SBI Agriculture Loan - Farmer's Schemes For Land Purchase and Debt Swapping Of Borrowers

Objective of Farmer's Land Purchase Scheme of SBI is to assist Small & Marginal farmers, Tenants Cultivators, Share Croppers and landless agricultural laborers for purchase of land.

1. SBI Agriculture Loan - Farmer's Land Purchase Scheme


The borrowers should have a record of prompt repayment of the loan for at least two years. Good borrowers of other Banks may also eligible provided they liquidate their outstanding to other banks.

Quantum of loan

Maximum Rs. 5 lacs. (Excluding development charges).

Utilization of Loan Amount

Loan may be considered for:

  1. Cost of land.
  2. Provision of irrigation facilities & land development (shall not exceed 50% of the cost of land).
  3. Purchase of farm equipment.
  4. Registration charges & stamp duty.
  5. Farmers assisted under the scheme may also be given crop loans (KCC only).


Minimum margin of 15%.

Gestation period

  • 1-2 years: If it is to be developed.
  • 6 Month-1year: Developed land


Max. 9-10 years beginning after the expiry of gestation period, with half-yearly installments.


To be secured by way of mortgage of land to be purchased.

2. SBI Agriculture Loan - Farmer's Scheme For Debt Swapping Of Borrowers

SBI to extend finance to farmers for paying off loans taken from non institutional lenders (e.g. money lenders etc.) and to enable such farmers in distress, meet their crop production needs.


All existing farmer borrowers as well as other farmers in the operational area of the branch.


Direct Agriculture.

Quantum of loan

The loan granted shall be 100% if the debt is on account of cultivation or agri activity or Rs.50,000/- whichever is lower. Simultaneously, the applicant shall be financed Kisan Credit Card which includes additional 20% of the production limit to meet contingent requirements or / and Agriculture Term Loan. The amount of ‘debt’ of the farmer is assessed based on the stamped affidavit given by the applicant.

SBI Agriculture Loan - Debt Swapping of Borrowers
SBI Agriculture Loan - Debt Swapping of Borrowers

Method of assessment

  1. Debt being financed will be given as an ATL repayable in 3 to 5 years
  2. Gross DSCR of 1.75 will be maintained.

Sanctioning authority

The Branch Manager/Division Manager only should sanction loans under this scheme strictly.


disbursed preferably to the money lenders, an appropriate receipt for the discharged debt from the money lender should be obtained and kept with the loan documents.


All the existing security available with us both primary & collateral should be extended to cover the loan. Collateral security by mortgage of agriculture property.

Beware Of Fake Banking Offers And Hoax Calls From Fraudsters / Miscreants On Behalf Of A Bank And Other Institutions.