Good News for Farmers! SBI to provide Agri gold loan at very low interest; Check benefits, features, other details

SBI Agri Gold Loan scheme helps farmers and agri entreprenuers to meet credit need in farming and allied activities. Under the requirements, borrowers need to pledge for Gold ornaments to get the credit.

New Delhi: Farming is a risky profession. It demands a lot of investment before profit. Farmers and agri entreprenuers need credit time to time to support the farming process until the crop is sold in the market. Banks provide credit to farmers and those in allied activities like Dairy, Poultry, Fisheries, Piggery, Sheep, etc to meet the production need.

SBI Agri Gold Loan scheme is one such that helps farmers and agri entreprenuer to meet short-term production credit. The scheme provides credit to farmers, engaged in agriculture, cultivating own or leased land or engaged in cultivation of crops. Moreover, the scheme offers loans to entrepreneurs and farmers, who needs investment credit for acquiring farm machinery, undertaking land developments, irrigation, horticulture, transportation of Agri Produce, etc.

The scheme charges one year MCLR rate + 1.25% for an interest rate. Borrowers need to visit the nearest branch to get more information regarding it.

Sharing an info graphic of the scheme on official Twitter handle, SBI wrote, “One-stop solution to achieve your business needs! With #SBI Agri Gold Loan, make your agricultural dreams come true. Visit your nearest SBI branch today. Learn about availing low-interest rates, instant loan amount disbursal, etc.”

Benefits of SBI Agri Gold Loan

1. It has low interest rates comparison to other banks.
2. The service is very quick with immediate disbursement of credit.
3. Borrowers don’t need pay any penalty for prepayment of credit.
4. It has 1 year repayment tenure.
5. Moreover, it has no hidden charges.

What is the Eligibility?

1. The scheme will available for all farmers, individuals who are owner cultivators, or Agri entrepreneurs.
2. It also opens for tenant farmers, oral lessees & sharecroppers.
3. Any person engaged in any agriculture or allied activities and wants to repay loans availed from non-institutional lenders as well as persons engaged in activities permitted by RBI to be classified under agriculture. a self- declaration has to be obtained from the applicant that he/she is engaged in Agri and allied activities and that the loan availed against the pledge of Gold ornaments is for repayment of higher interest rate loans availed from non –institutional lenders.

What are the features of the scheme?

1. As for a security, one can pledge for gold ornaments.
2. It has a tenure of 12 months from the date of disbursement of the loan.