The demand for kharif crops is more from farmers end in the monsoon season. Besides, during the south-west monsoon season, the main kharif crops which are sown by farmers are bajra, jowar, soyabean, sugarcane, turmeric, rice, pulses, groundnut, etc. When the monsoon is good farmers reap the benefit of these sowings and their earnings are also more.
However, things don’t always work in farmers favour. The major concern for farmers, when things don't go their way is of financial assistance. Now, the good news is that farmers don't have to worry for it, as the largest lender State Bank of India (SBI) has loans which are available for farmers. These loans can help them carry their day-to-day living that too without any hassle.
Adding to it, these loans come with Low Interest Rates, Low to Zero Processing Fees and Flexible for Repayment.
So if you’re planning to avail loans then check out the Four Schemes offered by SBI:
SBI Kisan Credit Card Scheme:
A farmer can either jointly or individually get interest at saving bank rate on credit balance in KCC account. Also, there is a free ATM cum debit card (State Bank Kisan Card) for all KCC borrowers. Interest subvention at 2% p.a is available for loan amount of upto Rs. 3 lac and interest subvention at 3% p.a. for prompt repayments.
Adding to it, notified crops and areas are covered under crop insurance for all loans. Quantum of loan for 1st year would be assessed as per the Cost of cultivation, post-harvest expenses and farm maintenance cost. For subsequent 5 year loan will be sanction according to increase in scale of finance.
Also simple interest rate will be charged at 7% per annum for one year or upto the repayment due date, whichever is earlier. If non-repayment within the due dates interest is applied at card rate.
SBI Tractor Loans:
Four types of SBI Tractor Loans are available in this scheme. First comes, the Stree Shakti Tractor loan which is mortgage free. Here the borrower must be women. There should be a minimum of 2 acres of agricultural land in the name of borrower(s) and the minimum annual income of borrower(s) must be Rs. 1,50,000 /- from all sources. The Interest rates are fixed at 11.20% per annum and repayment period is 36 months with 1 month moratorium.
Second is the Stree Shakti loans with liquid collateral where loan can be availed by pledging gold ornaments/Time deposit with bank/NSC etc. Here rate of interest is lower at 10.95%, and repayment period is 48 months.
Third comes the New Tractor loan, where the borrowed money will cover the cost of tractor, accessories, implements, insurance and registration expenses. Here, there is no upper ceiling on the loan amount limit. Interest paid will be 11.95% per annum with repayment period of 60 months.
Fourth is the Tatkal Tractor loan, it includes margin of minimum 25% of the cost of tractor which includes insurance and registration charges. Here, the interest rates vary from 10.55% to 11.20% and tenure ranging between 48 months to 60 months.
SBI Agri Gold Loan:
This loan scheme is meant for agricultural expenses against pledge of gold ornaments. They are offered at attractive interest rates and cover all farming activities, with simple procedure. They also provide quick delivery.
It is to be noted that, if the loan opted for crop production, then the amount of loan is fixed as per the prescribed ‘Scale of finance” (SOF) of the crop grown, acreage and the loan is used for the stated purpose. Repayment period of maximum 3 years is available. Till Rs 3 lakh loan, 7% interest rate per annum is available during interest subvention period. Whereas above Rs 3 lakh amount, 9.95% rate is available.
Interestingly, for multi-purpose agri gold loan scheme, one can pledge their yellow metal for any farming related activities with fixed interest rate at 9.95% per annum.
