National Bank for Agriculture and Rural Development (Nabard) has cut interest rates on its long-term refinance facility to cooperative banks in order to encourage investment in the farming sector. The revised rates will now be 9.3 per cent for 5 years, 9.5 per cent for 3-5 years and 9.5 per cent for a period of 18 months to 3 years.
Nabard has also cut down the rate of interest by 50 bps on short-term loans to State Cooperative Banks. The move is likely to make available funds through cooperative banks for weavers’ cooperative societies and handloom development corporations. The revised rate of interest will now be 10 per cent per annum.
The Nabard’s latest initiative will bolster finances of cooperative banks and thus brighten the prospects of agricultural development, say experts.
