SBI agricultural loan in India: State Bank of India is a leading marketer in India, for agricultural financing in India, where it strives in helping the farmers with a portfolio of INR 1.2 crores especially in agricultural advances that covers more than 1.1 lakh farmers and their families as well. It covers both the rural and urban areas around 10,000 branches by helping the farmers in providing different kinds of loans. Let us get into the details of SBI agricultural loan and different types of other livestock (dairy), poultry, fish farm loan. It is always good for going agricultural loan from SBI as they are offered at low interest rates.
A guide to SBI agricultural loan, crop loan in India
Types Agri Loans from SBI.
Types of agricultural loans are offered by SBI
State Bank of India offers different types of loans, these includes-
- Crop loan
- Agri gold loan for crop production
- Multi-Purpose Gold Loan
- Farm Mechanization Loan
- Dairy Loan
- Poultry Loan
- Fisheries Loan
- Produce Marketing Loan
- Loan for Setting up of Agri Clinic and Agri Business Centres
- Land Purchase Scheme
- SBI KrishakUthanYojana
- Scheme for Debt Swapping of Borrowers
The key features, interest rate, loan amount, eligibility criteria, documents required for each laon are clearly described below.
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SBI crop loan
Crop loan sanctioned by the SBI covers the expenses related to crop production, harvesting activities, storage, post harvesting activities, contingencies, etc. In this the borrowers are provided with a KisanCedit Card which is a type of electronic rupay card where they can withdraw the amount from ATM centres. These can be used for purchasing the fertilizers for the fertilizers and other farm related items.
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Key features and benefits of the Kisan Credit Card Scheme
- The credit balance gets the interest rate of normal savings bank for the amount which is in the KCC account.
- All the KCC borrowers will be allotted with the State Bank Kisan Card which is a free ATM card which can be used as a debit card even.
- A loan amount of INR 3 lakh, with an interest of up to 2% p.a. is given.
- As per the repayments made by the borrower then they will get additional interest subvention at 3% p.a.
- The KCC loans are offered with the crop insurance in the specific areas or for few crops.
- If the loan amount is not paid before the due date or failed to pay the amount even after the due date then the interest is compounded half-yearly.
- The interest rate for the crop loan is 7% per annum which is a simple interest.
- The loan amount is sanctioned based on the harvesting, cultivation costs, maintenance expenses and later 5 year loan will be sanctioned mainly based on the scale of finance.
- Repayment is fixed and is based on the marketing and harvesting period of crop.
- There is no need of collateral documents for a limit of up to INR 1 lakh and if it more than that then the collateral fixing might be required.
Eligibility for the crop loan
The following are eligible forthe scheme which includes farmers, joint cultivators, oral lessees, share croppers, tenant farmers, self-help groups, joint liability groups etc. are eligible for applying this loan.
Documents required for crop loan
- The properly filled application form.
- ID proof of the applicant such as PAN card, Voter ID, Aadhaar Card, Passport, or driving license
- Address proof such as voter ID, Aadhaar card, passport, or driving license
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SBI agri gold loan for crop production
Individuals can get the agricultural loans by pledging their ornaments for getting the loan amount. The key features for these include-
- Agri Gold loan for crop production loans can be availed by pledging gold ornaments.
- The process to avail the loan is very easy and convenient for the farmers.
- The loan is provided at many of the branches which are nearly 10,000 of the SBI bank branches.
- The interest rate for this type of loan is 7% per annum for the loan amount of INR 3 lakh and more than then the interest rate will be 9.95%
- The loan amount sanctioned should be repaid within 12 months after the loan amount is sanctioned. The limit is renewed annually and is valid for 3 years.
Documents required for agri gold loan
- The properly filled application form.
- Passport size photographs of the applicant
- ID proof of the applicant such as PAN card, Voter ID, Aadhaar Card, Passport, or driving license
- Address proof such as voter ID, Aadhaar card, passport, or driving license
- Proof of crop or agricultural lands documents
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SBI Loans for Farmers.
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SBI multi-purpose gold loan
The key features include
- Low interest rates for the loan availed.
- The loan process and procedure is easy and convenient.
- The loan is very convenient with no hidden charges.
- The repayment schedules are flexible and are easy to pay.
