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Understand the complete list of NABARD schemes, including dairy loan and poultry farm loan subsidies, interest rates, functions, and objectives available to farmers, rural entrepreneurs, and agricultural businesses.
Last updated on: Sep 10, 2026
NABARD stands for National Bank for Agriculture and Rural Development. This bank was established in 1982 to foster rural prosperity. NABARD has been authorised to provide credit and other financial facilities to promote and develop agriculture, cottage industries, small-scale industries, village industries, handicrafts, and more.
The role of NABARD includes the funding of any agricultural activities with respect to rural development in India, as the institution's primary goal is the nationwide growth of India's rural community. There are three sectors around which schemes of NABARD work: development, supervision, and finance.
NABARD offers and supports various schemes aimed at strengthening agriculture, rural infrastructure, livestock development, irrigation, housing, and rural entrepreneurship.
NABARD schemes are broadly classified into direct finance schemes, refinance schemes, and government-sponsored programmes, each designed to address specific rural and agricultural needs.
Here’s how:
Supports projects that improve agricultural productivity, promote sustainable farming practices, and enhance farmers' access to technology and markets.
Provides financial and institutional support for Farmer Producer Organisations (FPOs), enabling farmers to improve collective bargaining power and market access.
Promotes integrated farming and orchard-based livelihoods among tribal communities to improve income generation and sustainable land use.
Supports soil and water conservation initiatives, helping improve agricultural productivity in rain-fed and drought-prone regions.
Facilitates the development of agricultural markets, grading facilities, collection centres, and storage infrastructure to reduce post-harvest losses.
Provides financial assistance for modernising milk processing facilities, chilling infrastructure, and dairy value chains.
Supports the creation of fishing harbours, cold storage facilities, fish landing centres, and aquaculture infrastructure.
Finances projects related to livestock production, breeding, feed management, and animal healthcare infrastructure.
Supports the establishment and expansion of poultry farms, hatcheries, and related infrastructure.
Provides finance for livestock-based livelihood activities and value chain development in rural areas.
Finances rural roads, bridges, irrigation projects, flood protection works, and social infrastructure.
Supports major and medium irrigation projects aimed at improving water availability and agricultural productivity.
Promotes the creation and modernisation of warehouses, cold storage facilities, and logistics infrastructure for agricultural produce.
Provides funding support for the construction of affordable rural housing and related infrastructure.
Supports projects that improve rural transportation, market access, and connectivity for villages.
Provides financial assistance for food processing units, value-addition projects, and agro-processing infrastructure.
Supports MSMEs involved in agro-based industries, rural enterprises, and manufacturing activities.
Encourages innovative business models and technologies that support rural entrepreneurship and employment.
Provides financial and developmental support to rural non-farm enterprises, artisans, and micro-enterprises.
Supports training, capacity building, and entrepreneurship development programmes in rural areas.
Offers financial support, capacity building, and market-linkage assistance to Farmer Producer Organisations.
Provides credit support to eligible producer organisations for business operations and expansion.
Promotes the formation of farmer groups that facilitate knowledge sharing, credit access, and technology adoption.
Assists Farmer Producer Companies in strengthening governance, business planning, and value-chain participation.
Helps producer organisations access markets, improve business capabilities, and enhance member incomes.
The main objectives of NABARD scheme for providing long-term loans are as follows:
NABARD provides long-term financial assistance for capital-intensive sectors such as agriculture, fisheries, poultry, dairy, horticulture, and related activities. This helps create productive assets and improve rural incomes.
The institution aims to ensure the availability of adequate credit for sectors and activities identified by NABARD and the Government of India to promote rural and agricultural development.
NABARD works towards identifying and meeting the financing requirements of Self Help Groups (SHGs) and Joint Liability Groups (JLGs), helping improve access to formal credit in rural areas.
Long-term loans support rural and semi-rural enterprises, encouraging individuals to explore non-agricultural occupations and create alternative livelihood opportunities.
NABARD finances projects focused on climate adaptation, natural resource management, renewable energy, and sustainable rural development to strengthen resilience against environmental challenges.
NABARD provides refinance support for eligible credit facilities linked to capital investment subsidy schemes introduced by the Government of India, facilitating the implementation of development projects.
