Agriculture is one of the main occupations in India. Farmers can apply agri loan for investment as well as short tenure purposes, such as production, etc. There are many financial institutions and banks in India that provide farm loans so that farmers can run their agriculture more efficiently.
It helps to cover costs associated with running a farm, such as the purchase of seeds, pesticides, fertilizers, irrigation water and more.
There are many leading banks in India Offering exceptional credit in agriculture-related sectors.
SBI has helped millions of farmers across the country. The Bank is considered as one of the top lenders in providing farm loans. They offer a variety of loan, such as -
The KCC provides short-term loans for farmers at the rate of 4%. If an individual opts for an SBI agricultural loan, then you’ll also get a free atm cum debit card. You can get a loan up to Rs. 3 lakh at an interest rate of 2% p.a.
You can avail loan for the agricultural purpose with the help of gold ornaments. These loans come with an attractive interest, also the process is easy and hassle-free.
It help framers to clear their dues. The main goal of this scheme is to help farmers become debt-free.
HDFC bank offers a variety of crop loans to farmers. The purpose of the agricultural loan is to offer a broad spectrum, right from the beginning of the installation of orchards.
HDFC bank also offers warehouse Receipt financing to all farmers.
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Allahabad Bank is another nationalised bank in India that offers the Kisan credit card under its Akshay Krishi Scheme. The main objective of the scheme is to provide sufficient financial support to the farmers. Similar to State Bank of India, Allahabad Bank offers other services such as warehouse receipt financing, debt swapping scheme etc.
Bank of Baroda is another leading bank which offers loans for agricultural purposes. They have various schemes that cover various sectors in the agriculture sector. For example, you can take the loan to purchase agricultural vehicles and heavy machinery for farming. Apart from this, the Bank also offers Capital and funds for setting up units or running a dairy, pig farms, poultry sericulture, etc. The bank also provides four-wheeler loans with a maximum amount of Rs. 15 lakh.
Agriculture loan in India attracts low-interest rates. The processing fees for the agriculture loan is as low as
0% to 4% of the loan amount.
Here's the list of agriculture loan interest rate from major banks in India-
|Bank Name||Interest Rate||Processing Fee|
|ICICI Bank (Agri Term Loan)||10 % to 15.33% p.a||Up to 2% of offered limit at the time of payment|
|Central Bank of India (Cent Kisan Tatkal scheme)||8.70% p.a onwards||Up to Rs. 25000- Nil, Above Rs. 25000- Rs. 120 per lakh or maximum Rs. 20,000|
|HDFC Bank (Retail Agri Loans)||9.10 % to 20.00% p.a||2% to 4% or Rs.2500|
|Federal Bank (Federal Green Plus Loan Scheme)||11.60% p.a||As per the lender’s terms and conditions|
|Union Bank of India(Land purchase loan)||8.70% p.a onwards||Up to Rs. 25000-Nil|
|Karuru Vysya Bank (Green Harvester)||10.30% p.a||As per lenders terms and conditions|
|Andhra Bank (AB Kishan Rakshak)||13.00% p.a||As per lenders terms and conditions|
|Canara Bank (Kisan Suvudha Scheme)||10.10% p.a||As per the lender’s terms and conditions|
|UCO Bank (UCO Kisan Bhoomi Vridhi)||3.10% to 3.50%||Nil up to 3 lakh|
There are common types of agricultural loans in India are offered by the banks are:
Before applying for an agricultural loan, you must double-check the loan plan. Ensure you read all the Terms & Conditions of the policy and submit the necessary documents asked by the lender. There are some institutions and banks which offer online services too. In this case, you just need to properly navigate to the lender’s website. Enter all the details asked by the website and upload all the necessary documents. The loan lender will review your application. After the review & verification is completed, the lender will sanction your loan.
The key benefit of Agricultural loan is that you will not have to submit a bunch of documents. The loan can be procured with a handful of documents with valid identity proof, address, etc. You will have to submit these documents along with the filled application form.
Usually, framing loan is processed and approved quickly as compared to other loan products. As soon as your application is approved, the amount will be transferred to you.
There’s always competition within banks when it comes to the rate of interest, so you will easily get a loan with a low-interest rate. A low rate helps in repaying the loan without any burden. Some of the financial institutions provide the loan with an interest rate of 8.80% per year.
There are various tenure terms provided by lenders. They provide flexible terms as per your convenience and repayment ability.
The eligibility criteria for a farm loan vary bank to bank, and also on the types of loan you opt for. Generally, the eligibility criteria are as follows:
The documents required for an agricultural loan may vary from bank to bank, but typically, the following documents are required:
If some other documents are asked by the lender, then you must produce them at the time of loan application
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