SBI Agriculture Loan

State Bank of India has been a pioneer and a market leader in agriculture-financing in India with portfolio of over Rs.1,20,000 crore in agricultural advances that covers more than 1.1 lakh farmers and their families. SBI caters to the agriculturists and farmers needs and has a vast network of 10,505 urban and rural branches.

Types of Agricultural Loans from SBI

The different types of agricultural loans offered by SBI are listed below:

1.Crop Loan

This loan covers the expenses related to crop production, post-harvest activities, contingencies, etc. Borrowers are provided a Kisan Credit Card, a type of electronic Rupay Card, using which they can withdraw money from ATMs with ease. These cards can also be used for purchasing fertilizers for the farm.

Key Features and Benefits of the Kisan Credit Card (KCC) Scheme :

• The credit balance in the KCC account gets interest at the savings bank rate.
• State Bank Kisan Card is a free ATM cum debit card that is available to all KCC borrowers.
• For a loan amount up to Rs.3 lakh, interest subvention at 2% p.a. is given.

• If the borrower makes timely repayments, he/she gets additional interest subvention at 3% p.a.
• For all KCC loans, specific areas or crops are offered crop insurance.
• In the case of non-repayment before the due date, the interest will be at the card rate. For non-repayment after the due date, interest is compounded half-yearly.

Interest Rate	7% p.a. (simple interest)*
Loan Amount	For 1st year – Based on cultivation cost, farm maintenance expenses, and post-harvest expenses After that, 5-year loan is sanctioned based on the scale of finance
Repayment	Fixed, based on the harvesting and marketing period of crops
Collateral	For KCC limit of up to Rs.1 lakh – Nil Sanctioned KCC limit is considered when fixing collateral requirement

*This will be charged for 1 year or the repayment due date, whichever is earlier.

Eligibility for KCC Scheme :

The following individuals are eligible for the Kisan Credit Card Scheme:

• All farmers and joint cultivators
• Tenant farmers, share croppers, and oral lessees

• Joint liability groups and self-help groups, including tenant farmers

Documents Required :

• Application form (filled accurately)
• ID proof – PAN Card, Voter ID, Aadhaar Card, Passport, or Driving License
• Address proof - Voter ID, Aadhaar Card, Passport, or Driving License

2. Gold Loan

Individuals can get loans for agricultural purposes by pledging gold ornaments. These loans have attractive interest rates and are disbursed almost immediately. All farming activities can be covered through these loans. The two types of gold loans available to farmers are the Agri Gold Loan for Crop Production and Multi Purpose Gold Loan.

i. Agri Gold Loan for Crop Production

Key Features and Benefits:

• These loans can be availed by pledging gold ornaments.

• The entire loan process is easy and convenient.
• The loan is provided at 10,000 SBI bank branches.

Interest Rate	Up to Rs.3 lakh – 7% p.a. More than Rs.3 lakh – 9.95% p.a.
Margin	As per the Loan To Value Ratio fixed by the bank
Repayment	For Demand Loan – 12 months after loan disbursal For Overdraft/Cash Credit – Limit is reviewed annually and is valid for 3 years
Collateral	Pledge of gold ornaments

Eligibility for Agri Gold Loan for Crop Production:

All farmers doing short-term crop production are eligible for the loan.

Interest Subvention:

• For interest subvention, the borrower should be engaged in agricultural activities.

• The loan amount is fixed depending upon the Scale of Finance (SOF) of the grown crop and the acreage.
• After the interest subvention period, the outstanding amount will be charged interest at the rate of 9.95% p.a.

Documents Required:

• Application form, duly filled
• 2 passport size photos of the borrower

• ID proof - PAN Card, Voter ID, Aadhaar Card, Passport, or Driving License
• Address proof - Voter ID, Aadhaar Card, Passport, or Driving License
• Proof of agricultural crops or land

ii. Multi Purpose Gold Loan

Key Features and Benefits:

• Low interest rates.
• The loan process is easy and convenient.
• There are no hidden charges.
• The repayment schedules are flexible.

• Loans are available at all semi urban and rural bank branches.

