Refinance Scheme for setting up of Agriclinics/ Agribusiness Centres by Agriculture Graduates - Broad Guidelines and Terms and Conditions

(1) Objectives:-

(2) Concept/Definition:-

Agriclinics: Agriclinics are envisaged to provide expert serives and advice to farmers on cropping practices, technology dissemination, crop protection from pets & diseases, market trends and prices of various crops in the markets and also clinical services for animals health etc. which would enhance productivity of crops / animals.


Agribusiness Centres: Agribusiness Centres are envisaged to provide input supply, farm equipments on hire and other serives.

In order to enhace vianility of the ventures, Agriculture Graduates may also take up in agriculture and allied areas alongwith the Agriclinics / Agribusiness Centres.

(3) Eligibility:-

The Scheme is open to Agriculture Graduates/Graduates in subjects allied to agriculture like horticulture, animal husbandry, forestry, diary, veterninary, poultry, farming, pisciculture and other allied activities.

(4) Project activities:-

An illustrative list is given in the Appendix

(5) Project cost & coverage:-

The project may be taken up by Agriculture Graduates either individually or on joint/group basis. The outer ceiling for the cost of project by individual would be Rs.10 lakhs and for the project by group would be Rs.50 lakhs. The Group may experience in business development and management. However, for availing of refinance under ARF, the outer limit of the project cost would be Rs.25 lakhs subjected to ceiling of Rs.15 lakhs towards refinance availment. Project with outlay above Rs.25 lakhs may be submitted to NABARD for prior sanction.

(6) Margin Money (Down Payment):

As per the RBI norms.

(7) Rate of interest:-

To be decided by banks as per the RBI guidenlines.

(8) Security:-

As per the RBI norms.

(9)     Repayment:-

The period of loan will vary between 5 years to 10 years depending on the activity. The repayment period may include a grace period (to be decided by the financing bank as per the individual scheme) of a maximum of 2 years.

(10)    Selection of borrowers:-

The selection of borrowers and location of the projects may be done by the banks in consuluation with Agricultural University / KVKs etc in their area of operations, if necessary.

(11) Terms and conditions of refinance by NABARD:-

(a) Quantum of refinance: 100% of the bank loan.

(b) Rate of interest on refinance: As decided by NABARD from time to time. The present rates per annum are:

Size of limit




Upto Rs.25,000 8.5% 7.5% 7.0%
Over Rs.25000 and upto Rs.2 lakh 9.5% 9.00% 9.00%
Over Rs.2 lakh 10.5% 10.5% 10.5%


(c) Margin Money assistance from ' Soft Loan Assistance Fund' of NABARD: A maximum of 50% of the margin prescribed by banks, to meet the shortfall in borrower's contribution, if any, where the bank is satisfied that the prospective borrowers in unable to meet the margin money requirements, could be given by NABARD. Such assistance/ loans to banks will be without any interest but the banks may charge a service charge of 3% p.a. from the beneficiary.

(d) Eligibility norms: Eligibility of draw refinance by banks will be determined as per instructions issued by NABARD from time to time.

(e) Mode of refinance: Refinance will be extended under Automatic Refinance Facility (ARF) as well as schemes with prior sanction depending upon the project outlay and amount of refinance.

12. General:-

All other terms and conditions, banking procedure and lending norms as are normally applicable to project lending and schematic refinance mutatis mutandis will also be applicable to financing of agriclinics and agribusiness centres.



Financing of Agriclinics and Agribusiness Centres- List of Ventures

Any combination of two or more of the above viable activities alongwith any other economically viable activity selected by the Graduates, which is acceptable to the Bank.