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State Bank of India


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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 Loan 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 :

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.

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

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:

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
Dairy Farm Business Loan
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:
Loan against Warehouse Receipts (WHR):
*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.

FAQs on SBI Agriculture Loan
Can joint liability groups and self-help groups apply for SBI crop loan?
Yes, they are eligible to apply for crop loan.

What is the interest subvention for a loan amount of up to Rs.3 lakh?
For a loan amount of Rs.3 lakh, interest subvention at 2% p.a. is offered.

What is the processing time for New Tractor Loan?
The processing of new tractor loan will be completed within 7 days from the document submission date.

What is the interest rate for Tatkal tractor loan?
The interest rate for Tatkal Tractor loan varies depending on the margin. If the margin is 25%, the interest rate is 11.20% p.a. while if the margin is 35% and 50% respectively, the interest rate is 10.95% p.a. and 10.55% p.a.

For what purpose can I avail the Fisheries loan? What is the interest rate?
Fisheries loan can be availed for the purchase of fish net, fish seeds, and other related equipments. The loan is offered at an interest rate of 12.10% p.a.

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