Through various financing programmes, NABARD supports the development of rural infrastructure such as irrigation systems, warehousing facilities, roads, bridges, and other assets that contribute to economic growth.
NABARD aims to improve farm productivity and strengthen agricultural value chains by supporting investments in storage, processing, marketing, and post-harvest infrastructure.
The institution promotes the economic inclusion of small and marginal farmers, rural women, producer organisations, and underserved communities through targeted financial assistance and development initiatives.
By supporting a wide range of farm and non-farm activities, NABARD seeks to create sustainable employment opportunities and improve the overall quality of life in rural India.
The functions of NABARD are as follows:
NABARD provides funding support for the development of rural infrastructure, including irrigation systems, roads, bridges, and other projects that contribute to economic growth and agricultural development.
The institution offers financial assistance and developmental support to improve livelihoods, strengthen rural economies, and promote inclusive growth across rural India.
NABARD plans, implements, and manages credit programmes for agriculture and allied sectors to ensure the timely availability of funds to eligible beneficiaries.
The organisation finances food processing units, agro-based enterprises, and food parks to encourage value addition, reduce wastage, and create rural employment opportunities.
NABARD provides short-term and long-term refinance facilities to cooperative banks, regional rural banks (RRBs), and other eligible financial institutions to strengthen rural credit delivery.
The institution supports the creation and modernisation of warehouses, cold storage facilities, and logistics infrastructure to improve agricultural storage and supply chains.
NABARD extends credit facilities to eligible marketing federations involved in the procurement, processing, storage, and marketing of agricultural commodities.
NABARD plays a key role in formulating policies and guidelines for rural financial institutions to enhance the effectiveness, stability, and outreach of the rural credit system.
The organisation supports initiatives related to climate-resilient agriculture, natural resource management, watershed development, and environmental sustainability.
NABARD strengthens rural institutions, farmer organisations, Self Help Groups (SHGs), and other community-based entities through training, capacity building, and developmental assistance.
The following are some of the features of the NABARD loan scheme:
Offering support for funding or refinancing
Growing the infrastructure of rural communities in India
Creating credit plans available at a district level for these communities
Offering guidance and support to the banking sector so the latter can achieve their own credit targets for the year
Carrying out the supervision of cooperative banks and Regional Rural Banks (RRBs) in India
Devising new projects that aid in rural development of the country
Putting into place any of the government’s developmental schemes aimed at helping the growth of rural areas
Offering training services for handicraft artisans
NABARD provides refinance assistance and direct lending support to eligible financial institutions under various schemes. Interest rates may vary based on the type of refinance, lending institution, scheme, and prevailing market conditions.
NABARD currently provides short-term refinance assistance at 4.50% p.a. for the following entities:
State Cooperative Banks (StCBs) for financing crop loans
Regional Rural Banks (RRBs) for financing crop loans
District Central Cooperative Banks (DCCBs) directly financing crop loans
Commercial Banks and RRBs for financing PACS towards crop loans
For the conversion of short-term crop loans into medium-term loans, NABARD currently charges a minimum interest rate of 8.10% p.a.
NABARD also provides long-term refinance assistance to eligible institutions, including Regional Rural Banks (RRBs), State Cooperative Banks (StCBs), and State Cooperative Agriculture and Rural Development Banks (SCARDBs). However, the applicable interest rates are dynamic and determined by NABARD based on market conditions and internal policy decisions from time to time.
Under direct lending programmes such as the Warehouse Infrastructure Fund (WIF) and Food Processing Fund (FPF), the applicable interest rate may be linked to NABARD's prevailing Bank Rate or Prime Lending Rate (PLR), along with any applicable risk premium, depending on the borrower category.
Note: Interest rates under schemes such as the Warehouse Infrastructure Fund (WIF) and Food Processing Fund (FPF) are linked to NABARD's prevailing Bank Rate and/or Prime Lending Rate (PLR), which may change periodically. Therefore, you should refer to the latest NABARD notifications or the official website to verify the applicable rates before applying.
The following loans are available under the NABARD scheme:
These are crop-oriented NABARD loans offered by various financial institutions to farmers to refinance crop production. This loan offers farmers and their surrounding rural communities the assurance of food security.
