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ICICI Agriculture Loan- Serving all your Farming Needs!

Updated on July 14, 2024 , 20696 views

ICICI Bank provides an agricultural loan to the farmers to cater to their various farming needs. The bank gives a term loan for buying cattle, purchasing equipment for irrigation and other agricultural requirements.

icici agriculture loan

ICICI Agriculture Loan helps to meet both short-term and long-term credit needs.

Types of ICICI Agriculture Loan

Following are the types of farm loans ICICI Bank offers-

1. Instant Gold Loan

You can get an instant gold loan against your gold ornaments to fulfil your financial requirements. You can avail this loan for agriculture purposes and also for other needs like higher education, business expansion, down payment, medical emergency, etc. In short, along with financing agriculture needs, the ICICI gold loan can also be taken for other personal requirements too.

Documents

You can get a gold loan for any value from Rs. 10,000 to Rs. 1 crore with the simple documentation process. Your gold is safe with the complete guaranteed assurance of transparency by the bank.

To avail ICICI instant gold loan you need the following documents:

  • Two passport size photographs
  • ID proof such as Driving License, Passport Copy, Voter ID, aadhaar card, Ration Card, Form 60/61, PAN Card
  • Address Proof such as Driving License, Voter ID, Ration Card, Aadhaar Card, Passport Copy, Registered Lease agreement with not older than 3 months and the utility bills in the name of the Landlord.

ICICI Gold Loan Interest Rate 2024

Here’s the interest rates on gold loan (January 2020 to March 2020 Q4 (FY19-20))-

Note - Mean rate= Sum of the rate of all accounts/ Number of all loan accounts

Minimum Maximum Mean #Penal Interest
10.00% 19.76% 13.59% 6%

#Penal Interest is not applicable for agricultural loans up to ₹ 25,000 per customer.

The table includes loan amount and loan tenure -

Mean rate= Sum of the rate of all accounts/ Number of all loan accounts

Description Minimum Maximum
Loan Amount Rs. 10,000 Rs. 10 lakh
Loan Tenure 3 Months 12 Months

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2. Farmer Finance/ Agriculture Loan/ Krishi Loan

ICICI Bank offers term loans for buying animals, purchasing equipment for farming and other agricultural needs. You can use the overdraft Facility to meet the cost of cultivation and working Capital activities for farming and allied activities.

The bank offers Retail Agri Loan- Kisan Credit Card/ Kisan Card and Long term loan for agriculture & allied activities-

a) Retail Agri Loan- Kisan Credit Card/ Kisan Card

Kisan Credit Card gives framers the facility of a hassle-free and convenient credit to meet the daily requirement of farming. The scheme is sanctioned for 5 years with one-time documentation and shall be renewed each year, but it relies on the farming requirements.

ICICI Agriculture Loan Interest Rate

The rate of interest relies on credit assessment parameters.

Note: Mean rate - Sum of the rate of all loans/number of accounts

Product Minimum Maximum Mean
Kisan Credit Card 9.6% 13.75% 12.98%
Agri Term Loan 10.35% 16.994% 12.49%
  • The Range of interest rate is with respect to individual loans disbursed between January 1, 2020 to March 31, 2020.
  • Data excludes lending done under the crop loan subvention schemes of the government.
ICICI Kisan Credit Card Eligibility

Following are the basic requirements to avail Kisan Credit Card from ICICI Bank:

  • The applicant should be in the age group of 18-70 years
  • Should own a piece of agricultural Land

b) Long Term Loan for Agriculture & Allied Activities (Agri Term Loan)

You can get a term loan to buy cattle or agriculture equipment. You can repay this loan over a period of 3-4 years in monthly, quarterly or yearly instalment as per your convenience.

  • Land documents
  • Security PDC
  • Any other document as per sanction condition

3. Tractor Loan

Tractor loan by ICICI bank comes with the quick process and the repayment term is up to 5 years. You will get flexible repayment options and the rate of interest is fixed by tenure. Furthermore, the processing fee and the interest rate is low.

Interest Rate on Tractor Loan

The rates are considered on the funding of FY20. The rate of interest on the tractor loan is based on the quality of assets being funded and its resale value in the Market.

The mean rate - Sum of all rates on all loan accounts/ Number of loan accounts. It excludes the subsidy and government schemes-

Type of credit facility Maximum Minimum Mean
Tractor 23.75% 13% 15.9%

Eligibility

There are certain eligibility criteria for tractor loan, such as -

  • A minimum of 3 acres of land should be in the name of the borrower
  • Agriculture Income will be considered for eligibility calculation
  • Commercial income will be considered for the commercial segment

Benefits of Tractor Loan

  • Easy loan procedure
  • Quick processing
  • Repayment period up to 5 years
  • Flexible repayment options
  • Fixed-Rate of Interest throughout the tenure
  • Non- mortgage loan available
  • Low processing fee
  • Lowinterest rate

Documentation

  • Application form
  • Two latest photographs of all borrowers
  • Proof for signature verification - Passport/ Driving licence/ Pan card / Bank's verification
  • Identity proof
  • Address proof
  • Constitutional documents
  • Quotation of tractor issued by the dealer to customer
  • Proof of landholding
  • Land valuation report from empanelled valuer (wherever applicable)
  • Past loan track record of the customer (wherever applicable)

4. Micro Banking

ICICI Bank offers simple, convenient and locally accessible products to maximise your comfort. The micro-banking contains three features are as follows:

i) Micro Finance

ICICI banks give you access to financial services which is the key element in the process of socioeconomic empowerment for the financially under-served sections of the society.

