KBL Krishi Samuday
A robust financial solution by Karnataka Bank, dedicated to elevating farmer producer organizations (FPOs) and farmer producer companies (FPCs). Understanding the critical role these groups play in the agricultural sector, the scheme offers both term loans and working capital to cater to their diverse needs. Whether it's for purchasing farm machinery, building infrastructure, or managing day-to-day operational costs, KBL Krishi Samuday stands as a pillar of support with competitive rates and flexible terms. Read more
Why this loan is for you
Designed to give you just what you need.
Choose between term loans and working capital financing for your needs
Funds various aspects of farming and related activities like agricultural equipment and infrastructure
Secure added protection provided by the Credit Guarantee Fund Scheme (CGFS)
Make matters simple and straightforward
A smart calculator for smart spending and savings
Emi Calculator
You will pay
₹13,800/Months
Eligibility criteria
- Individuals and farmers engaged in agriculture with a focus on irrigation
- Sound farming practices and a project plan is mandatory.
- Valid documents proving identity and address
- Companies, trusts and self help groups and HUFs legally recognized in agricultural activities
- Valid identification and proof of legitimate agricultural entity
Documents required
- CIBIL/CRIF and KYC documents
- Plan and estimation
- RTCS
- CERSAI (if applicable)
- EC and RTC
- Income tax returns, income proof
- Legal document for property
- Project report
- Turnover report (if applicable)
- Udyam registration certificate
- Insurance copy and stock report (if applicable)
As easy as 1,2,3...
Apply for a KBL Krishi Samuday Loan in 3 simple steps
Step 1
Visit your nearest branch
Go to your nearest Karnataka Bank branch
Step 2
Start with your basic details
Provide your basic details and keep your documents handy
Step 3
We’ll take care of the rest
Our branch officials will notify you when your loan is sanctioned
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Got questions? We’ve got answers.
Eligible organizations should demonstrate economic viability and a democratic, self-governing structure, with farmers as the only members and stakeholders. The FPOs/FPCs should also be owned solely by farmers.
The loan can finance a range of agricultural projects, including capital costs (like building, machinery, transportation vehicles) and working capital needs (such as input supply, procurement, and marketing).
The 15% down payment is the portion of the equipment or project cost that you need to fund. This requirement ensures that you have a personal stake in the project, enhancing your commitment to its success. It also reduces the loan amount, making repayments more manageable. For a ₹1,00,000 project, for example, you would need to contribute ₹15,000 from your resources.
Hypothecation is a form of security where you pledge an asset as collateral for a loan while retaining possession and control of it. Unlike mortgage or pledge, where the lender may hold the asset, hypothecation allows you to use and benefit from the asset while it serves as security for the loan. This is particularly useful in agricultural loans, where assets like crops or equipment are essential for ongoing business operations.
The security includes the hypothecation of stocks or assets acquired, mortgage of business premises, and additional collateral securities for loans not covered under the CGFS-SFAC.
The loan repayment period is tailored to align with the cash flow and income generation cycle of the FPO’s/FPC's project, with a focus on ensuring realistic and manageable repayment schedules.
Karnataka Bank understands that agriculture-based businesses can face unpredictable challenges. If you encounter difficulties in repaying your loan, we encourage you to communicate with us as early as possible. Our team will work with you to understand your situation and explore possible solutions, which may include restructuring your loan, adjusting repayment schedules, or providing guidance on managing your financial challenges. We are committed to supporting our customers through their difficulties and finding mutually beneficial solutions.
Apart from the interest, we charge a standard processing fees or charges as applicable for loan processing and disbursement.
The disbursement timeline can vary depending on the documentation, project evaluation, and approval processes. However, Karnataka Bank strives to ensure a swift and efficient process, recognizing the time-sensitive nature of agricultural projects.
In the context of Karnataka Bank's loans, EBLR or External Benchmark Lending Rate is a crucial reference rate. It's essentially the standard against which the interest rates of loans are gauged and adjusted. This rate is determined by external market factors and serves as a transparent and dynamic benchmark. By tying loan interest rates to the EBLR, we ensure that loan pricing is fair, responsive to market conditions, and in line with regulatory guidelines, providing a clear and consistent basis for borrowers to understand how their loan interest rates are set.
Agri-business loans offer vital financial support to farmers and agricultural businesses, enabling them to invest in equipment, technology, and resources needed for efficient farming operations. These special loans for farmers are designed to cater to the unique needs of the agricultural sector, including seasonal cycles. You can apply for an agricultural loan online, accessing some of the best agri-business loans available, which can significantly enhance production and profitability.
Interest rates on agri-business loans are typically structured to support the agricultural community, often being more favorable than standard commercial loans. Understanding these rates is crucial when you start your application process, as they directly affect repayment terms and the overall cost of the loan.
Do ensure you have a clear plan for the utilization and repayment of the loan. Keep all necessary documents ready to streamline the online application process. Don't overlook government subsidies or special programs that may be available for agri-business loans. Regularly monitor and manage your loan to maintain financial health.
