The largest lending bank of the public sector – State Bank of India has decided to introduce the EMI facility for the farmers. This mode of repayment will help the farmers to pay back their loan with ease.
With the purpose to curb the problem of rising bad loan in the tractor segment bank has presented this initiative, further the bank is also boosting women of the farm household to become the co –borrower. The CMD of the bank reported that prior to this bank asks the farmers for the repayment after the cropping season is over.
Bank has started Stree Shakti tractor loans”, whereby the lady of the house is also made a co-borrower. It charges 12 per cent interest on the loan. In rural areas tractors are used by the people as a means of conveyance also. The EMI per Rs1 lakh of loan works out to ₹2,225. However, with the introduction of the revamped tractor loan product, SBI expects more flow in the tractor segment.