Categories: Finance

Agriculture Loan Interest Rates Across Various Banks in India

Agriculture Loan Interest Rates Across Various Banks in India

 

Features and Benefits of Agriculture Loans

The key features and benefits of agriculture loans are as follows:

  • Simplified Documentation: When borrowing an agriculture loan, applicants will only have to submit a few documents such as a valid photo identity proof, proof of residence, etc. These documents can be submitted along with one’s application form.
  • Quick Processing: Lenders will verify your application form and the documents submitted by you, after which your loan application will be approved. The loan amount will be disbursed to your account soon after this.
  • Competitive Interest Rate Charged: Banks and financial institutions that offer agriculture loans charge a competitive rate of interest that start as low as 8.80% p.a. Borrowing a loan with such a low interest rate can help you keep the overall cost of your loan down.
  • Loan Repayment Tenure Options: Many agriculture loan providers offer short- and long-term credit solutions. Thus, based on your financial requirements and repayment capacity, you can opt for a loan product that offers a suitable product term.
  • No Hidden Charges: When you borrow an agriculture loan, you may need to pay other charges such as the processing fee, pre-payment charges, etc. However, lenders will usually inform prospective borrowers about the various charges that they may have to pay for before the loan is borrowed.

Documents Required for Agriculture Loans

The documents that you may be asked to submit at the time of applying for an agriculture loan are as follows:

  • Duly filled application form
  • KYC documents
  • Land/asset documents
  • Security PDC
  • Any other document mandated by the lender

Eligibility Criteria to Borrow an Agriculture Loan

The eligibility criteria to borrow an agriculture loan will vary based on the type of loan scheme that you opt for. The generalised eligibility criteria, however, are as follows:

  • The applicant must be between 18 and 70 years.
  • The individuals will have to own the necessary assets, which will need to be hypothecated to the bank once the loan is borrowed.
  • Loans can be applied on an individual basis or joint basis, based on the lender’s terms and conditions.
Bank Interest Rate Processing Fee
State Bank of India 9.75% p.a. onwards 0% p.a. to 0.35% p.a. of the loan amount
IDBI Bank At the discretion of the bank At the discretion of the bank
IndusInd Bank 7.00% – 14.00% p.a. 2% of the loan amount + GST
Central Bank of India 7.00% p.a. onwards Up to 0.30% of the loan amount
Karur Vysya Bank 10.70% p.a. At the discretion of the bank

Sorts of Farming Loan
Given underneath is the rundown of kinds of horticulture advances that you can profit for yourself:

Crop Credit: These sorts of credits are otherwise called Retail Agri Credits is a kind of advance which permits a rancher to meet his momentary costs emerging because of development of harvests, support of homestead hardware, and other post ranch exercises. The rancher gets a Mastercard called the Kisan Visa on profiting this sort of credit which they can use to pull out cash to make essential buys to meet their cultivating needs.
Horticultural Term Credit: These are long haul advance plans which a rancher can profit to meet their non-occasional costs. One can benefit this credit to purchase or overhaul hardware like windmills, sun based power, and so on. The reimbursement residency for such sort of credit plans can go as long as 4 years permitting the rancher to reimburse the sum in a helpful way.
Sun oriented Siphon Set Credit: On the off chance that a rancher is engaged with little water system projects and expects funding to purchase photograph voltaic siphoning framework, then benefiting a sun based siphon set credit is the fitting choice. The reimbursement residency for such advance plans goes as long as 10 years.
Advance for Unified Horticultural Exercises: Ranchers engaged with associated rural exercises can apply for such kind of credits assuming that they need to raise working capitals to meet their cultivating costs.
Ranch Motorization Credit: In the event that a rancher requires working capital so they can either buy new cultivating hardware or update their current ones like buying another farm vehicle or getting an old one fixed, then they can apply for these kinds of advance plans.
Different sorts of advances

Rural Gold Credit: The candidate can profit this sort of advance by promising their gold adornment as security. The advance sum can be utilized to meet different cultivating costs like purchasing hardware or to meet costs connected with development of yields. These credits are presented at a low financing cost and permit a rancher to utilize their gold which would somehow remain inactive.
Ranger service Credit: On the off chance that an individual is engaged with developing yields which develop on trees, they can apply for a ranger service advance. The credit sum can be utilized to meet the expense of exercises, for example, changing over a fruitless land into a cultivating land, setting up water system channels, clearing wild trees, and so on.
Plant Credit: Ranchers engaged with setting up vegetable homesteads and plantations can apply for a green credit which not just permits them to meet the expense of overseeing such sort of ranches, yet additionally helps in gathering the costs connected with other cultivation exercises like clearing wild trees, setting up wall, and so on.

Features of the Break Association Financial plan 24-25 With regards to Farming
The features of the Break Association Spending plan 2024 as far as horticulture are given beneath:

Horticulture given a financial plan of about Rs.1,27,470 crore in India’s break financial plan for 2024-2025
In affirmation of the imperative significance of agribusiness, the break association spending plan has reserved Rs.1,27,469.88 crore for the Service of Farming. Inside this designation, the Branch of Farming gets Rs.1,17,528.79 crore, while the Division of Agrarian Exploration and Training (DARE) is apportioned Rs.9,941.09 crore.