Interest Rate	9.95% p.a.
Margin	As per the Loan To Value Ratio fixed by the bank
Repayment Tenure	For Demand Loan – 12 months after loan disbursal For Overdraft/Cash Credit – Limit is reviewed annually and is valid for 3 years
Collateral	Pledge of gold ornaments

Documents Required:

• Application form, duly filled
• 2 passport size photos of the borrower
• ID proof - PAN Card, Voter ID, Aadhaar Card, Passport, or Driving License

• Address proof - Voter ID, Aadhaar Card, Passport, or Driving License
• Proof of agricultural crops or land

3. Farm Mechanization Loan

These loans are offered for purchasing power tillers, tractors, combine harvesters, etc. An individual can also avail this loan without any collateral. The different types of farm mechanization loans are detailed below:

a. Tractor Loan

This includes four types of loan schemes:

• SSTL (Mortgage free)

Key Features and Benefits:

• The Stree Shakti Tractor Loan scheme has a low interest rate and is a mortgage-free loan.
• The loan will be sanctioned within 3 days.
• There is a monthly repayment option.

Interest Rate	11.20% p.a.
Margin	25% for a tractor, based on the original invoice 50% for tractor accessories
Repayment Tenure	36 months, with a moratorium period of 1 month
Prepayment Penalty	Nil
Processing Fee	1.25%
Part Payment Fee	Nil
Duplicate No Due Certificate Charge	Nil
Late Payment Fee	1% p.a. on unpaid amount
Failed EMI Charge	Rs.562 per EMI

Eligibility Criteria:

• The borrower or co-borrowers should only be women.
• There should be at least 2 acres of agricultural land in the name of the applicant.
• The annual income of the borrower should be at least Rs.1.5 lakh.

Documents Required:

Pre-sanction documents:

• Application form, duly filled
• 3 passport size photos of the borrower

• ID proof – PAN Card, Voter ID, Aadhaar Card, or Passport
• Address Proof - Voter ID, Aadhaar Card, or Passport
• Documented proof of land
• Income proof – Certificate from the revenue authority
• Quotation of the tractor that the dealer issues to the customer

Pre-disbursement documents:

• Loan documents
• 6 post-dated cheques

Post-disbursement documents:

• RC book of the tractor with hypothecation charges that are in favour of the State Bank of India

• Original invoice of the tractor
• Comprehensive insurance policy for the vehicle

• SSTL with Liquid Collateral

Key Features and Benefits:

• This is a tractor loan taken against a collateral.
• The loan has a low interest rate.
• The loan will be sanctioned within 3 days.
• There is a monthly repayment option.

Interest Rate	10.95% p.a.
Margin	10%
Repayment Tenure	48 months with 1-month moratorium period
Collateral	Time deposit with the bank, gold ornaments, NSC, etc.*
Prepayment Penalty	Nil
Processing Fee	1.25%
Part Payment Fee	Nil
Duplicate No Due Certificate	Nil
Late Payment Penalty	1% p.a. on the unpaid amount
Failed EMI Charge	Rs.562 per EMI

*This can be up to a minimum of 30% of the loan amount

Eligibility Criteria:

• The borrower or co-borrowers should only be women.
• There should be at least 2 acres of agricultural land in the name of the applicant.
• The annual income of the borrower should be at least Rs.1.5 lakh.

Documents Required:

Pre-sanction documents:

• Application form, duly filled
• 3 passport size photos of the borrower

• ID proof – PAN Card, Voter ID, Aadhaar Card, or Passport
• Address Proof - Voter ID, Aadhaar Card, or Passport
• Documented proof of land
• Income proof – Certificate from the revenue authority
• Quotation of the tractor that the dealer issues to the customer

Pre-disbursement documents:

• Loan documents
• 6 post-dated cheques
• Liquid security pledge

Post-disbursement documents:

• RC book of the tractor with hypothecation charges that are in favour of the State Bank of India
• Original invoice of the tractor
• Comprehensive insurance policy for the vehicle

• New Tractor Loan Scheme

Key Features and Benefits:

• This loan can be taken for the purchase of a tractor and its implements, accessories, insurance, and registration.
• There is no upper limit on the quantum of loan.
• The loan processing will be completed within 7 days from the document submission date.
• The repayments can be done monthly, quarterly, or annually.

• In the event of prompt repayment, there will be a concession of 1% p.a. on the interest rate.

Interest Rate	11.95% p.a.
Margin	15% of the cost of the tractor, accessories, insurance, etc.
Repayment Tenure	60 months with 1-month moratorium period
Collateral	Mortgage of land for a value not less than 100% of the loan amount
Prepayment Penalty	Nil
Processing Fee	0.5%
Part Payment Fee	Nil
Duplicate No Due Certificate	Nil
Late Payment Penalty	1% p.a. on the unpaid amount
Failed EMI Charge	Rs.562 per EMI
Penalty for not getting the tractor registered within 1 month of delivery	2% for the default period

Eligibility Criteria:

• There should be at least 2 acres of agricultural land in the name of the applicant.

