4,80,000 people visited this section in last 30 daysApply Online

Get Cashback of Upto ₹ 1,000* on Personal Loan Apply Online

MyLoanCare Customer Ratings - 4.5/5.0 Apply Online

Agriculture Loan

Agriculture Crop Loan Details

Last Updated 27th Jul 2021

  • Agriculture loan is a loan facility offered to you, if you are employed in the agriculture sector to carry out agricultural activities.
  • Krishi loan requires minimum documentation and comes with multiple benefits.
  • Agriculture loan is offered in various forms such as Crop loan, Agriculture term loan, Loan for allied agricultural activities, Farm Mechanization loan, Solar pump set loan, Agriculture gold loan, Horticultural Loan and Forestry loan.
  • Agriculture farm loans or krishi loans are offered by various banks, financing institutions and Government-funded agencies.
  • Agriculture crop loan interest rate begins at 7.25%.
Apply for Personal Loan @ 10.25%* Get upto ₹ 1,000* Cashback

Agricultural Loan

Agriculture crop loan, or as popularly called Krishi loan, is a loan facility offered to you if you are employed in the agriculture sector to carry out agricultural activities such as purchasing agricultural land, purchasing farming and irrigation machinery, and purchasing fertilizers and seeds, among others. The fund attained through agriculture crop loans can be used for harvesting, ploughing, sowing, weeding, or transportation of agricultural products. The krishi loan is offered by lending institutions such as Banks, financing companies or Government-funded agencies.

Types of Loans in Agriculture

The agricultural loan is offered in various forms as listed below:

  • Crop Loan: Crop loan, also called as Kisan Credit Loan or Retail Agri Loan is a go-to retail loan for you to fulfil short term credit needs. The loan is offered through a Rupay card called Kisan Credit Card. The card can be used to withdraw funds from an ATM on a regular basis.
  • Agriculture Term Loan: Agriculture term loans are long term loans offered with extended loan tenures to existing customers of the bank, based on your credit score and repayment eligibility.
  • Loan for Allied Agricultural Activities: Agriculture crop loan is offered as a loan for allied agricultural activities, if you are looking out to fulfil working capital requirements. In addition to that, this loan can also be used to plan out long term investment options.
  • Farm Mechanization Loan: Farm mechanization loan is a crop loan type offered for the purchase or maintenance of machinery like tractors, or other irrigation products like dusters, power sprayers, etc.
  • Solar Pump Set Loan: This loan is offered for small agriculture projects, to enable the purchase of photovoltaic pumping systems. The loan is offered with a repayment tenure of up to ten years to ease out the prepayment of the borrowed amount.
  • Agricultural Gold Loan: Agricultural gold loan is a secured loan that can be availed by you by pledging your gold. The loan is offered on a lower interest rate and is ideal for arranging funds in times of need.
  • Horticultural Loan: Horticultural Loan is an agriculture farm loan offered for land development projects related to orchids or vegetable farms. The loan can be used to cover expenses such as fencing, setting up boundaries, and clearing wild plants and trees amongst others.
  • Forestry Loan: Forestry agriculture crop loan is offered for maintenance and raising of crops growing on trees. This loan is a multipurpose loan and can be used for converting barren fields into farms, for creating irrigation channels, or for clearing wild growth in the farms.

Agriculture Loan Interest Rate

Agriculture crop loan interest rates may vary across the agriculture loan scheme.You can calculate your EMI on an agriculture loan using the Agriculture loan calculator based on the crop loan rate offered.The lowest rates of some of the top lenders are listed as follows:

Bank Rate Of Interest
SBI 7.25%
Union Bank of India 7.30%
Axis Bank 8.85%
ICICI Bank 9.35%

Schemes For Agriculture Loan

Some of the agriculture loan schemes provided by top providers are:

Bank Name Agricultural Scheme Offered by the Bank
SBI
  • SBI Drip Irrigation Loan
  • SBI Combine Harvester Loan
ICICI Bank
  • ICICI Retail Agriculture Loan
  • ICICI Long term Agriculture Loan
Union Bank of India
  • Union Bank Crop Loan
  • Union Gold Loan
  • Union BioGas Loan
Axis Bank
  • Axis Kisan Power
  • Axis Kisan Matsya

Eligibility Criteria for Agriculture Loan

In order to avail of the agriculture loan, you are required to meet certain eligibility criteria, as listed below:

  • Your age must be 18 to 70 years of age.
  • You can apply for an agriculture loan either individually or jointly.
  • You are required to own a piece of land or have access to land for undertaking agricultural activities.

Documents Required for Agriculture Loan

Apart from meeting the agriculture loan, you are also required to fulfil the documentation requirement.List of crop loan documents is :

  • Agriculture loan application form
  • Identity proofs such as Aadhar cards, driving license, voter ID card and passport.
  • Address proofs such as utility bills, aadhar card, PAN card, and bank passbook, among others.
  • Ownership, lease letters or permission letters of the agricultural land.
  • Security post-dated cheques

Why Should You Apply for an Agricultural Loan?

