SBI offers discounted interest rates for setting up warehouses

Posted By: Pti
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Mumbai, Jan 27 (PTI) State Bank of India (SBI) todaysaid it will offer discounted interest rates for setting upand construction of cold storages and warehouses to augmentthe storage capacity for agri-produce, including fruits andvegetables.

In order to strengthen the storage capacity and savefarmers from post-harvest losses, the state-run lender hasintroduced a discounted interest structure for construction ofcold storages and warehouses, India''s largest bank inagriculture finance said.

Prospective borrowers can avail 300 bps discounts ininterest from the applicable card rates for the first twoyears and 200 bps discounts for the third and fourth year ofloan tenure, SBI said in a statement here.

The applicable card rate would be charged from thefifth year onward till eight year of the loan period alongwith remission of 75 bps in term premium applicable to thefull tenure of the loan. These loans are classified as anindirect agri-advances under priority sector lending, it said.

These discounts would be available for new projectssanctioned and disbursed till March 31, 2012. They will alsobe available to existing borrowers for residual period oftheir loan period provided they comply with stipulationssimilar to what have been envisaged for new projects on annualreview of their loan accounts, the statement said.

India is the second-largest producer of vegetables andthe third largest of fruits in the world, but lack of storagefacility leads to post harvest losses of around 30 per cent ofthese commodities.

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