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GA Topper Series : NABARD Schemes

New Agricultural Marketing Infrastructure(AMI) Sub- Scheme Of Integrated Scheme For Agricultural Marketing (ISAM)

  • The Agricultural Marketing Infrastructure (AMI) sub-scheme of ISAM is being implemented by the Ministry of Agriculture and Farmers’ Welfare, since 2001.
  • The AMI sub-scheme of ISAM is applicable for new credit linked projects, where term loan has been sanctioned by eligible financial institutions from 22.10.2018 onwards. NABARD is the channelizing agency for release of subsidy @ 25% to 33.33% of the capital cost for institutions eligible for refinance by NABARD or any other FI such as State Financial Corporations (SFCs) approved by DAC&FW.
  • The Ministry of Agriculture & Farmers’ Welfare, Govt. of India, have approved the continuation of AMI sub-scheme of ISAM up to 30 September 2022.

Agriclinic and Agribusiness Centres Scheme

The ACABC scheme is being implemented by Ministry of Agriculture and Farmers’ Welfare,  with NABARD acting as subsidy channelising agency.

The objectives of the scheme are –

  • To supplement efforts of public extension by providing extension and other services to farmers either on payment basis or free of cost as per business model of agri-preneur, local needs and affordability of target group of farmers
  • To support agricultural development
  • To create gainful self-employment opportunities to unemployed agricultural graduates, agricultural diploma holders, intermediate in agriculture and biological science graduates with PG in agri-related courses.


NABARD Schemes in Hindi



Agri-Clinics are envisaged to provide expert advice and services to farmers on various aspects to enhance productivity of crops/animals and increase the incomes of farmers.Its launch year is 2001. Agri-Clinics provide support in the following areas:

  • Soil health
  • Cropping practices
  • Plant protection
  • Crop insurance
  • Post-harvest technology Clinical services for animals, feed and fodder management Prices of various crops in the market, etc.

Agri-Business Centres

Agri-Business Centres are commercial units of agri-ventures established by trained agriculture professionals. These ventures may include maintenance and custom hiring of farm equipment, sale of inputs and other services in agriculture and allied areas, including post-harvest management and market linkages for income generation and entrepreneurship development.

The scheme covers full financial support for training and handholding, provision of loan and credit-linked back-end composite subsidy.

List of Beneficiaries

  • Graduates in agriculture and allied subjects from State Agriculture Universities (SAUs)/Central Agricultural Universities/Universities recognised by ICAR/UGC.
  • Diploma (with at least 50% marks)/Post Graduate Diploma holders in Agriculture and allied subjects from State Agricultural Universities, State Agriculture and Allied Departments and State Department of Technical Education.
  • Biological Science Graduates with Post Graduation in Agriculture & allied subjects
  • Agriculture related courses at Intermediate (i.e. plus two) level, with at least 55% marks

National Livestock Mission

National Livestock Mission is an initiative of the Ministry of Agriculture and Farmers’ Welfare. The mission, which commenced from 2014-15, has the objective of sustainable development of the livestock sector.

NABARD is the subsidy channelising agency for following schemes, under Entrepreneurship Development & Employment Generation (EDEG) component of National Livestock Mission.

  • Poultry Venture Capital Fund (PVCF)
  • Integrated Development of Small Ruminants and Rabbit (IDSRR)
  • Pig Development (PD)
  • Salvaging and Rearing of Male Buffalo Calves (SRMBC)
  • Effective Animal Waste Management
  • Construction of Storage Facility for Feed and Fodder

List of Beneficiaries

  • Farmers, individual entrepreneurs
  • NGOs
  • Companies
  • Cooperatives
  • Groups of organized and unorganized sector which include Self- Help Groups (SHGs) and Joint Liability Groups (JLGs)

Eligible financial institutions

  • Commercial Banks
  • Regional Rural Banks
  • State Cooperative Banks
  • State Cooperative Agriculture and Rural Development Banks
  • Other institutions eligible for refinance from NABARD

Interest Subvention Scheme

The Honourable Finance Minister in his budget speech (para 49) for 2006-07 announced that the Government had decided to ensure that farmers receive short term credit at 7% with an upper limit of Rs. 3.00 lakh on the principal amount. The policy came into force with effect from Kharif 2006-07. The amount of subvention was to be calculated on the amount of crop loan from the date of disbursement up to the actual date of repayment of the crop loan by the farmer or up to the due date of the loan fixed by the banks, whichever is earlier, subject to a maximum period of one year.

In pursuance of this announcement, the Government of India provided interest subvention of 2% to Public Sector Banks, Regional Rural Banks (RRBs) and Co-operative Banks in respect of short-term production credit up to Rs. 3 lakh provided to farmers out of their own resources, provided that they make available short-term credit @ 7% p.a. at ground level. Private Sector Banks (in respect of loans given by their rural and semi urban branches) are also covered under the scheme from the year 2013-14 with similar terms and conditions.

Incentive to farmers on prompt repayments

Since the year 2009-10, the Government of India introduced additional subvention of 1% to farmers as an incentive for repaying the loans promptly i.e. on or before the due date or the date fixed by the bank, subject to a maximum period of one year. It has been increased to 2% for 2010-11 and 3% from 2011-12.

Relief to farmers

To provide relief to farmers affected by natural calamities, Interest Subvention of 2% has been made available to banks for the first year on restructured amount of crop loans. Such restructured loans will attract normal rate of interest from the second year onwards as per the policy laid down by the RBI.

Interest Subvention to Small and Marginal Farmers against Negotiable Warehouse Receipts

In order to discourage distress sale of produce by farmers and to encourage them to store their produce in warehouses against warehouse receipts, GoI had introduced a scheme in 2011-12 for extending concessional loans to the farmers against negotiable warehouse receipts.

The benefit of 2% interest subvention will be available to banks on their own funds involved for extending credit support up to Rs 3 lakh at 7% interest per annum to Small and Marginal farmers (SF/MF) having Kisan Credit Card for a further period of up to six months post the harvest of the crop against Negotiable Warehouse Receipts issued on the produce stored in warehouses accredited with Warehousing Development Regulatory Authority.

SF/MF, who have not availed crop loans through banking system, would not be eligible.

Interest subvention on working capital to Animal Husbandry and Fisheries

The GoI has extended the Interest subvention Scheme on KCC issued to crop loan farmers to the KCC issued to Animal Husbandry and Fisheries farmers from 2018-19. Interest subvention of 2% to banks and 3% to farmers towards Prompt Repayment incentive is extended on short-term loans up to Rs2 lakh to animal husbandry and fisheries farmers apart from the existing KCC for crop loans, provided the loans are extended by banks @7% per annum. In case of farmers possessing KCC for raising crops and involved in activities related to Animal Husbandry and/ or Fisheries, the Interest Subvention on short-term loan is available on an overall limit of Rs.3 lakh per annum.

The Govt of India has issued instruction that Interest Subvention to Banks and Prompt Repayment Incentive to farmers will be available only against KCCs from 1 April, 2020.

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