The country's largest commercial lender the State Bank of India says it will now provide loans at concessional rates of interest to high value projects in dairy, poultry and horticulture would be by (SBI). The concession would also extend to construction of warehouses, rural godowns and cold storage facilities.
The new rates, between 10 per cent and 10.5 per cent, are against the card rates of 12.10 per cent to 14.85 per cent and would be offered under the bank's agricultural loans.
Effective till March 2011, SBI will offer term loans as also working capital at the rate of 10 per cent per annum for setting up of high-value dairy projects. Small dairy borrowers having tie-ups with reputed milk processors with assured buying arrangements would also be extended the loans.
New poultry units with Rs5 lakh and higher worth of credit requirements would be offered loans at the rate of 10.5 per cent.
Fresh loans for horticultural activities where letter of intent is issued by National Horticulture Board, would also be made available at 10.5 per cent with the rates being reset every year.
As of 30 September, the bank's exposure to high-value dairy projects stood at around Rs1,150 crore, while that to new poultry units was at Rs 590 crore. Horticulture projects exposure was at Rs 1,400 crore and construction of warehouses, rural godowns and cold storages stood at Rs 1,400 crore.