NABARD does not typically lend directly to individuals or corporations. Its function is to support the financial system that serves rural areas. Refinancing means providing funds to banks after they have disbursed loans for eligible activities, allowing them to lend more. While NABARD may provide direct loans for specific infrastructure projects to State Governments or institutions, its core and widespread activity related to credit flow for agriculture and rural development is through refinancing.
NABARD provides help in the following way:
Asked in WBCS Main Paper 5 2021 · Topic: Agriculture and Allied Sectors (Farm Credit and Insurance Schemes)
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Answer: A. Providing agricultural refinance facilities
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