1. Balancing Business with Inclusion
NABARD Financial Services Limited
(Subsidiary of National Bank for Agriculture and
Rural Development)
NABFINS
Photo Credit: Peer Mohammed
Photo Credit: Peer Mohammed

2. An NBFC-mFI with a difference
►
► Our main aim is to support sustain-
able livelihoods of the rural and ur-
ban poor in farm and nonfarm sectors.►
► We offer loans at reasonable interest rates
with flexible repayment schedules for promo-
tion, expansion, commercialization and mod-
ernization of agriculture and allied activities.►
► NABFINS believes that all its clients must be as-
sured of good practices which include non
coercive, fully transparent transactions, collec-
tion at meeting place of groups, adherence to
rate, margin ceilings, no hidden charges etc.
BUSINESS MODEL
Affordable and reasonable interest rates:
Clients Loan Amount Interest Rate (p.a)* Processing fee**
SHGs, JLGs
and other
groups
< ` 2 lakh 15.00 % 1% of sanctioned
amount subject to a
ceiling of ` 3.0 lakh
` 2 - 5 lakh 16.00 %
> ` 5 lakh 16.75 %
Institutions < ` 20 lakh 14.00 %
> ` 20 lakh 15.00 %
Individuals < ` 5 lakh 16.00 % 1% of sanctioned
amount> ` 5 lakh 16.75 %
*2% of the interest charged is shared with the B&DCs as commission.
**Apart from the interest rate and processing fee, service tax as appli-
cable is charged.
ÊÊ Successfully completed five full
years of operations
ÊÊ Enrolled 268 B&DCs as business
partners
ÊÊ Reached over 5.5 lakh poor house-
holds* and covered 111 SLIs
ÊÊ Number of staff – 263
ÊÊ Currently operative in 75 dis-
tricts across 5 states, mainly in
Karnataka and Tamil Nadu.
ÊÊ Exploring prospects of expansion into
Kerala, Gujarat and Chhattisgarh.
OURSHAREHOLDERS
Assistance under Post Tsunami Sustainable Livelihood Project (PTSLP): NABFINS has partnered with
Government of Tamil Nadu for extending financial assistance in tsunami affected districts for setting up
of micro enterprises by JLGs under IFAD (International Fund for Agricultural Development) assisted PTSLP.
OPERATIONS - A snapshot
* 59,296 groups
Loans to Self Help Groups (SHGs) under B&DC Model: In this model, NABFINS along with the
NGO/Federation, assesses the SHG, before lending the SHG a loan based on the size and pur-
pose of individual loans to members, in keeping with the SHG-Bank Linkage model. These
NGOs, which act as our business & development correspondents (B&DCs), collect the re-
coveries on behalf of NABFINS. The B&DCs are given a commission of 2% for their services.
Loans to Joint Liability Groups (JLGs) under B&DC Model: Clients under this vertical include small
farmers and livestock owners, among others who are not very poor, but are marginalized. They are
considered high risk by financial institutions due to lack of acceptable collateral or proper land re-
cords and are often far from bank branches. Thus they cannot access credit from formal institutions.
Loans to Second-level Institutions (SLIs): These institutions (including SHG federations, producers’ col-
lectives, cooperative societies etc.) aggregate, add value and provide market linkages for commodi-
ties in sectors like agriculture, fisheries, handicrafts etc. Most of these institutions consist of groups at the
base and rely on NGOs for handholding. We extend financial assistance directly to these institutions.
NABFINS lends directly to SHGs, continuing the SHG-
Bank Linkage model. The SHG is a real joint liability group.
- Shri Aloysius P. Fernandez, Chairman
‘‘The SHG linkage model is a unique mF model, not merely
becauseitenablesfinancialservciesbutitistransformationalinnatureand
it grooms leadership in communities and builds on scarce social capital’’
- Dr. B. S. Suran, Managing Director
PhotoCredit:
PeerMohammed
% of total
paid-up
capital
67%
13%
10%
6%
4%
NABARD
Govt.ofKarnataka
CanaraBank
UnionBankofIndia
OtherBanksandIndivduals

3. Basic skills training: With a firm belief in enhancing the capacity of its partners, clients and staff, NAB-
FINS imparts training to its B&DCs on efficiently performing their role in the B&DC model to boost fi-
nancial inclusion. It also trains SHG in accordance with governement programs such as NRLM and
SRLM, on various aspects such as book keeping, bank transactions and leadership; and creates
awareness regarding importance of savings and judicious utilization of credit etc. Furthermore, NAB-
FINs intends to create a platform for grievance redressals for B&DCs and conflict resolution for SHGs.
Social Responsibility: NABFINS undertakes activities which specifically focus on health and sanitation, ecol-
ogy and environment as part of its CSR initiative. In accordance with this, NABFINS has provided sanitation
facilities and access to safe drinking water in schools. We have also contributed to the Swachh Bharat Kosh
set up by the Central Government to express its commitment towards Government’s Clean India campaign.
CHANGING LIVES - A Case Study
Om Shakti Group, Devaraja Mohulla, Mysuru is engaged in the creative business
of making and selling photo frames. They used to avail credit from the wholesal-
er who in turn compensated the advance with less remuneration. Upon learn-
ing about the operations of NABFINS from other SHGs that are credit linked to
NABFINS, the group approached an NGO ‘TARDO’ for support. With help from
TARDO, they received a loan amount of ` 4.8 lakh from NABFINS which was utilized to buy raw mate-
rial for their business and pay back the credit to the wholesaler. Now the SHG members run their busi-
ness profitably as they are able to sell their products to wholesalers who give them the best prices.
OTHER ACTIVITIES
OUR STRENGHTS WHY US?
Records profits
with 6-7 % interest
margins as against
the regulatory pre-
scriptions of 10-12%
margin.
Low cost
model -
Leveraging
on BDCs &
SHGs.
IFAD and
other donor/
multilateral
interest
Our OE ratio
is a mere 5 %
Door step
service with
adequate and
timely delivery
of credit
“Commercial banks have not supported JLGs or SHGs as much
as they could have, preferring instead to comply with priority
sector requirements by offering bulk finance through NBFCs
and mFIs. However, NBFC-mFI lending is mainly individual
and based on standard products imposing short repayment
schedules which did not dovetail with cash flows from ag-
riculture... The solution is to restore the principle of group
decisions by borrowers both in the borrowing process and
in the use of borrowed resources. This need not exclude
NBFC-mFIs so long as shortcuts are avoided. For example,
NABFINS lends only to groups and uses a BC model that also
provides working capital to SLIs. The SHGs have a stake in
these SLIs which help exapnd their livelihood base.“
Source: GOI, Plan Document
57.1
89.61
126.81
13.05
23.81
31.18
0
5
10
15
20
25
30
35
2013 2014 2015
Total Income (Cr.)
Profit before tax (Cr.)
2013 2014 2015
413.2
631.53
794.66
540.65
709.74
942.19Loan disbursed (Cr.)
Total assets (Cr.)
0
20
40
60
80
100
120
140
OUR GROWTH

4. NABFINS
Head Office Address:
NABARD Financial Services Ltd
# 190 Rashtriya Vidyalaya Road
Jayanagar 2nd Block
Bengaluru - 560 004
Karnataka
INDIA
Telephone: 080-26574222 Toll free: 1800-1024-205
Fax: +91 80 26563442
Email: ho@nabfins.org
Website: www.nabfins.org
CIN: U85110KA1997PLC021862
OUR MISSION
“To be a trusted, client centric financial institution advancing hassle-free services
to low income households & the unorganised sector”
Making a difference through credit and more - Approximately 500 households join the NABFINS stream every day.