State Bank of Patiala launches new scheme for farmers

State Bank of Patiala has launched Agriculture gold Loan Campaign (Swarn Shakti) for granting loans to farmers against security of gold ornaments on Monday .

The motive of the Campaign is to enable the farmers to meet their short and long term agriculture credit needs . The scheme aims to provide hassle free loans to the farmers without mortgaging of land. Maximum loan amount under the scheme will be Rs. 10.00 lacs and a margin of 30% will have to be contributed by the farmers.


The rate of Interest under the scheme has been kept very low. "Since the commission agents have increased their rate of interest on loan, given to farmers. We have launched this scheme to help farmers" said spokesman of SBOP bank. As per sources farmers availing loans for the purpose of raising crops will be charged @ 7% p.a. upto Rs. 3.00 lacs.

Further interest subvention of 3% p.a. will be available to farmers (for loans upto Rs. 3.00 lacs), who repay their loans in time. Hence, the effective rate of interest charged from such borrowers will be 4% p.a. only. The repayment period will be maximum 36 months linked with harvesting season.