In the monsoon season, demand for kharif crops is at peak from farmers' end. In fact, during the south-west monsoon season, major kharif crops which are sown by farmers are bajra, jowar, soyabean, sugarcane, turmeric, rice, pulses, groundnut, etc. When the monsoon is good farmers reap the benefit of such sowings as their earnings rise. However, there can be possibility where not all would have the means to carry this procedure. One drawback is none other than financial assistance. But did you know, the largest lender State Bank of India (SBI) has loans available for farmers which can help them carry their day-to-day living hassle-free. These loans come with low interest rates, low to zero processing fees and flexible enough for repayment. With the monsoon right around the corner, if you are planning to avail loans, then note these four schemes offered by SBI. 

SBI Kisan Credit Card scheme:

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A farmer either jointly or individual can get interest at saving bank rate on credit balance in KCC account. There is free ATM cum debit card (State Bank Kisan Card) for all KCC borrowers. Also, interest subvention @2%p.a.is available for loan amount uptoRs. 3 Lacs. Additionally, interest subvention @3% p.a.for prompt repayments. 

Further, notified crops and areas are covered under crop insurance for all loans. 

Quantum of loan for 1st year will be assessed on the basis of Cost of cultivation, post-harvest expenses and farm maintenance cost. For subsequent 5 year loan will be sanction on the basis of increase in scale of finance.

A simple interest rate will be charged at 7% per annum for one year or upto the repayment due date, whichever is earlier. In case of non-repayment within the due dates interest is applied at card rate.

SBI Tractor loans:

There are four types available in this scheme. Firstly Stree Shakti Tractor loan (Mortgage free) where the borrower should be women. Minimum 2 acres of agricultural land in the name of borrower(s). Minimum annual income of borrower(s) should be Rs. 1,50,000 /- from all sources. Interest rates are set at 11.20% per annum. Repayment period is 36 months with 1 month moratorium.

Secondly would be Stree Shakti loans with liquid collateral. Here loan can be availed by pledging  gold ornaments/Time deposit with bank/NSC etc. Rate of interest here is lower at 10.95%, while repayment period is 48 months. 

Third would be new tractor loan, where the borrowed money will cover the cost of tractor, accessories, implements, insurance and registration expenses. There are no upper ceiling on loan amount limit. Interest paid would be 11.95% per annum with repayment period of 60 months. 

Finally would be tatkal tractor loan, which includes margin of minimum 25% of the cost of tractor including insurance and registration charges. Interest rates vary from 10.55% to 11.20% with tenure ranging between 48 months to 60 months.

SBI Agri Gold Loan:

This scheme is meant for agricultural expenses against pledge of gold ornaments. These loans are offered at attractive interest rates, cover all farming activities, with simple procedure and quick delivery.

If the loan opted for crop production, then the amount of loan is fixed according to the prescribed ‘Scale of finance” (SOF) of the crop grown, acreage and the loan is used for the stated purpose. Maximum 3 years of repayment period is available. Upto Rs 3 lakh loan has 7% interest rate per annum during interest subvention period. While above Rs 3 lakh amount would have 9.95% rate. 

While for multi-purpose agri gold loan, you can pledge your yellow metal for any farming related activities. Here, interest rates are set at 9.95% per annum.