If you want to cultivate but have less land, then you can take advantage of a scheme of State Bank of India.
Purpose of Land Purchase Scheme
The purpose of SBI’s Land Purchase Scheme is to help small and marginal farmers to purchase land. Apart from this, people who want to do farming but have no land can also purchase land for loans under this scheme. You can buy land for farming under this scheme and repay the loan amount in the next 7 to 10 years.
Who can apply under the Land Purchase Scheme?
According to the information given on the website of SBI, small and marginal farmers can apply for land purchase under land purchase scheme which has less than 5 acres of unorganized land or less than 2.5 acres of irrigated land. Apart from this, landless labourers working in agriculture can also apply for a loan for the purchase of land under this scheme. The applicant must have a record of loan formation of at least 2 years.
How much will the loan amount?
After applying for a loan under the SBI Land Purchase Scheme, the bank will assess the value of the land purchased and after this, it can loan up to 85% of the total price. Under the scheme, the land to be purchased with a loan will be held hostage to the bank. After the repayment of the loan amount, the applicant can free the land.
SBI can also consider the application of other bank customers. However, they should not owe a loan to any other bank.
The loan can be repaid in 9 to 10 years
You get 1 to 2 years of the time when you take a loan under this scheme. After this time you have to repay the loan through the half year instalment. The applicant can repay the loan in 9 to 10 years.
If the land purchased is ready for cultivation, then it takes 1 year to start the repairs of the loan. And if the land is to be prepared for cultivation, then it takes two years to start a loan repayment.