SBI Crop Loan for Farmers 2026: Good news for farmers! Loan facility up to 10 lakhs through SBI Bank!
Agriculture is the heart of our country. The country’s food security lies in the hands of farmers. But farming in today’s times is not an easy task. The cost of seeds, fertilizers, pesticides, labor wages, irrigation systems, fuel costs – all these are increasing day by day, increasing the financial pressure on farmers. In such a situation, it is becoming impossible for many farmers to continue farming without loans.
Recognizing these challenges, the State Bank of India (SBI) has specially designed SBI Crop Loan scheme for farmers to provide a strong financial base. It is not just a financial aid, but a promising tool to enhance the future of farmers.
By December 2025 , SBI has made this crop loan scheme even easier and farmer-friendly. With a digital application system, low interest rates, and government subsidy facilities, farmers can now easily avail loans of up to Rs 10 lakh . In this article, let’s know the complete details of SBI crop loan – from eligibility, interest rate, application process, and repayment system – in a simple manner.
Importance of SBI crop loan: Direct support for farmers’ daily farming
SBI Crop Loan is primarily designed to meet short-term financial needs . It can cover all the major expenses incurred by farmers from sowing seeds to harvesting during Kharif, Rabi or Zaid crops.
For example, it can cost an average of ₹35,000 to ₹40,000 to grow one acre of paddy. This cost includes seeds, fertilizers, labor, irrigation, and other minor expenses. Farmers can easily avail this amount through SBI crop loans.
This loan should be used only for agricultural purposes. If used for other purposes, the bank may impose a penalty. The key feature of this scheme is the Kisan Credit Card (KCC) system.
KCC works like a regular debit card and provides revolving credit facility to farmers . Farmers can use the money as much as they need and pay interest only on the amount used. There is also an option to use the loan again after repayment.
In 2025, SBI digitized the KCC system through the YONO SBI app , allowing farmers to apply from the comfort of their homes. This has also reduced the need for farmers in rural areas to visit the bank frequently.
A good example of this is the experience of Srinivas, a farmer from a village in Karnataka. He took a loan of ₹2 lakh through KCC and installed a new irrigation system on his 5 acres of land. “Earlier, there was hardship due to debt pressure, but now, crop production has increased and income has also improved,” he says.
Loan limit and interest rate: High profit at low cost
The SBI KCC crop loan limit is determined based on the farmer’s land area, crop type and Scale of Finance (SOF) . Generally, this loan can be availed up to Rs 10 lakh .
For example:
- For 1 acre of paddy crop – around ₹40,000
- For 5 acres of land – around ₹2 lakh
No collateral is usually required up to ₹3 lakh. However, for amounts above that, collateral may be required based on land records.
Interest rate:
The basic interest rate on SBI crop loans up to ₹3 lakh till December 15, 2025 is 7.25% per annum . However, through the government’s Interest Subsidy Scheme , farmers who repay on time will get a 3% Prompt Repayment Incentive (PRI) . With this, the effective interest rate becomes just 4.25% .
SBI’s 1-Year MCLR + 3.25% interest rate applies for loans above ₹3 lakh .
Eligibility and required documents
Those eligible for SBI crop loan:
- Proprietary farmers
- Tenant farmers
- Sharecroppers
- Self Help Groups (SHG)
- Joint Liability Groups (JLG)
Even if the land is not in your own name, you can get a loan through a certificate from the revenue authorities.
Required documents:
- Aadhaar Card (Mandatory for e-KYC)
- Address proof (Voter ID/Driving License)
- Land records (RTC, Pahani, 7/12)
- Bank account details
- Passport size photos
If the documents are correct, loan approval usually happens within 7–15 days .
Application Process: Online and Offline Routes
Online (YONO SBI App):
- Download the YONO SBI app
- Select ‘YONO Krishi’ → ‘Kisan Credit Card’
- Fill in the details, upload the documents.
- Apply via e-Sign
Offline:
You can apply by visiting the nearest SBI branch.
Refund, insurance and security
The loan term is usually 6 to 12 months . It has to be repaid after the harvest. The interest rate is reduced if the payment is made on time.
Farmers with KCC are also eligible for the Pradhan Mantri Fasal Bima Yojana (PMFBY) . They get compensation in case of crop loss due to natural calamities.
Apply app link
SBI crop loan is not just a financial aid for farmers, it is a sign of confidence and future security. This loan has become even easier with digital systems in 2025.
Visit your nearest SBI branch or apply through the YONO app –
breathe new life into your crop. Jai Kisan! 🌾