The bank provides financial assistance to select MFIs (Micro Finance Institutions) in the form of term loans. Other than this, it also provides value-added services to MFIs such as Cash Management services, made-to-order current accounts, savings & salary accounts for staff and treasury products that enables in Investing in Liquid Funds.

ii) Micro Savings

The bank has tie-up with NGOs, Societies and Trust to deliver savings services to low-income customers. The micro-Savings Account renders you with security and convenience along with the interest on savings. It comes with features such as frequent deposits, quick access and the facility to manage small variable amounts.

iii) Self Help Groups (SHGs)

Self Help Group Bank Linkage Programme (SBLP) focuses on delivering financial products and services to people who lack access to the formal banking.

SHGs are a group of 10-20 individuals who come together to help each other in times of need. The members are engaged in livelihood activities such as cattle rearing, zari work, tailoring jobs, running a retail shop, artificial jewellery etc. One SHG is eligible for a maximum loan amount of Rs. 6,25,000 - for loans transferred from other banks. For ICICI Bank cases up to a maximum of Rs. 7,50,000.

Here’s the eligibility criteria for SHGs-

  • SHG should be in existence for at least 6 months
  • Group of 10-20 women
  • A minimum Savings of Rs 5,000

The SHG members aims at uplifting to save and lend the savings to members during the time of need. SHIPs also gives the knowledge to manage books of accounts.

Benefits of ICICI Agricultural Loan

There are various benefits of ICICI agriculture loan are as follows:

  • Easy documentation
  • Convenient loan
  • Flexible loan repayment options based on your income
  • Attractive Interest rates
  • No hidden charges
  • Fast processing
  • Non-mortgage loans are available

ICICI Agriculture Loan Customer Care

ICICI Bank has a customer service department wherein you can get various information related ICICI products. For any queries, you can Call on the 24x7 customer care number -

  • 1860 120 7777
  • 1800 103 818

FAQs

1. What is the main objectives of ICICI agricultural loan?

A: Farmers in India are dependent on the monsoon for their farming requirements, and the weather is unpredictable. Additionally, they are dependent on the harvests to earn profits which suffice them throughout the year. Hence, for farmers in India, their needs vary from season to season and from area to area. The requirements of farmers in India's western part are different from that of the eastern part of India. Hence, ICICI Bank offers agricultural loans to farmers of India based on their requirements.

2. When can the instant gold loan be helpful to farmers?

A: For farmers, instant gold loans can prove to be helpful to meet their immediate requirements for finance. This can be to get finance to finance for the down payment to purchase an agricultural vehicle like tractors, purchase property, meet a medical emergency, or pay the fees for the education of their children. The ICICI Bank instant gold loan's unique feature is that these loans are granted with minimum documentation.

3. Is the Kisan Credit Card a loan?

A: Yes, the KCC offered by the ICICI Bank is a loan and can be used to purchase products required for farming on credit for 5 years.

4. Does ICICI Bank offer any long-term agricultural loan?

A: Yes, the bank offers a long-term agricultural loan for farmers to purchase agricultural equipment, cattle and other similar things required for farming. The agricultural loans are similar to other long-term loans where you will have to repay the loans in Equated Monthly Installments or EMIs. You can repay the loan in 3-4 years.

5. Does ICICI Bank offer microfinance under agricultural loans?

A: Suppose you want to avail microfinance facility to start an agricultural product based cottage Industry. In that case, you will have to be associated with the NGOs or self-help groups supported by the banks. The bank's micro-financing facility to help people living in rural areas become self-reliant does not fall strictly under agricultural loans.

6. Why should a farmer take a loan from ICICI Bank?

A: Farmers should take a loan from a reputed banking institution like ICICI Bank as this will assure them of security and faster processing of the loan. As a farmer, you will be assured that the loan amount is disbursed quickly, with minimum documentation and no mortgages.

7. What are the features of the tractor loan offered by ICICI Bank?

A: The bank offers tractor loans to farmers, which they can avail to purchase tractors. If you take this loan to purchase a tractor, all you will have to ensure is that you will have to repay the loan within five years.

8. Does ICICI Bank offer loans to agro-based firms?

A: Yes, ICICI Bank offers medium-sized agro-based corporate loans to meet their financing requirements. Similarly, it also offers loans against warehouse receipts to traders and commodities businessmen storing agricultural products.

Disclaimer:
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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