Focus for agribusiness credit of Rs.20 lakh crore
The horticulture credit target has been expanded to Rs.20 lakh crore Meanwhile Financial plan 2024-2025, with an emphasis on government assistance drives for ranchers. Subsidizing for the Horticulture Gas pedal Asset, presented in Spending plan 2023-24, keeps on supporting rustic business people and rural new companies, elevating creative answers for cultivating difficulties and modernizing agrarian practices for further developed efficiency and benefit.

Distribution for the PM Kisan Samman Nidhi stays unaltered at Rs.60,000 crore, giving direct monetary help to 11.8 crore peripheral and little ranchers.

Cash put away for PMFBY’s proceeded rollout
Recognizing the difficulties experienced by ranchers, the proceeded with execution of the Pradhan Mantri Fasal Bima Yojana (PMFBY) has been dispensed assets. This yield protection drive means to offer security to four crore ranchers, defending them from startling occasions like unfavorable weather patterns. The Public authority is committed to working on the viability of harvest protection by improving mindfulness and availability in country districts, subsequently animating development in the protection area.

Addressing post-gather misfortunes through open confidential organizations to improve framework and storage spaces
India wrestles with significant post-collect misfortunes, adding up to 5-13% for foods grown from the ground and 3-7% for different harvests yearly, bringing about an expected deficiency of Rs.1,52,000 crore. To handle this major problem, the financial plan highlights the significance of public-private organizations to redesign framework and storerooms. By moderating misfortunes, India can support food security and animate generally monetary development.

1361 mandis are coordinated into e-NAM
India’s farming area is going through a computerized transformation, exemplified by the mix of extra mandis with the e-NAM stage. The electronic Public Rural Market (e-NAM) fills in as a container India exchanging gateway, merging different State-run Farming Produce Showcasing Panels (APMCs) mandis. The break financial plan means to coordinate 1,361 mandis, extending an expansion in exchanging volumes to Rs.3 lakh crore 2024-2025, helping 1.8 crore ranchers. This drive addresses a huge step towards laying out a more productive and straightforward farming business sector framework.

Some of the banks who provide Agriculture Loan in India

Name of the bank Agriculture loan schemes offered
State Bank of India
  • Crop Loan
  • Kisan Credit Card
  • Multipurpose Gold Loan
  • Tractor Loan
  • Combine Harvestor Loan
  • Drip Irrigation Loan
  • Dairy Loan
  • Poultry Loan
  • Fisheries Loan
  • Produce Marketing Loan
  • Setting up of Agri Clinic and Agri Business Centres
  • Land Purchase Scheme
  • SBI Krishak Uthan Yojana
  • Scheme for Debt Swapping of Borrowers
National Bank for Agriculture and Rural Development (NABARD)
  • Capital Investment Subsidy Scheme for Commercial Production Units for organic/ biological Inputs
  • Agriclinic and Agribusiness Centres Scheme
  • National Livestock Mission
Karur Vysya Bank
  • Green Card / Green Card Plus (Kisan Card)
  • Green Harvester
  • Green Trac
  • Warehouse Receipt Loan
  • Jewel Loan
  • Kisan Tatkal
  • Green Car
  • Loans for Horticulture Projects
  • Two-Wheeler Loan
  • Dairy Loan
  • Poultry Loan
  • Pisciculture Loan
  • Loans for SHG-JLG
IndusInd Bank
  • Production Loan (CC)
  • Investment Loan (TL)
  • Hi-Tech Agriculture (OD)
  • Hi-Tech Agriculture (TL)

 

 

 

 

FAQs on Agriculture Loan

  1. Can a loan be availed for purchase of land?Yes, banks do extend loans to farmers for purchasing lands. However, banks usually finance purchase of land within a radius of 3 to 5 Kms of their residence or within village boundary.
  2. Can I pre-close my agriculture loan before the completion of the loan tenure?Most lenders will allow you to prepay the outstanding loan balance and pre-close the loan amount before the completion of the loan tenure. However, you may need to pay a pre-closure penalty to the lender.
  3. What are the different stages involved in the process of availing an agriculture loan?The key stages involved in the process of availing an agriculture loan are as follows:
  4. What are the different stages involved in the process of availing an agriculture loan?Submission of application form and relevant documents Lender processes the application Loan amount is sanctioned Loan amount gets disbursed into the customer’s savings account
  5. How long do lenders take to process agriculture loan applications?The time required to process your application will vary based on the lender’s terms and conditions. That said, most lenders take around 7 days to process loan applications.
  6. Will I need a guarantor to avail an agriculture loan?Yes, most lenders will require you to have a guarantor.
  7. Who can apply for such land purchase?Farmers who own less than 2.5 acres of irrigated land or 5 acres of non-irrigated land, i.e-marginal and small farmers-are eligible to buy land by availing a bank loan. Sharecroppers and tenant farmers can also be covered under the scheme.
  8. Can loans be availed for purchasing land in the name of women?Yes, it is possible. As per Govt policy women owning land could lead to their empowerment. Hence, purchase of land in women can be financed and preference can be given to women in distress, SHG members and widows etc.
  9. What are the other allied activities eligible for agricultural loans?In addition, purchasing of land, or purchasing of agricultural tools, storage of produce and transport also are included under purview of agricultural loans.
  10. How much agricultural loan can be availed without any security?As per RBI directive, crop loans to an amount of Rs.1 lakh require no security. Loans over Rs. 1 lakh may require security as per the lending bank’s terms and conditions.

Disclaimer:Sourced from various internet sources so verify accordingly on your end , for informational purposes only

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