The National Bank for Agriculture and Rural Development (NABARD) on April 21, 2026, issued the Guidelines for Concessional Refinance Scheme for Food Processing Units.
The following has been stated namely: -
• NABARD is utilizing a remaining corpus of ₹983.02 crore approved by the RBI under the Food Processing Fund to provide concessional refinance to financial institutions supporting food processing units.
• State Cooperative Banks, Regional Rural Banks (RRBs), and Scheduled Commercial Banks that have achieved their Priority Sector Lending (PSL) targets for FY 2024–25 are eligible.
• Refinance applies to standard asset term loans given to units funded/granted by the Ministry of Food Processing Industries (MoFPI), with a minimum remaining maturity of 18 months, an upper limit of ₹100 crore per borrower, and a maximum interest rate of 10% p.a. charged to the end borrower.
• NABARD will refinance banks at an interest rate of 4.25% p.a. (quarterly rests). The refinance quantum is 100% for North-Eastern, Hilly, Eastern regions, A&N, Lakshadweep, Chhattisgarh, and all FPO/FPC loans, while other regions receive up to 85%.
• The refinance is repayable within a maximum of 7 years (minimum duration of 18 months), with quarterly interest payments and a 2.50% p.a. prepayment charge requiring a minimum 3-day notice
[Notification No. NB.DOR/7535-7569/ PSS-9/2025-26]
