SBOP launches agri gold loans

State Bank of Patiala (SBOP) today said it has launched gold loan (Swarn Shakti) for farmers against the security of gold ornaments.

The motive of the campaign is to enable the farmers to meet their short and long term agriculture credit needs including both for meeting crop production and investment needs, besides their consumption needs, a spokesperson of the bank said here.

The period of campaign for this scheme will be up to September 30 this year.

The scheme aims to provide hassle free loans to the farmers without mortgage of land, he said, adding that maximum loan amount under the scheme would be Rs 10 lakh and a margin of 30% would have to be contributed by the farmers.

Farmers availing loans for the purpose of raising crops will be charged at 7% per annum up to Rs 3 lakh. Further interest subvention of 3% per annum will be available to farmers who repay their loans in time, he said.

Hence, the effective rate of interest charged from such borrowers will be 4% only. The repayment period will be maximum 36 months linked with harvesting season.