Nabard Sends Proposal to Set up Subsidiary to Provide Guaranteed Agri loans

Agri-bank Nabard has recently proposed to set up a subsidiary to provide a guarantee for loans under agribusiness and development related to rural areas.

First and foremost, a guarantee will be given to advances or loans under Animal Husbandry Infrastructure (CGAHI) arrangement reported as a part of the Animal Husbandry Infrastructure and Development Fund (AHIDF), falling under PM's 'Aatmanirbhar Bharat program', and for financing Farmer maker association (FPOs) as a component of fundamental sector scheme for FPOs.

According to reports, the loan book for Nabard has risen 20% in September 2020. It dispensed Rs 91,698 crore during the pandemic i.e. April to September 2020, and relied upon to dispense more than Rs.06 lakh crore, in the second semester of FY20-21. It dispensed Rs 25,050 crore under the special liquidity facility to Nabard to encourage liquidity in the farming area in the midst of COVID-19 pandemic.