The National Bank for Agriculture and Rural Development (NABARD) on October 03, 2024, issued Operational Guidelines for LT Refinance-floating rate for F.Y 2024-25 – Small Finance Banks.
NABARD's Long-Term Refinance Scheme offers market-driven flexible interest rates based on the 3-month T-Bill benchmark rate, which is reset every 90 days. The spread, fixed at loan sanction, may change if RBI adjusts provisions or risk weightage. Interest and principal repayments are quarterly, with prepayment before one year incurring charges of 2.5% plus taxes. Interest payment due dates are based on the disbursement date, either the first day of the next quarter or three months later. Existing terms of the Operational Guidelines for Schematic Lending remain unchanged. Structured repayment schedules are not permitted.
[Notification No. 205/ DoR -42 / 2024]
