SBI announces Rs 6000-cr tractor loan settlement scheme

The State Bank of India (SBI) has announced a one-time farm loan settlement scheme worth Rs 6000 crore primarily for tractors.

In a tweet, the State Bank of India said, One Time Settlement (OTS) is announced for Agriculture Loans and the Scheme is valid until 31 March 2017.

Apart from this, the largest lender of India also urged to farmers to contact their branch for details and benefits.

Highlights of the One-Time Farm Loan Settlement scheme

• Loans that will be considered under the scheme are the loans, which were disbursed before 2011 and at present, falls under the doubtful or loss category accounts as of September 2016.

• The scheme will also cover other agricultural loans like Kisan credit cards and other term loans for tractors and farm loans

Besides, Rajnish Kumar, the Managing director of the bank, told a news channel that the scheme will help the bank in taking 40 per cent haircut on outstanding tractor loans as of September 2016. He also informed that a circular in this regard was sent to branches on 2 February 2017.

At present, SBI's total farm loan portfolio is Rs 1.25 Lakh Crore and tractor loan book is about Rs 6000 crore.