The activities of NABFINS focus predominantly on improving the lives of the disadvantaged and poorer sections of the society. NABFINS' main aim is to support sustainable livelihoods of rural and urban poor in both agriculture and non-farm sectors. NABFINS extends loans to farmers, artisans & individuals; SHGs, JLGs & small and marginal producers groups; micro and small enterprises; SHG Federations, Producers' Companies (particularly those of the small and marginal segment); Mutually Aided, Souharda & other Cooperative Societies, Trusts, Societies or other Organisations that support production/aggregation/marketing in sectors like agriculture, sericulture, handlooms, handicrafts;Companies/corporate bodies/partnerships engaged in agriculture, non farm activities mainly with focus on poor / disadvantaged sections of the population, remote geographies etc.
Loans are extended either directly through Branches/Financial Service Officers or through agents, known as Business Correspondents (who handle cash) / Business Facilitators (who do not handle cash) engaged on commission basis for services rendered.
Current Focus
Presently NABFINS is focussing on lending to SHGs in Karnataka and a few districts in Tamil Nadu and Andhra Pradesh. We are also looking at second level institutions that support livelihoods in these districts.
Interest rates on loans
Interest rates on loans w.e.f 1st April 2012
|
Borrower Category |
Loan Amount |
Interest rate (%) |
Processing fees |
Service Tax |
Penal Charges |
|
SHG/JLG/ Other groups |
Upto Rs. 2 lakh |
14.00% |
1% of sanctioned amount subject to a ceiling of Rs. 2.5 lakh |
12.36% of processing fee |
Nil |
|
Loans > Rs. 2 lakh and upto Rs. 5 lakh |
15.50% |
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|
Loans > Rs. 5 lakh |
16.75% |
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|
Individuals/ Institutions |
Upto Rs.20 lakh |
12% |
1% of sanctioned amount subject to ceiling of Rs. 2.5 lakh |
12.36% of processing fee |
Nil |
|
Loans>Rs. 20 lakh and upto Rs. 50 lakh |
13% |
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|
Loans > Rs. 50 lakh |
13.5% |
Interest will be calculated on daily product basis (i.e., on reducing balances). Repayment of principal shall be either in equal instalments or based on cash flows (not EMI). The above measures reduce interest burden on the borrower.
[ (Please click for example Loan Amount up to Rs. 2 lakh – 12 months / Loan Amount Above Rs.2 lakh & up to Rs.5 lakh -24 months / Loan Amount Above Rs.5 lakh-24 months) ]
Repayment Period
Repayment period is determined based on cash flows.
Effective Annual Interest rates
|
Tenor (Months) |
Interest Rates per Annum |
Processing Fee |
Effective Annualised |
|
12 |
14% |
1% |
15.90 |
|
20 |
14% |
1% |
15.21 |
|
24 |
14% |
1% |
15.03 |
|
30 |
14% |
1% |
14.85 |
|
36 |
14% |
1% |
14.73 |
|
Tenor (Months) |
Interest Rates per Annum |
Processing Fee |
Effective Annualised |
|
12 |
15.50% |
1% |
17.41 |
|
20 |
15.50% |
1% |
16.72 |
|
24 |
15.50% |
1% |
16.54 |
|
30 |
15.50% |
1% |
16.36 |
|
36 |
15.50% |
1% |
16.24 |
|
Tenor (Months) |
Interest Rates per Annum |
Processing Fee |
Effective Annualised |
|
12 |
16.75% |
1% |
18.67 |
|
20 |
16.75% |
1% |
17.98 |
|
24> |
16.75% |
1% |
17.80 |
|
30 |
16.75% |
1% |
17.62 |
|
36 |
16.75% |
1% |
17.50 |
Maximum Repayment Period
Agriculture & allied activities : 5 years
Others : 3 years
How to Apply
Customers desirous of availing services of NABFINS may directly approach the District Managers, Financial Service Officers, Business Correspondents/Facilitators nearest to them for assistance. The Contact details are provided under Our Network.
Farmers/ artisans, SHGs/JLGs etc may obtain guidance from the Regional Managers/FSOs/BC/BF of NABFINS. Institutional borrowers may use the application forms given in the link below.
Application for Loans
The forms for applying for loans are provided in the link given below. Application forms alongwith necessary attachments like audited financial statements, copy of bye laws/Articles of Association etc can be attached either as separate files or as one zipped file folder.
Institutional Borrowers may please fill up the application and submit.