SBI bank finances to purchase agricultural land
SBI bank offers loan to purchase agricultural land and bank finances up to 85% of total cost of the property. The loan is available for individual small farmers, marginal farmers, share croppers, tenant farmers and landless labour.
Loan is given to individual farmers with own land not more than 2.5 acres irrigated and 5 acres non-agriculture land before and after purchasing of land. An individual with good records of repayment of loans, if any.
SBI bank provide up to Rs.5 Lakh for land developing, irrigation facilities, and cultivation of crops. The purchasing land by bank finance will be mortgaged as a security.
Rate of interest is very minimal as per agricultural term loans. The repayment period is up to 10 years with two option of repayment half yearly and yearly. The bank also extend repayment period for development of land.