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NABARD Green Lending Facility: ₹10,000 Crore Planned for FY25

21 June 20251 min read
BANKING & FINANCENABARD GreenLending Facility:₹10,000 CrorePlanned for FY2521 June 2025safalsetu.com

Why in the news

The National Bank for Agriculture and Rural Development (NABARD) said it would lend roughly ₹10,000 crore in FY25 through a newly introduced Green Lending Facility that supports projects tied to the Sustainable Development Goals (SDGs).

Key facts

FeatureDetail
Planned disbursementAbout ₹10,000 crore in FY25
BorrowersCentral and state governments, government agencies, private sector entities
Minimum loan₹100 crore
Eligible sectorsGreen infrastructure such as ethanol plants and electric vehicles, plus other climate-aligned projects

About a green lending facility

  • A financing mechanism offering loans only for projects with positive environmental effects.
  • Meant to promote sustainable development and cut carbon footprint.

Strategic objective

  • Part of NABARD’s wider mandate to build environmentally sustainable rural and agri-infrastructure.
  • Supports national climate commitments and energy transition goals.

Exam angle

  • Institution: NABARD; facility: Green Lending Facility.
  • Minimum ticket size: ₹100 crore.
  • Linked goals: SDGs, energy transition.

Test yourself

1. What is the minimum loan size under NABARD's Green Lending Facility?

The minimum loan size is ₹100 crore.

2. How much does NABARD plan to disburse in FY25 under the Green Lending Facility?

NABARD plans around ₹10,000 crore in FY25.

3. Which of these is an eligible sector under NABARD's Green Lending Facility?

Eligible green infrastructure includes ethanol plants and EVs.