State Bank of India (SBI) has decided to offer discounted interest rates, ranging from 75 to 375 basis points, on the applicable card rates for creating cold storage and warehouse infrastructure for agri-produce, including fruits and vegetables.
The discounts will be available for new projects sanctioned and disbursed till March 31, 2012. They will also be available to existing borrowers for the residual period of their loan provided they comply with stipulations similar to what have been envisaged for new projects on annual review of their loan accounts.
Loans for setting up cold storage and warehouse infrastructure for agri-produce will get a discount of 375 basis points (bps) in the first two years, 275 bps in third and fourth year, and 75 bps for the remaining tenure against the card rates applicable to such projects, which range from 13.75 to 15.75 per cent for the term loans of eight years tenure.
The cold storage projects would need to be in line with technical specifications outlined by the National Horticulture Board of the Union Ministry of Agriculture, which provides subsidy to the extent of 40 per cent to 55 per cent of the project cost, said a SBI press release.
The warehouses have to be constructed according to the specifications laid down by the Ministry to get the benefit of eligibility under the discounted interest rate structure.
MoU with Indian Army
Meanwhile, SBI and the Indian Army entered into a memorandum of understanding for offering a customised salary package to Army personnel.
The package will offer a unique life-long account number which can be retained despite transfer and even after retirement to draw pension. Under the MoU, SBI will also offer free Anywhere Banking and free additional ATM cards even for the single account holder so that even the family members away from the Army troops will be able to transact on the same bank account through ATMs.
This package also offers free Personal Accident Insurance. There are also free drafts, free cheque books and free transfer of funds.