HDFC Bank launches agriculture loans for military and paramilitary professionals

MUMBAI: Largest private sector lender HDFC Bank on Friday launched an agri-loan offering targeted at the 45 lakh military and paramilitary professionals, for catering to their family’s agricultural needs back home. The bank’s managing director and chief executive Aditya Puri said the risk of non-payment is very low for such an offering because the defence and paramilitary personnel are extremely careful about meeting their promises.

The product, christened “Shaurya KGC Card” entails both short-term loans for cropping and also long-term ones for farm investments for a period of up to five years which will be reviewed at regular intervals, bank officials said.

Depending on the size of their farm, the 45 lakh-strong services professionals will be given a credit limit, its rural banking group head Rajinder Babbar told reporters on a call, adding that rate of interest on such loans can go down to 7 per cent per annum if the relevant subsidy schemes of the government are availed.

Puri said he hails from an Air Force family and knows about the sacrifices which the personnel do, and added that the loan can be availed remotely as well.

He said the bank is not launching the product on the eve of Independence Day for growing or diversifying its loan book, but to serve the defence professionals given the efforts that they undertake.

“I feel like my career is complete now that we’re able to do something for them,” Puri, who is set to retire in October, said.

The loan can be processed without the physical presence of the applicant and the life insurance cover limit has been upped to Rs 10 lakh from the Rs 2 lakh for the average card, the bank said in a statement.