Greenhouse Farming Loans, Subsidies, and Schemes
Today, let us discuss the Greenhouse Farming Subsidy, Loan, Schemes, and application process.
If you are searching for options to get an agriculture loan for Greenhouse or Polyhouse farming in India? This article will give complete information about subsidies and loan providers in India special for Greenhouse or Polyhouse farming.
In the case of Greenhouse or Polyhouse farming systems, it mainly implements floriculture and horticulture farming activity. And it demands upfront fixed capital investment for establishing the infrastructure.
And Greenhouse or Polyhouse farming also includes several other costs that need financial support for the successful establishment of a unit. In additional expenses includes the purchase of an electric motor with pump, tractor, and other equipment, and cost of digging wells or boring wells, installation charges for pipelines, drip irrigation system cost, planting fruit orchards, etc. And for all these, you need a strong finance source as an important aspect of starting an integrated farming business like Greenhouse or Polyhouse farming.
List of 10 Agriculture Loan Providers for Greenhouse:
State Bank of India (SBI) offer loans/financial assistance for the Greenhouse or Polyhouse farming business. In SBI bank, they provide loans for the development of Greenhouses, Polyhouses, and other integrated farming systems. And they also offer the short-term agricultural loan for the crops like banana, pineapple, Flowers in open and Greenhouses culture.
SBI provides an easy loan payment option, it starts after the completion of the gestation period varying from 4 to 7 years based on integrated farming systems (Greenhouse or Polyhouse). The loan Repayment period commences from the time you start earning incomes from the Greenhouse and is linked to the income generation of each crop every year and varies between 7 to 12 years. For the complete information related You will need to contact your nearest SBI branch for applying for the loan.
#2. Cent Polyhouse, Greenhouse, Shade Net House Scheme
The Central Bank of India is offering loans for Polyhouses, Greenhouses and other integrated farming systems. They provide complete financial assistance in undertaking protected farming of various high-quality commercial horticulture crops. They provide financing for Greenhouse/Polyhouse cultivation of crops like Flowers, Vegetables, Fruits, Medicinal Plants, Spices etc.
In case of this scheme from Central Bank of India, they offer loans for construction/erection of Greenhouses, Polyhouses, Shade Nets etc., they are providing financial assistance in the purchase and installation of equipment and working capital. The quantum of the loan is up to 80% of the project cost, the maximum loan limit is Rs.5.00 crore.
#3. Oriental Bank of Commerce
The OBC (Oriental Bank of Commerce) offers loans for construction of the Greenhouse and Polyhouse in India. They also offer financial support to purchase of equipment, machinery, and other supplements etc.,
The OBC bank asks for the hypothecation of Greenhouse/Polyhouse, machinery, and equipment as the primary security. And you also need to submit collateral security against your loan amount.
#4. ICICI Bank
ICICI Bank provides a wide range of loans for agriculture and the latest farming business. And you can use the overdraft loan options for the cost of cultivation and working capital activities for farming and allied activities.
ICICI offers two different types of finance facilities. One is Kisan Credit Card and Other is Agri Term Loan. In case KCC (Kisan Credit Card scheme) is a perfect daily basis scheme that provides financial assistance and the term for a long duration of time.
#5. Bank of Baroda
Bank of Baroda offer loans for Greenhouse and Polyhouse, If you have own land for cultivation, you can apply for the loan. Based upon the cost of project and subject to assessment as per bank, the bank approves the loan amount. And you can also avail a repayment time for a maximum of 15 years. And you must show enough income to the bank for repaying the installments.
#6. Reliance Money
Reliance Money is a new member of the private banking sector, it offers a wide range of loan for agriculture and allied activities. Reliance Money offer loans for:
- Loan for Agri and Food Processing units.
- Loans for Micro Irrigation units.
- Loans for Greenhouse /Horticulture/Cold Storage.
- It offers loans to Poultry/ Layer Units.
- Offer loans for Agri Equipment.