When Agro-operations are seasonal, as of FY17–18, the NABARD scheme has sanctioned ₹55,000 Crores to a host of financial institutions as the short-term credit loan amount.
These loans are offered by multiple financial institutions for either farm or non-farm activities. Their tenure is much longer than short term loans and ranges from 18 months to a maximum of 5 years. As of FY17–18, NABARD refinanced close to ₹65,240 Crores to financial institutions, covering any concessional refinancing of ₹15,000 Crores to Indian Regional Rural Banks (RRBs) and Cooperative Banks.
RBI introduced the RIDF as part of the NABARD scheme as they noticed a shortfall in lending to priority sectors that need support for their rural development. With the main focus being rural infrastructure development, a total loan amount of ₹24,993 Crores was disbursed in FY17–18.
This was introduced as part of the NABARD loans to provide funding for a total of 99 irrigation projects with the disbursal of a loan amount of ₹20,000 Crores.
The Micro Irrigation Fund (MIF) was operationalised by NABARD in 2019-20 with an initial corpus of ₹5,000 Crore to help state governments expand micro-irrigation coverage and promote the adoption of water-efficient irrigation systems.
The fund supports projects beyond the scope of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and helps states mobilise additional resources for initiatives such as drip and sprinkler irrigation. The fund has since been expanded to further strengthen water-use efficiency in agriculture.
Warehouse Infrastructure Fund provides scientific warehousing infrastructure for agricultural commodities. Initial loan of the amount Rs. 5000 was provided by NABARD in FY 2013–14. As of 31st March 2018, the amount disbursed is Rs. 4778 crores.
Under the food processing fund of NABARD, the Indian government has a loan commitment of Rs. 541 Crores to be disbursed to 11 large-scale food park projects, 1 integrated food park project, and 3 rural food processing units in India.
The NABARD scheme has specially sanctioned a loan amount of ₹4,849 Crores for cooperative banks, which will assist four state-owned cooperative banks and 58 Co-operative Commercial Banks (CCBs) spread across the country.
Note: Eligible borrowers may receive interest benefits under applicable government interest subvention schemes, subject to prevailing guidelines.
NABARD supports dairy farming and dairy infrastructure development through refinance assistance and various government-supported programmes, including the Dairy Entrepreneurship Development Scheme (DEDS). These initiatives aim to improve milk production, encourage dairy entrepreneurship, and strengthen rural livelihoods.
Under NABARD-supported dairy financing programmes, eligible applicants can obtain funding for activities such as purchasing milch animals, constructing cattle sheds, establishing milk collection and processing facilities, purchasing dairy equipment, and developing related infrastructure. Support is available for both small dairy units with a few animals and larger dairy projects involving milk processing, storage, and value-addition activities. Loans are typically provided through participating banks, regional rural banks (RRBs), cooperative banks, and other eligible financial institutions rather than directly by NABARD.
Under the Dairy Entrepreneurship Development Scheme (DEDS), eligible applicants may receive a back-ended capital subsidy based on the approved project cost. The subsidy is not paid upfront. Instead, it is placed in a Subsidy Reserve Fund Account and adjusted against the loan after the dairy unit has operated satisfactorily for the required period and scheme conditions have been met.,
| Category | Subsidy |
|---|---|
General Category |
25% of the eligible project cost |
SC/ST Category |
33.33% of the eligible project cost |
The interest rate on a NABARD-supported dairy loan is determined by the lending bank and may vary across institutions. Since NABARD provides refinance support to eligible lenders, dairy loans may be available on more favourable terms than standard commercial borrowing, subject to the lender's policies and the applicable scheme guidelines.
The following categories of applicants are generally eligible to apply for NABARD-supported dairy loans:
Individual farmers
Dairy entrepreneurs
Women entrepreneurs
Self Help Groups (SHGs)
Farmer Producer Organisations (FPOs)
Non-Governmental Organisations (NGOs)
Dairy cooperative societies
Milk unions and federations
Applicants are typically expected to:
Be at least 18 years of age
Meet the lender's eligibility requirements
Demonstrate the viability of the proposed dairy project
Have no default on any existing loan and maintain a satisfactory credit profile, as lenders may review your credit history or check CIBIL score details as part of the loan assessment process.
