Finance and Financing


Sources of Funds

Internal accruals, market borrowings and allocations from Government of India including International assistance.

Purposes for which assistance is provided

  • Margin money to raise working capital finance (100% loan)
  • Strengthening of share capital base of societies (100% loan)
  • Working capital to regional/state level marketing federations (100% loan)
  • Term loan for creation of infrastructural facilities like godowns, cold storages, equipment financing, purchase of transport vehicles, boats and other tangible assets
  • Term and investment loan for establishment of new, modernisation/ expansion/rehabilitation/diversification of agro-processing industries.
  • Subsidy for preparation of project reports/feasibility studies etc.

Procedure of Sanction / Disbursal of Assistance

NCDC assistance is not individual beneficiary oriented but is meant for institutional development of Cooperatives. NCDC supplements the efforts of State Government. The State Governments recommend the proposal of individual society / project to NCDC in the prescribed schematic format. The Society may also avail direct funding of projects under various schemes of assistance on fulfillment of stipulated conditions. The proposals are examined in the concerned functional division and if need be on the spot field appraisal is undertaken. Thereafter, formal sanction of funds is conveyed to the State Govt. / Society. The release of funds depends on progress of implementation and is on reimbursement basis. The period of repayment of loan ranges from 3 to 8 years. The rate of interest varies from time to time.