Bank of Baroda Agriculture Loan is a financing scheme offered by the Bank of Baroda for farmers and agriculturalists to meet their financial needs.
Bank of Baroda offers a wide range of agriculture loans tailored to meet the diverse requirements of farmers. These loans can be utilized to purchase agricultural machinery, maintain farms, engage in allied agricultural activities, and meet other consumable needs. Notably, the Indian government announced the merger of Bank of Baroda, Vijaya Bank, and Dena Bank on September 17, 2018.
Bank of Baroda Agriculture Loan is a financing scheme offered by the Bank of Baroda for farmers and agriculturalists to meet their financial needs. The loan is designed to assist in the development of the agricultural sector and help farmers achieve their goals.
Bank of Baroda provides various agriculture loan types to assist farmers in meeting their farming requirements. Each scheme offers unique features and benefits. Let's take a look.
Additional Assurance to Self Help Groups (SHGs) is designed to offer instant financial assistance to women in meeting important domestic and agricultural needs. Here are the details about the COVID19 Special loan offered by BOB:
Eligibility: SHG members with a good record can avail credit facilities in the form of CC/OD/TL/DL.
Loan amount: The minimum amount is Rs. 30,000 per SHG group, and the maximum amount is 30% of the existing limit (up to Rs. 1 lakh per member) with a total exposure per SHG not exceeding Rs. 10 lakh.
Nature of facility: Demand loan repayable in 2 years.
Interest rate: One year MCLR (marginal cost of funds-based lending rate)+ Strategic premium.
Margin: Nil.
Repayment period: Monthly/Quarterly. The full tenure of the loan should not exceed 24 months. Moratorium period is 6 months from the date of disbursement.
Security: Nil.
Bank of Baroda's Kisan credit card scheme aims to provide credit support of the banking system under a single window to farmers for their cultivation and other farming requirements, including:
Note: The Credit Limit for the BOB Kisan Credit Card is Rs. 10,000 & above.
Loan amount offered by Bank of Baroda for agriculture purposes depends on various factors such as the borrower's farm income, repayment ability, and value of security. The minimum loan amount is Rs. 5,000, and there is no maximum limit.
Under the Bank of Baroda Kisan Credit Card scheme, a line of credit is provided based on the projected scale of finance for the next five years. This allows farmers to avail loans based on the increasing scale of finance without the need for fresh documentation each year. The margin for the production line of credit is nil, while for investment, it ranges from 10% to 25%, depending on the scheme.
The repayment schedule for the production line of credit is based on the agriculture cash credit account, which undergoes an annual review valid for 5 years. Investment credit can be either a Direct Loan or a Term Loan, with repayment on a quarterly, half-yearly, or yearly basis, depending on the farmer's income.
The Baroda Kisan Tatkal Loan scheme is designed to provide financial assistance to farmers for their agriculture and domestic needs during the off-season. Here are the details of the scheme:
Individual farmers or joint borrowers who are already Bank of Baroda Kisan Credit Card (BKCC) holders are eligible for this loan.
The loan is provided as a term loan and overdraft facility.
For the term loan, the repayment period is between 3-7 years, while for the overdraft facility, the repayment period is for a period of 12 months.
The existing standard of no collateral security up to Rs. 1.60 lakh to be followed if the combined limit is within Rs. 1.60 lakh.
The Baroda Kisan Tatkal Loan scheme is ideal for farmers who require financial assistance during the off-season. The scheme offers a flexible repayment period for the term loan and overdraft facility, which makes it easier for farmers to repay the loan. Moreover, there is no need for collateral security for loans up to Rs. 1.60 lakh, which makes the loan accessible to a larger number of farmers.
The Baroda Kisan Group Loan Scheme is a flexible credit product designed to finance Joint Liability Groups (JLGs) and address their credit requirements. Here are some of the important details related to the scheme:
The following individuals are eligible for the Baroda Kisan Group Loan Scheme:
The maximum loan amount available under this scheme is different for tenant farmers and JLGs. The details are as follows:
The Baroda Kisan Group Loan Scheme offers the following nature of facilities:
The interest rate for the loan is as per RBI guidelines.
The margin for the loan is as per general guidelines for agriculture finance.
The repayment of the loan is as per BKCC norms.
Bank of Baroda offers a gold loan scheme for farmers, which is designed to meet their short-term agricultural credit and investment needs for crop production and allied activities. The loan provides farmers with credit of up to Rs. 25 lakhs at a lower interest rate. The following are the details of the scheme:
Eligibility: Any person involved in agriculture or allied activities or engaged in activities permitted by GOI(RBI) to be classified under agriculture.
Type of facility: Cash Credit & Demand Loan
Age: Minimum of 18 years, Maximum of 70 years
Security: The loan requires a minimum of 18-carat gold jewellery (maximum 50 grams per borrower)
Loan amount: Minimum amount not specified. Maximum loan amount: Rs. 25 lakh
Tenure: Maximum 12 months
Margin: Loan to value decided by the bank from time to time
Interest Rate: For short-term crop loan up to Rs. 3 lakh, the ROI is MCLR+SP. Above Rs. 3 lakh, the interest rate is 8.65% to 10%. Simple ROI will be charged at half-yearly rests.
Processing Charges: Up to Rs. 3 lakhs- Nil. Above Rs. 3 lakhs- Rs.25 lakh-0.25% of the sanctioned limit + GST
Prepayment/Part Payment: NIL
Documents Required for Gold Loan for Farmers: Application form, KYC of borrower, Proof of land, 1 passport photograph
Features of Gold Loan: Instant gold loan and quick servicing, minimum 18-carat purity of gold, no prepayment/pre-closure charges, and no processing charges up to Rs. 3 lakh for agriculture purpose.
