Agriculture Loans For Farmers In India

Agriculture Loans For Farmers:

The following is all about Agriculture Loans in India.

Crop Loans

Agriculture is the main source of income for 65% of families in India. Agriculture supports 40% of our national income. But due to climatic and financial conditions, farmers are unable to get good results. The government, financial institutions, and banks are supporting the farmer by them giving financial assistance through many types of loan that can survive their agricultural needs.

Agriculture Loans: Agriculture loans are loans given to the farmers for very low interest in their agricultural activities. These loans give good financial support with less burden.

Agriculture Loans are given for all types of farming operations, farming equipment, construction of infrastructures, marketing operations, etc.

Agriculture Loans are given by?

All the Government and private banks, rural and urban banks, co-operative societies offer agriculture loans to the farmers. These offer loans at a low-interest rate compared to other loans.  Some Banks offer Kisan credit cards that provide money to the farmers for daily farming requirements.

Advantages of Agriculture Loans

  • Easy Loan Process.
  • Less documentation.
  • Flexible payment options.
  • Low-interest rates.
  • Quick processing and less time taking.

Eligibility for Agriculture loans

The basic requirement to avail of Agriculture loans:

  • Age of applicant (18 to 70 years).
  • Should cultivate Land.
  • Agriculture loans are given to small and marginal farmers, tenant farmers, sharecroppers, and oral lessees.

Documents required for Agriculture Loans

You can get an agriculture loan for the long term and short term. The documentation and loan process is very simple.

Document required to avail agriculture loans:

  • Identity Proof: Voter Id/ Pan Card, / Ration Card/ Aadhar Card etc. Any authorized Id from the government of India.
  • Land Document: Documents of the agricultural land.
  • Kisan Credit Card.
  • Valid Address Proof: Passport/ Driving License/ Ration Card/ Bank Statement etc.

Types of Loans to Farmers

Loans to agriculture given for the following sectors:

  • Loans for Agricultural Activities.
  • Loans for Agricultural Infrastructure.
  • Loans for Agricultural Allied activities.

Loans for Agriculture Activities: 

Agriculture Loans are given to individual farmers directly engaged in Agriculture or Live Stock Farming (Dairy, Fishery, Animal Husbandry, Poultry and Sericulture, etc.).

Agriculture loans are offered for pre-harvesting and post-harvesting activities like spraying, weeding, harvesting, grading, and transporting of the production. Even Agricultural loans are offered for distressed farms indebted to private financial lenders.

Read this: Horticulture Training in India.

Agriculture Loans are of 2 types:

  • Short-Term Loans.
  • Medium-Term Loans and Long-Term Loans.

Short-Term Loans:

Short-Term Loans are also called crop loans, these are obtained from co-operative banks, village societies, and commercial banks. And to obtain crop loans the farmer has offered his cultivating land as security. These loans help the farmer to increase his productive ability by using necessary inputs and implementing new methods of farming with necessary technologies. Crop loans are given for traditional/non-traditional plantations and horticulture, and loans for allied activities.

A crop loan is sanctioned for one season, so its loan should be repaid after the harvesting of the crop.  If the crop loan required for every season he has followed the same procedure. The short-term loans are obtained for one year or less than one year.  These loans are gives based on one-third of gross value and the cost of cultivation.

One-third of gross value: This value is based on the yield and price of the crop. It also depends on the cost of cultivation and expense. The loan amount mainly depends upon the gross value, the more the gross value more the loan you can get.

Cultivation Expenditure: Cultivation expenditure means the money spend on seeds, manures, fertilizers, pesticides, labor, etc.

Medium and Long-Term Loans:

The long-term agriculture loans are given for 5 to 20 years or more. These long-term loans are taken to buy assets that earn results over a period.

Long-term Loan in Agriculture includes Bores, Land leveling, Fencing, purchasing machineries like tractors, harvesters other latest farming-related machines, or loans for developments of fruits orchards (Mango, Sapota, Cashew, Orange, Lemon, guava, etc. ) as these orchards take 5 to 6 years to start production.

Long-Term Loans sanction a huge amount of money, so the financial criteria terms and conditions procedures of granting Long-term loans are different forms of crop loans.

The interest rates for Long-Term loans are very low so that farmers can pay without any burden. The interest rate would be around 11 to 12%.

For the Long-Term Loan, the loan process will be – The farmer submits the application to The Brank office that offering the loan. Once the farmer submits the loans, The Agricultural Finance officer or Inspector will inspect these applications, and they visit the area of the application and verify the purpose of borrowing, verifies the genuineness of the proposal and its economic viability, repaying ability of the farmers, adequacy of security, etc.

Once all these formalities are completed, the loan will be granted depending on the delegation of powers by the Banks.

Read: How to Keep Farm Records.

Loans for Agricultural Infrastructures

The loan for agricultural infrastructure includes the construction of warehouses, market yards, godowns, Barns, cold storage units used for storing agricultural products.  Even they offer loans for soil conservation and watershed development. Loans issued for constructing a functional unit for plant tissue culture, production of bio-pesticides, bio-fertilizer and vermicomposting.

Loans of Agricultural Allied Activities

Loans are given for the setting up of Agriclinics and Agribusiness centers. Loans for food and Agro-processing startups and Bank loans given for Primary Agricultural Credit Societies(PACS), Farmers ‘Service Societies, etc.

Agriculture Loans Interest Rates

The agriculture loans interest rates start from 8% and above. Agriculture loans have special waivers and benefits that reduce interest rates. And these loans have many repayment options that very flexible and have the option to spread a long tenure for a comfortable repayment.

Banks in India that offer agriculture loans to Farmers

Read this: Dairy Farming Subsidy.

