint venture) |
| Project Cost — Individual | ₹20 lakh (up to ₹25 lakh in highly successful cases) |
| Project Cost — JV (5 persons) | ₹100 lakh (₹20 lakh per person) |
| Margin | Nil up to ₹5 lakh; 25% above ₹5 lakh |
| Collateral | Nil up to ₹5 lakh |
| Composite Subsidy | 36% of project cost (44% for SC/ST, Women, NE States) |
| Repayment | 5–10 years + up to 2 years moratorium |
| NABARD Refinance | 100% |
Farmers' Club
NABARD-promoted rural groups that disseminate technology, credit literacy, and market information.
| Support Item | Amount |
|---|---|
| NABARD financial support (Years 1–3) | ₹10,000 p.a. (50% advance + 50% reimbursement) |
| Formation / maintenance | ₹2,000 |
| Awareness / orientation | ₹5,000 |
| Meet with experts | ₹3,000 |
| If exceeds ₹10,000 (Yrs 1–3) | Banks contribute up to ₹5,000 additional |
| Bank contribution (Years 4–5) | ₹10,000 p.a. |
| Minimum members | 10 (no upper limit) |
Financing through Joint Liability Groups (JLGs)
| Parameter | Details |
|---|---|
| Group Size | 4 to 10 small/marginal/landless farmers |
| Objective | Loans for farm, non-farm, off-farm activity on group guarantee |
| Model A | Loan to each member individually |
| Model B | Loan to the group as a whole |
| NABARD Refinance | 100% |
| Incentive for Promoting JLG | ₹2,000 from NABARD (paid in 3 instalments) |
NABARD's Refinancing Role
NABARD is the apex refinancer for rural and agricultural credit.
Short-Term Refinance
| Parameter | Details |
|---|---|
| Eligible Institutions | State Co-operative Banks (StCBs), RRBs |
| Purpose | Seasonal Agricultural Operations (SAO) — crop loans |
| Repayment | Within 12 months per withdrawal |
| Calamity Conversion | MT conversion if crop loss ≥ 33%; NABARD funds 60% (StCBs) / 70% (RRBs) |
Long-Term Refinance
Eligible institutions: SCARDBs, RRBs, StCBs, DCCBs, Commercial Banks, NBFCs, Small Finance Banks.
Special windows: AIF refinance (7-year tenor), WASH refinance (water/sanitation), FIDF refinance.
Master Comparison Table — NABARD Schemes
| Scheme | Year | Corpus | Rate / Subsidy | Eligible Borrowers |
|---|---|---|---|---|
| RIDF XXIX | 1995–96 | ₹4,98,411 cr (cumulative) | Bank Rate-linked | State Govts, PRIs, State corps |
| LTIF | 2016–17 | ₹85,790 cr (sanctioned) | Market-linked | State Govts (State share only from 2021) |
| Rural Housing Fund | 2008–09 | ₹6,000 cr | Concessional | HFCs, RRBs, Co-op societies |
| FIDF | 2018–19 | ₹7,522 cr | 5% (3% subvention) | State Govts, Boards, Co-ops, FPOs |
| AIF | 2020–21 | ₹1,00,000 cr | 3% subvention (≤₹2 cr) | PACS, FPOs, SHGs, farmers, start-ups |
| SHG-BLP | 1992–93 | 16.19 cr households | 100% refinance | SHGs (80%+ women) |
| TDF | 2003–04 | ₹50 cr seed | Grant-based | Tribal communities (Wadi model) |
| WIF | 2013–14 | ₹10,000 cr | Market-linked | Govts, Co-ops, FPOs, Pvt corps |
| MIF | 2019–20 | ₹10,000 cr | 2–3% subvention | State Governments |
| DEDS (closed) | 2005–06 | — | 25% / 33.33% subsidy | Farmers, entrepreneurs, co-ops |
| Agri-Clinics | Ongoing | — | 36% / 44% subsidy | Agri graduates |
| JLG | Ongoing | — | 100% refinance | Groups of 4–10 farmers |
| Farmers' Club | Ongoing | ₹10,000 p.a. | Grant support | Rural groups (min 10 members) |
Quick-Fire Exam Facts
- RIDF born from PSL shortfall funds — each year = one new tranche; RIDF XXIX = 2023–24
- LTIF original: 99 projects, 18 states + 4 special = 103 projects total
- FIDF: tri-agency model — NABARD + NCDC + SCBs; corpus ₹7,522 crore; rate 5% (3% subvention)
- SHG-BLP pilot: 1992–93, 500 SHGs — now world's largest microfinance programme (16.19 cr HHs)
- SHG Panchsutras = 5 operating principles — frequently asked
- TDF Wadi model = tribal orchard funded from NABARD's own profits (seed corpus ₹50 crore, 2003–04)
- DEDS closed 2020–21, replaced by NLM
- AIF = ₹1 lakh crore, 3% subvention on loans ≤ ₹2 crore; NABARD refinances RRBs/co-op banks
- MIF corpus doubled Oct 2024: ₹5,000 cr → ₹10,000 cr; subvention reduced 3% → 2%
- Agri-Clinics subsidy: 36% general / 44% SC/ST/Women/NE
- JLG incentive to promoter: ₹2,000 in 3 instalments
- Farmers' Club NABARD support: ₹10,000 p.a. for first 3 years
Lesson Doubts
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