The Financing Tractors & Heavy Agriculture Machinery scheme offered by Bank of Baroda provides farmers with the necessary funds to purchase new tractors, tractor-drawn implements, power tillers, and other heavy agriculture machinery. This loan is specifically designed to assist farmers in their crop cultivation and other agricultural activities.
Eligibility: To be eligible for the loan, farmers must meet the following criteria:
Repayment Period: The repayment period for tractors is a maximum of 9 years, and for power tillers, it is 7 years.
Security: The security for the loan may include hypothecation of the tractor, implements, and charge or mortgage of land or third-party guarantee. The security requirements are subject to the bank's discretion.
Overall, the Financing Tractors & Heavy Agriculture Machinery scheme provides farmers with a flexible and affordable way to purchase the necessary machinery for their agricultural activities. The scheme helps to improve the productivity and efficiency of their farming operations, leading to higher crop yields and increased profitability.
This loan scheme is designed to provide financial support to individuals engaged in dairy, poultry, and fishery activities. The loan may be used for a range of purposes, including the construction of animal sheds, purchase of milch animals, pig breeding, purchase of chicks and layers, equipment/machinery/transport vehicles for the purchase of feed, and to meet other expenses such as labour, marketing, etc.
This loan is available to all farmers, including small and marginal farmers, and agricultural labourers engaged in agriculture and allied activities.
The repayment period for this loan ranges from 3 to 7 years. However, the actual repayment period may vary based on the economic viability of the scheme.
Financing Irrigation is a scheme that is designed to provide financial assistance to farmers for various irrigation-related activities. The purpose of this loan is to help in the following areas:
Farmers engaged in the cultivation of crops as owners of the land, cultivators, permanent tenants or leaseholders are eligible to apply for this scheme.
The repayment period for this loan is up to a maximum of 9 years. However, it also depends on the purpose of investment and economic life of the asset.
The security required for this loan depends on the quantum of the loan. It may involve hypothecation of machinery, mortgage of land, or third-party guarantee as per the discretion of the bank.
Here are some frequently asked questions (FAQs) about agriculture loans by Bank of Baroda:
Q1: What is an agriculture loan, and who is eligible for it?
Ans: Agriculture loan is a type of loan offered to farmers and agriculturists to finance various agricultural activities. Any individual who is involved in agriculture or allied activities is eligible for an agriculture loan.
Q2: What are the types of agriculture loans offered by Bank of Baroda?
Ans: Bank of Baroda offers various agriculture loans, such as Kisan Credit Card Scheme, Baroda Kisan Group Loan Scheme, Loan against Gold Ornaments/Jewelry, Financing Tractors & Heavy Agriculture Machinery, Financing Development of Dairy, Poultry, Fishery, and Financing Irrigation.
Q3: What is the maximum amount of loan one can avail under the Kisan Credit Card Scheme by Bank of Baroda?
Ans: Under the Kisan Credit Card Scheme, Bank of Baroda offers loans up to Rs. 3 lakhs for short-term credit and Rs. 10 lakhs for long-term credit.
Q4: What is the repayment period for agriculture loans by Bank of Baroda?
Ans: The repayment period for agriculture loans by Bank of Baroda varies depending on the type of loan and the purpose of investment. It can range from a minimum of 12 months to a maximum of 9 years.
Q5: What is the interest rate charged on agriculture loans by Bank of Baroda?
Ans: The interest rate charged on agriculture loans by Bank of Baroda varies depending on the type of loan and the loan amount. It can range from MCLR+SP to 8.65% to 10% per annum.
Q6: What are the security requirements for availing agriculture loans by Bank of Baroda?
Ans: The security requirements for availing agriculture loans by Bank of Baroda depend on the type and amount of the loan. Generally, banks accept collateral in the form of agricultural land, crops, machinery, and other assets.
Q7: What documents are required to apply for an agriculture loan by Bank of Baroda?
Ans: The documents required to apply for an agriculture loan by Bank of Baroda vary depending on the type of loan. Generally, banks require identity proof, address proof, land ownership proof, and income proof documents.
Q8: Can I prepay my agriculture loan?
Ans: Yes, you can prepay your agriculture loan by Bank of Baroda. However, prepayment charges may apply depending on the terms and conditions of the loan. It is advisable to check with the bank before prepaying the loan.
Q9: Can I apply for an agriculture loan online?
Ans: Yes, you can apply for an agriculture loan online through the Bank of Baroda website or mobile app. However, you may need to visit the bank branch for document verification and loan disbursement.
Discover Safest Ambulances In India
In this article we have mentioned the safest ambulances available in India, highlighting their key features and safety standards.
30-Aug-24 11:21 AM
Best Electric Luxury Buses in India
In this article, we will explore some of the best electric luxury buses in India, focusing on their features and benefits.
29-Aug-24 12:17 PM
Best Electric Trucks in India: Mileage, Power, and Loading Capacity
In this article, we will explore the best electric trucks in India, focusing on their mileage, power, and loading capacity.
28-Aug-24 10:08 AM
Best Electric Mini Trucks in India
In this article, we’ll explore the best electric mini trucks available in India.
26-Aug-24 12:43 PM
Advantages of Altigreen Three-Wheeler
In this article, we will discuss the Advantages of Altigreen three-wheeler in India.
23-Aug-24 12:35 PM
E-Rickshaw Battery Costs: What You Need to Know
Explore e-rickshaw battery costs, key factors, and top suppliers in India. Find out how to manage expenses with this concise guide on battery replacement.
