SBI provides agricultural loan under Farmer’s Land Purchase Scheme to help small and marginal farmers, tenants, cultivators, share croppers and agricultural labourers (who do not have land of their own) to purchase land.
Maximum loan one can avail is up to ₹ 5 lakh (excluding all developmental charges)
- Any farmer or people related to agricultural activities who have a good track record of at least two years of regular repaying of loans are eligible.
- Borrowers of other banks with a good track record may also be eligible provided they have an understanding with their respective banks.
Terms and conditions:
The loan can be considered for following purposes-
- To cover Land cost.
- To cover irrigation facilities and land development. Al though the cost of this should not be more than 50% of the land cost.
- To purchase farm equipments.
- To cover registration charges and charges of stamp duty.
Interest rate is minimum 15%.
- 1-2 years: If it is to be developed.
- 6 Month-1year: Developed land
*(Gestation period in business or finances is the length of time a said project takes to start showing results)
Maximum time a borrower gets to repay the loan is 9 to 10 years. Once the gestation period is over, a borrower can start repaying his loan on a half-yearly installment basis.
How to apply?
Contact your nearest SBI branch to avail this loan.