The following features of agriculture loan are the reasons why you should apply for it:

  • Agriculture loans can be availed with minimal documentation.
  • The interest rates on agriculture crop loans are affordable and begin at 7.25%.
  • Agriculture loan comes with the facility of convenient repayment schedules as per the your preference.
  • Agriculture loans can be both secured and unsecured, depending upon your eligibility and the loan amount.
  • Agriculture loans can be borrowed for both short term and long term financial need.

Things to Consider While Applying for Agriculture Loan

It is important to keep certain things in mind while applying for an agriculture crop loan, as listed below:

  • Ensure meeting all the eligibility and documentation criteria.
  • Ensure maintaining a good repayment history and off regular EMIs and credit card bills.
  • Avoid applying for agriculture loans at multiple places.
  • Maintain a low Fixed Obligation to Income ratio, by ensuring that the EMIs do not eat up a large part of your monthly income.

Latest Budget 2021 Highlights

  • Key Agricultural announcements in budget 2021-2022

    Agriculture and Development

    • MSP has been increased to 1.5 times.
    • The number of wheat growing farmers benefited, increased to ₹ 43.36 Lakh compared to ₹ 35.57 Lakh in 2019-20.
    • For paddy, the amount paid in 2013-14 was ₹ 53,927 Cr. In 2020-2021, the amount paid for paddy increased to ₹ 1,72,752 Cr.
    • Agriculture infrastructure funds will be available for APMCs for augmenting their infrastructure.
    • 1,000 more Mandis to be integrated into the E-NAM marketplace.
    • Five major fishing hubs will be developed as hubs for economic activity.
    • Multipurpose seaweed park to be established in Tamil Nadu to promote seaweed farming.

FAQs

How many types of agriculture loans are there?

Types of agriculture loans are Crop loan, Agriculture term loan, loan for allied agricultural activities, Farm Mechanization loan, Solar pump set loan, Agriculture gold loan, Horticultural Loan and Forestry loan.

How can I get a Kisan Loan?

You can apply for a Kisan loan by applying it online or offline to any of the agriculture loan lenders. The eligibility criterion of the Kisan loan are as follow:

  • Age: 18 -75 years
  • All farmers – individuals/joint cultivators, owners are eligible
  • A co-borrower is mandatory where the borrower is a senior citizen.

What is the crop loan system?

Crop loan is a retail loan facility for fulfilling short term credit needs, offered through a Rupay card called Kisan Credit Card.You can use this card to withdraw funds from an ATM to meet regular agricultural costs.

What is Krishi Loan?

Krishi loan or agriculture crop loan is for people employed in the agriculture sector to carry out agricultural activities such as purchasing agricultural land, purchasing farming and irrigation machinery, and for purchasing fertilizers and seeds, among others.The loan is offered by top lenders such as SBI, Union Bank of India, etc.

How can I get an agriculture loan from SBI?

You can get an SBI agriculture loan by any of the below-mentioned ways:

  • By visiting your nearest SBI branch or
  • By applying for the loan online at the bank’s website.

Which bank is best for agricultural loans?

As per the current rates, SBI offers the lowest rate on agriculture loans at 7.25%.Further, Union Bank of India, Axis Bank, and SBI are other best banks for agricultural loans, based on interest rate.

What is the requirement for getting a farm loan?

Eligibility criteria for farm loan are listed below:

  • Age -18 to 70 years
  • Applicants are required to own a piece of land or have access to land for undertaking agricultural activities.

Mentioned below are the documents required for the agriculture loan:

  • Application form
  • Identity proofs
  • Address proofs
  • Ownership, lease letters or permission letters of the agricultural land.
  • Security post-dated cheques

What are the agricultural loan rates?

Agriculture crop loan rates, vary across all lenders. Currently the lowest rate on agricultural loan is 7.25%.

How much agricultural loan can we get without any security?

The agriculture loan amount without any collateral will depend upon the income and credit score of the borrower. Higher the CIBIL and income, higher the loan amount eligibility. CIBIL Score and income helps banks to gauge the repayment capacity of the borrower.

Can women avail agriculture loans?

Yes, women are allowed to avail the agriculture loan. In fact, there are certain agriculture loans that are specifically designed for women. Currently, SBI, Union Bank of India offers crop loans at the lowest interest rate of 7.25% and 7.30% respectively.


Notification ×
  • Home Loan

    Home Loan at all-time low rates starting at 6.65%. Cashback of up to ₹ 1,000.

    Apply Now
  • Personal Loan

    Instant Personal Loan starting at 10.25% with Cashback of up to ₹ 1,000 .

    Check Offers
  • Gold Loan

    Instant Gold Loan starting at 9.50% with Cashback of up to ₹ 500

    Apply Now
  • Loan Against Property

    Best Loan Against Property Offers starting @ 7.20%. Cashback of up to ₹ 1,000*.

    Apply Now
  • Business Loan

    Collateral Free Business Loan Rates starting at 14.00% with Overdraft facility.

    Apply Now
  • Fixed Deposit

    AAA rated FDs with returns as high as 6.95%.

    Invest Now
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
Loader
Please wait while your information is being processed...