J&K Grameen Bank Agri Clinics & Agri Business Centres (ACABC) Scheme


• To supplement efforts of public extension by necessarily providing extension and other services to the farmers on payment basis or free of cost as per business model of agri-preneur, local needs and affordability of target group of farmers;
• To support agricultural development; and
• To create gainful self-employment opportunities to unemployed agricultural graduates, agricultural diploma holders, intermediate in agriculture and biological science graduates with PG in agri-related courses.

Concept & Definition:

Agri-Clinics are envisaged to provide expert advice and services to farmers on various technologies including soil health, cropping practices, plant protection, crop insurance, post harvest technology and clinical services for animals, feed and fodder management, prices of various crops in the market etc. which would enhance productivity of crops/animals and ensure increased income to farmers.

Agri-Business Centre:
Agri-Business Centres are commercial units of agri-ventures established by trained agriculture professionals. Such ventures may include maintenance and custom hiring of farm equipment, sale of inputs and other services in agriculture and allied areas, including post harvest management and market linkages for income generation and entrepreneurship development.


To provide adequate finance for setting up of Agri Clinic & Agri-business centre.

Eligibility /Who can benefit from the scheme? :

The scheme is open to following categories of candidates trained under ACAB scheme by National Institute of Agricultural Extension Management (MANAGE):

• Graduates in agriculture and allied subjects from State Agriculture Universities (SAUs) / Central Agricultural Universities/ Universities recognized by ICAR/ UGC. Degree in Agriculture and allied subjects offered by other agencies are also considered subject to approval of Department of Agriculture & Cooperation, Government of India on recommendation of the State Government.
• Diploma (with at least 50% marks)/Post Graduate Diploma holders in Agriculture and allied subjects from State Agricultural Universities, State Agriculture and Allied Departments and State Department of Technical Education.
• Diploma in Agriculture and allied subjects offered by other agencies are also considered subject to approval of Department of Agriculture & Cooperation, Government of India on recommendation of the State Government.
• Biological Science Graduates with Post Graduation in Agriculture & allied subjects.
• Degree courses recognized by UGC having more than 60 percent of the course content in Agriculture and allied subjects.
• Diploma/Post-graduate Diploma courses with more than 60 percent of course content in Agriculture and allied subjects, after B.Sc. with Biological Sciences, from recognized colleges and universities.
• Agriculture related courses at intermediate (i.e. plus two) level, with at least 55% marks.
The eligible candidates would have undergone through two months training from National Institute of Agricultural Extension Management (MANAGE) through Nodal Training Institutes(NTIs)

Project Cost Ceiling:

For Individual Projects For Group Projects
Rs.20.00 lacs Rs.100.00 lacs

However, ceiling to the extent of Rs.25.00 lacs can be considered in case of extremely successful individual projects. Group must be comprised of at least five trained persons under the Scheme, out of which one could be from Management background. The Branches/ sanctioning authorities may, nevertheless, subject to their own satisfaction, finance groups formed by 2 or more trained persons under the Scheme (person with management background can only be included in groups of 5 or more) within the TFO (Total Financial Outlay)/ project cost ceiling of Rs.20.00 lacs per trained person and Overall ceiling of Rs.100.00 lacs, whichever is less, for the purpose of subsidy.

However, the actual credit sanctioned by the Banks for a venture established under the Scheme could be higher depending on the financial viability and technical feasibility. Thus, for instance, if an individual is granted a loan for TFO of Rs.35.00 lacs, subsidy shall be reckoned only on TFO of Rs.20.00 lacs.

To encourage exceptionally successful individual agri-preneurs, the project cost limit for subsidy purposes may be extended by Rs.5.00 lacs in addition to the generally applicable project cost limit of Rs.20.00 lacs for calculating subsidy. This will serve as an incentive to an agri-preneur to expand his/her already established and successful venture. Format for considering such cases is given on the MANAGE website http://www.agriclinics.net/guidelines/Annexure-XVII.pdf. Such cases are to be approved by the Empowered Committee using the criteria given at Annexure VII based on the recommendation of the Branches and ATMA (Agricultural Technology Management Agencies) official.

In order to provide extension services using web-enabled resources of Department of Agriculture and Cooperation (DAC) Government of India and other agencies, computer, printer and broadband connection (1 mbps at least) shall be an integral part of Total Project Cost/TFO.


Up to Rs.5.00 lacs Beyond Rs.5.00 lacs
NIL 10.00%


Eligibility for Subsidy

All candidates trained under the scheme shall be eligible for subsidy with respect to investments made after July 9, 2006 (applicable to loan accounts sanctioned on/or after this date).

