SBI extends 8% farm loans against warehouse receipt till June

The country's largest lender State Bank today extended its concessional interest loan offer to farmers, under which it offers loans at 8 per cent against warehouse receipts, till June 30. 

The state-run lender started offering 8 per cent loan under its Produce Marketing Loan scheme last February with a view to save the farmers from falling prey to distress sale of their farm produce. The scheme ended on March 31, 2010.

Farmers can avail of loans up to Rs 10 lakh under this scheme against warehouse and cold storage receipts at a fixed interest rate of 8 per cent for the first 12 months in respect of loans sanctioned and disbursed till the end of June, the bank said in a release here today.
     
Despite disapproval of the Reserve Bank, SBI recently extended its 8 per cent 'teaser' home loan scheme for one more month till April 30, under which it offers 8 per cent fixed rate home loans for a year. In the second and third years, interest will be 9 per cent and the rates will go back to floating from the fourth year.
      
Yesterday, largest mortgage player HDFC launched a dual rate scheme, under which it would offer a fixed rate of 8.25 per cent up to March 2011, then 9 per cent for the next one year and the prevailing floating rate for the remainder of the loan tenure.