Special SBI loans to farmers at 8% soon

State Bank of India (SBI) is likely to announce a special loan package for farmers in the next two days, officials close to the development said on Wednesday. “This is to help farmers to meet credit requirements for kharif and rabi crop,” the official told NewsWire18.

The loan is likely to be priced at around 8% on slabs varying from Rs 3 lakh to Rs 25 lakh. Earlier, in February, the country’s largest bank had offered loans to farmers against cold storage and warehouse receipts at 8% for one year. This facility, which was offered until May, was later extended until September.

Acreage of crops has been hit due to drought in several districts in the country.
According to latest data, rainfall is now 25% below normal, compared with the 32% deficiency in June. The late revival of monsoon has brightened the prospects of better rabi crop, analysts said.

Of the 36 meteorological subdivisions, cumulative rainfall during Jun 1-Aug 26 has been excess or normal in 13, and deficient-to-scanty in over 23 subdivisions. Poor monsoon has severely hit sowing of kharif crops like rice, oilseeds and coarse cereals.