The trained candidates could also undertake group projects. If the group consists of a total of five or more persons trained under the scheme, all except one of them would have to be from among the eligible categories as mentioned above under the head “eligibility” and the remaining person could be non-agriculture graduate with experience in business development and management.

Delivery of extension services shall be the main component of ACABC projects for availing of the benefit of subsidy under the Scheme. Payment of back-ended subsidy will be linked to extension services provided by the agri-preneurs to their clients. While adjusting the back-ended composite subsidy to agri-prenures under the scheme, the branches will consider the periodic or surprise visit reports prepared by Block Technology Manager/Subject Matter Specialists under ATMA (Agricultural Technology Management Agency), Chairman (or his nominee), ATMA Block Famers’ Advisory Committee, Panchayat Members, NABARD / Bank official, Block level officer of State Department of Agriculture and allied sectors.

Subsidy pattern will be of “Composite Subsidy” which will be back-ended in nature. It will be 44% of project cost for women, SC/ST & all categories of candidates from NE and Hill states and 36% of project cost for all others.

The subsidy admissible under the scheme will be kept in the “Subsidy Reserve Fund Account” (Borrower-wise) in the books of the financing bank. No interest will be charged on this by the bank. In view of this, for the purposes of charging interest on the loan component, the subsidy amount would be excluded. The balance lying to the credit of the “Subsidy Reserve Fund Account” will not form part of Demand and Time Liabilities. The branches shall ensure that they do not charge interest on subsidy portion of the loan, as back-ended subsidy is released to banks up-front.

In all new cases, subsidy will be released as Composite Subsidy (Annexure-II). The subsidy in all such cases will be worked out on the basis of the Fixed Capital and one Operating Cycle of the Working Capital (Project Cost) as a Composite Loan. Loan / subsidy (i.e. capital and interest) cases sanctioned so far (but not yet closed) shall be converted to Composite Subsidy regime and the differential amount between the Composite Subsidy and subsidy already released shall be paid to the agricultural entrepreneur (agri-preneurs) as per the Scheme Guidelines (Annexure III). Entrepreneurs whose loan accounts have been closed can avail fresh loan to expand the project activity or start a new venture under the scheme in which case the TFO(Project Cost) for subsidy calculation be limited to Rs.20.00 lacs (Rs 25.00 lacs in case of extremely successful) Individual project and Rs.100.00 lacs for Group project (Annexure IV).

Following criteria shall be taken into consideration while implementing the above instructions:

• Revised guidelines on TFO ceiling, revised rates of subsidy etc., would be applicable only for cases sanctioned by banks on or after August 4, 2010.
• ‘Not yet closed’ would be interpreted as ‘all cases where at least an installment of subsidy (capital or interest) is yet to be released by NABARD and those cases where full subsidy (capital and interest) has been released but loan account is not closed (i.e. not fully repaid) as on 04 August, 2010. However, the loan accounts (not closed) which are NPA as on August 4, 2010 will not be eligible for composite subsidy (only those who are regular in repayment should get the benefit of subsidy).
• Although subsidy at enhanced rates will be available for projects where bank loan was sanctioned prior to August 4, 2010 (but after July 9, 2006) they will not be eligible for higher TFO ceiling.

The cases where capital subsidy has been disbursed but interest subsidy is yet to be disbursed or vice-versa, as per the pre-revised scheme, such cases will be reopened and balance of composite subsidy as per the modified guidelines will be released in one lumpsum by NABARD to the concerned bank. Regional Offices of NABARD would obtain a claim for balance subsidy in such cases and sanction the same in the format given at Annexure III.

Candidates trained under this Scheme can avail subsidy from any Scheme of Central or State Government related to his/her field of agri-business, if it is beneficial to the candidate. However, subsidy for the same project cannot be availed from more than one Scheme by a candidate.