Documents Required:

Pre-sanction documents:

• Application form, duly filled
• 3 passport size photos of the borrower
• ID proof – PAN Card, Voter ID, Aadhaar Card, or Passport
• Address Proof - Voter ID, Aadhaar Card, or Passport

• Documented proof of land
• Title search report from the panel advocate
• Quotation of the tractor that the dealer issues to the customer

Pre-disbursement documents:

• Loan documents

• Post-dated cheques
• Original title deeds of the land for mortgage

Post-disbursement documents:

• RC book of the tractor with hypothecation charges that are in favour of the State Bank of India
• Original invoice of the tractor

• Comprehensive insurance policy for the vehicle

• Tatkal Tractor Loan

Key Features and Benefits:

• This is a mortgage-free tractor loan scheme

• The loan turnaround time is just 48 hours.
• The borrower gets free personal accident insurance cover worth Rs.4 lakh.
• The interest rate on this loan is very low.
• There is no processing fee.
• The loan can be repaid in monthly, quarterly, or half-yearly frequencies.

Interest Rate	When margin is 25% - 11.20% p.a. When margin is 35% - 10.95% p.a. When margin is 50% - 10.55% p.a.
Margin	Minimum 25% of the tractor’s cost*
Repayment Tenure	48 months (for installments fixed on net loan) 60 months (for installments fixed on total loan)
Collateral	Lien on TDR accepted as margin money
Prepayment Penalty	Nil
Processing Fee	Nil
Part Payment Fee	Nil
Duplicate No Due Certificate	Nil
Late Payment Penalty	1% p.a. on the unpaid amount
Failed EMI Charge	Rs.562 per EMI

*This includes registration and insurance charges

Eligibility Criteria:

• All farmers (individually or as joint borrowers) who own and cultivate land can apply.
• There should be at least 2 acres of agricultural land in the name of the applicant.

Documents Required:

Pre-sanction documents:

• Application form, duly filled
• 3 passport size photos of the borrower
• ID proof – PAN Card, Voter ID, Aadhaar Card, or Passport

• Address Proof - Voter ID, Aadhaar Card, or Passport
• Documented proof of land
• Quotation of the tractor that the dealer issues to the customer

Pre-disbursement documents:

• Loan documents

• 48 or 60 post-dated cheques

Post-disbursement documents:

• RC book of the tractor with hypothecation charges that are in favour of the State Bank of India
• Original invoice of the tractor
• Comprehensive insurance policy for the vehicle

b. Combine Harvester Loan

This loan is taken for the purchase of a combine harvester and its accessories. The loan should be repaid in half-yearly installments. The key features of the loan are as shown below:

Interest Rate	12% p.a.
Margin	15% to 25% of the cost of the combine harvester and its accessories
Repayment Tenure	9 years, including grace period
Collateral	Mortgage of land

Eligibility Criteria:

• All farmers who can operate combine harvesters can apply.
• There should be at least 8 acres of irrigated land in the name of the applicant.

Documents Required:

• Application form, duly filled
• ID proof – PAN Card, Voter ID, Aadhaar Card, Driving License, or Passport
• Address Proof - Voter ID, Aadhaar Card, Driving License, or Passport
• Documented proof of agricultural land

c. Drip Irrigation Loan

This loan is taken to purchase a drip irrigation system. The key features of the loan are as follows:

Interest Rate	12% p.a.
Margin	15% to 25% of the total cost of the project
Repayment Tenure	5 to 13 years
Collateral	Up to Rs.10,000 – Nil More than Rs.10,000 – Mortgage or charge on land

Eligibility Criteria:

• All farmers who own land and are involved in agricultural activities can apply.

Documents Required:

• Application form, duly filled
• ID proof – PAN Card, Voter ID, Aadhaar Card, Driving License, or Passport
• Address Proof - Voter ID, Aadhaar Card, Driving License, or Passport
• Mortgage on land
• Deed of Guarantee

4. Allied Activities

This category consists of three types of agricultural loans:

i. Dairy Loan

This loan is offered to dairy societies for the creation of the following infrastructure:

• Construction of milk house or society office
• Automatic milk collection system purchase

• Transport vehicle purchase
• Bulk chilling unit purchase

The key features of the loan are as shown below:

Interest Rate	12.10% p.a.
Margin	15%
Repayment Period	60 months (start-up period is 6 months)
Collateral	Guarantee of milk union or mortgage of property

Loan Amount: This is usually 85% of the cost of the project or 4 times the average profit for the past 2 years (maximum limit is Rs.10 lakh).

