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1. What are the different types of loan products?Working Capital LoanTerm LoanPledge Loan2. What are the eligible activities? Working capital loan requirement for procurement and sale of agricultural inputs and procurement of produce for collective marketing, value addition and processing· Term loan for creation of common infrastructurePledge loans against Electronic Warehouse receipt (eNWR) · Any other business activity which is helping the PO and its members to generate income3. What will be the loan quantum available? "Up to 85% of the working capital requirement or total project cost, within a maximum limit of 5-10 times the company's net worth, based on the assigned credit rating."Minimum 15% margin for all categories 4. What are the fees and charges?· Processing Fee: A processing fee of minimum 1.00% plus applicable taxes and a maximum of 1.50% plus applicable taxes will be charged as detailed in the policy.· In case of repeat clients, lower processing fees shall be applicable· CG fees as applicable 5. Who are the eligible institutions? · Producer Organizations, in farm and off-farm sector, registered under any statute of law· Any other registered organization or Legal entities of similar kind 6. What are the eligible criteria? · The PO should have been incorporated at least for six months prior to submission of loan application· At least one audited balance sheet as on the date of application· A minimum subscribed share capital of Rs.2 lakh· Not have been in default to any organization including other banks/FIs· Comply with legal requirements such as necessary licenses, TIN/ GST number etc.· A regular CEO in place· A well laid out business plan at least for the next one year· The PO should fall into the A+, A,B,B+,C+ Category of POs based on NABKISAN rating tool7. What is the interest rate charged?· Competitive interest rate· Transparent pricing (No Hidden fees)· Based on diminishing balance to reduce burden on FPOs 8. What is the repayment period?· Maximum Repayment period is 7 years for term loans including moratorium period, if any· Up to 18 months for working capital loans including moratorium period, if any
1. Which are the eligible entities for funding under startups? Corporates which work in commercial / income generating activities in agriculture, agri allied and off farm sector helping to improve the income of Producer Organisations, farmers, and people staying in rural areas. 2. What are the prerequisites for applying for the loan? Entity should mandatorily hold DPITT certificate, ROC certificate and audited financials for previous year. 3. What is the minimum project size for funding? There is currently no threshold for minimum project size. Each proposal will be considered on the merit. 4. Do the entity need to bring in any margin in order to get the funding support from NABKISAN? Depending upon the proposal risk and comfort and to ensure Promoter’s skin in the game, the entity will be asked to get in the Promoter’s margin. However such margin shall not be less than 15% of the sanctioned amount. 5. How is the interest rate determined? The interest rate is determined in accordance with the extant policy of NABKISAN Finance Limited. 6. How is the collateral security determined? Depending upon the proposal risk and comfort, the collateral security shall be assessed by the sanctioning authority in accordance with the policy of NABKISAN which can be brought in the form of Cash or immovable property, however charge on the current assets and PG of the Promoters is mandatory. 7. Once the loan is sanctioned, what is the structure of repayment of Interest as well as Principal? Interest is mandatory to be serviced on monthly basis. In case of WC loan, a bullet repayment of the Principal amount is required to be made at the end of the tenure, however the structure of repayment is evaluated on case to case basis for Term loans.
1. What is onward lending? Onward lending refers to the practice where NBFCs borrows funds from banks, financial institutions, other NBFCs and subsequently lends these funds to end customers for undertaking income-generating activities. This model enables financial inclusion by facilitating access to capital for underserved segments, thereby supporting entrepreneurship and livelihood enhancement at the grassroots level. 2. Who can avail onward lending from your NBFC? NABKISAN extends financial assistance to NBFCs engaged in onward lending across a diverse range of socially impactful sectors, including agriculture and allied activities, micro, small and medium enterprises (MSMEs), rural housing and sanitation, renewable energy, vehicle financing, educational infrastructure, and other areas that contribute meaningfully to inclusive development and income generation at the grassroots level. 3. What is the eligibility criteria for clients? Eligibility for NBFCs seeking financial assistance for onward lending typically requires valid regulatory registration as a Non-Banking Financial Company (NBFC), a consistent record of accomplishment of operations and financial performance, a strong repayment history with demonstrated credit discipline, and full compliance with RBI regulations and KYC norms. 4. What are the loan products offered under onward lending? We offer financial assistance to NBFCs in the form of Term Loans and Working Capital Loans, tailored to support their onward lending activities and enhance credit flow to end customers engaged in income-generating enterprises 5. What is the minimum project size for funding? There is currently no threshold for minimum project size. Each proposal will be considered on the merit. 6. What is the typical loan tenure? The loan tenure may vary from 12 months to 60 months, depending on the NBFC’s client profile, creditworthiness, and the nature of the facility availed. 7. What are the interest rates and charges? The interest rate is determined in accordance with the extant policy of NABKISAN Finance Limited. 8. What kind of security/collateral is required? Collateral requirements shall be determined based on the specific case profile of the NBFC and the terms and conditions approved by the sanctioning authority of NABKISAN. Acceptable forms of security may include assignment of receivables, corporate or personal guarantees, or any other security deemed appropriate and mutually agreed upon as per the sanction terms. 9. Once the loan is sanctioned, what is the structure of repayment of Interest as well as Principle? Upon sanction, interest is payable on a monthly basis throughout the loan tenure. The repayment period for the principal can extend up to a maximum of 60 months (5 years), regardless of the repayment structure at the ground level which can be monthly/quarterly as approved by the sanctioning authority. Additionally, based on the NBFC’s request and subject to the discretion of the sanctioning authority, a moratorium on principal repayment may be considered on a case-by-case basis. 10. What documents are required to apply? Typical documentation required from NBFCs includes the Certificate of Incorporation/Registration, RBI license or approval (where applicable), audited financial statements for the last 2–3 financial years, KYC documents of the company and its promoters, and a duly filled loan application form along with a detailed business plan outlining the proposed use of funds and expected impact.
