The Hindu : Business : SBI extends time for special agri loans

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Sunday, Apr 19, 2009
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SBI extends time for special agri loans

NEW DELHI: State Bank of India (SBI) on Saturday said it has extended the period of its concessional financing to farmers against warehouse receipts by another five months to September 30. The scheme was to expire on April 30.

The state-run lender had in February started offering loans at a concessional rate of eight per cent to farmers against cold storage and warehouse receipts, in a bid to save them from falling prey to distress sale of their farm produce.

The loan would be available at a fixed rate of eight per cent for 12 months in respect of loans sanctioned and disbursed till the end of September, the bank said in a statement.

The move, apart from benefiting the farmers, would also time the market for storage requirements of the expected bumper wheat crop, it said.

SBI is the biggest lender to agriculture with a portfolio of over Rs. 60,000-crore.

About a week ago, the bank extended its special home and car loans scheme at 8 per cent and 10 per cent interest respectively for the first year, also up to September 30.

The bank had introduced the special schemes in February for a period uptil April 30.

The extension was in response to the tremendous response the schemes received, SBI’s Chief General Manager, Personal Banking, P. Nandakumaran, had then said.

Beginning February, when the scheme was first introduced, SBI has sanctioned Rs. 2,500-crore of home loans and financed 20,000 cars, he said. — PTI

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