SBI Loan Schemes

7/28/2019 SBI Loan Schemes

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1. AGRICULTURAL GOLD LOANS

Purpose

Bank extends hassle free finance to farmers / agriculturists against Gold Ornaments / gold wares to

increase their liquidity to meet crop production expenses, Investment expenses related to agriculture

and / or allied agricultural activities.

Eligibility

Any person engaged in agriculture or allied activities as well as persons engaged in activities permitted

to be classified under agriculture.

Quantum of Loan

Upto 70% of the value of the ornaments .Value will be as advised by the bank to the branches

periodically.

Security

Pledge of gold ornaments.

How do you repay

Credit / Overdraft: Like KCC, it is a running account for a period of 3 years.

Demand Loan / Term Loan :The repayment period of the loan should be fixed so as to coincide with the

harvesting and marketing season / generation of income from the activity, allowing 2 to 3 months time

after harvesting to market the produce and realize the proceeds. However, the total period will not

generally exceed one year from the disbursement of the loan in the case of short-term loan / productioncredit and 36 months in other cases.

How to apply for this loan

Contact your nearest Branch engaged in Agricultural advance.



2. KISAN CREDIT CARD (KCC)

Purpose:

To provide timely and adequate credit to farmers to meet their production credit needs

(cultivation expenses) besides meeting contingency expenses, and expenses related to

ancillary activities through simplified procedure facilitating availment of the loans as and

when needed.

Who are eligible for the loan? • Owner cultivators, tenant cultivators and Share croppers.

• Agricultural borrowers having good track record for the last 2 years (i.e.,Maintaining standard loan accounts). • Creditworthy new borrowers can also be financed.

Loan amount • Loan amount is based on operational land holding ,cropping pattern andancillary and contingency needs of the farmer for the full year

100% of the cultivation cost available as loan uptoRs 50000/ and 85 % of the cost as loan

above Rs 50000/. Expenses to meet important ancillary activities to production can also be

financed in addition to the above The total limit is inclusive of 20% of production credit,

which includes crop production expenses and working capital for allied agricultural activity,

as contingency credit /consumption loan.

Disbursement of the Loan

As per the cultivation requirements of the crop, the loan will be disbursed in cash . Security Loan amount uptoRs 50000/ Hypothecation of Crops.

Above Rs 50000/ uptoRs 100000 (1) Hypothecation of crops.

(2) Mortgage of land or third party guarantee *

Above Rs 100000/ (1) Hypothecation of crops

(2) Mortgage of lands

*For loans uptoRs 1 lac to farmers having legal ownership of agricultural lands with good

rack record for last 2 years, no collateral is required

How do you repay

It is a revolving cash credit limit with any number of withdrawals and repayments and Limit

is valid for 3 years.



How to apply for the loan You may contact our nearest braches engaged in agricultural advance or even talk to the

marketing officers visiting village.



3. PRODUCE MARKETING LOAN

Purpose:

• To help farmers avoid distress sale of their produce

• To enable prompt repayment of crop loan dues and provide liquidity tofarmers to meet contingency needs.• To offer the facility of loan against the stocks stored in farm houses, inaddition to loan against warehouse receipts.

Who are eligible for the loan? 1. All non-defaulter borrowers of our branches, who can store the produce either

in their own farm/premises itself or in a Warehouse / cold storage.

2. Crop loan borrowers of other Bank’s and also Non-Borrower Farmers, whostore their produce/ stocks in a Warehouse / cold storage.

Loan amount 60 to 80% of value of produce depending upon the place of storage subject to a maximum

of Rs.10 lacs.

Documents you need to produce

Stock statement for valuation and evidence of stocks at your residence/ godown Warehouse

receipt, duly endorsed , if stocked at warehouse. SECURITY :

1. Loan sanctioned against goods stored in Farmer’s godown:

Primary : Hypothecation of stocks.Collateral : Mortgage / Charge over Land or Third Party guarantee for loans above

Rs. 50,000/-.

