The National Bank for Agriculture and Rural Development (NABARD) on September 25, 2024, issued a circular regarding the Long-term refinance for investment credit for agriculture - Long Term Rural Credit Fund 2024-25 (LTRCF) – Regional Rural Banks (RRBs).
The interest rate on refinance from NABARD will be 5.50% p.a. (with quarterly rests), subject to revision by NABARD from time to time. RRBs are encouraged to pass on the benefit of low-cost funds to the ultimate borrower. The bank needs to use the concessional funds under LTRCF for creating assets under Agriculture for eligible purposes.
It must be ensured that 25% of the corpus of the fund is utilised in identified districts where the credit flow is comparatively low (list of districts enclosed).
[Circular No. 185 / DoR - 34 / 2024]
