Agricultural loan

About Agricultural loan

Agricultural loans are availed by a farmer to fund seasonal agricultural operations or related activities like animal farming, pisci-culture or purchase of land or agricultural tools. This type of loan also helps buying inputs such as fertilizers, seeds, insecticides etc. and engaging labour for cultivating and harvesting the crops. 

In addition, purchasing of land, or purchasing of agricultural tools, storage of produce and transport, cost of ploughing land for sowing, weeding, and transplantation also are included under purview of agricultural loans. Farmers can avail an agricultural loan starting at 7% p.a. and with processing fee ranging between zero to 4% of the loan amount.


Types of Agriculture Loan

Crop Loan: These types of loans are also known as Retail Agri Loans is a type of loan which allows a farmer to meet his short-term expenses arising due to cultivation of crops, maintenance of farm equipment, and other post farm activities. The farmer gets a credit card on availing this type of loan which they can use to withdraw money to make necessary purchases to meet their farming needs.

Agricultural Term Loan: These are long term loan schemes which a farmer can avail to meet their non-seasonal expenses. One can avail this loan to buy or upgrade equipment such as windmills, solar power, etc. The repayment tenure for such kind of loan schemes can go up to 4 years allowing the farmer to repay the amount in a convenient manner.

Solar Pump Set Loan: If a farmer is involved in small irrigation projects and require capital to buy photo voltaic pumping system, then availing a solar pump set loan is the appropriate option. The repayment tenure for such loan schemes go up to 10 years

Loan for Allied Agricultural Activities: Farmers involved in allied agricultural activities can apply for such type of loans if they need to raise working capitals to meet their farming expenses.

Farm Mechanisation Loan: If a farmer requires working capital so that they can either purchase new farming machineries or upgrade their existing ones such as purchasing a new tractor or getting an old one repaired, then they can apply for these types of loan schemes


Other types of loans


Agricultural Gold Loan: The applicant can avail this type of loan by pledging their gold ornament as security. The loan amount can be used to meet various farming expenses such as buying machineries or to meet cost related to cultivation of crops. These types of loans are generally offered at a low interest rate and also allows a farmer to use their gold which would otherwise stay idle.

Forestry Loan: If a person is involved in growing crops which grows on trees, then they can apply for a forestry loan. The loan amount can be used to meet the cost of activities such as converting a barren land into a farming land, setting up irrigation channels, clearing wild trees, etc.

Horticultural Loan: Farmers involved in setting up vegetable farms and orchards can apply for a horticultural loan which not only allows them to meet the cost of managing such type of farms, but also helps in meeting the expenses related to other horticulture activities such as clearing wild trees, setting up fence, etc.

Features of Agricultural loan

Easy loan Repayment

100% Transparency

Quick approval

Eligibility Criteria

  • You must be a Salaried Employee
  • Age: 20-50 years old
  • Net Monthly Income must be more than $1000.
  • No defaults in the last 24 months.