The maximum loan limit is also restricted as indicated below:

• If the loan purpose is to set up a milk house or society office – Rs.2 lakh
• If the loan purpose is to purchase an automatic milk collection system – Rs.1 lakh

• If the loan purpose is the purchase of a milk transportation vehicle – Rs.3 lakh
• If the loan purpose is the purchase of a chilling unit – Rs.4 lakh

Eligibility Criteria:

The loan can be availed by a milk producer co-operative society that is affiliated to the district milk union. The borrower should also adhere to the following requirements:

• Supplies 1,000 litres of milk per day on an average to the milk union
• Received ‘A’ grade in the last audit
• Earned profits (pre-tax) in the previous 2 years

Documents Required:

• Application form, duly filled
• Undertaking from the milk union for deduction and payment of the installment amount for repayment

• In case a loan was taken from another bank previously, liquidation and no-dues certificate

• Audited balance sheet for at least two preceding years

ii. Poultry Loan

This loan can be availed by farmers for the construction of feed rooms, poultry shed, and other equipment. The key features of the loan are as detailed below:

Interest Rate	12.10% p.a.
Margin	25%
Repayment	5 years (in bi-monthly installments)*
Collateral	Mortgage of the land on which the shed or other infrastructure will be constructed**

*This includes a grace period of 6 months

**This should cover at least 50% of the advance

Eligibility Criteria:

The loan can be availed by an individual who has experience in poultry farming and has land for the construction of poultry sheds.

Documents Required:

• Application form, duly filled
• ID proof – PAN Card, Voter ID, Aadhaar Card, Driving License, or Passport
• Address Proof - Voter ID, Aadhaar Card, Driving License, or Passport

iii. Fisheries Loan

This loan can be availed for the purchase of fish net, fish seeds, and other related equipment. The key features of the loan are as detailed in the table below:

Interest Rate	12.10% p.a.
Margin	15% to 25% of the total project cost
Repayment Period	Maximum 48 months
Collateral	For loan up to Rs.1 lakh – Nil For loan above Rs.1 lakh – Land mortgage

Eligibility Criteria:

All professional fishermen and farmers with knowledge in pisciculture can apply for the loan.

Documents Required:

• Application form, duly filled

• ID proof – PAN Card, Voter ID, Aadhaar Card, Driving License, or Passport
• Address Proof - Voter ID, Aadhaar Card, Driving License, or Passport

5. Miscellaneous Activities

This category consists of five types of agricultural loans:

a. Produce Marketing Loan

The purpose of this loan is as described below:

• To assist farmers so that they do not sell their products in distress.
• To help in the prompt repayment of crop loans.
• To offer liquidity to farmers for meeting emergency financial needs.
• To offer loan against stocks in farm houses and loan against warehouse receipts.

The key features of the loan are as listed below:

Loan Amount	60% to 80% of the total produce value*
Repayment	Within 12 months**
Security	Loan against goods stored in farmer’s godown: Primary – Hypothecation of stocks Collateral – Mortgage of land or third-party guarantee for loans above Rs.1 lakh Loan against Warehouse Receipts (WHR): Primary – Hypothecation of stocks Collateral – No collateral for loans up to Rs.10 lakh

*This depends on the place of storage of the produce and is subject to a maximum amount of Rs.50 lakh

**This depends on the crop and the models of godowns

Eligibility Criteria:

• All non-defaulter borrowers of SBI who can store the produce in a warehouse or their own farms
• All non-borrower farmers and crop loan borrowers of other banks who can store their produce in warehouses

Documents Required:

The endorsed stock statement for the valuation of stocks at a warehouse or the residence of the borrower is needed.

b. Setting up of Agri Clinic and Agri Business Centres

This loan provides self-employment opportunities to individuals who are trained in agriculture extension services. The loan can be availed by applicants engaged in the following activities:

• Water and soil quality testing laboratories
• Diagnostic, post surveillance, and control services

• Repairs, maintenance, and custom-hiring of machinery related to micro irrigation systems
• Agri service centres that work on the three activities listed above (group activities)
• Seed processors
• Micro propagation through plant tissue culture labs
• Construction of bio-fertilizer, vermiculture, and bio-pesticide units

• Construction of apiaries and related processing units
• Provision of agri insurance services
• Consultancy services
• Hatcheries and aquaculture production units
• Livestock health cover provision, construction of veterinary dispensaries/semen banks/liquid nitrogen supply units

• Construction of information technology kiosks in rural areas for the provision of agriculture portal access
• Feed processing and testing technology
• Value addition units
• Construction of cool chain from the farm level (group activities)
• Management centres for post-harvest activities like sorting, standardisation, storing, and packaging

• Constuction of metallic and non-metallic storage units (group activities)
• Retail marketing outlets for agri produce that is processed
• Rural marketing dealership for farm output

The key features of the loan are as listed below:

• In the case of group activities, if a group has more than 5 members, all except one should be trained agri-graduates under the scheme. The remaining person should be a non agri-graduate who has experience in business management.

