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SBI Agriculture Loan

SBI provides <a href="/node/67426">SBI Agriculture loan</a> (term loan) for asset (bullocks, farm machinery, sheep etc.) purchase as well as asset creation (poultry, orchard development, dairy development etc.) which are connected with activities in rural areas and fall under horticulture, agriculture, sericulture, plantation, animal husbandry etc. and the loan is to be repaid over a time span of 3 years.
All categories of farmers as well as agricultural laborers are eligible for this loan.
Loan Amount:
 100% of project/asset cost for loans up to Rs 50,000.
 85% of project/asset cost for loans more than Rs 50,000
 Activities like bullock purchase or other similar purchases, no documents required.
 Large loan amounts will require project/estimate/quotation reports.
 Loan for land based activities will need land records.
 For loan amounts greater than 25,000, no due certificates are required from other banks in that area.

Loan Disbursement:
Loans are directly disbursed to the suppliers as per the schedule.


Movable assets
Up to Rs10,000/-  : Personal Guarantee
Above Rs 10,000/- : Personal Guarantee and land mortgage

Unmovable assets
Up to Rs 50,000/- : Hypothecation of the asset created
50,000< Loan > 1 Lac : Hypothecation of the assets created, loan mortgage or 3rd party guarantee
Loan > 1 Lac : Hypothecation of the assets created, land mortgage

Interest rate for <a href="/node/67426">SBI Agriculture loan</a>:
The rate of interest varies from 8.5% to 12.75% depending on the loan amount and in the extreme cases of very high loan amounts, credit risk assessment is required.
Repayment period:
Repayment period varies from 5-15 years and is based on the income generation of the activity for which the loan was taken.