Loan directory
The kinds of farm credit that exist, what each one is for, and what to carry to the branch.
There are no interest rates and no loan amounts anywhere on this page. Both move, both differ by branch and by borrower, and a stale number here would be worse than none. Ask the branch for its rate in writing.- Kisan Credit Card
A running credit limit for the season's costs. You draw what you need, repay after harvest, and the limit stays open for the next season.
- Carry
- Identity and address proof, Land records, or the tenancy paper your state accepts, Passport photographs, The crop you plan to sow and the area
- Where
- Any commercial bank branch, regional rural bank or cooperative bank where you can open an account.
- Watch out
- The limit is worked out from your area and your crop, not from what you ask for. Repay inside the season to keep the low rate, because the incentive for repaying on time is the cheapest part of the whole arrangement.
Running limit - Kisan Credit Card for animal husbandry and fisheries
The same running limit, for working costs in dairy, poultry, goats or fish rather than crops.
- Carry
- Identity and address proof, Proof that you keep the animals or run the pond, such as a veterinary or fisheries department record, Passport photographs
- Where
- The same banks that issue a crop Kisan Credit Card. Ask specifically for the animal husbandry and fisheries version.
- Watch out
- This covers running costs such as feed and medicine. Buying the animals themselves is a term loan, and the 2 are often sanctioned together.
Running limit - Agriculture term loan
A single amount for one purchase or one piece of work, repaid in instalments over several years.
- Carry
- Identity and address proof, Land records, A quotation for what you are buying or an estimate for the work, Bank statements
- Where
- Your own bank branch first, because they can see your account history.
- Watch out
- The repayment schedule should follow your harvest, not the calendar. Ask for instalments timed to when money actually reaches you.
One amount - Dairy and animal husbandry loan
A term loan for buying animals or building a shed, usually with a working capital limit alongside it.
- Carry
- Identity and address proof, A quotation for the animals or an estimate for the shed, Proof of where the animals will be kept, Your milk society membership, if you have one
- Where
- Bank branches, and cooperative banks where your milk society already banks.
- Watch out
- Ask whether the loan expects you to insure the animals. Most do, and the premium belongs in your own sums from the start.
One amount - Loan against a warehouse receipt
Money against produce you have stored in an accredited warehouse, so you can hold the crop instead of selling into a low market.
- Carry
- The negotiable warehouse receipt, Identity and address proof, The storage and quality certificate from the warehouse
- Where
- Banks that accept negotiable warehouse receipts. The warehouse itself will tell you which ones it works with.
- Watch out
- Storage costs money every month you hold. Work out the storage and the interest together before you decide the wait is worth it.
One amount - Joint liability group loan
A loan to a small group of farmers who guarantee each other, made for people who farm land they cannot show papers for.
- Carry
- Identity and address proof for every member, A group agreement, A cultivation certificate or affidavit accepted in your state
- Where
- Banks, regional rural banks, and the NABARD supported groups your block office can point you at.
- Watch out
- Every member is answerable for the whole amount. Pick the group carefully, because one person defaulting is everyone's problem.
One amount - Agriculture gold loan
Money against gold you already own, sanctioned quickly because the security is in the bank's hands.
- Carry
- Identity and address proof, The gold itself, for valuation, Land records, where the bank offers the agriculture rate
- Where
- Bank branches. Ask for the agriculture rate rather than the ordinary gold loan rate.
- Watch out
- This is the fastest money and it is also the easiest to lose. If you cannot repay, the gold goes. Use it for something that will earn the repayment.
One amount
Not sure which one
The loan checker asks 4 questions and narrows this list down to the 2 or 3 worth asking about. The instalment calculator works out what a term loan costs a month once you have a rate from the branch.