welcome

Group Members:

NABARD
National Bank For Agriculture And Rural Development

NABARD was set up in 1981 under NABARD ACT with 2000 crore from RBI.

NABARD has been providing financial assistance to co operative banks and also to the industrial co-operative

and rural members of primary level co-operative

societies.

It has refinance schemes for non farm sector through co-operative bank , commercial bank and regional rural bank.

FARM SECTOR SCHEMES

Village Adoption/Village development Plan

Backward Blocks
Bamboo Farming Bio Fuels

Crop Insurance
Agriculture Commodities

Farm Mechanization

Scheme for Agri Clinic/ Agri -Business Centres

(ACABCs)

SEMFEX

Contract Farming
Farmer's Club

REFINANCE SCHEMES
Through scheduled commercial banks Handloom: term loan refinance to the extent of 100% bank loan. Handicraft: Term loan refinance to the extent of 100% bank loan. Coir: Term loan refinance to the extent of 100% bank loan.

Through regional rural bank 1. Industrial service and business activities: the extent of 100% bank loan. 2. Cottage ,tiny and village industrial units:the extent of 100% bank loan.

Refinance through co-operative bank: 1.Handloom,Coir, a) working capital credit depends upon the nature of activities. b)Investment credit- depends upon the natural of activities the extent of 100% bank loan.

Rural Entrepreneurship Development Programme (REDP)

It is a promotional programmers supported by NABARD for creating sustainable employment and income opportunities in a cost effective manner for the benefit of educated unemployed rural youth.

OBJECTIVE

Developing entrepreneurial and activity-oriented

skills among unemployed rural youths willing to

set up small/ micro-enterprises by assisting

Voluntary Agencies (VA)/ Non- Governmental

Organisations (NGO)/ Development Agencies

(DA)/ RUDSETIs etc. with good track record in

conducting REDPs.

FEATURES AND COVERAGE OF REDP

REDP comprises 3 distinct phases

1 ) Pre-training
Detailed survey for identifying potential business

activities/ market, publicity, awareness creation and

motivational campaign, Coordination with various

agencies - especially banks, Govt. Dept.. Formation

of Selection Committee, Project Monitoring Committee, Selection of trainees etc .

ii)

Training

The duration of the programme is 6-8 weeks. Training module comprises : Achievement motivation, Opportunity identification and guidance, Knowledge on supporting agencies and schemes, Preparation of project reportiles, Management of resources (men, material, money), Marketing aspects, Book-keeping/Accounting. In case of technical/ activity based REDP, inputs on technical aspects/ skill development/appropriate technology will be included. Case-studies on potential activities, field visits, practical work, visit to successful units, etc., to be integral part of training programme.

iii) Post-training

Facilitating credit linkages for setting up units and Escort services to trainees for atleast two years. Eligible Institutions NGOs / Voluntary Agencies / Development Agencies and RUDSETI type institutions. NABARD provides promotional assistance to capable agencies with good track record and professional competence to successfully implement REDP.

Recent Initiatives in REDP With a view to accelerate the process of REDP and to achieve the desired objective at a faster pace, NABARD has initiated the following steps

Institutionalisation of REDP In order to have a focussed direction in the implementation of REDP, NABARD has decided to forge long term collaboration with 3 or 4 selected VAs / NGOs in each State.
Technical REDP With a view to ensure setting up of units as well as their successful management, it has been decided to encourage Technical / activity based REDP. Consequently, select ITIs have also been included as eligible institution for conducting REDP.

Incentive based REDP To ensure continued follow-up/ monitoring and escort services to the trainees, an incentive scheme has been evolved whereby the REDP implementing agencies will be suitably rewarded with cash incentives based on the number of trainees setting up their own units, preferably with bank loan.

SOFT LOAN ASSISTANCE FOR MARGIN MONEY SCHEME

The objective of the scheme is to provide financial assistance to the prospective entrepreneurs who have the requisite talents and traits of entrepreneurship, but lack necessary monetary resources of their own for setting up units/implementing projects under NABARD refinance schemes for non-farm sector, SEMFEX II borrowers and innovative, high tech projects, export oriented units, agro-processing schemes, and agriculture graduates for setting up of Agriclinics and Agribusiness Centres.

Eligibility

The loan assistance towards margin money will be available to the entrepreneurs/promoters comprising individuals, proprietary/partnership concerns, groups of individuals, industrial co-operative societies, government/quasigovernment agencies, promotional agencies, development corporations, registered and charitable institutions and voluntary organizations.

Cont,,,,,,,,
Soft Loan Assistance for Margin Money will not be available for SRWTO schemes (with the exception to SEMFEX II borrowers) and Rural Housing. Mode of Assistance Margin Money assistance will be by way of soft loans to the entrepreneur/ promoter.

Scope of assistance
Margin money assistance shall be available to the deserving entrepreneurs of all categories covered under this scheme under ARF whether or not the financing bank avails refinance from NABARD, subject to the conditions stipulated in the following paragraphs.

Quantum of Assistance
The quantum of assistance will be determined, among other things, on the basis of the gap between the normal level of borrower's contribution (margin) prescribed by RBI and the borrower's own minimum contribution (stake) for the project to be stipulated by the bank and also the other subsidies/incentives/assistance, if any, provided by the Central/State Government(s)/other Agencies..

