SBI provides different type of loan to farmers who has good track record with SBI for their last two years. A general-purpose loan for productive and consumption purposes of farmers, Self help group credit card and general purpose credit card loan.
1. SHG Credit Card (SHGCC)
Eligibility: Reached third level of credit linkage and enjoying a credit limit of Rs 50000/-. Good repayment record. At least 2 members should be literates to operate the account.
- Minimum limit: Rs 50000/- made available as cash credit. Maximum 4 times of the corpus of the SHG.
- No separate margin required. Hypothecation of the assets is the security.
- Valid for 3 years.
2. SHG Gold Card
Eligibility: same as for SHGCC
- Minimum limit Rs 200000/- sanctioned as Term Loan. Issued only for starting / carrying on economic or income generating activities.
- No separate margin required. Hypothecation of the assets is the security.
- Valid for 3 years.
3. General Credit Card (GCC)
Objective: To provide hassle-free credit to our customers based on the assessment of cash flow without insistence on security, purpose or enduse of the credit.
Eligibility: existing customers having satisfactorily conducted deposit accounts including for the last 6 months. Not to be extended to the KCC borrowers.
Nature of facility: The credit facility extended under the Scheme will be in the nature of revolving credit i.e., Cash Credit.
Quantum of limit: not to exceed 20% of the eligible production loan limit in case of persons cultivating land and / or 20% of annual income of the applicant from known sources or Rs.25, 000/- whichever is less.
Interest rate: On par with Agri Short Term Loans. (2 % above SBAR) Enhanced rate of interest at 2 % p.a. be charged to borrowers who default in repaying the loan.
Security: It is a clean and unsecured advance.
Repayment: Account will be in the nature of cash credit. The outstanding amount in the GCC should be cleared in full when the applicant is fluid with cash.
Renewal: Account will be reviewed every year and renewed after every 3 years.
Classification: As per RBI guidelines 100 percent of credit outstanding under GCC up to Rs.25,000/- per account will be treated as indirect agricultural financing.
Documentation: Application, DP note (COS 229), DP Note Take delivery Letter Arrangement Letter.
