India is the second largest producer of farm products, contributing a major share in the country’s economy. However, agriculture is steadily declining with the country’s broad-based business growth. The reason for decline could also be the lack of funds for sustainability. However, the future seems promising for agriculture with the wide array of loans available from banks.  

State Bank of India (SBI), the largest bank in the nation, provides comprehensive agriculture loan products to farmers. Let us look in details the features and benefits of each agriculture loan product offered by SBI.  

Kisan Credit Card Scheme (KCC) 

SBI provides a Kisan Credit Card Scheme to farmers using which they could meet the expenses for crop cultivation, production, purchase of machineries and various other emergency requirements.  

Eligibility:  All farmers, including tenant farmers, joint cultivator owners, Self Help Groups or Joint liability groups, are eligible to get a loan under this scheme.  

Features and Benefits: When farmers initially apply for KCC, the loan amount will be assessed on the basis of the cost of cultivation, post-harvest expenses and other maintenance expenses for the 1st year. For the next 5 years, the loan will be disbursed based on the increase in the scale of finance. The repayment period on the loan is fixed depending on the expected harvesting period and marketing duration after the loan has been sanctioned. The customer does not need to pledge any security for loans up to Rs. 1 Lakhs.  

The borrowers will get free State Bank Kisan Card which can be used for all the transactions. Moreover, on the remaining balance at KCC account, the user can also get interest at savings bank rate. The borrowers get interest subsidy for loans up to Rs. 3 Lakhs and additional subsidy of 3% per annum for on-time repayments. The borrowers also get insurance coverage for notified crops and areas. 

Interest Rate: The interest rate is charge at 7% per annum up to either one year or the due date, whichever is earlier. On non-repayment, the interest is charged at general card rate, which will be compounded half-early.  

Documents Required: Filled-in application form, Identity proof and Address proof are enough to apply for KCC. However, this is an indicative list as the lender might require additional documents for higher loan amount.  

Additional Reading: What is a Kisan Credit Card?

Agri Gold Loan for Crop Production 

SBI offers secured loans to farmers by pledging their gold jewels and ornaments. It can be used for crop cultivation and maintenance. All farmers who are involved in short-term crop production are eligible for this loan scheme.  

Features and Benefits: The Loan to Value (LTV) is fixed by the bank for every borrower, though its value varies from time to time. Farmers can get this loan for crop production at a simple interest rate of 7% per annum for the loan amount up to Rs. 3 Lakhs for the interest subvention period. For loans above Rs. 3 Lakhs, the interest rate will be 9.95% per annum. The maximum repayment period is up to 12 months from the date of disbursal. For overdraft or cash credit options, the limit is reviewed and revised annually for 3 years.  

Documents Required: Filled-in application form, 2 latest passport size photos, identity proof and address proof 

Apart from Agri Gold Loan for Crop Production, the bank also offers Agri Gold Multi-purpose, which can be obtained for all agricultural activities. This loan has similar features and benefits as Agri Gold Loan except that there is no interest subvention on this scheme. The borrower should show proof of agriculture land and cultivation.  

Tractor Loans 

SBI offers Tractor Loans to farmers which can be used to purchase a new and old tractor for agriculture purposes. There are four types of tractor loans available, namely, 1. Stree Shakthi Tractor Loan (SSTL)- Mortgage free 2. Stree Shakthi Tractor Loan- with liquid collateral 3. New Tractor Loan Scheme 4. Tatkal Tractor Loan.  

Stree Shakthi Tractor Loan – Mortgage Free  

To encourage women entrepreneurship, SBI provides this tractor loan exclusive to women borrowers. The loan can be availed at low interest rate without pledging any security. It is sanctioned within 3 days of application.  


Only women borrowers are eligible to get the loan. The applicant should have minimum of 2 acres of agriculture land. Minimum annual income from all the sources should be Rs. 1,50,000.  


  • 25% for tractor on original invoices 

  • 50% for accessories 

Interest Rate:  11. 20% 

Processing Fee: 1.25% 

Repayment Period: 36 months with 1 month of moratorium period 

STTL also comes with liquid collateral, which will require some security such as gold, time deposit with the bank, etc. The interest rate on the loan is 10.95%.  

New Tractor Loan 

New tractor loan is offered by SBI to cover the cost of tractor, accessories, implements, insurance and registration expenses. The applicant should have minimum of 2 acres of agriculture land to avail the loan. There is no limit on the loan amount, and the borrower will have to pay a margin of 15% of the cost of the tractor and accessories. The interest rate is set at 11. 95%. The borrower need not to pay any penalty for prepaying the loan amount, but the bank charges 0.5% of the loan amount as processing fee. The new tractor loan can be repaid within 60 months with 1 month of holiday period. On prompt repayment, the customer can get 1% interest subvention.  

Tatkal Tractor Loan 

This is mortgage-free tractor loan and is disbursed within 2 days. All farmers who have minimum of 2 acres of land are eligible to get Tatkal Tractor Loan from SBI. The major benefit is that the borrower gets free accidental insurance cover worth Rs. 4 Lakhs.  

Interest rate:  

For margin of 25%, the borrower gets the loan amount at the interest rate of 11.20%, for 35% margin – 10.95% and 50% margin, the interest rate is 10.55%. Hence, higher the margin, you will get the lowest interest rate.  

Processing fee: Nil 

Prepayment charges: Nil 

Repayment Period: Up to 60 months 

Late payment penalty:  1% per annum on unpaid instalment 

Apart from the aforementioned loan products, the bank also provides high value agriculture loans, wherein the farmers can avail high loan amount which can be used for multiple agriculture related purposes. With the subsidies on interest rates and other attractive features, the agriculture loan provided by SBI can help millions of farmers get immediate financials aid.