- It also offers loans for Dairy Units, Fisheries, Rice Mills, etc.
#7. IDBI Bank Agriculture Loan
The IDBI bank provides a wide range of loans for the development of the agriculture and allied industries in India. IDBI offers Crop Loans, Kisan Credit Card, warehouse finance, funding for agriculture land purchase, for building infrastructure etc.
The bank also offers financial assistance to individual farmers or group of the farmers for all agricultural Activities in the establishment/maintenance of Greenhouses/Polyhouses.
#8. HDFC Bank Agricultural Loan
HDFC bank offers different loan products, the bank provides crop loans, warehouse house, bill discount, and a current account.
The bank provides the term wise crop loans for the development of commercial horticulture (Greenhouse, Polyhouse or other integrated farming units). The bank at the initial steps will verify the project feasibility report before sanctioning the loan.
#9. Axis Bank Agriculture Loan
The Axis Bank offers horticulture loans, it helps the farmers with credit for the purchase of Inputs, machinery, Polyhouses, drip irrigation installation, domestic consumption, etc. The Axis has a wide branch network all over India, So you can contact the nearest branch for getting further details.
#10. Union Bank of India
The Union Bank of India (UBI) offers to fund for a Greenhouse project in the name of “Union Biotech. The main aim of this scheme is to provide financing for setting up Polyhouses, Greenhouse or other integrated farming units on a commercial scale.
To avail this loan, you can apply online. You can also visit the bank branches to apply for the agriculture loan for Greenhouse or Polyhouse. We hope this list of loan providers will help you in getting the funding assistance.
Government Subsidy for Greenhouses in India:
- In India, there are Government Boards and schemes under which subsidies are provided for agriculture.
- For Greenhouse based agriculture/ horticulture also there are subsidies provided by various boards under many schemes.
- The subsidies are in the form of soft loans or back-ended subsidies on total project cost.
- Special subsidies like back ended interest subsidies are also provided.
- As we know Agriculture is a primary sector of the economy, and so even bank loans are available for the same at lesser interest rates and easy repayment.
Greenhouse Subsidy Pattern
- National Horticulture Board (NHB) is a Body of Government of India, which provides 50% subsidy on a project cost of 112 Lakhs maximum ceiling per farmer/ beneficiary.
- Additionally, Gujarat Agro Industries Corporation (GAIC) provides an additional subsidy of 6% on bank loan interest to a maximum ceiling of 4 Lakhs.
- The National Horticulture Mission (NHM) which is a mission scheme of the government, which provides a subsidy of 50% of the project cost of 36 Lakhs as a maximum ceiling. To this, additionally, every state has their own scheme (SHM) State Horticulture mission, where a top-up subsidy of 15% – 25% or more depending on state government policy may be provided on the 50% provided by NHM.
- Farmer/ Entrepreneur can avail any one of these subsidies under one beneficiary name, whichever is suitable to him or her.
Greenhouses Projects without subsidies
- At the beginning of hi-tech agriculture projects in India in the 1980s, there were no soft loans, no subsidies and no support of any kind.
- Projects at that time were self-financed and were of larger scale.
- We have seen such project perform very successfully and prove it by its presence even today.
- Today the scenario has changed. There are schemes and subsidies available. Soft loans are available.
- The demand and supply gap is also going up rapidly.
- There will be high Income and demographic changes between 2010 and 2050. Which leads to price increases that range from 10.8 percent for rice in the optimistic scenario to 53.9 percent for maize in the pessimistic scenario. Thus, the need for Greenhouses is going to increase by multiples of tens.
- The right method and planning are very important.
- Projects even without any subsidy can become successful if planned in the correct method.
How to Apply for Greenhouse Subsidy
- The Indian government is promoting Greenhouse farming in all states of India by offering subsidies for Greenhouse farming through the horticulture department.
- The government agricultural departments provide subsidy up to 50%-60% of the project cost of the Greenhouse. The subsidy percentage varies with the state to state.