• For loans within Rs.5 lakh, the loan amount provided will be 100% of the cost of the project.
• For loans more than Rs.5 lakh, the loan amount provided will be 85% of the cost of the project.
• The bank offers a composite subsidy of 44% of the project cost for women borrowers, SC/ST category applicants, and candidates from the North East and hill stations. 36% subsidy is provided for other categories of applicants. There is no interest charged on the subsidy amount.

Loan Amount	Individual activities – Rs.20 lakh* Group activities – Maximum of Rs.100 lakh
Repayment Tenure	5 to 10 years, with grace period of 2 years
Security	Up to Rs.5 lakh – Hypothecation of assets created More than Rs.5 lakh - Hypothecation of assets created and mortgage of land or third-party guarantee
Soft Loan Assistance	The applicant’s 50% share of the margin will be provided by NABARD as a soft loan. There will be no interest on this amount.

*Rs.25 lakh is provided for projects that have achieved success

Eligibility Criteria:

• Graduates in agriculture from State and Central universities and institutions recognised by ICAR/UGC
• Degree-holders in agriculture from other universities are also considered based on the approval from the Department of Agriculture and Cooperation
• Diploma holders in agriculture subjects from recognised universities

• Biological science graduates with post-graduation degree in agriculture subjects
• Graduates of degree courses that are recognised by UGC with more than 60% content in agriculture
• Candidates of diploma courses that have more than 60% content in agriculture subjects
• Candidates of agriculture courses at plus two level with a minimum of 55% marks
• Candidates of courses allied to agriculture, i.e., animal husbandry, horticulture, dairy science, forestry, poultry, pisciculture, etc.

c. Land Purchase Scheme

This loan is offered to small farmers and landless agricultural labourers for the purchase of land. Applicants should be existing borrowers who are looking to consolidate land holdings and develop wastelands.

The key highlights of the loan are as indicated below:

• The loan can be taken for the procurement of irrigation facilities and development of land.
• The loan amount can be used for the purchase of farm equipment and registration purposes.

Loan Amount	85% of the cost of the land*
Loan Repayment	9 to 10 years from the expiry of the gestation period (half-yearly installments)**
Security	Mortgage of the land that is being purchased

*Up to a maximum of Rs.5 lakh

** Gestation period can be up to 1 year for land that is developed and 2 years for underdeveloped land

Eligibility Criteria:

• Small farmers who own less than 5 acres of unirrigated land
• Marginal farmers who have 2.5 acres of irrigated land

• Landless agricultural labourers
• Applicants should have a great track record of previous loan repayment
• Good borrowers of other banks can also apply if they are ready to liquidate their outstanding amount to the respective bank

d. SBI Krishak Uthan Yojana

The purpose of this scheme is to offer short-term production and consumption loans to tenant farmers, oral lessees, and share croppers who do not have land records. These loans help in increasing their income to a great extent.

The key features of the loan are as follows:

Loan Amount	Up to Rs.1 lakh*
Security	Nil
Repayment	The sale proceeds should be routed through cash credit account

*Out of this amount, the maximum consumption credit is Rs.20,000

Eligibility Criteria:

• Share croppers, landless labourers, oral lessees, and tenant farmers who have no land records
• Applicants should have a permanent address proof and should have been residing at the current place for at least 2 years.
• Migratory tillers are not eligible

Documents Required:

• Residence proof
• Identity proof
• Notarized Affidavit in the prescribed format

e. Scheme for Debt Swapping of Borrowers

The purpose of this loan is to help farmers in paying off debts that are taken from non-institutional lenders. These loans assist farmers in meeting their crop production needs. The key features of this loan are as follows:

Loan Amount	Up to Rs.1 lakh*
Security	Collateral security by mortgage on agriculture property
Repayment	Within 3 to 5 years in half-yearly/annual installments

* 100% funding is offered if the loan is for agri activities

Eligibility Criteria:

All existing borrowers of the bank who are farmers can take this loan. Other farmers in the operational area of the bank branches can also avail this finance.

Documents Required:

• Notarized Affidavit, stamped and as per the bank format

• A confirmation from the lender on the facts in the Affidavit

6. Agri Debt Waiver/Relief Scheme, 2008

Farmers can receive debt waiver or relief by getting in touch with the bank branch. Further details of this scheme are available at the RBI website.