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A Complete Guide to Bank of Baroda Agriculture Loan

Updated on April 11, 2024 , 51294 views

The Bank of Baroda bank offers various types of agriculture loan to cater to different needs of the farmers.

Bank of Baroda Agriculture Loan

The finance offered through BOB can be used to buy agricultural equipment, maintain the farms, allied agricultural activities and other consumable requirements.

The government of India has announced the merger of Bank of Baroda, Vijaya Bank and Dena Bank on 17 September 2018.

Types of Agriculture Loan Offered by Bank of Baroda

Bank of Baroda offers a variety of agriculture loans that assist farmers to meet their farming requirements. Each scheme offers unique features and benefits. Let's take a look.

1. COVID19 Special - Additional Assurance to SHGs

The purpose of the COVID19 Special - Additional Assurance to Self Help Groups (SHGs) is to provide instant financial assistance to the women in order to meet the important domestic and agricultural needs.

Here’re the detail about COVID19 Special loan offered by the BOB:

Particulars Details
Eligibility The SHG members can avail the credit facilities from the bank in the form of CC/OD/TL/DL having a good record
Loan quantum Minimum amount- Rs. 30,000 per SHG group. Maximum amount- 30% of the existing limit shall not exceed Rs. 1 lakh per member and total exposure per SHG shall not exceed Rs. 10 lakh.
Nature of Facility Demand loan repayable in 2 years
Interest rate One year MCLR (marginal cost of funds-based lending rate)+ Strategic premium
Margin Nil
Repayment period Monthly/ Quarterly. The full tenure of the loan should not exceed 24 months. Moratorium period- 6 Month from the date of disbursement
Security Nil

2. Bank of Baroda Kisan Credit Card

The Kisan credit card scheme aims to provide credit support of the banking system under a single window to the farmers for their cultivation and other farming requirements mentioned below-

  • Meeting the short-term credit needs for cultivation of crops, including fodder crops
  • Post-harvest expenses
  • Produce marketing loan
  • Consumption requirements of farmer’s family
  • Daily usage of cash for maintenance of farm and activities related to agriculture like dairy, poultry, fisheries, piggery, sericulture, etc
  • The Capital requirement for agriculture and related activities like - purchase of farm equipment or machinery, such as pump saints, sprinklers/drip irrigation equipment, pipeline, power tiller, tractor, sprayers, milk animals, vehicles for transportation of farm production, etc

BOB Kisan Credit Card Eligibility

  • Tenant farmers, oral lessees, sharecroppers, etc., can apply for the scheme
  • Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers, including tenant farmers, sharecroppers, etc.
  • Registered sharecroppers and tenant farmers, those who are cultivating crops for a period not less than five years. All individual All individual agriculturists and proprietorship who are residing in the village for at least for three years are eligible for Bank of Baroda Kisan Credit Card

Note -** The Credit Limit for the BOB Kisan Credit Card is Rs. 10,000 & above.

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Loan Quantum

The quantum of finance is evaluated on the Basis of farm Income, repaying capacity and value of security.

  • Minimum loan amount of Rs. 5,000
  • Maximum loan amount: No limit

Line of Credit under BKCC

Bank of Baroda gives the limit by considering the increase in the scale of finance during the next five years as a line of credit. The farmers can get the loan on the basis of the increasing scale of finance without any fresh documents each year. The farmer is allowed to avail the amount that is based on the actual scale of finance in a year within the overall line of credit amount.


For production line of credit is NIL for investment. The line of credit ranges from the minimum Range is from 10% to 25%, basically it relies on the scheme too.

Repayment Schedule

The production line of credit revolves on the agriculture cash credit account, which is subject to an annual review that is valid for 5 years. Investment credit will be DL (DIrect Loan)/TL (Term Loan) and the repayment period is fixed on quarterly/ half-yearly or yearly basis that is based on the income of the farmer.

2. Baroda Kisan Tatkal Loan Scheme

The purpose of the Kisan Tatkal loan is to meet the funds requirements for agriculture and domestic purposes during the off-season.

The following table includes eligibility, the quantum of loan, nature of the facility, repayment period and security details.

Particulars Details
Eligibility Individual Farmers or Joint borrowers who are already a Bank of Baroda Kisan Card Holders
Nature of facility Term loan & overdraft
Repayment period Term loan: 3-7 years
For overdraft For a period of 12 months
Security The existing standard of no Collateral security up to Rs.1.60 lakh to be followed if the combined limit is within Rs.1.60 lakh

3. Baroda Kisan Group Loan Scheme

The purpose of the Baroda Kisan Group Loan is to finance Joint Liability Group (JLG) that is expected to be a flexible credit product. It addresses the credit requirements of its members.

The credit may be extended in the form of BKCC for crop production, consumption, marketing and other productive purposes.

