The National Bank for Agriculture and Rural Development (Nabard) has decided to refinance Rs. 40,000 crore worth of crop loans, which is more than an 11% increase as compared to last year.

It had provided to crop loan of Rs. 36,000 crore in the preceding fiscal year. In order to meet the huge refinancing goal, the bank has to borrow more than Rs. 8,000 crore as well.

Bhavishya Nirman Bonds or zero coupon bonds are also being planned to be issued to meet the financial requirements. This has been informed by Nabard Chairman U. C. Sarangi in a statement.

Among the total refinanced crop loans, Rs. 13,000 crore is for long-term crop loans and Rs. 26,000 crore is for short-term loans.

The accumulating of credit is very necessary now to meet the demands of the agricultural sector.

During the previous fiscal, Nabard alone has contributed Rs. 17,000 crore for serving the purpose of crop cultivation. This money, along with Rs. 57,000 crore lent out by cooperative banks were credited to 2.3 crore farmers of the country.