The Agri Gold Loan scheme offered by the State Bank of India (SBI) can be beneficial to farmers and entrepreneurs as it provides loans at a very low interest rate. There are various benefits available in this plan like it has no hidden charges and there is no penalty for the prepayment of credit.
The service by SBI provides immediate disbursement of credit. Borrowers will be charged an interest rate of Marginal Cost of Lending Rate (MCLR) + 1.25 percent in the scheme. The processing/inspection charges for borrowed amounts up to Rs 25,000 is zero. For a loan of Rs 25,000 to up to Rs 2 lakh, the borrower will be charged Rs 500 + GST. For an amount above Rs 2 lakh, the borrower is going to be charged 0.3 percent of loan limit along with GST.
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The scheme helps in meeting short-term production credit. The plan offers loans for irrigation, horticulture, acquiring farm machinery, undertaking land developments, transportation of produce, and more. In order to know more details regarding the scheme, borrowers should visit their nearest SBI branch.
The scheme helps in meeting short-term production credit. The plan offers loans for irrigation, horticulture, acquiring farm machinery, undertaking land developments, transportation of produce, and more. In order to know more details regarding the scheme, borrowers should visit their nearest SBI branch.
Features of the SBI Agri Gold Loan scheme:
- The scheme has a one-year tenure from the loan’s date of disbursement.
- The borrowers can pledge for gold ornaments for security.
Eligibility for the scheme:
- All the farmers, agri entrepreneurs, and owner cultivators can avail the benefits of this scheme.
- The plan is also available for the oral lessees, tenant farmers, and sharecroppers.
- Those individuals who engage in any agricultural or allied activity and seek to repay the loans given by the non-institutional lenders are also eligible. People who are engaged in activities permitted by the Reserve Bank of India (RBI) can benefit from this scheme as well.
The applicant has to provide a self-declaration which shows that he/she is engaged in agriculture and allied activities, and that the loan availed against the pledge of gold ornaments is for the purpose of repaying the higher interest rate loans taken from non-institutional lenders.
Required documents
- Two photographs of the borrower
- Application
- KYC documents
- For loans above Rs 2 lakh, evidence of land holding or allied activities is required.
- Any other documents according to sanction.
