SBI Agricultural Loan
The following are the key features of the various types of agriculture loans offered by State Bank of India:
- SBI Crop Loan (Kisan Credit Card)
- All borrowers get State Bank of India Kisan Credit Card, which is a free ATM-cum-debit card.
- You get interest at saving bank account rate on credit balance in your KCC account.
- Crop insurance is provided for some notified crops/ areas for all KCC loans.
- Loan quantum for the 1st year is sanctioned on the basis of cultivation cost, post-harvest expenses and farm maintenance cost.
- Loan quantum for the subsequent 5 years is decided on the basis of increase in scale of finance.
- No collateral is required for KCC limit up to Rs. 1 lakh.
Know more about Kisan Credit Card Scheme
- SBI Multipurpose Gold Loan
- SBI multipurpose gold loan requires the applicant to pledge of gold ornaments as collateral.
- Available at all rural and semi-urban SBI branches across India.
- Can be repaid in a period up to 12 months from the date of loan disbursal.
- Drip Irrigation Loan
- No collateral is required for a loan amount up to Rs. 10,000.
- Land is required as collateral for loan amounts greater than Rs. 10,000.
- The loan amount can be repaid in a period varying from 5 to 13 years on the basis of cash flow and other applicable factors.
- Dairy Society Plus
- The loan amount can be used for construction of milk house or society office, or for purchase of automatic milk collection system, transport vehicles or bulk chilling unit.
- Collateral is required in the form of land or guarantee of milk union.
- You can repay the loan amount over a period extending up to 5 years.
- Produce Marketing Loan
This loan allows farmers to complete prompt payment of crop loan dues and avoid distress sales.
- You can avail this loan against the stocks stored in farm houses, in addition to loan against warehouse receipts.
- The loan amount offered under this scheme corresponds to 60-80% of produce value depending upon the place of storage up to a maximum of Rs. 50 lakh.
- You can repay the loan amount in a period varying up to 12 months.
SBI Agriultural Loan Interest Rate
Currently SBI agricultural loan interest rates vary based on the type of loan opted for. The following are the details:
|Type of Agricultural Loan||Interest Rate*|
|SBI Crop Loan (Kisan Credit Card)||Simple interest at the rate of 7% per annum up to the repayment due date.|
|SBI Multipurpose Gold Loan||7.50% per annum|
|SBI Tractor Loan||10.25% onwards|
|SBI Dairy Loan||10.85% onwards|
|SBI Produce Marketing Loan||10.85% onwards|
*Interest rates are subject to periodic change.
Also Read: Personal Loan Interest Rates in India
Eligibility Criteria for SBI Agricultural Loan
- SBI Crop Loan (Kisan Credit Card): Any individual who is engaged in agricultural activities can apply for this loan.
- SBI Multipurpose Gold Loan: Similar to crop loan, anyone engaged in agricultural activities can apply for this loan.
- SBI Drip Irrigation Loan: Farmers involved in agricultural activities, who own a land under cultivation can apply for this loan.
- SBII Dairy Loan: Following are the eligibility criteria for this loan:
- You should have received “A” grade in the last audit.
- You should be supplying an average of 1000 litres/day to the milk union.
- You should have audited balance sheet for the last 2 years.
- You should have earned pre-tax profits in the last 2 years.
- If you have previous loans with other banks, then you should have prior liquidation and no dues certificate.
- SBI Produce Marketing Loan: Following are the eligibility criteria for this loan:
- You should be a non-defaulter borrower with SBI, and can store your produce in a farm, a warehouse, or a cold storage.
- You can also be a borrower with some other bank or a non-borrower farmer, who can store the produce or stocks in a warehouse/ cold storage.