1. What is onward lending in the context of agri-allied activities? Onward lending refers to extending loans to other registered NBFC-MFIs, and eligible institutions, who further lend to their clients for agriculture and allied income-generating activities such as dairy, poultry, fisheries, goat rearing, and related rural enterprises etc. 2. Who can avail loans under this facility? Eligible institutions for financial assistance include registered NBFC-MFIs with RBI and which qualify the eligibility as per NABKISAN guidelines. 3. What is the purpose of this facility? The facility is designed to provide liquidity support to MFIs so they can extend timely credit to rural households for agri-allied activities, thereby promoting income generation, livelihood enhancement, and rural development. 4. What is the loan size available for institutions? The loan size for NBFCs is determined based on the institution’s portfolio size, repayment capacity, past repayment history, and credit discipline, along with a comprehensive risk assessment conducted by NABKISAN’s sanction authority. 5. What is the minimum project size for funding? There is currently no threshold for minimum project size. Each proposal will be considered on the merit. 6. What is the typical loan tenure? The loan tenure may vary from 12 months to 60 months, depending on the NBFC’s client profile, creditworthiness, and the nature of the facility availed. 7. What are the interest rates and charges? The interest rate is determined in accordance with the extant policy of NABKISAN Finance Limited. 8. What kind of security/collateral is required? Collateral requirements shall be determined based on the specific case profile of the NBFC and the terms and conditions approved by the sanctioning authority of NABKISAN. Acceptable forms of security may include assignment of receivables, corporate or personal guarantees, or any other security deemed appropriate and mutually agreed upon as per the sanction terms. 9. Once the loan is sanctioned, what is the structure of repayment of Interest as well as Principal? Upon sanction, interest is payable on a monthly basis throughout the loan tenure. The repayment period for the principal can extend up to a maximum of 60 months (5 years), regardless of the repayment structure at the ground level which can be monthly/quarterly as approved by the sanctioning authority. Additionally, based on the NBFC’s request and subject to the discretion of the sanctioning authority, a moratorium on principal repayment may be considered on a case-by-case basis. 10. What documents are required to apply? Required documentation for NBFCs typically includes the Certificate of Incorporation/Registration, RBI license or approval (in case of NBFC-MFIs), a Board resolution authorizing borrowing, audited financial statements for the last 2–3 years, detailed portfolio and repayment data, KYC documents of promoters/directors, and a duly completed loan application form.
1. What type of loan does NABKISAN offer to Housing Finance Companies? NABKISAN offers Term Loans to eligible Housing Finance Companies (HFCs) specifically for on-lending to borrowers in the affordable/rural Housing segment. 2. Who is eligible to apply for funding from NABKISAN? To be eligible, an HFC must: Be in existence for at least 3 years as per audited financial statements Have booked profit in at least 2 of the last 3 financial years, and in the preceeding financial year Hold a minimum credit rating of BBB- from an RBI-accredited credit rating agency 3. Are smaller or unrated HFCs eligible to borrow from NABKISAN? Yes. Smaller unrated HFCs with an own book size up to ₹100 crore, operating in NABKISAN’s focus segments, may be considered for funding on a case-to-case basis, subject to specific conditions. 4. What kind of security is required to avail a loan? Security typically includes: Primary Security: Hypothecation of standard book debts Additional Security: Personal or Corporate Guarantees Cash Collateral: May be required in specific cases, based on risk assessment 5. What is the repayment period for the term loan? The loan can be structured with a repayment period of up to 5 years, depending on the financial profile and requirements of the HFC. 6. How is the rate of interest determined? The interest rate is linked to NABKISAN’s internal ALCO (Asset-Liability Committee) rate of borrowing, and as per the rate based on Internal Rating and risk premium. 7. Is there a processing fee applicable on the loan? Yes, a processing fee is applicable and is also determined based on NABKISAN’s ALCO rate and internal risk assessment. The exact fee is communicated during the appraisal process.8. How can an HFC apply for a term loan with NABKISAN? Interested HFCs can initiate the process by submitting an application along with audited financials, credit rating reports, portfolio details, and other required documents. NABKISAN’s credit team will conduct a detailed appraisal and communicate the next steps.
