Invest in Irrigation for Your Agri-Business

The interest rate for the Krishik Sinchana Loan is aligned with the External Benchmark Lending Rate (EBLR), ensuring it remains competitive and affordable. This means the interest rate adjusts with market conditions, offering you the advantage of lower rates during favorable economic periods. Such a structure helps in reducing the overall cost of your loan over time, making it a financially viable option for your irrigation needs.

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.

Yes, it is not just for new irrigation projects but also for the enhancement or expansion of existing irrigation infrastructures. This can include modernizing outdated systems, expanding the area under irrigation, or incorporating new technologies for better water management.

The scheme offers repayment terms that are closely aligned with agricultural cycles, recognizing the seasonal nature of farming income. Yearly installments can be scheduled to coincide with your crop's harvesting and marketing periods, providing flexibility and ease in managing cash flows. This approach ensures that repayments are due when your farm is most likely to have generated income from the produce.

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.