As we know that agriculture is the most important sector in India but still farmers in the country face lot of difficulties while doing farming - they don’t have money to buy quality seeds or fertilizers. Hence to help farmers as well as agriculturists with the finances, many banks have started providing crop loans.
Purpose of Crop loan
Crop loan is basically a short-term loan that is given to the agriculturists and farmers by banks & co-operative societies. The loan can be used to buy various things like improved seeds, fertilizers, machinery etc. The loan is generally repaid in single instalment after production of crop.
List of banks offering Crop Loan
In India, the following banks provide crop loans to the farmers;
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State Bank of India
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ICICI Bank
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Union Bank of India
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IDBI Bank
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HDFC Bank
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Andhra Bank
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Bank of Baroda
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Bank of India
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UCO Bank
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Axis Bank
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Allahabad Bank
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Bank of Maharashtra
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Canara Bank
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Oriental Bank of Commerce
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Punjab and Sind Bank
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Punjab National Bank
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Central Bank of India
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Corporation Bank
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Dena Bank
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Indian Bank
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Indian Overseas Bank
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Vijaya Bank
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Syndicate Bank
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United Bank of India
Apart from crop loan, banks also offer agricultural loans for various purposes.
SBI crop loan
State Bank of India, country’s largest lender offers loans for crop production in the form of ACC or KCC. SBI loan covers the following things - crop production expenses, post-harvest expenses & contingencies, etc. Kisan Credit Card (KCC) is given in form of electronic Rupay Card, through which farmers can withdraw money from ATMs, buy items like fertilizers through PoS.
Features & Benefits of SBI crop loan
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It gives interest at saving bank rate on the credit balance in KCC account.
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Free ATM cum debit card for all KCC borrowers
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Interest subvention at 2% per annum is given for loan amount upto Rs. 3 Lacs
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Additional interest subvention at 3 percent p.a. for prompt repayments
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Notified crops or notified areas are being covered under crop insurance for all KCC loans
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Collateral security is waived for KCC limit upto Rs. 1 lakh.
Direct link to apply for SBI crop loan
Documents Required for crop loan
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Duly filled in application form
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Identity proof like Voter ID card/PAN card/Aadhaar card/Passport/Driving License
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Address proof like Aadhaar card/Voter ID card/Passport/Driving license
How to apply for crop loan
Offline process - In order to apply for crop loan just visit your nearest bank branch. We have already mentioned the list of banks that offer crop loans. Meet the bank executive and tell him/her that you want to apply for crop loan. The bank official will give you a form and explain the whole process.
Online process - You can also apply online by visiting your banks official website. Read the instructions carefully and then only for crop loan.