2. Loans sanctioned against Warehouse Receipts (WHR) :

Primary : Pledge of stocks.Collateral : No collateral is required for loans upto the maximum permitted limit of Rs.10 lakhs under the scheme.

DISBURSEMENT: After liquidating the crop loan ,surplus will be disbursed in cash. How to repay? Loan has to be repaid within a maximum period of 12 months depending upon the crop. How to apply for this loan Contact your Branch Manager/Field staff.





5. LAND PURCHASE SCHEME

Purpose:

To assist Small & Marginal farmers and landless agricultural labourers for purchase of

Land, who are our existing borrowers to consolidate land holdings & development of Wasteland & fallow lands. Who are eligible?

• Small & Marginal Farmers owning less than 5 acres of unirrigated / 2.5

acres of irrigated land in their own names , landless agricultural labourers.• The borrowers should have a record of prompt repayment of the loan forat least two years.

• Good borrowers of other Banks are also eligible provided they liquidatetheir Outstandings to other banks.

Loan amount:

Loan may be considered for:

• Cost of land

• Provision of irrigation facilities & land development (shall not exceed 50%

of the cost of the land).

• Purchase of farm equipments.• Registration charges & stamp duty.

Loan amount will be 85 % of the cost of the land, as assessed by the bank, subject to

the maximum of Rs 5 lakhs Security

Mortgage of land to be purchased How to repay the loan Max. 9-10 years beginning after the expiry of gestation period, with half-yearly

instalments.. .Gestation period will be maximum of 1 year for the developed land and 2

years for the land to be developed.. How to apply for this loan Contact your Branch You may contact our nearest branch or talk to the marketingofficers visiting your village.



6. SCORING MODEL FOR TRACTOR LOANS

Purpose

Agricultural term loans are sanctioned for purchase of new tractors, accessories and

implements

Who are eligible for tractor loan?

Agriculturists (individually or jointly ) and Persons offering security like NSCs, KVPs, the

Bank’s Fixed Deposits, surrender value of LIC policy, gold ornaments etc. to cover more

than 60% of the loan amount are eligible for the loan .The applicants should score

minimum score of 40 under the Scoring model of the bank. Loan amount

Upto 95 % of the cost of the Tractor, trailer and accessories. (Depending on the scores

in the scoring model).The cost includes the Registration charges and insurance premium

not exceeding Rs 15,000/-. Additional loan equal to 10% of tractor loan for repairs may

be provided for at the time of sanction. Bank will finance only for those models of

tractors which have completed the commercial test from organizations viz. Central Farm

Machinery Training and Testing Institute (CFMTTI) Budni (Madhya Pradesh) or Farm

Machinery Training and Testing Institute (FMTTI), Hissar Security

1. Hypothecation of the tractor, accessories and implements. Noting of Bank’s hypothecation charge in the RC Book of the tractor is compulsory in allthe cases.

2. Collateral Security like NSCs, KVPs, Banks Fixed Deposits ,Surrender

value of LIC policy etc OR Mortgage of agricultural lands .However no collateralsecurity is required, if the score is 70 and above on the scoring model of thebank

How to repay the loan

Within a maximum period of 9 years, including a grace period not exceeding 12 months.

The installments shall be payable half-yearly / yearly, coinciding with the harvesting and

marketing period of the crops proposed to be grown by you

How to apply for this loan

You may contact our nearest branch or talk to the marketing officers visiting your village

.



7. FINANCING FOR COMBINE HARVESTERS

Purpose Finance is given for the purpose of combined harvesters'. Makes in the approved list of

the bank will only be financed Who are eligible?

a. For self propelled Combine Harvester 1. Farmers who are in a position to operate the Harvester successfully and owning

minimum of 8 acres of irrigated land (corresponding acreage for other types of land).