Crop Loans By Banks.
Crop Loans By Banks.
  • The State Bank of India:

SBI offers many schemes for farmers that include crop loans, Agricultural term loans, Kisan credit card scheme, Dairy plus scheme, Broiler Plus scheme, Krishi Plus scheme, Finance for Horticulture, Land Purchase scheme, Farm Mechanization scheme, Minor irrigation scheme, etc.

  • The ICICI Bank:

ICICI offers two types of credits one is Retail Agri Loans- Kisan Credit/Kisan Card and Agri term Loan-Long term loan for Agriculture and allied activities.

  • The HDFC Bank:

The HDFC Bank offers Crop Loans, Warehouse Receipt Financing, Retail Agri Loans-Kisan Card/Kisan gold card, Tractor Loans, Agri-Business Credit.

  • The Andhra Bank:

The Andhra Bank Offer Crop Loan- AB KisanSampathi, KisanKalaptaru schemes for farmers.

  • The Bank of Baroda:

The Bank of Baroda offers Baroda Kisan Credit Card-BKCC and Baroda KisanTakal schemes for farmers.

  • The Bank of Maharashtra:

The Bank of Maharashtra offers MahabankKisan Credit card, Minor irrigation Loan, Loans for farm Mechanization, Loans for Animal Husbandry, Loans for Horticulture and plantation activities, Financing for setting up Agri clinics and Agri-business centers, Scheme for Financing Farmers for Purchase of Land by Small and Marginal farmers, Maha Bank Kisan All Purpose Term Loan, MahabankKisan Tatkal scheme and MahabankKisan Gold scheme.

  • The Indian Overseas Bank:

IOB offers loans for Land Development, Minor Irrigation, Farm Mechanization, Plantation/Horticulture Crops, Loan for Allied Activities.

  • The Syndicate Bank:

The Syndicate Bank agricultural schemes are SyndKisan Tatkal, Synd Jai Kisan, SyndKisan Swarna, Syndicate Farm House scheme, Farm Mechanization scheme, Syndicate 2/3/4 wheelers scheme, Syndicate Kisan credit cards, Scheme for water harvesting, Syndkisansathi, etc.

  • The United Bank of India:

United Bank of India provides crop loans to meet all expenses involved in raising a particular crop including various agronomic practices.

  • The Axis Bank:

Axis Banks many loans to the farmer like gold loans, Loans for horticulture, Loans for rural godowns, Tractor Loans, Loans for contract farming, Ware House receipt loans, Micro Finance, and Kisan credit card.

  • The Vijaya Bank:

Vijaya Bank offers many loans to farmers they are Short Term Loans, Loans for traditional Plantation and Horticulture, Loans to Small and marginal farmers for purchase of land for agriculture, Loans for distressed farmers, loans for pre-Harvest and post-harvest activities,  Loans for purchase of farm machinery, Loans for purchasing agricultural implements and machinery, Loan for development of animal husbandry and Livestock farming, Loan for development of sericulture, loans of biogas plants.

  • The UCO Bank:

Loan schemes by UCO Bank: Loans for Tractors, Short Term Loans for cold storage units, Kisan Credit card, UCO Kisan BHOOMI VRIDI, UCO Kisan Tatkal Scheme, UCO Kisan All-purpose loan, Scheme for Solar irrigation pump set.

  • The Allahabad Bank:

Allahabad bank offers two types of credit schemes to farmers they are Akshay Krishi-Kisan Credit Card Scheme, Allahabad Bank Potato Growers Credit card scheme.

  • Oriental Bank of Commerce:

Oriental Bank of Commerce offers agriculture loans for Purchase of Land for agricultural purposes, Schemes for Purchasing agricultural equipment and machinery, scheme for financing to greenhouse and poly house, Schemes for purchasing land for agriculture, Kisan Credit card-Oriented Green card, Finances for Agricultural business centers and agricultural clinics, Schemes for agricultural allied activities.

  • And all the national banks offer agriculture loans at very low-interest rates.

Cooperative Banks That offer Agriculture loans

All the cooperative society banks of every state in India offer agriculture loans:

  • The Andhra Pradesh State Cooperative Bank Limited.
  • The Bihar State Co-operative Bank Limited.
  • The National Federation of State Co-operative Banks Limited.
  • The Punjab State cooperative agricultural Development Bank Limited.
  • The Haryana State Co-operative Bank Limited.
  • The National Bank for Agriculture and Rural Development.

And there are many private financial Institutes that offer loans at very low interest rates.

In case if you are interested in this: How To Grow Organic Lettuce.


  1. Hi,
    Dear sir
    I am Balaji Patil From Maharashtra
    I have agricultural Land, I want to Farm for fruits
    I need loan support from Banks,
    what is a process for that?

    Best Regards
    Balaji Patil.

  2. It is very interesting informations to know the ways and means to avail the resourses to get loan for Agri Farming, Water /Labour Management and Horticulture in my village.Kindly help me to get agri- loan from any SBI/Syndicate/HDFC Bank .

  3. Can any one avail help or assistance from any one to prepare proposal and for getting loan sanctioned for Agriculture & live stock term loan & working capital. Security is Agriculture land.

  4. Dear Sir,

    I am from Ibrahimpatnam, Ranga Reddy District , Telangana. I have 3 acres of agriculture land. I am looking for a crop loan. how much I can avail the loan as crop loan ?


  5. Hi, Im Taishi from Japan.
    Thanks for your rich information about agriculture loans in India.

    Adding to the yours, let me ask.
    How much rate is crop loan’s interest?
    According to yours, long-term loan’s interest is around 11%, and which is not burden compared to crop loan, right?
    If 11% interest seems to be lower, wondering how high loan interest for crop loan is.


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