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Business & Development Correspondents

Business Correspondents of NABFINS can be NGOs, Societies/ Trusts, Societies registered under Mutually Aided Cooperative Societies Acts or the Cooperative Societies Acts of States, non-financial section 25 companies etc.  These entities shall be well established, enjoy good reputation and must have the confidence of the local people. They should have proven track record in development activities, microfinance, SHG formation and linkage etc.  These organisations will be expected to have a deep understanding of and empathy for the poor and the disadvantaged.

The role of  Business Correspondents shall, in addition to activities listed under the Business Facilitator Model, include

  1. disbursal of credit and
  2. recovery of principal / collection of interest. In due course of time their role may  also include
  3. sale of micro – insurance/ mutual fund products/ pension products/ other third party products and
  4. receipt and delivery of small value remittances/ other payment instruments.


Interest rates on loans

Borrower Category Loan Amount Interest rate (%) Processing fees GST Penal Charges Credit Insurance
SHG/JLG/ Other groups Upto Rs. 2 lakh 15.50% 1% of sanctioned amount 18.00% of processing fee Nil Rs 2.98 for Rs. 1000
Loans > Rs. 2 lakh and upto Rs. 5 lakh 16.70%
Loans > Rs. 5 lakh 16.90%

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