2. Farmers owning lesser acreage than that prescribed above, are also eligible for

availing combine harvester loans provided they could operate the harvesters

successfully and generate sufficient income .Additionally they should provide additional

collateral security like NSCs,Bank Fixed Deposits,LIC policies urban property etc to the

value of at least 50% of the loan amount.

b. For Combine Harvesters as an attachment /equipment

Farmers who are in a position to operate the Harvester successfully and owning

minimum of 6 acres of irrigated land (corresponding acreage for other types of

land)..They should own a tractor of not less than 50 HP . Farmers owning lesser acreage

than that prescribed above, are also eligible for availing combine harvester loans

provided they could operate the harvesters successfully and generate sufficient income,

additionally they should provide additional collateral security like NSCs, Bank Fixed

Deposits, urban property etc the value of at least 50% of the loan amount Loan amount Upto 85 % of the cost of combine harvester and accessories. Security 1. Hypothecation of assets financed

2. Mortgage of land/buildings

How do you repay Repayment of the loan will be in Quarterly/half yearly/yearly installments’ depending on

the liquidity your activity creates AND a maximum period of residual economic life of the

tractor owned which is assumed as 9 years,.



8. DAIRY PLUS SCHEME FOR FINANCING DAIRY UNITS

PURPOSE

For construction of shed, purchase of milch animals, milking machine, chaff cutter or

any other equipment required for the purpose. Who are eligible?

(1) Individual farmers who are members of the milk procuring societies or located on

milk route

(2) They should be less than 65 years of age .

(3) Individual dairy unit having less than 10 animal - should own minimum 0.25 acre of

land for every 5 animals for growing fodder and be in a position to procure the balance

requirements locally.

(4) Individual dairy unit having 10 animals and above - should own or lease a minimum

of one acre of land for cultivation of fodder for every 5 animals.

Other terms

• Animal purchase should be in 2 batches

• Only buffaloes producing more than 7 litres of milk per day and cows producing

more than 8 litres of milk per day are financed

Animals in first and second lactation alone are eligible for finance LOAN AMOUNT: 100% of the cost for loans uptoRs 50000/

90% of the cost for loans above Rs 50000/ with a maximum of Rs 5 lakhs as Term

loan

WORKING CAPITAL: A working capital @ Rs.2500/- per animal per year may be

Sanctioned for purchase of feed, fodder and medicine along with the term loan

Security

Hypothecation of assets created out of bank finance for loans uptoRs 1.00 lac .For loans Over Rs.1 lac -Mortgage of landed property (or) third party guarantee

Worth for loan amount (or) group guarantee of other 2 dairy farmers. How do you repay

The loan should be repaid in monthly installments’ over a period of 5 lactations.



9. BROILER PLUS

(Scheme for financing Broiler Farmers under Contract farming) Purpose

Under this scheme loans can be extended to both existing farmers and new farmers

having “Contract Broiler Farming” arrangements for enabling them to construct poultry

shed and feed room and for purchase of equipments Who are eligible for Broiler plus loan?

Those who have experience or undergone training in poultry farming They should have

entered a contract with the companies undertaking broiler production through contract

farming.

ii.The farmers should possess adequate land for construction of poultry shed which

should be at least 500 meters away from any existing poultry farm. Potable water

source should also be available . ECONOMIC FLOCK SIZE:

The minimum flock size should be 5000 birds. However,financing can be done for

10,000 and 15, 000 birds or part thereof.

Loan amount

Upto 75 % of the cost.

UptoRs 3 lacs for every 5000 bird planned to be reared

Maximum loan amount under the scheme will beRs 9.00 lacs per farmer Security:

Hypothecation of assets created out of Bank finance and Mortgage of land on which the

poultry shed and other infrastructure is available

How do you repay

The entire loan should be repaid within 5 years inclusive of a grace period of 6 months,

with installments’ at bi monthly intervals

10. SCHEME TO COVER LOANS FOR GENERAL PURPOSE UNDER - GENERAL CREDIT CARD (GCC)

Purpose

The scheme is to provide hassle-free credit to our customers based on the assessment



of cash flow without insistence on security, purpose or end-use of the credit. Who are eligible for the loan?

