The Bank of Baroda bank offers various types of agriculture loan to cater to different needs of the farmers.
The finance offered through BOB can be used to buy agricultural equipment, maintain the farms, allied agricultural activities and other consumable requirements.
The government of India has announced the merger of Bank of Baroda, Vijaya Bank and Dena Bank on 17 September 2018.
Bank of Baroda offers a variety of agriculture loans that assist farmers to meet their farming requirements. Each scheme offers unique features and benefits. Let's take a look.
The purpose of the COVID19 Special - Additional Assurance to Self Help Groups (SHGs) is to provide instant financial assistance to the women in order to meet the important domestic and agricultural needs.
Here’re the detail about COVID19 Special loan offered by the BOB:
|Eligibility||The SHG members can avail the credit facilities from the bank in the form of CC/OD/TL/DL having a good record|
|Loan quantum||Minimum amount- Rs. 30,000 per SHG group. Maximum amount- 30% of the existing limit shall not exceed Rs. 1 lakh per member and total exposure per SHG shall not exceed 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|
|Repayment period||Monthly/ Quarterly. The full tenure of the loan should not exceed 24 months. Moratorium period- 6 Month from the date of disbursement|
The Kisan credit card scheme aims to provide credit support of the banking system under a single window to the farmers for their cultivation and other farming requirements mentioned below-
Note -** The Credit Limit for the BOB Kisan Credit Card is Rs. 10,000 & above.
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Bank of Baroda gives the limit by considering the increase in the scale of finance during the next five years as a line of credit. The farmers can get the loan on the basis of the increasing scale of finance without any fresh documents each year. The farmer is allowed to avail the amount that is based on the actual scale of finance in a year within the overall line of credit amount.
For production line of credit is NIL for investment. The line of credit ranges from the minimum Range is from 10% to 25%, basically it relies on the scheme too.
The production line of credit revolves on the agriculture cash credit account, which is subject to an annual review that is valid for 5 years. Investment credit will be DL (DIrect Loan)/TL (Term Loan) and the repayment period is fixed on quarterly/ half-yearly or yearly basis that is based on the income of the farmer.
The purpose of the Kisan Tatkal loan is to meet the funds requirements for agriculture and domestic purposes during the off-season.
The following table includes eligibility, the quantum of loan, nature of the facility, repayment period and security details.
|Eligibility||Individual Farmers or Joint borrowers who are already a Bank of Baroda Kisan Card Holders|
|Nature of facility||Term loan & overdraft|
|Repayment period||Term loan: 3-7 years|
|For overdraft||For a period of 12 months|
|Security||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 purpose of the Baroda Kisan Group Loan is to finance Joint Liability Group (JLG) that is expected to be a flexible credit product. It addresses the credit requirements of its members.
The credit may be extended in the form of BKCC for crop production, consumption, marketing and other productive purposes.
|Eligibility||Tenant farmer cultivating Land as oral lessees or sharecroppers. Farmers those who do not have anything for their land holding those are eligible for finance through a joint liability group. Small and marginal farmers(tenant, sharecropper) are eligible for Kisan Group scheme|
|Quantum of loan||For tenant farmer: Maximum Loan of Rs. 1 lakh, For JLG: Maximum Loan of Rs. 10 lakh|
|Nature of facility||Term loan: Investment line of credit|
|Working capital||Production line of credit|
|Interest Rate||As per RBI guidelines|
|Margin||As per general guidelines for agriculture finance|
|Repayment||As per BKCC norms|
Bank of Baroda gold loan for farmers is to meet short-term agriculture credit and investment needs for both crop production and allied activities. This loan offers framers credit up to Rs. 25 lakhs, in a lower interest rate.
The purpose of the loan is for agriculture and allied activities like crop cultivation, post-harvest, purchase of farm machinery, irrigation equipment, animal husbandry, fisheries etc.
|Eligibility||Person involved in agriculture or allied activities or engaged in activities permitted by GOI(Government of India)/RBI(Reserve Bank of India) to be classified under agriculture|
|Type of facility||Cash Credit & Demand Loan|
|Age||Minimum of 18 years, Maximum of 70 years|
|Security||The loan has required a minimum of 18-carat gold jewellery (maximum 50 grams per borrower)|
|Loan amount||Minimum amount: Not specifies, 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, ROI is MCLR+SP. Above Rs. 3 lakh- 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|
This loan help farmers to buy a new tractor, tractor-drawn implements, power tiller, etc.
For tractors the repayment period is a maximum of 9 years and for power tillers it is 7 years.
This may include the hypothecation of tractor, implements and charge or mortgage of land or third party guarantee. It depends on the bank's discretion.
The purpose of this loan is to provide funds for activities mentioned below:
All farmers including small and marginal farmers and agricultural labourers engaged in agriculture and allied activities.
Repayment of the loan ranges from between 3 to 7 years. It also depends upon the economic viability of the scheme.
The purpose of Financing irrigation is to help in multiple areas, such as-
Farmers engaged in the cultivation of crop as an owner of the land, cultivators, permanent tenants or leaseholder are eligible to apply for the scheme.
Repayment period is up to a maximum of 9 years. It also depends on the purpose of investment and Economic Life of the asset.
Security depends on the quantum of the loan. This involves hypothecation of machinery, mortgage of land/ third party guarantee as per the discretion of the bank.
Connect with the Bank of Baroda customer care available 24x7 on the following numbers:
Bank of Baroda has a variety of agriculture loan schemes for the farmers. The schemes offer a wide range of benefits that can aid fulfil the farming needs. Furthermore, the documentation is simple and the process of agriculture loan works promptly.
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