- Loans are available at allthe branches including in urban and rural areas.
- The interest rate is 9.95 a% per annum and the repayment should be done within 12 months after receiving the cash where it is renewed annually and is valid for 3 years.
Documents required
- The duly filled application form.
- Passport size photographs of the applicant
- ID proof of the applicant such as PAN card, Voter ID, Aadhaar Card, Passport, or driving license
- Address proof such as voter ID, Aadhaar card, passport, or driving license
- Proof of crop or agricultural lands documents
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SBI farm mechanization loan
One can avail this loan by purchasing power tillers, tractors, combine harvestors, etc. Any individual can avail this loan without any collateral.
The key features include –
- This is sanctioned within 3 days of application.
- There is also a monthly repayment option
- It has a very low interest rate without any mortgage
- The interest rate is 11.20% per annum
- The repayment schedule is 36 months and the processing fee is 1.25%
- The late payment fee would be 1% on the unpaid amount
- The EMI rate Rs. 562 per EMI.
Documents required for farm equipement loan
- The duly filled application form.
- 3 Passport size photographs of the applicant
- ID proof of the applicant such as PAN card, Voter ID, Aadhaar Card, Passport, or driving license
- Address proof such as voter ID, Aadhaar card, passport, or driving license
- Proof of crop or agricultural lands documents
- Certificate from revenue authority for income proof.
- Quotation of the farm merchandize
- 6 post dated cheques
- Original invoice of the required merchendize
- Insurance policy
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SBI dairy farm loan
This loan can be availed by the dairy societies for the creation of the following infrastructure:
- In the construction of milk house or society office
- Can be utilized in purchasing of automatic milk collection system purchase
- Transport vehicle purchase and in
- Purchase of bulk chilling unit
Key features
These include –
- Interest rate of 12% per annum
- Repayment schedule is 5 years i.e., 60 months
- Mortgage property or guarantee of milk union
- Loan amount of 80-85% would be sanctioned on the total cost of the project or it is also calculated based on the profit of the last two years.
- The maximum limit would be Rs. 10 lakh margin which is distributed as follows-
For milk house construction it costs Rs. 2 lakh, for milk collection system it is Rs. 1 lakh, for the purchase of milk transport vehicle it is Rs. 3 lakh, cost for the purchase of milk chilling unit is Rs. 4 lakh.
Documents required for dairy farm loan
- Duly filled application form with all the required details.
- The responsibility for repayment of the loan should be undertakenby the milk union.
- Liquidation and no-dues certificate from the other banks if you have already taken loan before.
- Balance sheet of the farm which is audited and verified of at least two preceding years.
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SBI poultry loan
This loan can be used for the construction of the feed storage rooms, equipment required for the poultry farm. The key features include-
- Interest rate of 12% per annum
- Loan amount of 25% will be sanctioned based on the total cost of the setup.
- Repayment schedule is 5 years i.e., 60 months with bi-monthly repayment schedule
- Mortgage property in which the shed or the other infrastructure is constructed should be submitted as collateral.
Documents required for poultry loan
- The duly filled application form.
- 3 Passport size photographs of the applicant
- ID proof of the applicant such as PAN card, Voter ID, Aadhaar Card, Passport, or driving license
- Address proof such as voter ID, Aadhaar card, passport, or driving license
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SBI fisheries loan
This loan can be availed by the farmers to purchase net, fish seeds, fish feed and other fish farming related equipment. The key features include-
- Interest rate of 12% per annum
- Loan amount of 15% to 25% will be sanctioned based on the total cost of the setup.
- Repayment schedule is 4 years i.e., 48 months
- Mortgage property is required as collateral for the loan amount of above 1 lakh and for the loan amount of less than Rs. 1 lakh it is nil.
Documents required for fish farming loan
- The duly filled application form.
- 3 Passport size photographs of the applicant
- ID proof of the applicant such as PAN card, Voter ID, Aadhaar Card, Passport, or driving license
- Address proof such as voter ID, Aadhaar card, passport, or driving license
The other also has the similar criteria where you can avail the loan based on the agricultural needs.
That’s all folks about Agricultural loan offered by SBI. You might be interested in Cinnamon Growing Information.