- Or subsidy-related information, read guideline NHM& NHB website or contact the nearest government agriculture office they guide you.
Greenhouse Schemes from Dept. of Agriculture & Cooperation, Min. of Agriculture, Govt. of Indian horticulture Infrastructure (Green, Polyhouse, Structure etc.)
|Horticulture Infrastructure (Green, Polyhouse, Structure, etc.)||Greenhouse, Fan & Pad System (limited to 4000 sq. m per beneficiary)||50% of the cost (15% higher in hilly areas), Rs. 700/- to 825/- per sq./m.||Sub Schemes of NHM & HMNEH under MIDH|
|Naturally Ventilated System (Maximum 4000 sq. m per beneficiary)||50% of the cost (15% higher in hilly areas),|
(i) Rs. 422/- to Rs. 530/- per sq. m. Tubular structure
(ii) Rs. 270/- per sq. m. Wooden structure
(iii) Rs. 225/- per sq. m. Bamboo structure
|Sub Schemes of NHM & HMNEH under MIDH|
|Shade Net House: Tubular structure (Maximum 1000 sq. m per beneficiary)||50% of the cost (15% higher in hilly areas) up to Rs. 355/- per sq. m||Sub Schemes of NHM & HMNEH under MIDH|
|Bamboo & Wooden Structure (Maximum 200 sq. m per beneficiary limited to 5 units)||50% of the cost (15% higher in hilly areas), Rs. 180/- and Rs. 246 per sq. m. for bamboo and wooden structures respectively.||Sub Schemes of NHM & HMNEH under MIDH|
|Plastic Mulch||50% of the cost (15% higher in hilly areas) up to Rs. 16,000/- ha.||Sub Schemes of NHM & HMNEH under MIDH|
|Plastic Tunnel: (Maximum 1000 sq. m/ beneficiary)||50% of the cost (15% higher in hilly areas) up to Rs. 300/- per sq. m||Sub Schemes of NHM & HMNEH under MIDH|
- The bank loan sanctioned letter will be issued by the bank with complete terms & condition
National Horticulture Board subsidy norm:
|(a) Fan & Pad System||Rs. 1400/Sq.m and Rs. 1610/Sq.m for hilly areas||50% cost for 2500 Sq.m|
|(b) Naturally Ventilated Systems|
|Tubular Structure||Rs. 844/Sq.m and Rs 970 /Sq.m for hilly areas||50% cost for above 2500 Sq.m|
|Wooden Structure||Rs. 540/Sq.m an Rs. 621/Sq.m for hilly areas||50% cost for above 2500 Sq.m|
|Bamboo Structure||Rs. 450/Sq.m an Rs.518/Sq.m for hilly areas||50% cost for above 2500 Sq.m|
National Horticulture Mission subsidy norm:
|(a) Fan & Pad System||Rs. 1650/Sq.m (up to area 500 Sq.m)|
Rs. 1465/Sq.m (>500Sq. m up to 1008 Sq.m)
Rs.1420 (>1008 Sq.m up to 2080 Sq.m)
Rs.1400/Sq.m (>2080 up to 4000 Sq.m)
The above rates will be 15% higher for hilly areas
|50% of the cost for a maximum area of 4000 Sq. per beneficiary|
|(b) Naturally Ventilated Systems|
|Tubular Structure||Rs. 1060/Sq.m (up to area 500 Sq.m)|
Rs. 935/Sq.m (>500Sq.m up to 1008 Sq.m)
Rs.890 (>1008 Sq.m up to 2080 Sq.m)
Rs.844/Sq.m (>2080 up to 4000 Sq.m)
Above rates will be 15% higher for hilly areas
|50% of the cost for a maximum area of 4000 Sq.m per beneficiary|
|Wooden Structure||Rs. 540 sq.m and Rs. 621 sq.m for hilly areas.||50% of the cost for the maximum area of 4000 Sq.m per beneficiary|
Read: Hydroponic Growing System.