Submit the required project and KYC documents
NABARD does not provide dairy loans directly to individual borrowers. Instead, you need to apply through a participating bank, regional rural bank (RRB), or cooperative bank.
Follow these steps to apply:
Prepare a Detailed Project Report (DPR) outlining the proposed dairy unit, number of animals, infrastructure requirements, projected expenses, and expected income.
Approach a participating commercial bank, RRB, or cooperative bank with the DPR and supporting documents.
Submit the loan application along with identity, address, land, and project-related documents as required. You should also review the lender's business loan eligibility and documents requirements before applying.
The bank evaluates the proposal and assesses the project's feasibility.
Once approved, the loan is sanctioned and disbursed in accordance with the project's requirements.
After disbursal, the lending institution claims the applicable subsidy from NABARD on your behalf.
Subject to meeting the scheme conditions, the subsidy is credited to the designated account and adjusted against the loan as per the applicable guidelines.
There is no separate application process with NABARD for individual borrowers, as the participating bank handles the subsidy claim and related procedures.
NABARD supports poultry farming through refinance assistance and government-backed livestock development programmes. These initiatives are designed to help entrepreneurs, farmers, SHGs, and poultry businesses establish or expand poultry farming operations. While NABARD does not lend directly to borrowers, eligible applicants can access poultry farm loans through participating banks, regional rural banks (RRBs), cooperative banks, and other financial institutions.
A NABARD-supported poultry farm loan can be used for:
Setting up broiler or layer farming units
Purchasing chicks and feed
Constructing poultry sheds and related infrastructure
Purchasing equipment such as feeders, drinkers, and waste management systems
Meeting working capital requirements
Expanding existing poultry farming operations
Establishing hatcheries and related poultry businesses
Before applying, it is advisable to review the lender's business loan eligibility calculator and financing requirements to assess your eligibility and repayment capacity. For first-time entrepreneurs, a poultry farm loan can also serve as a source of funding similar to a business loan for startups, depending on the nature and scale of the venture.
NABARD supports several subsidy-linked programmes aimed at promoting agriculture, animal husbandry, rural entrepreneurship, infrastructure development, and allied activities. In most cases, these subsidies are provided as back-ended capital subsidies, meaning the subsidy amount is not paid directly to the applicant upfront. Instead, it is routed through the lending institution and adjusted against the loan subject to compliance with the scheme's conditions.
The exact subsidy, eligibility criteria, and limits may vary depending on the scheme and the applicable government guidelines.
| Scheme | Subsidy / Benefit |
|---|---|
Agriculture Marketing Infrastructure |
Capital subsidy of up to 25% of the eligible project cost. For eligible SC/ST applicants, women beneficiaries, and SHGs, the subsidy may be up to 33.33%, subject to the prescribed limits under the scheme. |
Dairy development programmes supported through NABARD |
Subsidy assistance may be available under eligible dairy sector schemes, subject to the prevailing government guidelines and programme-specific conditions. The subsidy structure, eligibility criteria, and limits vary depending on the applicable scheme. |
Poultry Development Schemes under NLM/CISS |
Eligible poultry farming projects may receive support under applicable livestock development and subsidy programmes, subject to scheme guidelines and government notifications. |
Agriculture Infrastructure Fund (AIF) |
Interest subvention benefit of 3% per annum on eligible term loans, subject to the scheme's conditions and applicable limits. |
CGTMSE Credit Guarantee Cover |
Credit guarantee support for eligible MSMEs, helping borrowers access collateral-free financing up to the applicable scheme limits. |
To support the agriculture and allied sectors, NABARD offers specialised schemes for farming, dairy, and poultry-related activities. One such initiative is the Dairy Entrepreneurship Development Scheme (DEDS), which helps entrepreneurs establish and expand dairy farms. NABARD also supports poultry ventures, including the setting up and modernisation of poultry farms, helping farmers and entrepreneurs enhance productivity, generate income, and grow their businesses.