Further Reading: SBI Personal Loans
Documents Required for Agricultural Loan Application
The following is the list of common documents required for all types of SBI agricultural loans.:
- Duly filled and signed SBI agriculture loan application form
- Government issued proof of Identity
- Proof of Address acceptable to the bank
The following is a list of additional documents that are required for those applying for specific types of SBI Agricultural Loans:
|Type of SBI Agricultural Loan||Documents Required|
|Multi-purpose Gold Loan||Proof of agricultural land/ cultivation.|
|Dairy Society Plus||Undertaking from Milk Union to deduct and pay the loan installment amounts.|
|Produce Marketing Loa||Stock statement for valuation and evidence of stocks at your residence/ godown.Warehouse receipt, duly endorsed, if stocked at warehouse.|
|Drip Irrigation Loan||Mortgage/ Charge on land.Deed of Guarantee, if required.|
EMI Calculation for SBI Agricultural Loans
The monthly payout for the various types of agricultural loans offered by State Bank of India depends on 3 loan parameters, namely, loan amount, interest rate and loan tenure. The following table depicts the EMI payable for different combinations of these loan parameters.
|Loan Amount (Rs.) and Interest Rate||Monthly EMI Payout (Rs.)|
|1-year loan tenure||2-year loan tenure||3-year loan tenure||4-year loan tenure||5-year loan tenure|
|Rs. 1 lakh @ 8%||8,698||4,522||3,133||2,441||2,027|
|Rs. 1.5 lakh @ 9%||13,117||6,852||4,769||3,732||3,113|
|Rs. 2 lakh @10%||17,583||9,228||6,453||5,072||4,249|
Comparison of SBI Agricultural Loan with Other Lenders
The following table compares key features of SBI Agricultural Loan to similar products offered by other top lenders in India:
|Comparison Criteria||State Bank of India (SBI)||Central Bank of India||IndusInd Bank||ICICI Bank|
|Interest Rate||7% onwards||7.5% onwards||9.5% onwards||9.6% onwards|
|Tenure||Varies as per the loan type, but generally up to 5 years||Variable, generally up to 7-8 years||Up to 5 years||Up to 4 years|
|Loan amount||Up to Rs. 50 lakh||Up to Rs. 2 crore||Varies on case to case basis||Varies on case to case basis|
Benefits of SBI Agricultural Loan
- Low Interest Rate: The agricultural loans from SBI are offered at an interest rate starting from as low as 7% per annum. He low cost minimizes the cost of borrowing for farmers and agriculturists.
- Wide Range of End Use: SBI offers a variety of agricultural loans as per your needs. You can avail the loan to buy crops, farm machines, manage post-harvest expenses, set up your dairy, maintain poultry or even buy new agricultural land.
- Minimum Documentation: You can avail the SBI Agricultural Loan with very simple and minimal documentation.
- Collateral Optional: You can also get a collateral-free SBI Agricultural Loan or one that requires collateral, depending on the loan type and the desired loan amount.
SBI Customer Care
The following are different ways you can contact SBI Customer Care:
- Toll-free Numbers: 1800-11-2211 and 1800-425-3800. Chargeable no.: 080-2659-9990
- SBI Missed Call Service: Send SMS, ‘REG Account Number’ to 09223488888 using your registered mobile number to activate the missed call service.
- Write to: Alternatively, you can write to the following address:
Customer Service Department
State Bank of India
State Bank Bhavan, 16th Floor
Madam Cama Road,
Mumbai 400 021
Fax: 022 2274243
To Register Compliments and Complaints you can use the following methods:
- SMS “UNHAPPY” to 8008202020
- Fill out the SBI Online Complaint Form
- Fill out SBI Request and Complaint Form
Important Aspects to Consider While Applying for an Agricultural Loan
Please ensure the following while applying for an agricultural loan:
- You meet all the eligibility criteria for that particular loan type.
- You have all the required documents to avail the loan.
- You have a clean repayment history with a high credit score.
- You have a healthy mix of secured and unsecured loans.
- Your ongoing loan EMIs and credit card dues don’t block a large proportion of your monthly income.