SBI Agriculture Loan

State Bank of India (SBI) offers a range of short and long-term agricultural loans that can be used to cover expenses related to various agricultural needs. Common uses of SBI Agricultural loan include buying and maintaining/upgrading farm machinery, managing crop production and various post-harvest activities. Read on to know key details about SBI Agricultural Loans, including types, interest rates, application processes, etc.

 

Types of SBI Agricultural Loan

SBI currently offers 5 types of agriculture loans, some of which in turn have several sub-types on the basis of the purpose for which the loan can be used. The following are key details about various types and subtypes of SBI Agricultural Loan:

Features of 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

 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

Also Read: What are the interest rates for personal loan in SBI?

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.

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
Tel: 022-22029456
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

FAQs

Q. Who can apply for SBI Kisan Credit Card?

Ans. Any individual involved in agricultural activities can apply for SBI Kisan Credit Card.

Also Read: How do I get a Kisan credit card?

Q. What is the interest rate for SBI Tractor Loan?

Ans. The interest rate for SBI Tractor Loan starts from 9.00% p.a. 

Q. Which loan should I avail to manage my irrigation related expenses?

Ans. You can avail SBI Drip Irrigation Loan to manage your irrigation related expenses.

Q. Do I need to pledge a collateral/ security to avail SBI Crop Loan?

Ans. No, you don’t need to pledge a collateral/ security up to Rs. 1 lakh as SBI Crop Loan.

Q. What is the repayment tenure for SBI Dairy Society Plus Loan?

Ans. You can repay the SBI Dairy Society Plus Loan within a tenure extending up to 5 years.

Q. What is the interest rate for SBI Crop Loan?

Ans. The interest rate on SBI Crop Loan starts from 7% per annum. This is significantly lower than other SBI personal loan interest rates.

Q. How can I get Produce Marketing Loan from SBI?

Ans. You can get Produce Marketing Loan from SBI using the stock i.e. produce stored in farm house/warehouse as collateral.

Please Note: SBI is not a Paisabazaar partner. Offers would be from partner Banks/NBFCs only.