Eligibility:

i. All our existing customers with the branch having satisfactorily conducted deposit

accounts including no frills deposit accounts in our books; say, for the last 6 months, or

so, and / or loan accounts classified as standard assets will be eligible for availing loan

under the scheme.

ii. GCC facility should, however, not be extended to the KCC borrowers. Loan amount Maximum Rs 25000 / Security: Nil How to repay the loan

Account will be in the nature of cash credit. The outstanding amount in the GCC should

be cleared in full when the applicant is fluid with cash which may be at yearly/ half

yearly / quarterly / monthly intervals based on the occupation of the applicant / his

family. In case the entire amount is not repaid a minimum of 20 % of the amount due

along with upto date interest debited should at least be repaid.

11. MINOR IRRIGATION SCHEMES

Purpose



Loan covers various activities like digging of new wells (open / bore wells), deepening of

existing wells, energisation of wells (oil engine/electrical pump set ),laying of pipelines,

installing drip / sprinkler system and lift irrigation system. Who are eligible?

All farmers having a known source of water available for irrigation purpose are eligible

for the loan. Loan amount

For loans uptoRs 50000/ 100 % of the project cost

For loans above Rs 50000/ upto 85 % of the project cost will be provided as loan

cost

What are documents you need to provide?

(1) Land records

(2) Quotation for the assets to be purchased

(3) An estimate for the civil works to be undertaken

(4) Geologist certificate wherever applicable

(5) Feasibility certificate from the EB Dept Security

A) Where movable assets are not created

(a) UptoRs 10000/ Personal guarantee

(b) above Rs 10000/ Personal guarantee and Mortgage of land

B) Where movable assets are created

(a) UptoRs 50000/ Hypothecation of assets created

(b) Above Rs 50000 Hypothecation of assets and mortgage of land

How to repay the loan Repayment will be in Quarterly / half yearly / yearly installments’ over a period of 5 to 7

years depending on the crops or the liquidity created by the agriculture activity

undertaken.



12. SCHEME FOR FINANCING SEED PROCESSORS

Purpose



To extend financial assistance to the seed processors against their receivables due to

them from the seed growers.

Who are eligible? Seed processors / units

• Enjoying good reputation & credit worthiness.

• Holding a valid license from the concerned State Department of Industries for

Installation of Seed Processing Plant.

• Having valid certificate from Seed Certification Department.

• Doing business for the last 3 years.

• Having receivables from the farmers.

• Who have posted profits during the past two years of operation are eligible to avail

credit limits under the scheme.

Loan amount

60 % of the value of the receivables. Minimum Rs 2.00 lacs. No upper limit Security (1) Assignment/hypothecation of receivables from the farmers.

(2) Equitable mortgage of residential/ commercial property worth 1.5 times of the limitsanctioned belonging to either the applicant or the guarantor. How to repay the loan? Loan to be liquidated within a maximum period of 6 months for each crop season

i.e.,Rabi&kharif.

13. CAPITAL INVESTMENT SUBSIDY SCHEME FOR COMMERCIAL PRODUCTION UNITS OF ORGANIC

INPUTS UNDER NATIONAL PROJECT ON ORGANIC FARMING



Purpose

This scheme is to promote organic farming in the country on a large scale. Under this

scheme manufacturing of organic inputs such as biofertilisers, vermicompost, fruit and

vegetable waste compost are considered.

