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).

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


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 - Farmers' Scheme For 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.

There are 13 Comments

Dear Sir,
The SBI Sevalia branch had been issued crop loan on the name of The landlord Mr. C.D.Patel ,my father. Now he is not long live and expired in 2012. We already paid up the loans with interest. Now on renewal we submit the death certificate of my father and inheritance document . Now the officer demand all the documents fresh and we have to follow all the procedure repeatedly. So we are not getting the crop loan since last two years. Is it liable to provide all the documents repeatedly. If something happened and we lost any member from our family, then the procedure again followed repeat. Please give the proper suggestion.
Thanking you
Hasmukh Patel.

i am working in a private educational institution and iam getting 25k as my monthly salary . i am interested to grow redsandal trees near sathyavedu pin 517588 mandal7 VILLAGE
but i dont have any lands except my house . every month i can pay 10k as my monthly EMI and i saw a land near rajugunta and gollavari kandriga which is 7lakhs per eakr . i want to buy 2 eakrs of land . is it possible with the help of SBI loans ?

I am working in a private company and i am planned to purchase of Agriculture land in near by my land. The market value of Rs 12 Lakhs per acre @ 2.71 acre with 5HP EB service. So i want to have loan amount of Rs. 20 Lakhs. I earned monthly salary net 40k p.m. (Polur TK Tiruvannamalai Dist).

i am planning to purchase new agri land in our area, 3 acre land value 30 lakhs, i am already having 20 lakhs, and 10 lakhs only we want loan, i am a corporate employee, monthly salary near by 40 thousand.

I,Mr.Idacung from Peren Nagaland seeking your financial assistant to purchase farm land at Jalukie Area to cultivate rice,Tomato and piggery as integrated system.The said Land amounting 5lakhs.
I am a fresh graduate in Zoology under Nagaland University St. Joseph's College Jakhama. And had a interest in farming to put into practice all I had learned in my prescribe course so as to sustaint my economy and to add litle to the society or citizen.
There I seek your kind consideration under the Farmer's Land Purchase Scheme for which I will remain grateful to you.

Thanking You
Your faithfully

Dear sir,

We are protected tenant of the land and our names in 7/12 extract lies in other rights column. Are we eligible for the crop loan from bank?

i am mr kelkar k a from kolhapur.district (MAHA) i want to star business of milk & milk products with cattel center.of 75 heads & i have experience many times in this filed. just i regular as a gavali i have loan for this total project with land purchase i.e land & building,plant & machinery,Running pl z show me own contribution & bank loan.with terms & condition

Respected Sir
I am surojit Mondal resident of village akna than magra pin 712148 serving with Indian army and get 45 thousand monthly payment. I start a fish and goat farm but I have been land. However I saw 2.5 ekar land in my residential place estimate cost of land and project near about 45 lakh. Can I get 30 lakh for starting the best essential please

My father had taken loan in 2005 by keeping all our lands as mortgage. He didn't pay much interest as there were no returns from agriculture. He has passed away recently. What should i do now? Will there be any settlement with bank? or our lands would be sold by bank. Now the interest has crossed over the loan amount.

Stanly Chirayath's picture

If interest has crossed over the loan amount, bank has no option but to sell the property.

Do the following:

Check whether the loan has any insurance.
Check whether any order has issued by State / Central Govt. for relaxation of interest on agriculture loan during the loan tenure. This occasionally happens in most of the states. Besides central Govt. also issues such orders in specific issues like flood, natural calamities etc.

Is there any facility to obtain loan from your bank for purchase & develop of an agriculture land or not? If so, the Govt. Employee is eligible to get loan from your bank or not?

Dear sir,
I am Jaydatta A Kshirsagar from baramati .I want to start business of fertiliser and seeds as well as hardware so I need loan from bank.
plz share the guidelines for me