| Sector | Objectives | Eligibility | Other Details |
|---|---|---|---|
Farming Sector |
- Enhance agricultural productivity - Promote sustainable farming practices - Support infrastructure development - Provide financial assistance for modern farming techniques |
- Farmers - Self Help Groups (SHGs) - Cooperatives - NGOs - Companies involved in agriculture |
- Financial support through various schemes - Focus on technology adoption and resource management |
Dairy Sector |
- Promote modern dairy farming - Encourage heifer calf rearing - Improve milk processing at the village level - Generate self-employment opportunities |
- Individual farmers - Entrepreneurs - NGOs - Dairy cooperatives - Groups in organised/unorganised sectors |
- Establishment of dairy units with subsidies (25% for general, 33.33% for SC/ST) - Support for dairy marketing outlets and training for artisans |
Poultry Sector |
- Promote modern poultry housing - Support hatchery modernisation and upgrades - Strengthen biosecurity and disease management practices |
- Individual farmers - Self Help Groups (SHGs) - Farmer Producer Organisations (FPOs) - Cooperatives - Companies engaged in poultry activities |
Capital subsidy support available under relevant schemes such as the Capital Investment Subsidy Scheme (CISS) and National Livestock Mission (NLM) - Encourages capacity expansion and adoption of modern poultry infrastructure |
Reviewer
The National Bank for Agriculture and Rural Development (NABARD) was established in 1982 to promote sustainable rural development and strengthen the rural credit system in India. It was created to support agriculture, allied activities, cottage and village industries, small-scale enterprises, and rural infrastructure projects by providing financial assistance, refinance support, and developmental initiatives. NABARD also works to improve credit access for farmers, rural entrepreneurs, and rural institutions, helping drive economic growth in rural areas.
State Cooperative Banks (StCBs), State Cooperative Agriculture and Rural Development Banks (SCARDBs), Primary Agricultural Credit Societies (PACS), and District Central Cooperative Banks (DCCBs) come under the NABARD Scheme.
The age limit for taking a loan under NABARD scheme ranges between 21 years and 65 years.
Direct Lending
Warehouse Infrastructure Fund
Food Processing Fund
Long -term Loans
Long-term Irrigation Funds
Short-term Loans
Rural Infrastructure Development Fund
Primary Agriculture Credit Societies
Pradhan Mantri Awaas Yojana - Gramin
Credit Facility to Marketing Federations
NABARD Infrastructure Development Assistance
Under NABARD-supported dairy development schemes, the subsidy is typically 25% of the project cost for General category beneficiaries and 33.33% for SC/ST beneficiaries, subject to the terms of the applicable scheme and prevailing government guidelines. The assistance is generally provided as a back-ended capital subsidy, meaning it is adjusted against the loan after the borrower fulfills the prescribed conditions rather than being paid upfront.
The interest rate on a NABARD-supported poultry farm loan is determined by the lending bank or financial institution. Since NABARD primarily provides refinance support rather than direct loans to borrowers, the applicable interest rate can vary based on the lender's policies, the borrower's profile, and the scheme under which the loan is sanctioned.
No, NABARD supports a wide range of rural development activities beyond agriculture. In addition to crop production, it provides support for allied sectors such as dairy farming, poultry farming, fisheries, irrigation, rural infrastructure, warehousing, food processing, and rural entrepreneurship.
Eligibility varies depending on the scheme. Depending on the programme, beneficiaries may include farmers, SHGs, Farmer Producer Organisations (FPOs), women entrepreneurs, cooperative societies, NGOs, rural enterprises, and other eligible entities specified under the relevant scheme guidelines.
NABARD does not typically provide loans directly to individual farmers. Instead, farmers can apply for NABARD-supported loans through participating commercial banks, Regional Rural Banks (RRBs), cooperative banks, and other eligible financial institutions.
The eligibility criteria for NABARD-supported land purchase financing may vary by scheme and lending institution. Generally, small and marginal farmers, tenant farmers, sharecroppers, and other eligible agricultural beneficiaries may apply through participating banks, subject to the applicable guidelines and lender requirements.
To receive a NABARD-linked subsidy, you typically need to apply for the relevant scheme through a participating bank or implementing agency. If your application is approved and you satisfy the scheme conditions, the subsidy is generally routed through the lending institution and credited as per the applicable programme guidelines.
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