NBFCs (other than mFIs)
Type of Loan
  • 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 criteria

Non-Banking Finance Companies except MFIs. which fulfill the following criteria:

  • should be in existence for at least 2 years.
  • NBFC should have made profit during the last year, as per audited balance sheet. However, considering the impact of Covid 19 induced lockdown and resultant impact on financial institutions, the following relaxations are considered:
    • If the NBFC has made losses during 2020-21, profits during two previous years (2019-20 & 2018-19), provided,
      • they are in existence and doing business for more than 3 years
      • there is no erosion in the share capital as on 31.03.21
      • CRAR is above the regulatory minimum prescribed
      • the loss is on account of extra provisions (beyond the provisions stipulated by RBI) made by the NBFC and not because of business losses.
      • there is no rating downgrade beyond one notch during the year subject to minimum acceptable rating of NABKISAN
  • The NBFC should be categorised between NKR1 to NKR7 as per internal rating of NABKISAN.
  • Should have credit rating and the rating should not be less than BBB minus (BBB-).
  • NBFC should have impeccable credit history without any 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
  • Rate of interest is proposed to be linked to Weighted Average Cost of Borrowing of NABKISAN and as per the rate of interest policy of NABKISAN applicable from time to time.
Repayment
  • Maximum upto 7 year
Processing fees:
  • A processing fee of minimum 0.25% plus applicable taxes for repeat cases and upto NKR3 risk category cases and for other cases 0.75% plus applicable taxes will be charged.