Nabard to set up subsidiary to guarantee agri-loans

Agri-lender Nabard has proposed to set up a subsidiary to provide a guarantee for loans under agriculture and rural development.

To start with, a guarantee will be provided for loans under Animal Husbandry Infrastructure (CGAHI) scheme announced as part of Animal Husbandry Infrastructure and Development Fund (AHIDF), under PM’s ‘Aatmanirbhar Bharat programme’, and for financing Farmer producer organisation (FPOs) as part of central sector scheme for FPOs.

Nabard's loan book rose 20 per cent in September. It disbursed Rs 91,698 crore during the pandemic struck April to September 2020, and is expected to disburse more than Rs.06 lakh crore, in the second half of FY20-21. It disbursed Rs 25,050 crore under the special liquidity facility to Nabard to facilitate liquidity in the agricultural sector amid COVID-19 pandemic. This facility which includes Rs 2,000 crore to NBFC-MFIs, Rs 6,700 crore to RRBs and Rs16, cooperative banks. 350 crore to state co-operative banks.