NABARD Model Bankable Projects (MBP) — Complete Course
Comprehensive notes on all NABARD Model Bankable Projects (MBPs) — dairy, goat, poultry, fisheries, food processing, forestry, FPO financing, plantation & horticulture, and more. Covers TFO, IRR, DSCR, margin money, and all techno-economic parameters tested in IBPS AFO, NABARD Grade A/B, JRF, Pre-PG, and state PSC agriculture exams.
Frequently Asked Questions
What are NABARD Model Bankable Projects (MBPs)?
NABARD Model Bankable Projects are standardised techno-economic blueprints published by the National Bank for Agriculture and Rural Development (NABARD) to help banks appraise and finance agricultural investments. Each MBP specifies the Total Financial Outlay (TFO), margin money, repayment period, IRR, BCR, and DSCR — all the parameters a bank needs to sanction a loan.
What is DSCR in NABARD bankable projects?
DSCR (Debt Service Coverage Ratio) measures a project's ability to repay its loan from its own income. NABARD requires a minimum DSCR of 1.75 for a project to be considered bankable. A DSCR of 1.75 means the project generates ₹1.75 for every ₹1 of loan repayment due in that year.
What is margin money in NABARD MBP?
Margin money is the borrower's own contribution to a project — the share of Total Financial Outlay (TFO) that the bank does not finance. For most NABARD MBPs the margin money is 25% (e.g., dairy). It is only 10% for goat and sheep farming. Uniquely, hydroponics fodder units have 0% margin money — the entire cost is bank-financed.
Which NABARD MBP has the highest IRR?
Among the major NABARD Model Bankable Projects, the Moringa cultivation model has the highest IRR at approximately 127%, followed by AMCU (Automatic Milk Collection Unit) at ~82% and goat farming at 44.54%. High IRR indicates fast payback and strong profitability relative to project cost.
Which exams ask questions from NABARD Model Bankable Projects?
NABARD Model Bankable Projects are tested in IBPS AFO (Agricultural Finance Officer — Section B), NABARD Grade A and Grade B (Agricultural Economics paper), ICAR JRF/SRF (Agricultural Economics discipline), Pre-PG entrance exams (IARI, BHU, ANGRAU, TNAU), and state PSC Agriculture Officer exams across India.
What is the difference between IRR and BCR in NABARD MBPs?
IRR (Internal Rate of Return) is the discount rate at which a project breaks even on NPV — it measures profitability over the project life. BCR (Benefit-Cost Ratio) compares total discounted benefits to total discounted costs; a BCR > 1 means the project is viable. Both are calculated at 15% discount rate in NABARD models. DSCR, by contrast, is an annual measure of loan repayment capacity.
How many NABARD Model Bankable Project categories are covered in this course?
This course covers all 11 major NABARD MBP categories: Animal Husbandry (12 models), Fisheries (12 models), Plantation & Horticulture (11 models), FPO Financing (5 models), Forestry (4 models), Food Processing (3 models), Farm Mechanization (3 models), Other Agriculture (3 models), Biotechnology (1 model), Post Harvest Storage (1 model), and Basics — totalling 56 lessons plus 3 practice tests (75 MCQs).