Who are eligible for the loan Individuals, group of farmers/growers, proprietary and partnership firms, cooperatives,

fertiliser industry, seed industry, Companies, Corporations, NGOs are eligible New as

well as existing units (for expansion / renovation) engaged in the production are eligible

under the scheme. Loan amount 50% of the Project cost as Bank loan

25% of the cost will be provided as subsidy from Government, subject to ceilingCost of the project depends on the location, capacity, technology, invoice prices etc SECURITY Security will be as per norms prescribed from time to time. How to repay the loan? Repayable in 8 – 10 years, with a grace period of 2 years.

14. GRAMIN BHANDARAN YOJNA - CAPITAL INVESTMENT SUBSIDY SCHEME FOR CONSTRUCTION /

RENOVATION OF RURAL GODOWNS



Purpose

This scheme is for creating scientific storage capacity in the rural areas for storing farm

produce ,thereby prevent distress sale of produce by the farmers after harvest ,by

promoting pledge financing and marketing credit.

Who are eligible for the loan? 1. Individuals / Farmers. quality cum inputs testing laboratories.

2. Proprietary and partnership terms..

3. Co-operatives, Agro-processing co-operative societies.

4. Companies.

5. Corporations, Agro-Industrial corporations.

6. Agricultural Produce Marketing Committees..

7. Group of Farmers/Growers.

8. NGOs

9. Agro-Processing Corporations..

10. Self Help Groups..

11. Marketing Boards etc.

The godown can be constructed / located in any area outside the limits of a Municipal

Corporation area. Rural godowns located in Food Parks promoted by Ministry of Food

Processing Industries are also eligible.

Loan amount Depending on the project cost. Maximum Project cost will be Rs 1500/ to 2000/ per

tonne capacity for construction and Rs 500/ per tonne for renovation NABARD is

providing back end subsidy for the projects financed by the Banks ,depending on the

location and capacity of the godowns

Bank will financeupto 80 % of the Project cost Security Mortgage /charge of Land and godown How do you repay The loan should be repaid in 11 years, with a grace period of one year. Subsidy will be

credited as the final installments .

15. FINANCE TO HORICULTURE

Purpose



Loans for development of fruit orchards like mango, chikoo, Grapes, pomegranate,

apple, etc., as well as short term crops like banana, pineapple, Flowers in open and

green houses and vegetable crops are financed. Who are eligible?

All farmers having cultivable lands. Loan amount

UptoRs 50000/ 100 % of the cost of the asset / project cost

Above Rs 50000/ upto 85 % of the asset / project is given as loan.

For Short term loans, loans are given under our crop loan / Kisan Credit Card schemes. Documents you need to provide

For Orchard development you need to submit the following:

i) Water and soil testing report

ii) A feasibility certificate from the local Horticulture department

iii) Land records

iv) Quotation /estimates for the costs to be incurred

v) Project Report, if the project is large Disbursement of the loan

Generally disbursements are made directly to the suppliers. Cultivation expenses are

released in stages as per the schedule set in your proposal.

Security

Loan amount uptoRs 50000/ Hypothecation of assets created

Above Rs 50000/ uptoRs

100000

(1) Hypothecation of assets created

(2) Mortgage of land or third party guarantee

Above Rs 100000/ (1)Hypothecation of assets created

(2) Mortgage of lands

How do you repay?

The loan repayment starts after the completion of the gestation period varying from 4 to

7 years for different crops. Repayment commences from the time the crop gives



economic yield and is linked to the income generation of each crop every year and

varies between 7 to 12 years.

16. KRISHI KALYAN

FARMERS EASY EMPOWERED LOAN (FEEL): “KRISHI KALYAN”

(Combo Product of ACC and PML) Purpose:

• To provide timely and adequate credit to farmers to meet production and



consumption expenses.• To offer credit against the stocks stored in farmers own premises / godowns/

warehouses/ cold storage, which help farmers avoid distress sale of the produce

& promptly repay the loan dues.• To reduce the multiple process of separate application, documentation & EM

creation for availment of KCC and PML, thereby reduce the time for delivery of

credit.

