Nabard will refinance agriculture long term loans given by cooperative banks to farmers. Towards this end, Nabard has begun a whopping Rs 5,000 crore rural credit fund.
Sources say, the main objective of this initiative is to encourage investment in agriculture and thus supplying cheaper crdit for various agricultural operations.
Nabard officials say cooperative banks will get refinance at an interest of 7.85 percent with a repayment period of 5 years.