SBI PASHUPALAN LOAN
The biggest national bank in our country, SBI, has taken schemes like the SBI Pashupalan loan because India is an agriculturally dominated country and hence agriculture is the backbone of our country. Farming is the traditional business of farmers in our country, but along with this, farmers have to start an allied activity like Pashupalan in today’s modern era.
To start this business some money is required in the initial period. Money is needed to buy animals, build cattle houses, and feed the animals. In such a situation, due to the poor financial condition of most of the livestock farmers, they are not able to start animal husbandry.
In such a situation, the State Bank of India (SBI) has started a scheme to provide loans for animal husbandry. Loans are provided to livestock farmers under SBI Pashupalan Loan Yojana 2024. Complete information about the SBI Animal Husbandry Loan Scheme is given below in this article.
What Is SBI Pashupalan Loan?
SBI PASHUPALAN LOAN is a loan scheme under which finance is given to those farmers who do allied activities like livestock farming. The main aim of this loan scheme is that farmers get financial support so that they can buy new animals and can also buy food for their animals and can also spend on their veterinary work. Through this loan, farmers can build a new shed for their animals or upgrade the old shed.
What Is Key Features of SBI Pashupalan Loan?
1. Loan Amount
There is no limit on the minimum loan amount and maximum loan amount in SBI Pashupalan Loan Yojana. But how much loan can be given by the bank to a single farmer depends on the scale of finance of that particular district of the state.
For example, if the scale of finance per cow is Rs 40000 and if you have 5 cows, then you can get a loan up to Rs 200000.
2. Purpose
This loan aims to provide financial assistance to farmers for purchasing high-quality livestock, animal feed, and veterinary expenses. You can also upgrade infrastructure like animal sheds and provide water facilities for them.
3. Interest Rates:
At present, the interest rate will be 7% per annum (fixed) for advances up to Rs. 2.00 lakh per farmer as per Government of India (GOI) instructions. This is subject to an interest subsidy of 2% per annum provided by the Government of India to the bank on such advances.
An additional interest subsidy of 3% per annum for borrowers repaying the loan on time as per Government of India instructions reduces the effective interest rate charged to the borrower to 4% per annum.
4. Repayment Tenure
The loan repayment period depends on the nature of the facility availed by the farmer. If the farmer has availed cash credit facility then he has to renew his cash credit facility within a year by depositing the loan amount and interest amount, however, if he has availed term loan facility then he has to make monthly, quarterly, or half-yearly repayment to the bank for 5 to 7 years.
5. Collateral Security
Whatever animal, bird, or fish, you are taking this loan for, the bank notes the hypothesis charge on that animal. If the loan amount is more than Rs 1.6 Lakh, you will have to provide collateral security to the bank, such as taking an agriculture land mortgage or noting the charge on agricultural land.
6. Eligibility Criteria
A. Dairy
Farmers and dairy farmers are eligible for dairy loans either as individual borrowers or joint borrowers. Joint Liability Groups consisting of tenant farmers who have owned/rented or leased sheds are also eligible
B.Fisheries
a. Inland Fisheries and Aquaculture:
Fishermen, fish farming farmers (individual and group/partner/sharecropper/tenant farmers), self-help groups, joint liability groups, and women groups are eligible. Beneficiaries should own or lease any fisheries-related activity like a pond, tank, open water body, raceway, hatchery, or rearing unit, and should have the necessary license for fish farming and fishing-related activities and any other state-specific fisheries and allied activities.
b. Marine Fisheries
The borrower must own or lease a registered fishing vessel or boat. He must possess the necessary fishing license or permission to fish in estuaries and seas.
C. Poultry & small ruminants
For the purpose of poultry and small ruminants farmers, poultry farmers, either individual borrowers or joint borrowers, are eligible. Joint liability groups or self-help groups including tenant farmers of sheep, goats, pigs, poultry, birds, and rabbits and having owned, and rented our leased sheds are also eligible for this loan.
What are the documents required for SBI Pashupalan loan?
The following Documents are required for SBI pashupalan loan
- Animal husbandry or fisheries Application form
- Two passport-size photographs
- of any ID proof such as an aadhar card, driving licence, voter card or passport
- Any address proof such as an aadhar card, driving licence, voter card or passport
- Proof of owning or leased fishing vessel, land, etc., duly certified by the competent authorities.
- Proof of poultry/fishery/dairy/pig rearing/sheep rearing/goat rearing activity.
What are the processing charges required for an SBI pashupalan loan?
- If your loan is up to Rs 50000, then there are no processing charges
- If the loan amount is above Rs 50000 to Rs 1.50 lakhs, then the processing charge would be Rs 200 + GST.
- If the loan amount is above Rs 1.50 lakhs to Rs 3.00 lakhs, then the processing charge would be Rs 250 + GST per lakh
What are the benefits of the SBI Pashupalan loan?
1. Increased productivity for high income
with the help of a pashupalan loan, farmers can invest in better-quality livestock, leading to increased productivity and higher income
2. Improved Health
With the help of funds farmers can use in veterinary care and quality feed for animals, farmers can ensure the health and well-being of their animals, reducing mortality rates and improving overall productivity.
3. Development of infrastructure for a better living animal
Farmer can develop infrastructure like sheds to create better living conditions to their animal so that it can enhance their performance and the efficiency of farming operations
4. Farmer’s Financial Stability
By providing a structured repayment plan and financial support, the SBI Pashupalan Loan helps farmers manage their finances more effectively and achieve long-term financial stability.
5. Support for Farmers
The loan is designed to support the farming community, helping them overcome financial barriers and achieve their agricultural goals.
6. Boost to Rural Economy
Increased productivity and income from livestock farming contribute to the overall economic development of rural areas, creating a positive impact on local communities.
How to Apply for SBI Pashupalan Loan?
If you need to SBI Pashupalan loan, then you need to follow the following steps for applying the SBI Pashupalan loan
Visit the Nearest SBI Branch
First, you need to visit your nearest SBI branch to discuss your requirements and obtain the loan application form.
Prepare Documentation
After you obtain the application form, you need to gather the necessary documents, including identity proof, address proof, details of the livestock, a project plan, etc
Submit the Application
After you gather the necessary documents, you need to fill out the application form accurately and submit it along with the supporting documents, to the SBI branch.
Loan Processing and Sanctioning
After submitting your application form, the SBI bank manager will conduct a pre-sanction inspection of your place, review your application form, and check your CIBIL score. He will conduct a feasibility study and, after finding satisfaction with all these things, sanction the loan
Loan Agreements signature
After sanctioning the loan, SBI Bank will call you to sign loan agreement documents, and after signing the loan, the amount will be disbursed to your savings account.
Utilize Funds
After disbursing the loan amount, you can use the loan funds for the intended purposes, such as purchasing livestock, improving infrastructure, or covering veterinary expenses.
Repayment
Follow the repayment schedule as agreed upon with SBI, making timely payments to avoid any penalties and maintain a good credit record.
Conclusion
SBI Pasupalan loan is a very valuable and helpful loan scheme for farmers who do animal husbandry. This loan scheme helps the farmers a lot to increase their productivity or to protect the health of the animals so that it will good impact overall farmers operations.
SBI Pasupalan loan offers flexible loan amounts to farmers. The interest rate is also quite discounted, and on regular loan renewal, a 3% interest subvention is also given by the Government of India.
Under this scheme, the State Bank of India wants the farmers to be empowered and contribute to the growth of the country’s agriculture sector. If you’re involved in livestock farming and looking for financial assistance, the SBI Pashupalan Loan could be the key to unlocking your farming potential and achieving greater success in your agricultural endeavours.
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