ELIGIBILITY All non-defaulter and credit worthy farmers – owner cultivators, tenant

farmers, and share croppers, having good track record and cultivating crops , like food

grains( cereals), pulses, oilseeds etc., produce of which could be stored in godowns

/ware houses/cold storage etc., Farmers cultivating fruits and vegetables, in centers

where cold storage facilities are available.

Quantum of Loan:

Total credit limit will be sanctioned, comprising of following components.

Production credit:

Annual Credit needs will be sanctioned, depending on the operational land holdings,

cropping pattern, and scale of finance. Contingency credit:

Contingency credit:

Produce Marketing loan:

Limit depends on the current market price or the MSP fixed by the Government (less

Margin) multiplied by the quantum of stock to be stored. Maximum Limit:

a. Production Credit : No upper limitb. Produce Marketing Loan : Max of Rs 10 lac per borrower.

Margin:

• For Production Credit: 15-20%

• For Produce Marketing loan:

1. sanctioned against goods stored in Farmers own godown 40%2. Loans against warehouse receipt 20-35%

SECURITYLimit up to Rs 1 Lac:

Primary: - Hypothecation of standing crops and / or stocks Stored under produce

Marketing Loan Collateral : - NIL



Limit above Rs 1 Lac;

I) If the Production credit portion does not exceed Rs 1 lac and Produce Marketing Loan

is against Warehouse receipt (Max Limit Rs 10 lacs)

a) Hypothecation of standing crops and/or Pledge of stocks.

b) Warehouse Receipt (duly endorsed) and Letter from the Warehouse Authorities to the

effect that the stocks covered by WHR will be released only on a written communicationfrom the bank

II)If production credit limit exceeds 1lac & produce loan is against warehouse receipt

(below Rs 10 lac)

a) Hypothecation of standing crops and/ or Pledge of stocks.

b) Mortgage /charge over the land to the extent of Production credit limit.

III)If production credit limit exceeds 1lac & produce stored in Farmers own go-down

a) Hypothecation of standing crops and stocks

b) Mortgage/charge over land

c) Declaration of Stocks from the farmer INTEREST RATE

As applicable from time to time to crop loans. REPAYMENT

Crop Loan (Production Credit) &} Loan amount will be liquidated from Produce

Contingency credit Loan } Marketing loan sanctioned to the farmer

Produce Marketing Loan is to be repaid within a maximum period of 12 months, from

the date of availment of the PML loan, depending on the produce.

17. FINANCING JLG OF TENANT FARMERS

FINANCING JLG OF TENANT FARMERS Objectives:



• To augment flow of credit to tenant farmers cultivating land either as oral lessees

or sharecroppers and small farmers, who do not have proper title to their land

holding, through formation and financing of JLGs.• To extend collateral free loans to target clients through JLG mechanism.• To build mutual trust and confidence between the Bank and tenant farmers.

Purposes of credit

The finance to JLG is a flexible credit product addressing the credit requirements of its

members including crop production, consumption, marketing and other productive

purposes.

Who should constitute the JLG? • Members should be of similar socio-economic status and background carrying out

farming activities and who agree to function as a joint liability group.

• The group members should not be a defaulter to any other formal financial

institution.

• JLG should not be formed with members of the same family and more than oneperson from the same family should not be included in the JLG.

Size of the JLG

The group should be formed preferably with 4 to 10 members to enable the group

members to offer mutual guarantee. While informal group of upto 20 members could

also be considered, such large groups are found to be not effective in fulfilling mutual

guarantee obligations in the case of farmers.

JLG models:

Model A: The group members are eligible for individual loans on executing an inter-se

guarantee agreement.

Model B: The group is eligible for accessing one loan, which could be combined credit

requirement of all its members. Type of loan

ACC or ATL depending upon the purpose of loan.

Loan limit

Maximum amount of loan available is Rs.50, 000/- per individual both under Models A

and B

Security Norms

No collaterals are obtained. Only mutual guarantee is obtained.

