Nabard and SBI to make loan process easier and cheaper for farmers

During the 'Kisan Tak Bharat Agriculture Conference 2026' held at Bharat Mandapam in Delhi, important discussions were held on making farming more profitable and providing easy, affordable credit to farmers. According to a report by 'Aaj Tak', representatives of NABARD and State Bank of India (SBI) presented their upcoming plans to ensure that farmers receive loans on time and at low interest rates. In farming, not only hard work and a good crop are sufficient, but the availability of capital at the right time is equally essential.

In the coming time, the process of approving loans based on digital data related to farmers' land, crops, farming expenses, and their total income will be strengthened. This system will simplify the loan acquisition process and provide relief to farmers from the compulsion of borrowing money from private moneylenders at high interest rates. NABARD DGM Prakash Kumar Mishra and SBI Agribusiness DGM Vikram Jha participated in this session.

NABARD DGM Prakash Kumar Mishra stated that NABARD plays an active role in agriculture and its allied sectors. The organization provides capital to small banks and rural financial institutions so that they can provide loans to farmers. He clarified that under the Kisan Credit Card (KCC), farmers get loans at an interest rate of 7 percent, which is covered by the interest subvention provided by the Central Government. Furthermore, farmers who repay loans on time receive a 3 percent 'prompt repayment incentive'. In this way, the effective interest rate for eligible farmers drops to around 4 percent.

Prakash Mishra further added that for farmers, not only the interest rate but also the problem of guarantee or collateral for obtaining a loan is significant. To solve this problem, NABARD is promoting models like 'Joint Liability Group' (JLG). Along with this, work is also being done to strengthen rural and cooperative banks and provide them with reliable data on farmers.

SBI Agribusiness DGM Vikram Jha stated that the bank is considering the needs of large farmers and corporate farmers in addition to small and marginal farmers. Under SBI's 'Kisan Samriddhi Rin Yojana', loans of more than 50 lakh rupees can also be provided. These loans are available not only for daily farming expenses but also for purchasing agricultural machinery and making other investments in farming. Emphasizing the importance of food processing and agricultural infrastructure, Vikram Jha stated that often, due to a lack of storage facilities, farmers are forced to sell their crops at low prices after harvest.

He said that if farmers have warehouse and cold storage facilities, they can keep the crops safe and sell them when they get the right price in the market. For this, loans are provided for cold storage, warehouses, grading, sorting, and transportation under schemes like the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) and the Agriculture Infrastructure Fund. These facilities will increase the income of farmers.

This organization used to provide credit and other facilities for rural development.