Cont,,,,,,,,

The margin requirement will be in conformity with the RBI norms under priority sector and the bank may insist that the entrepreneur brings in the stipulated percentage thereof as his own contribution. The amount of assistance shall be equal to 100% of the shortfall in enterpreneur's/ promoter's contribution i.e. the difference between the margin requirement as per RBI norms and the actual contribution made by the entrepreneur upto 20% of the project cost,

TERMS & CONDITIONS

Extent of refinance : Refinance assistance to the financing banks will be provided to the extent of 100% of the margin money loan. Rate of interest /service charge: The refinance assistance provided against the loan for margin money will be, for the present, free of interest. However, the financing bank will be allowed to levy a service charge upto a maximum of 5% p.a (except for Agri-Clinic/AgriBusiness where it is 2% p.a

Cont,,,,,,,,

Simple rate at the discretion of the bank, on the outstanding amount of margin money loan. In the case of borrowers of SEMFEX-II, the banks may waive the service charge at their discretion.

Repayment period

Drawal Margin Money loan will be recovered along with the term loan in suitable instalments.

MICROENTERPRISE DEVELOPMENT PROGRAMME (MEDP) FOR MATURED SHGS

Background : The progression of SHG members to take up micro enterprise involves intensive training and hand holding on various aspects including understanding market, potential mapping and ultimately fine tuning skills and entrepreneurship to manage the enterprise. Hence, a separate, specific and focussed skill building programme Micro Enterprise Development Programme (MEDP) has been formulated.

Cont,,,,,,,,

This involves organizing short duration, location specific programmes on skill upgradation / development for sustainable livelihoods / venturing micro-enterprises by matured SHG members. It is a supplemental effort to upgrade/ develop skill and preliminary business acumen of SHG members in order to enable them to cope up with the issues in relation to run a successful enterprise for income generation/ livelihood.

OBJECTIVES AND COVERAGE :

The broad objectives of MEDP is to : Enhance the capacities of participants through appropriate skill upgradation / development in existing or new livelihood activities in farm or non-farm activities Enrich knowledge of participants on enterprise management, business dynamics and rural markets.

The duration of training programme can vary between 3 to 13 days, depending upon the objective and nature of training. The training may be conducted by agencies that have background and professional competency in the field of microEnterprise Development with an expertise in skill development. A budget has since been revised to Rs.39,000/- for imparting upto 13 days training to 30 participants. Thus the average cost per participant for two weeks will be Rs.1300/- and Rs.100/- per day.

CO-OPERATIVE BANK

Co operative banks in India started functioning almost 100 years ago. The cooperative banks in India plays an important role even today in rural financing. Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

Cont,,,,,,,,

A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banks generally provide their members with a wide range of banking and financial services

TYPE OF CO-OPERATIVE BANKS

Primary Co-operative Credit Society
1.

The primary co-operative credit society is an association of borrowers and non-borrowers residing in a particular locality. The funds of the society are derived from the share capital and deposits of members and loans from central cooperative banks. The borrowing powers of the members as well as of the society are fixed. The loans are given to members for the purchase of cattle, fodder, fertilizers, pesticides, etc.

2. CENTRAL CO-OPERATIVE BANKS

These are the federations of primary credit societies in a district and are of two types- those having a membership of primary societies only and those having a membership of societies as well as individuals. The funds of the bank consist of share capital, deposits, loans and overdrafts from state cooperative banks and joint stocks. These banks provide finance to member societies within the limits of the borrowing capacity of societies. They also conduct all the business of a joint stock bank.

3. STATE CO-OPERATIVE BANKS

The state co-operative bank is a federation of central co-operative bank and acts as a watchdog of the co-operative banking structure in the state. Its funds are obtained from share capital, deposits, loans and overdrafts from the Reserve Bank of India.

The state cooperative banks lend money to central co-operative banks and primary societies and not directly to the farmers.

4. LAND DEVELOPMENT BANKS

The Land development banks are organized in 3 tiers namely; state, central, and primary level and they meet the long term credit requirements of the farmers for developmental purposes.

The state land development banks oversee, the primary land development banks situated in the districts and tehsil areas in the state. They are governed both by the state government and Reserve Bank of India. Recently, the supervision of land development banks has been assumed by National Bank for Agriculture and Rural development (NABARD)

5. URBAN CO-OPERATIVE BANKS

The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary co-operative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centered on communities, localities, work place groups. They essentially lend to small borrowers and businesses.

Co-operative Banks Finance Rural Areas Under:

Farming Cattle milk Hatchery Personal finance

CO-OPERATIVE BANKS FINANCE URBAN AREAS UNDER:

Self-employment Industries Small scale units Home finance Consumer finance Personal finance

CO-OPERATIVE BANK LOAN SCHEEMS

Time Norms for disposal of loan applications: a] Upto Rs. 25,000 : Within 2 weeks b] Over Rs. 25000 & upto Rs. 5 lacs : Within 4 weeks c] Over Rs. 5 lacs : Within 8-9 weeks

No collateral security for advances upto Rs. 5 lacs and for Advances over Rs. 5 lac upto Rs. 25 lakh based on good track record and financial position.

Cont,,,,,,,,

Composite loan upto Rs. 100 lakh is sanctioned to SSI units. Loan quantum : Minimum 20% of projected annual sales turnover (Nayak committee norms) for working capital requirement. Margin Money Requirement(Contribution by the Borrower): 13.00%Loans upto Rs. 25,000/- NIL Loans above Rs. 25,000/- 15% to 25%

THANK YOU