SBI doubles agri loan target for Nashik

The State Bank of India (SBI) has doubled its agricultural loan target for Nashik district to Rs 50 crore this fiscal. It has also slashed interest rates from 11 to 8 per cent for select agriculture produce. The new rates will be applicable for five specific crops, which come under Agro Export Zone policy.

"In Nashik district - famous for grapes, pomegranates, Kesar mango, flowers and onions - and is an declared an Agro Export Zone (AEZ). The bank has reduced interest rates for loans on these products from 11 per cent to 8 per cent," said Ajay Deole, regional manager, SBI Nashik.

"Farmers, who have taken loans at higher rates from money-lenders, co-operative banks or other financial institutions, can also refinance their existing loans at a lower rates," he said. "Out of the Rs 50-crore target, Rs 15 crore have already been disbursed. Last fiscal, the bank disbursed agri loans worth Rs 23 crore," Deole said.

"With the aim of making farmers aware of modern methods of plantation to increase agricultural production, SBI has introduced the project for grapes. For that, the bank is collaborating with the Pune-based National Research Centre (NRC) for technical support.

NRC scientists will guide farmers on modern methods of plantation and advanced technology. SBI will organise seminars with experts on various agricultural subjects. About 200 farmers across the district have enrolled under this project," said Deole.

"SBI is also planning to focus on value-chain financing, in which it will give farmers loans at every stage from sowing operations to the sale of grains.

SBI also gives loans with 6.5 per cent to 7.25 per cent interest rates to those farmers or institutions which export agricultural products," Deole said.