🌾 Agriculture Loan

 Empowering India’s Farmers

India’s backbone is its agriculture, and farmers are its true heroes. Whether it’s buying seeds, investing in machinery, or improving irrigation — an Agriculture Loan helps farmers and agribusinesses get the financial support they need.

At GrowMyRupee, we break down how agri-loans work, who can apply, and how to access the best loan options and government schemes available in India.

 

🚜 What is an Agriculture Loan?

An Agriculture Loan is a credit facility provided to farmers, agriculturists, and agribusinesses for farming and allied activities. It can be short-term, medium-term, or long-term, depending on the need.

Loans can be used for:

  • Purchasing seeds, fertilizers, and pesticides

  • Buying or upgrading farm machinery

  • Irrigation and water facilities

  • Dairy, poultry, fishery, and sericulture

  • Farm development and infrastructure

  • Buying agricultural land or tractors

 

💰 Key Features

✅ Loan Amount: ₹10,000 to ₹20 lakhs or more
✅ Interest Rate: Starting from 4% to 9% p.a. (after subsidy)
✅ Collateral: Not required for small ticket loans (up to ₹1.6 lakhs)
✅ Repayment Tenure: Up to 7 years (may vary by purpose)
✅ Subsidies: Available under various government schemes

 

🏦 Major Agriculture Loan Providers in India

  • State Bank of India (SBI) – Kisan Credit Card

  • NABARD (Refinancing to banks and co-operatives)

  • Bank of Baroda – Krishi Loan

  • Canara Bank – Kisan Mitra Scheme

  • HDFC Bank – Agri Loans

  • Axis Bank – Tractor & Equipment Finance

  • Regional Rural Banks (RRBs)

  • Co-operative Banks

 

📜 Types of Agriculture Loans

  • Crop Loan (Kisan Credit Card – KCC) – Short-term working capital for seasonal crops

  • Term Loan – For long-term investments like land development, greenhouses, drip irrigation

  • Farm Mechanization Loan – For purchasing tractors, harvesters, irrigation pumps

  • Allied Activity Loan – For dairy, poultry, beekeeping, fisheries, etc.

  • Warehouse & Storage Loan – To build or upgrade storage for crops

  • Agri Gold Loan – Gold loan for agricultural expenses with faster disbursal

 

👩‍🌾 Who Can Apply?

  • Individual farmers

  • Tenant farmers/sharecroppers

  • Self-help groups (SHGs)

  • Farmer Producer Organizations (FPOs)

  • Agribusinesses and agri-entrepreneurs

 

🧾 Documents Required

  • Aadhaar card, PAN card

  • Land ownership proof or tenancy documents

  • Bank passbook or account details

  • Agricultural income proof

  • Quotation for machinery (if applying for equipment loan)

  • Photograph

Note: For loans under KCC, minimal documents are needed and banks assist in the process.

 

💡 Government Schemes Supporting Agriculture Loans

  • Kisan Credit Card (KCC) – Provides short-term credit with interest subsidy (as low as 4% p.a.)

  • PM Kisan Samman Nidhi – ₹6,000 per year to eligible farmers (income support, not a loan)

  • PM Fasal Bima Yojana (Crop Insurance) – Covers crop loss due to natural calamities

  • NABARD Refinance Scheme – Enables banks to offer cheaper farm loans

  • Interest Subvention Scheme (ISS) – Up to 3% interest subsidy for timely repayment

 

⚠️ Things to Keep in Mind

⚠️ Use loans strictly for the intended agricultural purpose
⚠️ Maintain repayment discipline to continue receiving subsidies
⚠️ Always ask about processing fees, insurance charges, and foreclosure rules
⚠️ Understand repayment schedule – some loans are seasonal or post-harvest based

 

🧠 FAQs

Q: Can tenant farmers get loans?
Yes, with proper documentation or recommendations from local authorities or SHGs.

Q: Are subsidies directly applied to the loan?
Yes, under KCC and other schemes, interest subsidies reduce your actual interest rate.

Q: Can I apply online?
Yes, many banks now accept KCC and agri-loan applications through their websites or Jan Samarth Portal.

Q: Is crop insurance included with the loan?
Often yes, especially under government-supported crop loans.

 

🌱 Final Thoughts

An Agriculture Loan isn’t just financial help — it’s an investment in your future harvest. With the right planning and support, farmers can increase yield, improve income, and reduce risk.

GrowMyRupee is here to guide you through the process — from comparing loan options to applying under the best-suited scheme for your needs.

 

📩 Need help choosing the right agriculture loan or applying for KCC?
Contact Us for free guidance and expert support.

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