Nation’s largest bank in agricultural finance has decided to offer concessional interest rates for setting up of high value dairy, poultry, horticulture projects as well as for construction of warehouses/rural godowns and cold storages. The concessional interest rate would be available across the nation for new loans to be sanctioned till 31.03.2011, and would be reset every year.
Term loans and Working capital limits for setting up high value dairy projects, as also small dairy borrowers with herd size of 10 cattle and above, who have tie up with reputed milk processers for assured buying arrangement would be given loans at the rate of 10% p.a.
Similarly, Term loans and Working Capital limits to new poultry units with credit requirements of Rs 5 lacs and above would be given loans at the rate of 10.5% p.a.
Fresh loans for horticultural activities, where letter of intent is issued by National Horticulture Board would also be available at the rate of 10.5% p.a.
SBI has been actively associated with the national objective of creating storage and preservation facilities for food-grain and horticultural commodities. The Bank has decided to offer a concessional interest rate of 10.5% p.a. for construction of new godowns/ warehouses and cold-storages, till 31.3.2011 to promote and enhance the storage capacity.
The above concessions are in addition to concessional rate of interest @ 8.5% already in vogue under Produce Marketing Loan Scheme upto limits of Rs 10 lacs, per farmer for storage of agri-produce against warehouse/ cold-storage receipts, untill 31.3.2011. Crop loans (ACC/KCC) limits above Rs 3 lacs but upto Rs 25 lacs are also being offered concessional interest rate of 10% p.a. till 31.03.2011 to augment credit needs of agriculture sector in the current fiscal. ( Crop loans upto Rs 3 lacs are offered @ 7% p.a. under RBI’s shceme of interest subsidy). The Bank is also extending concessional interest rate to farmers for minor irrigation purposes till 31.03.2011.
All the abovesaid concessions are being offered as against card rates between 12.10% and 14.85%, under Agriculture Segment.