About Agriculture Loans
Agriculture loans (Kisan Credit Card, Farm Loans) help farmers finance their agricultural activities, purchase equipment, seeds, fertilizers, and meet working capital needs.
Types of Agriculture Loans
- Crop Loan: For cultivation expenses (seeds, fertilizers)
- Farm Equipment Loan: For tractors, harvesters
- Kisan Credit Card: Revolving credit facility
- Warehouse Receipt Loan: Against stored produce
- Land Development Loan: For land improvement
Government Schemes
- PM-KISAN: Income support of ₹6,000/year
- Interest Subvention: 2% interest subsidy on crop loans
- Prompt Payment: Additional 3% incentive for timely repayment
- Loan up to ₹3 lakhs: Effective rate can be as low as 4%
Eligibility Criteria
- Farmers (owners/cultivators)
- Tenant farmers, sharecroppers
- Self-help groups, joint farming groups
- Land ownership documents required
- Age: 18-70 years
Key Features
- Interest rates: 4-12% (subsidized for small farmers)
- Tenure: 1-15 years based on loan type
- Collateral: Required for loans above ₹1.6 lakhs
- Processing fee: Usually waived for small farmers
- Insurance: Crop insurance available
Documents Required
- Land ownership documents
- Identity proof (Aadhaar, PAN)
- Address proof
- Bank statements
- Crop details and cultivation plan