Sometimes entrepreneurs start small and then ramp up their business later on. Therefore, the benefit of subsidy will be extended up to 2 times to a candidate under the Scheme as per the approved rates of the project cost of Rs.20.00 lacs/Rs.25.00 lacs or Rs.100.00 lacs as the case may be. Such cases may include cases where the project is expanded in phases or financed in phases. However, if an existing venture is expanded or financed in phases, Composite Subsidy limits shall be reckoned only on such incremental component of Total Financial Outlay. Following are the cases where such a facility can be availed:

• When two independent projects are financed to same beneficiaries
• When an existing project (that has availed subsidy under the scheme) is undergoing expansion. However, in all such cases the maximum amount of subsidy shall be limited to the stipulated TFO ceiling (for both projects put together). In case of expansion of an existing venture, composite subsidy shall be computed only on the TFO for expansion. This will not include the project cost of the existing project.
• If the fresh /expansion of project is sanctioned by the bank before August 4, 2010, the TFO ceiling of Rs.10.00 lacs (pre-revised) will be applicable. The TFO ceiling of Rs.20.00 lacs (revised) would be applicable only for fresh/ expansion of project sanctioned by the bank on or after August 4, 2010.

The subsidy will be back - ended with minimum 3 years lock in period. This implies that once the loan is taken with subsidy, the account cannot be closed within three years.

The subsidy, which is back ended, will be admissible only if all repayments till date had been made.

The subsidy will be adjusted in one lump-sum against the last remaining installments of repayment of bank loan

Procedure for release of subsidy

An interested Agri-entrepreneur will submit the project proposal for term loan and subsidy to the bank on an application form as prescribed by the bank concerned along with the project report and other documents for appraisal and sanction of loan.

After sanction of the project and disbursal of first installment of loan, the financing branch will furnish a brief project profile-cum-claim form for subsidy in the prescribed format (Annexure II, III, IV as applicable) along with a copy of sanction letter to Advances Department Head Office Jammu through concerned Regional office for onward submission to the Regional Office of NABARD .

Subsidy will be deposited by NABARD with the disbursing bank upfront (i.e. eligible subsidy amount in one installment based on Subsidy claim submitted by financing bank / branch to NABARD Regional Office immediately after loan is sanctioned).

After crediting the subsidy in the Subsidy Reserve Fund Account of the borrowers under the Scheme, a Utilization Certificate in the prescribed format (Annexure V, VI) shall be submitted by the participating branch/bank to NABARD to the effect that the amount of subsidy received by them has been fully utilized and adjusted in the books of account as per the sanctioned terms and conditions of the project within the overall guidelines of the scheme.

In case unsatisfactory report is recorded during periodic/ surprise visits or where mis-utilization of subsidy has been noticed the financing branch/bank shall refund the subsidy to NABARD for remitting to the GOI.

NABARD shall enter subsidy release status (total eligible amount, amount deposited in bank, date of release etc) by updating each individual case in the website being maintained by MANAGE Viz http://www.agriclinics.net/login.asp


Hypothecation of assets to be created.


Up to Rs.5.00 lacs Nil
Above Rs.5.00 lacs to Rs.10.00 lacs Third Party Guarantee of 2 persons with sufficient net worth to withstand the liability
Above Rs.10.00 lacs Third party guarantee of 02 persons with sufficient net worth to withstand the liability. &
Mortgage of unencumbered tangible property having value not less than 125% of the loan value. Agricultural land can also be accepted to cover the exposure.


Maximum up to 2 year from the date of first disbursement depending upon the nature of the activity/project (including implementation period)


For high-tech projects
10 years (Maximum)

For other projects
7 years (Maximum)

Repayment Period:

Repayment period of 8 years after an initial moratorium period of 2 years maximum (including implementation period of 6 months from the date of first disbursement of the loan) as per requirement of the project will be allowed in respect of term loans for high-tech projects as under:

• Crop protection services, including pest surveillance, diagnostic and control services (with culture rooms, autoclaves, microscopes, ELISA Kits etc. for detection of plant pathogens including viruses, fungi, bacteria, nematodes, and insect pests)
• Micro-propagation including plant tissue culture labs and hardening units;
• Agri tourism
• Agri journalism–film production, farm publications and exhibitions;
• Livestock health cover, veterinary dispensaries & services including frozen semen banks and liquid nitrogen supply and artificial insemination;
• Horticulture clinic, nursery, landscaping, floriculture
• Any other project of similar nature requiring longer gestation/repayment periods.

In all other projects/activities, maximum tenor of the facility shall be 7 years including a maximum moratorium period of one year (comprising of implementation period of 6 months+ 6 months moratorium/gestation period from the date of first disbursement) depending upon the nature of the activity/project

The repayment schedule shall be drawn on the total amount of the loan (including subsidy) in such a way that the subsidy amount is adjusted after liquidation of net bank loan (excluding subsidy).

The repayment shall be on monthly/quarterly/half-yearly/yearly basis depending upon the nature of the activity/project to be decided by the sanctioning authority.

Processing Charges:

0.25% of the loan amount.

* Conditions Apply