The bank was formed by amalgamation, on the 31st March 2006, of the five banks, sponsored by SBI, to participate more energetically, with synergy, in the uplift and development of Rural Farm Sector and Rural Non-Farm Sector, with emphasis on the deprived, the Rural Poor, Rural ISB and Rural Crafts. The bank offers home loan, personal loan, education loan, agricultural loan, business loan etc.
Karshak Vikas is the name of the loan offered to farmers against Mortgage of agricultural property. It also offers home loan, personal loan, education loan business loan, other agricultural loans etc.
Purpose – Investment for purchase of Agricultural equipment, livestock, maintenance of crops and repayment of outside debts if any and domestic expenditure leading to medical, education, house repairs and family functions of customs.
Eligibility – Farmers having minimum of 3.00 Acres of Agricultural land with assured irrigation and Mortgagable title.
Quantum of Loan – Minimum Rs.50, 000; Maximum Rs.7.5 lakhs
Margins – 50% (50% value of the land)
Rate of Interest – 14.50 %
Repayment – 12 half yearly installments or 6 yearly installments depending upon the cropping pattern
Security – Hypothecation of the assets created out of bank finance, Creation of registered /equitable mortgage of agricultural land in the name and possession of the applicant.
Documents required – Loan Application, Loan Agreement, Arrangement letter