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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

NABARD issues operational guidelines for Schematic Lending under Long-Term Refinance to Small Finance Banks (SFBs)

30-Sep-2026 | Ref. NB. DOR/LT Policy/PPS-9/76179-76209/2026-27 30 September 2026 Circular No. 235/DoR-75/2026

NABARD has issued a circular on operational guidelines for Schematic Lending under Long-Term Refinance to Small Finance Banks (SFBs). Key Highlights: 1. Small Finance Banks (SFBs) can avail refinance under the pre-sanction procedure by submitting Detailed Project Reports for the approval of NABARD. NABARD shall sanction the refinance after due appraisal to determine the project's technical feasibility, financial viability and bankability. 2. Automatic Refinance Facility (ARF) enables the agencies to obtain financial accommodation from NABARD, without going through the pre-sanction process by appraising the proposals at their own level and financing the borrower. 3. The rate of pre-payment facilitation charges will be 2.50% p.a. (plus applicable taxes) and will be chargeable for each instalment due separately for the entire period from the date of pre-payment to the date on which the instalment is actually due for payment, with a minimum period of 06 months. 4. Repayment period for refinance ranges between 18 months (minimum) and 5 years or above, provided that the maximum period for which any such loans or advances may be granted shall not exceed 25 years. Kindly refer to the attached document for more information.

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