Type of Loans: Term loan Working capital, term loans or mix of both
Purpose: On-lending to the customers of the NBFC in agriculture, allied activities, SME Sector, rural housing, rural sanitation, renewable energy, vehicle financing, educational infrastructure or any other sector which is helping in the economic and social upliftment/ development of rural/semi urban populace.
Eligibility:
Non-Banking Finance Companies except MFIs. which fulfill the following criteria:
i. NBFCs should be in existence for at least 2 years. However, in case of NBFCs which are subsidiaries of existing financial institutions with strong credentials, one year of existence may be considered. In such cases, the company shall explore obtaining Corporate Guarantee from the holding company. For the purpose of computing existence of a company, the period from the date of RBI license to the date of loan application shall be considered.
ii. NBFC should have made profit during the last year, as per audited balance sheet. However, if the NBFC has not made any profit, the same may be considered provided:
a. The NBFC is generally involved in focus segments of NABKISAN like agri value chain financing, WASH, Climate finance.
b. The NBFC has been in existence and doing business for more than 2 financial years (from the date of RBI license to the date of loan application)The company should not have recorded a degrowth in the loan book over the last two years.
c. the TOL:TNW ratio is not more than 4 times (net of cash and cash equivalents) as on 31 March of the previous financial year.
d. CRAR (latest, at the time of application) is above 25% as against the regulatory minimum prescribed. there is no rating downgrade by CICs beyond two notches during the year subject to minimum acceptable rating of NABKISAN
e. In such cases NABKISAN shall ensure adequacy of cash flow for making loan repayment and explore obtaining corporate guarantee.
iii. The NBFC should be categorised between NKR1 to NKR6 as per internal rating of NABKISAN.
iv. Should have credit rating (from RBI accredited credit rating agencies) and the rating should not be less than BBB minus (BBB-). However, in case of focus segments focus segments of NABKISAN like agri value chain financing, WASH, Climate finance, the rating can be upto BB minus (BB-)
v. NBFC should have impeccable credit history without active default to the lenders.
NBFCs which are relatively new and not fitting into broad eligibility criteria may be considered with prior approval of Board if they are operating in segments of high relevance to NABKISAN.
Security:
Hypothecation of book debts.
Demand Promissory Note
Registration of charge with the ROC
Other collaterals to the satisfaction of NKFL
Personal Guarantee of the promoters
Rate of interest & Processing fee: Rate of interest is proposed to be linked to ALCO rate of NABKISAN and as per the rate of interest policy of NABKISAN applicable from time to time. A processing fee of minimum 0.25% plus applicable taxes for new clients upto NKR3 risk category cases and repeat clients. For other cases 0.75% plus applicable taxes will be charged.
Repayment period: Maximum Up to 5 years*
