Introduction
The National Bank for Agriculture and Rural Development (NABARD) was set up by the Government of India in 1982 as the apex development bank for agriculture and rural India. Since 1999-2000, NABARD has also acted as the nodal, pass-through agency that channels central government subsidy and interest subvention to farmers through cooperative banks, regional rural banks (RRBs), and commercial banks. Rather than a single scheme, NABARD administers and refinances a bundle of credit-linked schemes covering crop loans, farm infrastructure, dairy and animal husbandry, and rural enterprise. Together, these reduce the cost of borrowing for farmers and rural entrepreneurs and widen access to formal credit.
NABARD Schemes Overview
- Administering Body — National Bank for Agriculture and Rural Development (NABARD), under the Ministry of Finance
- Key Schemes Covered — Kisan Credit Card (KCC) Interest Subvention Scheme, Agriculture Infrastructure Fund (AIF), Interest Subvention for Animal Husbandry & Fisheries, Dairy Entrepreneurship Development Scheme (DEDS)
- Fund Allocated — AIF corpus of ₹1 lakh crore (2020-21 to 2032-33); Micro Irrigation Fund corpus of ₹5,000 crore
- Type of Scheme — Central Government (routed through NABARD as nodal/refinancing agency)
- Helpline No — 022-2653 9895 / 022-2653 9897
- States Covered — All India
Objectives of NABARD's Farmer Schemes
- Ensure farmers get short-term crop loans at an affordable, subsidised interest rate.
- Close post-harvest infrastructure gaps such as warehouses, cold storage, and processing units.
- Extend affordable credit to animal husbandry, dairy, and fisheries activities.
- Strengthen rural credit delivery through cooperative banks, RRBs, and commercial banks.
- Promote capital formation and employment generation in the agriculture sector.
Key Features of NABARD Schemes
- Kisan Credit Card (KCC): short-term crop loans up to ₹3 lakh at an effective 7% interest, reduced to 4% for farmers who repay promptly, under the Modified Interest Subvention Scheme.
- Agriculture Infrastructure Fund (AIF): loans up to ₹2 crore per project at 3% interest subvention for up to 7 years, with government-paid credit guarantee cover under CGTMSE.
- Interest Subvention for Animal Husbandry & Fisheries: short-term loans up to ₹2 lakh at concessional rates, extending the KCC benefit to livestock and fishery farmers.
- Dairy Entrepreneurship Development Scheme (DEDS): refinance support for setting up dairy units, milk processing, and cold chain infrastructure (subject to periodic scheme status).
- Refinance to Cooperative Banks, RRBs, and Small Finance Banks to keep rural credit flowing at the ground level.
- Credit guarantee support for Farmer Producer Organisations (FPOs) under NABARD's FPO promotion scheme.
NABARD Scheme Benefits to Farmers
- Lower effective interest rates on crop loans, often as low as 4% for prompt repayment.
- Collateral-free loans up to ₹2 crore for infrastructure projects under AIF, backed by government-paid credit guarantee.
- Access to formal credit for landless and small farmers through cooperative and rural banks.
- Support for building on-farm storage, cold chains, and processing units to cut post-harvest losses.
- Dedicated credit lines for allied activities like dairy, fisheries, and animal husbandry.
- Faster, more transparent loan sanctioning through dedicated online portals such as agriinfra.dac.gov.in.
Limitations of the Scheme
- Interest subvention on AIF loans applies only to the first ₹2 crore of a project; amounts above this get no benefit.
- Farmers must route applications through a participating bank or cooperative society — NABARD does not lend directly to individual farmers.
- KCC interest subvention is available only against a valid, active Kisan Credit Card from 1 April 2020 onward.
- A private-sector entity can avail AIF benefits for a maximum of 25 projects.
- Some allied schemes, such as DEDS, are periodically closed or revised, so availability can vary by year.
Documents Required
- Aadhaar Card and a valid photo ID proof
- Land ownership or tenancy proof (khata/khatauni, land records)
- Bank account passbook and IFSC details
- Kisan Credit Card (for crop loan subvention) or existing loan account details
- Detailed project report and cost estimate (for AIF and infrastructure loans)
- Caste/category certificate, where applicable, for scheme-specific concessions
How to Apply for NABARD Schemes
- For KCC and crop loans: Visit the nearest cooperative bank, RRB, or commercial bank branch and apply for a Kisan Credit Card with land and identity documents; the interest subvention is applied automatically by the bank.
- For AIF: Register on the official portal agriinfra.dac.gov.in, submit the project proposal and cost details, and select a participating bank or NBFC to process the loan.
- For animal husbandry/fisheries and dairy loans: Approach the local branch of a bank empanelled with NABARD and submit the project report along with KYC documents.
- Track sanction status and disbursement online through the respective scheme portal or through the lending bank.
Conclusion
NABARD's network of schemes — from the Kisan Credit Card to the Agriculture Infrastructure Fund — gives Indian farmers and rural entrepreneurs access to credit at rates they could rarely get on their own. By working through banks rather than lending directly, NABARD has built a wide, dependable channel for subsidy and interest relief to reach even small and marginal farmers. For anyone looking to fund a crop cycle, build farm infrastructure, or start a dairy or allied business, a visit to the nearest participating bank is the first step toward tapping into this support.
Disclaimer: Scheme names, interest rates, loan limits, and eligibility criteria are subject to periodic revision by NABARD and the Government of India. Readers are advised to verify the latest details on the official NABARD website (nabard.org), the concerned scheme portal, or with their nearest bank branch before applying or making any financial decision.
