SBI Agriculture Loan - Farmer's Schemes For Land Purchase and Debt Swapping Of Borrowers

Eligibility

• The borrowers should have a record of prompt repayment of the loan for at least two years. Good borrowers of other Banks may also eligible provided they liquidate their outstanding to other banks.

Quantum of loan

• Maximum Rs. 5 lacs. (Excluding development charges).

Utilization of Loan Amount

Loan may be considered for:
• 1. Cost of land.
• 2. Provision of irrigation facilities & land development (shall not exceed 50% of the cost of land).
• 3. Purchase of farm equipments.
• 4. Registration charges & stamp duty.
• 5. Farmers assisted under the scheme may also be given crop loans (KCC only).

Margin

• Minimum margin of 15%.

Gestation period

• 1. 1-2 years: If it is to be developed.
• 2. 6 Month-1year: Developed land.

Repayment

• Max. 9-10 years beginning after the expiry of gestation period, with half-yearly instalments.

Security

• To be secured by way of mortgage of land to be purchased(link is external).

SBI to extend finance to farmers for paying off loans taken from non institutional lenders (e.g. money lenders etc.) and to enable such farmers in distress, meet their crop production needs

Eligibility

• All existing farmer borrowers as well as other farmers in the operational area of the branch.

Classification

• Direct Agriculture.

Quantum of loan

• The loan granted shall be 100% if the debt is on account of cultivation or agri activity or Rs.50,000/- whichever is lower. Simultaneously, the applicant shall be financed Kisan Credit Card which includes additional 20% of the production limit to meet contingent requirements or / and Agriculture Term Loan. The amount of ‘debt’ of the farmer is assessed based on the stamped affidavit given by the applicant.

Method of assessment

• 1. Debt being financed will be given as an ATL repayable in 3 to 5 years
• 2. Gross DSCR of 1.75 will be maintained.

Sanctioning authority

• The Branch Manager/Division Manager only should sanction loans under this scheme strictly.Disbursement disbursed preferably to the money lenders, an appropriate receipt for the discharged debt from the money lender should be obtained and kept with the loan documents.

Security

• All the existing security available with us both primary & collateral should be extended to cover the loan. Collateral security by mortgage of agriculture property(link is external).

Purpose

• Bank extends hassle free finance to farmers / agriculturists against Gold Ornaments / gold wares to increase their liquidity to meet crop production expenses, Investment expenses related to agriculture and / or allied agricultural activities.

Eligibility

• Any person engaged in agriculture or allied activities as well as persons engaged in activities permitted to be classified under agriculture. Evidence of farming activity (like proof of Land records) is necessary.

Quantum of Loan

• Upto 75% of the value of the ornaments.

Security

• Pledge of gold ornaments.

How do you repay

• Cash Credit / Overdraft: Like KCC, it is a running account for a period of 3 years, subject to review at annual intervals.Demand Loan / Term Loan: The repayment period of the loan should be fixed so as to coincide with theharvesting and marketing season / generation of income from the activity, allowing 2 to 3 months time after harvesting to market the produce and realize the proceeds. However, the total period will not generally exceed one year from the disbursement of the loan in the case of short-term loan / production credit and 36 months in other cases.

How to apply for this loan

• Nearest Branch engaged in Agricultural advance may be contacted