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An Overview of Indian Bank Agriculture Loan

Updated on July 15, 2024 , 26551 views

Indian Bank is a financial service company established in the year 1907, and since then the bank is growing leaps and bounds. Today, it is one of the top-performing public sector banks in India. The bank is owned by the Government of India and it has many branches in India and as well as abroad.

Indian Bank Agriculture Loan

On 1 April 2020, Indian Bank merged with Allahabad Bank and became the seventh largest bank in India.

Out of an array of products & services offered by the bank, Agriculture loan is one of the widely known offerings by the Indian Bank. The main intention behind Indian Bank Agriculture Loan is to give relief to the farmers with financial aid. There are many benefits and features that the scheme offers, which is a must to know in order to opt for the best Agriculture scheme. Read on!

Types of Indian Bank Agriculture loan

1. Agricultural Godowns/ Cold Storage

The objective of this scheme is to offer credit to farmers who are looking to construct new Agri godowns, cold storages, Market yields, expanding units and so on. The bank allows the farmers to take the loan irrespective of their location.

The scheme details of Agricultural Godowns & Cold Storage are as follows:

Particulars Details
Eligibility Individuals, Group of Individuals
Types of Facility Term loan- Under term loan, you will have to pay regular payment over a period of time. Under cash credit, you'll get a short-term loan where the account is limited to only borrowing up to the borrowing limit
Amount of loan Term loan: Based on the project cost. Working Capital: Cash Budget method to assess the working capital regardless of limits.
Margin Term loan: Minimum 25%. Working Capital: Minimum 30%
Repayment Up to 9 years including maximum holiday period of 2 years

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2. Financing Agriculturists for Purchase of Tractors & Other Farm Machinery

The objective of the scheme is to automate farming activities to enhance agricultural production. You can purchase tractors with a minimum three attachments including a trailer, power tiller and pre-used tractor.


You are eligible for the scheme under following circumstances-

  • If you have a minimum of 4 acres of irrigated Land or 8 acres of unirrigated land (dry land).
  • While purchasing a pre-used tractor, it should not be more than 7 years old.
  • Landholding should be in the name of the family members who are blood-related.
  • A group of beneficiaries whose holdings aggregate to the minimum land holding and situated in a compact block can be considered for tractor loan.


  • Avail loan up to Rs. 1,60,000.
  • If the price of the tractor and power tiller exceeds Rs. 1,60,000, then the margin will be 10%.

3. SHG Bank Linkage Programme – Direct Linkage To SHGs (Self Help Groups)

The purpose of this scheme is to give financial help to the poor to uplift their Income levels and raise their way of living.

Loan Amount

The loan amount is based on the linkage of the SHG’s.

The repayment period of the loan is a maximum 72 months, depending on the activity.

Particulars Details
1st linkage Minimum of Rs. 1 lakh
2nd linkage Minimum of Rs.2 lakh
3rd linkage Minimum of Rs. 3 lakh based on the micro-credit plan prepared by SHGs
4th linkage Minimum of Rs. 5 lakh based on the micro-credit plan prepared by SHGs and maximum of Rs. 35 lakh based on the previous credit history

4. Joint Liability Group (JLG)

The joint liability group scheme focuses to increase the flow of credit to tenant farmers for cultivation of the land. The scheme also helps the farmer who doesn’t have a proper land holding through the formation and financing of SHGs.


Eligibility criteria under this Indian Bank agriculture loan are as follows-

  • Farmers cultivating land without having a proper title for their land.
  • A farmer should engage in agricultural activity for a period not less than one year.
  • JLG members should have economic status and carry out farming activities for those who agree to act as a JLG.

Loan Amount

  • The maximum loan amount to a group is Rs. 10 lakh for agriculture, allied agriculture or non-agriculture activity.
  • The maximum loan amount is Rs. 5 lakh to a group and maximum Rs. 5,000 to an individual for a tenant and oral lessees.

Joint Liability Group Interest Rates

The repayment for term loan varies from 6 to 60 months relies on the activity for which the loan is sanctioned.

The interest rate for crop loan and term loan are as follows:

Loan Scheme Amount Slab Interest Rate
Crop Loan KCC up to Rs. 30 lakh 7% p.a (Under interest subvention from India)
Term Loan Up to 0.50/ 1 lakh per individual or Rs. 5 lakh/ Rs. 10 lakh for the group MCLR 1 year + 2.75%

5. Kisan Credit Card (KCC)

The purpose of the Kisan Credit Card is to meet the short-term credit requirements for cultivation of crops and post-harvest expenses. This scheme’s primary motto is to help farmers for daily maintenance of farm assets and consumption requirements of farmer households.


Farmers, individuals and joint borrowers can apply for KCC. Sharecroppers, oral lessees and tenant farmers are too eligible. Furthermore, tenant farmers and sharecroppers of self-help groups and joint liability groups can avail the scheme benefits too.

Features of KCC

  • No processing fees up to Rs. 3 lakh
  • 5-year KCC validity
  • Zero margin
  • One time documentation by the farmer
  • KCC holders can operate KCC through the branch, ATM and PoS machines
  • All Kisan Credit Cardholders of Indian Bank are covered under the personal accident insurance Scheme. The premium is paid by the bank

Indian Bank KCC Interest Rate

Currently, under KCC, the Return on Investment (ROI) and long-term limit is linked to the MCLR.

The interest rate for short term loans and KCC for farmers is up to Rs. 3 lakh is 7% onwards.

Amount Interest Rate
Up to Rs. 3 lakh 7% (whenever interest subvention is available)
Up to Rs. 3 lakh 1year MCLR + 2.50%


  • The withdrawal under the short-term loan is allowed to be liquidated in 12 months without a debit balance in the account to zero. Also, no withdrawal in the account should remain outstanding for more than 12 months.
  • The repaying of the term loan is dependent on the type of activity.

6. Agricultural Jewel Loan Scheme

The Agricultural jewel loan is suitable for the ones who are seeking short-term credit requirements for crop cultivation, repairs of farm assets, dairy, fisheries and poultries.

You can also opt for the scheme to fulfil farming requirements such as purchase of fertilizers, pesticides, seeds, repayment of the debt taken from non-financial institutional lenders.

Agricultural Jewel Loan Scheme Details
Eligibility All individuals farmers
Loan quantum For bumper Agri jewel loan- 85% of the market value of gold pledged, For other Agri jewel loan- 70% of gold jewels pledged
Repayment You can repay the loan within 6 months for bumper Agri jewel loan. Whereas, for Agri jewel loan, the repay tenure is of 1 year
Bumper Agri Jewel Loan 8.50% fixed


  • Easy loan process
  • Attractive interest rates
  • Convenient repayment options
  • No hidden charges
  • Processing charges


  • Proof of agriculture land with the applicant name and proof of cultivation of crops.
  • Identity proof such as Voter ID card,PAN Card,Passport,aadhaar card,Driving License, etc.
  • Address proof such as Voter ID card / Passport / Aadhaar card / Driving license etc.
  • Duly filled application form.

Indian Bank Agriculture Loan Customer Care

Indian Bank customer care helps you with the solutions for all your queries related to Indian Bank products. You can Call on the below--mentioned numbers to get their queries resolved-

  • 180042500000
  • 18004254422
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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