If you want to do farming, you have less land or do not have land, then you can take advantage of the Land Purchase Scheme (LPS) of State Bank of India (SBI).
According to the growing craze of organic farming in this country and to help more landless farmers, the country’s largest bank, State Bank of India (SBI) is giving loans to purchase agricultural land. If you want to do farming, you have less land or do not have land, then you can take advantage of the Land Purchase Scheme (LPS) of State Bank of India (SBI).
State Bank of India (SBI) is giving loans to those who have a better record of repaying loan amount to purchase land for farming. If you also want to buy land for farming under LPS, then you can get 7 to 10 years to repay the loan amount of SBI.
What is SBI’s Land Purchase Scheme (LPS)?
SBI is actually giving loans up to 85% of the cost of land to buy agricultural land. In this, the loan repayment period will start in one to two years.
What is the purpose of SBI’s Land Purchase Scheme (LPS)?
The purpose of land purchase scheme of SBI is to help small and marginal farmers to buy land. Along with this, such farming people can also buy land under SBI’s LPS scheme by taking loans which do not already have agricultural land for farming.
Who can apply under SBI’s Land Purchase Scheme (LPS)?
According to the State Bank of India (SBI), small and marginal farmers who have less than 5 acres of unirrigated land can apply to buy land under the Land Purchase Scheme (LPS).
If a farmer has less than 2.5 acres of irrigated land, he can also buy agricultural land with the help of LPS.
Along with this, landless laborers working in agriculture can also take a loan to buy land under the LPS scheme.
Under SBI’s LPS, a person applying for a loan to buy a farm should have a record of at least two years of loan repayment. SBI can also consider the application of the customers of loan taken from another bank to buy agricultural land.
The only condition of giving loan for purchase of farm in LBI of SBI is that no other bank loan should be outstanding on the applicant.
How much can one get loan in LPS?
Under the SBI’s Land Purchase Scheme, the State Bank will assess the value of the land on the loan application to purchase agricultural land. After this, loans up to 85 percent of the total cost of agricultural land can be taken.
The agricultural land purchased by taking a loan under LPS will remain with the bank until the loan amount is repaid. When the applicant repays the loan amount, the land can be freed from the bank.
Repayment period after taking a loan in LPS
Under the land purchase scheme of SBI, you get 1 to 2 years free time. If the land has to be corrected according to agriculture, then for two years and if there is already developed land, then SBI gives you a free period of one year.
After completion of this time, you have to repay the loan taken under LPS through half-yearly installment. The person taking loan can repay LPS loan in 9-10 years.