Particulars Details
Eligibility Tenant farmer cultivating Land as oral lessees or sharecroppers. Farmers those who do not have anything for their land holding those are eligible for finance through a joint liability group. Small and marginal farmers(tenant, sharecropper) are eligible for Kisan Group scheme
Quantum of loan For tenant farmer: Maximum Loan of Rs. 1 lakh, For JLG: Maximum Loan of Rs. 10 lakh
Nature of facility Term loan: Investment line of credit
Working capital Production line of credit
Interest Rate As per RBI guidelines
Margin As per general guidelines for agriculture finance
Repayment As per BKCC norms

4. Scheme For Loan Against Gold Ornaments/Jewellery

Bank of Baroda gold loan for farmers is to meet short-term agriculture credit and investment needs for both crop production and allied activities. This loan offers framers credit up to Rs. 25 lakhs, in a lower interest rate.

The purpose of the loan is for agriculture and allied activities like crop cultivation, post-harvest, purchase of farm machinery, irrigation equipment, animal husbandry, fisheries etc.

Particulars Details
Eligibility Person involved in agriculture or allied activities or engaged in activities permitted by GOI(Government of India)/RBI(Reserve Bank of India) to be classified under agriculture
Type of facility Cash Credit & Demand Loan
Age Minimum of 18 years, Maximum of 70 years
Security The loan has required a minimum of 18-carat gold jewellery (maximum 50 grams per borrower)
Loan amount Minimum amount: Not specifies, Maximum loan amount: Rs. 25 lakh
Tenure Maximum 12 months
Margin Loan to value decided by the bank from time to time
Interest Rate For short term crop loan up to Rs. 3 lakh, ROI is MCLR+SP. Above Rs. 3 lakh- 8.65% to 10%. Simple ROI will be charged at half-yearly rests
Processing Charges Up to Rs. 3 lakhs- Nil. Above Rs. 3 lakhs- Rs.25 lakh-0.25% of the sanctioned limit + GST
Prepayment/part payment NIL

Documents Required for Gold Loan for Farmers

  • Application form
  • KYC of borrower
  • Proof of land
  • 1 passport photograph

Feature of Gold Loan

  • Instant gold loan and quick servicing
  • Minimum 18-carat purity of gold
  • No prepayment/ pre-closure charges
  • No processing charges up to Rs. 3 lakh for agriculture purpose

5. Financing Tractors & Heavy Agriculture Machinery

This loan help farmers to buy a new tractor, tractor-drawn implements, power tiller, etc.


  • Farmers engaged in the cultivation of crops as the owner of the land
  • Permanent tenants or leaseholder who utilize the tractor
  • A farmer should have permanent irrigated land of minimum 4 acres
  • Furthermore, a farmer should also cultivate high-value crops such as sugarcane, grapes, bananas & vegetables

Repayment Period

For tractors the repayment period is a maximum of 9 years and for power tillers it is 7 years.


This may include the hypothecation of tractor, implements and charge or mortgage of land or third party guarantee. It depends on the bank's discretion.

6. Financing Development of Dairy, Poultry, Fishery

The purpose of this loan is to provide funds for activities mentioned below:

  • Dairy
  • Piggery
  • Poultry
  • Sericulture and rearing sheep, goat and camel
  • Construction animal sheds, pig house, poultry sheds
  • Purchase of milch animal, pig breeding, chicks, layers Equipment/machinery/transport vehicle for the purchase of feed and to meet other expenditure such as labour, marketing, etc.


All farmers including small and marginal farmers and agricultural labourers engaged in agriculture and allied activities.

Repayment Period

Repayment of the loan ranges from between 3 to 7 years. It also depends upon the economic viability of the scheme.

7. Financing Irrigation

The purpose of Financing irrigation is to help in multiple areas, such as-

  • Construction of surface well
  • Deepening or renovation of existing wells
  • Purchase of oil engine or electric motor and pump set
  • Construction of shallow and deep tube wells
  • Layout of field channels (open as well as underground)
  • Construction of pump house
  • Lift irrigation from river basins
  • Tanks
  • Bandharas and other catchments
  • Installation expenses of oil engines/ electric motor/ pumpsets
  • Levelling of land for irrigation
  • Sprinkler irrigation
  • Drip irrigation
  • Windmills


Farmers engaged in the cultivation of crop as an owner of the land, cultivators, permanent tenants or leaseholder are eligible to apply for the scheme.

Repayment Period

Repayment period is up to a maximum of 9 years. It also depends on the purpose of investment and Economic Life of the asset.


Security depends on the quantum of the loan. This involves hypothecation of machinery, mortgage of land/ third party guarantee as per the discretion of the bank.

BOB Agriculture Loan Customer Care Number

Connect with the Bank of Baroda customer care available 24x7 on the following numbers:

  • 1800 258 44 55
  • 1800 102 44 55


Bank of Baroda has a variety of agriculture loan schemes for the farmers. The schemes offer a wide range of benefits that can aid fulfil the farming needs. Furthermore, the documentation is simple and the process of agriculture loan works promptly.

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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